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Governments Around the World Changing Stance on Cannabis Legalization
FinancialBuzz.com News Commentary
NEW YORK, March 6, 2019 /PRNewswire/ --Before the twentieth century, cannabis was used as a sort of medicine to treat asthma, coughs, migraines, and insomnia. However, due to the psychoactive effects of tetrahydrocannabinol, or the THC-derivative, cannabis became illegal and was removed from the list of registered medicines. Now, cannabis is rapidly emerging around the globe as countries begin to reverse the laws and legalize its medicinal use again. While most countries are exploring opportunities within the medical cannabis sector, the proliferation of recreational cannabis is rapidly spreading throughout the western hemisphere of the world. Currently, the U.S. and Canada dominate the recreational sector, however, countries in Latin America are also looking to legalize cannabis for adult-use. The series of countries moving towards legalization is also part of the cause of this explosive market, as demand pours in from around the world. According to data compiled by Zion Market Research, the global legal marijuana market was valued at approximately USD 16.71 Billion in 2017 and is expected to generate revenue of USD 62.96 Billion by 2024. Additionally, the market is expected to exhibit a CAGR of 21% during the forecast period from 2018 to 2024. Biome Grow Inc. (OTC: BIOIF) (CSE: BIO), General Cannabis Corp. (OTC: CANN), Emblem Corp. (OTC: EMMBF) (TSX-V: EMC), The Supreme Cannabis Company (OTC: SPRWF) (TSX-V: FIRE), Terra Tech Corp. (OTC: TRTC)
Recently, Canada became the second country and first G-7 nation to legalize cannabis entirely, joining Uruguay in an exclusive club. Canada's legalization has also encouraged other countries to follow in its steps and enter into the cannabis marketplace. Despite only two countries having legalized cannabis entirely, there are still multiple nations that have adopted medical cannabis legislation such as the United Kingdom, Italy, Germany, Colombia, Brazil, and Australia. Nevertheless, the global industry still remains within its infancy stage, and countries like Canada and the U.S. are helping the industry grow. "Canada has just become the first major economy to legalize adult-use cannabis federally, giving domestic players a first-mover advantage to supply and serve international markets," said the Canadian branch of PricewaterhouseCoopers, "Canadian licensed producers (LPs) have a unique opportunity to establish a global leadership role in the industry at a time when many jurisdictions are considering legalizing cannabis. In fact, Canadian businesses have the opportunity to influence foreign policy development thanks to this country's leadership position on cannabis. Already, most of the prominent Canadian companies have invested in countries with strong medicinal markets – including Australia, Israel and Germany – and some have set their sights on investments in Columbia, Jamaica and South Africa (primarily through Lesotho), to name just a few locations."
Biome Grow Inc. (OTCQB: BIOIF) (CSE: BIO) also listed on the Canadian Securities Exchange under the ticker (CSE: BIO). Earlier last month, the Company announced, "a Memorandum of Understanding ("MOU" or the "Agreement") providing Biome with preferential access to a high quality and low cost supply of Cannabidiol ("CBD") concentrate from CBD Acres Manufacturer Inc. ("CBD Acres").
The MOU is for a period of five years pursuant to which Biome may acquire up to 20,000 kilograms per year of sun-grown, hemp-based CBD extract from CBD Acres using its unique Nano lipid, solventless extraction process.
CBD Acres is founded by Canadian hemp farming pioneer, Mark Gobuty, who is also the founder of the Peace Naturals Project, Canada's first Marijuana for Medical Purposes Regulations licensed cannabis grower. CBD Acres is currently working with 4,500 acres of hemp farmland in Canada, including 1,000 acres of organic grow, which it expects to produce volumes that are equivalent to a 180 million square foot indoor cannabis production facility under the Canadian Cannabis Act.
'Through this Agreement Biome is demonstrating a cannabis company can offer significant quantities of high-quality product at industry disrupting economics with a made in Canada product. This can also be accomplished without spending substantial capital to build internal production facilities. Moreover, Biome will now be in a position to supply both its domestic and international customers with affordable medicinal and therapeutic products based on CBD in the volumes that are required.'
'CBD Acres is thrilled to have the visibility of a long-term partner for its bulk products business entering the market in the second half of 2019, and more importantly a strategic partner focused on commercialization in key medical-CBD markets, allowing CBD Acres to focus on growing and extraction innovation as well as its consumer products business,' said CBD Acres CEO Mark Gobuty.
Biome is considered a "related party" to CBD Acres as such term is defined in Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101") on the basis that Jacob Capital Management Inc., a significant shareholder in the capital of the Company, is also a significant shareholder in the capital of CBD Acres. However, due to the service-type nature of the arrangement with no commitment or obligation for Biome to utilize the service provided by CBD Acres or to acquire an asset or assets from CBD Acres, the MOU is not considered to be a "related party transaction" as defined under MI 61-101."
