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U.S. CBD Hemp Product Revenues Predicted to Surge Over the Next Few Years
PALM BEACH, Florida, July 23, 2019 /PRNewswire/ -- There is a lot of anticipation and optimism surrounding the medical and recreational marijuana markets revenues but the hemp/CBD market should not be ignored. A recent report from a respected industry source, BDS Analytics says that the collective market for CBD sales is expected to exceed $20 billion in the United States by 2024. This pretty much supports the reports from another industry respected source, The Brightfield Group, which has previously projected that the: "Hemp CBD Market to Reach $22 Billion By 2022: Outpacing the Rest of the Cannabis Market Combined". It is important to understand that CBD is derived from both marijuana and hemp. One industry publication describes the difference as follows: "It is the distinction between CBD derived from marijuana and CBD from hemp oil that sets them apart. Marijuana is harvested for its buds, which contains psychoactive properties known to produce stoned effects. When it comes to hemp, the stalks and seed are the targets of this crop. These plants do not contain enough THC to get anyone high. In fact, for cannabis to be considered hemp, it must have no more than 0.3 percent THC. Just think of hemp oil-based CBD as a vitamin (high in Potassium and Magnesium) and the bud-based products to be pharmaceutical grade." Active Companies in the market this week include: MYM Nutraceuticals Inc., (CSE: MYM) (OTCQB: MYMMF), Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB), Curaleaf Holdings, Inc. (CSE: CURL) (OTCQX: CURLF), Village Farms International, Inc. (NASDAQ: VFF) (TSX: VFF), CV Sciences, Inc. (OTCQB: CVSI).
The BDS Report continued: "We're witnessing CBD maturing from a cannabis sub-category into a full-blown industry of its own," said Roy Bingham, Co-Founder and CEO of BDS Analytics. "Our growth forecast for the CBD market, across all distribution channels, predicts a compound annual growth rate of 49 percent by 2024. This is a great opportunity for all involved, but it means the road ahead will include decisions that need to be informed by the best possible data."
MYM Nutraceuticals Inc. (CSE: MYM)(OTCQB: MYMMF) BREAKING NEWS: MYM Nutraceuticals is pleased to announce that its joint venture company (MYM owns 50%), BioHemp Naturals Growing & Farming Ltd. ("BioHemp"), has signed a non-binding Letter of Intent ("LOI") for the sale of $25 million of CBD-rich hemp biomass.
"I am truly excited to share that our sales team has secured a LOI for $25 million, representing nearly half of our remaining forecasted CBD-rich hemp biomass", said Howard Steinberg, CEO of MYM. "The recipient of the biomass represents a consortium of Canada's largest cannabis LP's and is a great vote of confidence to the quality of BioHemp's Canadian grown CBD-rich hemp". For more news for MYM please visit: https://www.financialnewsmedia.com/news-mym/
Other cannabis-related developments from around the markets include:
Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB) recently announced that the Company has been selected as the only winner of the Italian government's public tender to supply medical cannabis in Italy. The supply contract is expected to be signed in September 2019.
The tender saw five companies participate, with Aurora selected as the sole winner of three lots to supply the Italian market, which is one of the most strictly regulated medical cannabis markets in the world. The decision will see Aurora continue to supply the Italian market with medical cannabis, as it has done for the past 15 months, further to winning the first ever tender there in January 2018. All submissions from competing cannabis companies were disqualified because they were unable to meet the stringent requirements of the tender.
Curaleaf Holdings, Inc. (CSE: CURL: CN) (OTCQX: CURLF) recently announced it has signed a definitive agreement to acquire GR Companies, Inc. ("Grassroots"), the largest private vertically-integrated multi-state operator, in a cash and stock deal valued at approximately $875 million. This transaction solidifies Curaleaf's position as the world's largest cannabis company by revenue and the largest in the U.S. across key operating metrics.
The highly complementary acquisition brings together the largest public and largest private multi-state operators in the U.S. to offer a full range of products to consumers in states across the country. As a market leader throughout the Midwest, Grassroots has a portfolio of 61 dispensary licenses, with 20 operating today, and 17 cultivation and processing licenses that will substantially accelerate Curaleaf's continued expansion across the nation.
Village Farms International, Inc. (NASDAQ: VFF) (TSX: VFF) recently announced that its 50%-owned joint venture for large-scale, low-cost, high-quality cannabis production, Pure Sunfarms, has, on schedule, achieved full run-rate production of 75,000 kilograms of dried cannabis annually at its 1.1 million square foot Delta 3 greenhouse in Delta, B.C.
"With the benefit of Village Farms' 30-plus year track record of successfully developing and operating large-scale greenhouse facilities, Pure Sunfarms' ramp up to full production of premium, B.C.-grown cannabis has proceeded exceedingly well, and at a remarkable pace," said Michael DeGiglio, CEO Village Farms. "Quality, yield and cost of production at Pure Sunfarms' Delta 3 operation continue to meet or exceed our expectations, as they have since commercial production began last year. Importantly, with the advantage of the most experienced growing team in the industry and Village Farms' continued support, Pure Sunfarms' production output has not been impacted by crop issues as has been reported to be the case with other Canadian Licensed Producers. Pure Sunfarms is a best-in-class growing operation that is setting the standard for large-scale, high-quality cannabis production in Canada."
CV Sciences, Inc. (OTCQB: CVSI) recently announced the expansion of its operations with a new production and warehouse facility. The 45,500 square foot facility will expand the Company's capacity for hemp CBD oil production, warehousing and fulfillment by more than 500 percent to meet growing retailer and consumer demand for PlusCBD™ Oil products. The facility, located in San Diego, is expected to be operational in the fourth quarter of 2019 and will support CV Sciences' U.S. and international expansion opportunities.
"Our recently announced U.S. hemp sourcing initiative combined with this facility and capacity expansion positions CV Sciences for continued rapid domestic growth, while ensuring we are well-positioned to capitalize on the international opportunities we are currently exploring," said Joseph Dowling, Chief Executive Officer. "The distribution of PlusCBD™ Oil products into national retailers in the Food, Drug and Mass (FDM) channel is growing significantly, yet we are still in the early stages of growth. Despite more than doubling the number of stores carrying our industry leading products to 4,591 stores in the first six months of this year, we see a significant runway for additional growth, including increasing our domestic and international store count, as well as broadening product SKUs with our retail partners."
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