For our latest "Buzz on the Street" Show featuring Biome Grow Inc. recent corporate news, please head over to: https://www.youtube.com/watch?v=RluTAMEejwY
General Cannabis Corp. (OTCQX: CANN) is the comprehensive national resource for the highest quality service providers available to the regulated cannabis industry. General Cannabis Corp (OTCQX: CANN), the comprehensive national resource to the regulated cannabis industry, recently announced an investment in Consolidated C.R., LLC, a Puerto Rico limited liability company. The Company is investing USD 375,000 in the form of a convertible promissory note, bearing interest at 12%, collateralized by virtually all of the assets of CCR, with a term of 18 months. The Company has a 90 day option to convert USD 250,000 of principal under the note into a 10% equity ownership in CCR. CR is a vertically integrated medical cannabis company located in San Juan, Puerto Rico. The CCR management team consists of industry experts with success in mainland cannabis businesses. Additionally, CCR's management is comprised of attorneys and business executives with a passion for cannabis and a vast knowledge of regulated industries. CCR has built a strong, local network and maintains valuable industry connections throughout the island, providing a solid foundation for launching and operating a successful cannabis business in Puerto Rico. "This investment marks the continued expansion of our finance division, dedicated to supporting entrepreneurs' success in regulated cannabis markets," said Michael Feinsod, Chairman and Chief Executive Officer of General Cannabis. "Having known members of the CCR team from working in Colorado, Oregon and Nevada, we are eager to support, and potentially partner, in the Puerto Rico cannabis market."
Emblem Corp. (OTCQX: EMMBF) (TSX-V: EMC) is a fully integrated cannabis company focused on driving shareholder value through product innovation, brand relevance, and access to patient and consumer channels. Emblem Corp., through its wholly-owned subsidiary Emblem Cannabis Corporation, recently announced the launch of a new line of 10mg Emblem Oil Capsules, providing its growing list of 6,000+ patients with a pre-dosed treatment format. This convenient capsule formulation is designed to help patients better manage their treatment through precise dosing of their cannabis medication. The 10mg Emblem Oil Capsules offer a consistent patient experience formulated with three chemovar specific formats – High THC (10mg THC per capsule), High CBD (10 mg CBD per capsule) and Balanced (6mg THC/10 mg CBD per capsule). "Patient-focused treatment options are key drivers of Emblem's innovation pipeline. As a patient-first provider, we're continuing to develop products that meet our patients' needs now and into the future," said Nick Dean, Chief Executive Officer, Emblem Corp. "Accessing a variety of distribution channels is also a critical factor in our business strategy, and we are pleased to offer our medical cannabis products direct to patients through www.emblemcannabis.com, and soon through our supply agreement with Shoppers Drug Mart, which recently received its Federal Medical Sales License."
The Supreme Cannabis Company (OTCQX: SPRWF) (TSX-V: FIRE) is a Canadian publicly traded company committed to providing premium brands and products that proudly reflect its consumers, people and uniquely innovative culture. The Supreme Cannabis Company, Inc. recently announced that its wholly-owned subsidiary, 7ACRES, has obtained Health Canada approval to begin cultivating approximately 30,000 sq. ft. of additional flowering rooms at its facility in Kincardine, Ontario. Concurrent with flowering room approvals, 7ACRES also received licensing approval for production space designated for plant micropropagation. Supreme Cannabis is commencing cannabis micropropagation services at the 7ACRES facility to bring additional agricultural sciences to 7ACRES' high-quality cannabis production. "Scaling our 7ACRES facility is a top priority and today's announcement is another significant step forward towards completing that goal," said John Fowler, President and Founder of Supreme Cannabis. "7ACRES-branded dried flower has received enthusiastic reviews from consumers across Canada. With this additional production capacity, we'll be able to better satisfy the demand from cannabis enthusiasts coast-to-coast."
Terra Tech Corp. (OTCQX: TRTC) operates through multiple subsidiary businesses including: Blüm, IVXX Inc., Edible Garden, and MediFarm LLC. Terra Tech Corp. recently announced it has completed the renovation of its cultivation facility located on West Grand Avenue, Oakland, in California. One of the goals of the facility will be to research and develop various cultivation techniques to optimize efficiencies and crop yields. Planting of new crops is expected to commence later this week and all cannabis cultivated at the facility will be sold under the Company's premium IVXX™ brand to California's medical and adult-use markets. The newly renovated facility features an upgraded power capacity to allow for more output and a larger vegetation room to support the cultivation of a greater variety of cannabis strains. The rooms are redesigned to incorporate better environmental controls, therefore improving the Company's ability to cool and dehumidify the rooms and minimize the risk of mold growth. The facility is equipped with a total of 112 high pressure sodium light bulbs (28 bulbs per room) capable of flowering 1,120 pounds of cannabis a year. It also has 18 LED flowering lights that allow for more efficient and environmentally sustainable cultivation. After perfecting the LED lights growing style, Terra Tech aims to convert the facility to 100% LED flowering lights. Derek Peterson, Chief Executive Officer, said, "The renovation and upgrade of our cultivation facility in Oakland, California, which is located next to our Blüm, Oakland dispensary, provides expanded capacity to support sales growth of our IVXX™ cannabis products in California. This state-of-the-art cultivation facility is designed to enable us to cultivate a greater variety of cannabis strains and explore various growing styles in order to create high quality products at maximum efficiency, to make us more profitable growers."
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