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Why More Retail Cannabis Dispensaries are Needed Now as Cultivation Season Begins
FinancialNewsMedia.com News Commentary
PALM BEACH, Florida, April 18, 2019 /PRNewswire/ -- It's a marriage made in heaven in POT heaven that is. In both the U.S. and Canada, the consumer demand for cannabis products continues its steady growth but one obstacle could be the unmet need for more dispensaries. The consumer demand for cannabis products exceeded even the most optimistic projections there are just not enough retail dispensaries (with sufficient supplies also but that is for another time) and Mall owners have too many stores without a tenant so, Dispensaries and Mall owners are entering into a hopefully long and mutually rewarding relationship! An industry publication recently said that, in both Canada and the U.S. "The future is very bright for property owners in North America as cannabis companies are on the hunt for cannabis retail locations." The article said that, "Cannabis retailers aren't very widespread in Canada as most provincial governments are slow to roll out the licenses needed to open the stores. In the US, things are somewhat different. Seeing how cannabis is still illegal on the federal level, making deals with cannabis companies comes with a bit more risk. However, that didn't stop some of the biggest mall operators in possibly making millions of dollars in the states where cannabis is already legal, such as California. "Active companies in the cannabis industry includes: CROP INFRASTRUCTURE CORP. (CSE:CROP) (OTC:CRXPF), HEXO Corp. (NYSE: HEXO) (TSX: HEXO.TO), Canopy Rivers Inc. (TSX-V: RIV.V) (OTCPK: CNPOF), Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB.TO), Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF).
A recent Forbes article said that after legalization "The (Canadian) rollout hasn't been as smooth as they would have liked. The most pressing problem facing the country's legal weed market is the fact that, in the majority of provinces, suppliers are unable to meet demand. In many areas, the supply shortage may last well into 2019. "A cannabis industry insider said that,"The mall developers are in the business of renting space. They need more food and personal care and less clothing. We fit into one of the categories that's growing. That's not an accident."
CROP INFRASTRUCTURE CORP. (CSE:CROP) (OTCPK:CRXPF) (Frankfurt: 2FR) BREAKING NEWS: CROP announced today that its 49% owned Humboldt County farm has received an order of 1,000 4 ft. tall cannabis plants accelerating the company and its farm in to the 2019 cultivation season. These large starter plants are expected to have increased yields as they are much taller and fuller than the previous year's plants. Currently, the farm has five 2000 sq.ft. greenhouses totaling 10,000 square feet and 20,000 square feet of outdoor cultivation space.
Additionally, the farm has received approval from the Humboldt County Planning Department for the 2019 expansion, including a 30,000 sq. ft. automated light dep greenhouse facility and additional vault space. The new facility is expected to cost $499,000 in capex at the farm and is expected to yield 12,000 pounds per year, taking the company to year-round cultivation and tripling the output of the existing California infrastructure.
CROP's Emerald Heights retail brand has had its licensing fees submitted for phase two of Chula Vista's cannabis retail application process, combined with the company's partial acquisition of a distributer and extraction facility, if licensed the retail location will bring the company to being fully vertically integrated. Read this full announcement and more news for CROP Infrastructure at: https://www.financialnewsmedia.com/news-crop/
Additional cannabis industry related developments from around the markets:
HEXO Corp. (NYSE: HEXO) (TSX: HEXO.TO) recently announced that it has completed the first harvest in its one-million-square-foot expansion, marking an important execution milestone in the company's continuous growth. Since early January, plants have been moving into the greenhouse and the first plants have now been harvested. The company continues to ramp up to full harvest capacity using the continuous harvest methodology, the latest step toward reaching the full annual production capacity of 108,000 kilograms of dried flower per year.
"Completing the first harvest in our one-million-square-foot greenhouse expansion showcases the dedication and hard work of the entire Hexo team," said Sebastien St-Louis, Hexo's chief executive officer and co-founder. "We are very proud of our continued ability to execute on our plans, creating value for our shareholders and demonstrating our commitment to our customers. This cultivation milestone means that an expanded Hexo product offering will be available to more Canadians shortly."
Canopy Rivers Inc. (TSX-V: RIV.V) (OTCPK: CNPOF) and High Beauty, Inc. recently announced the completion of an investment by Canopy Rivers in High Beauty, creator of industry-leading cannabis beauty brand high. Canopy Rivers has subscribed for US$2.5 million of shares in High Beauty, representing 18.4% of the company on a fully diluted basis, including additional warrant coverage.
"Being supported by Canopy Rivers enables us to collaborate within the Canopy Rivers ecosystem and to focus our energy and passion on the creation of a robust new product line using cannabis-derived extracts," said Melissa Jochim, a highly successful formulator and Founder of High Beauty. "Cannabis sativa seed oil is an untapped ingredient resource with amazing skincare benefits. This partnership will allow us to scale High Beauty's business much 'higher' in a short time frame."
Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB.TO) and Hempco Food and Fiber Inc. ("Hempco") (HEMP.V) recently announced that the companies have entered into a binding letter agreement (the "Letter Agreement") in regard to the basic terms and conditions upon which Aurora will acquire all of the issued and outstanding common shares of Hempco ("Hempco Shares") not already owned by Aurora. In consideration of the transaction, Aurora has agreed to pay $1.04 per Hempco Share, payable in common shares of Aurora ("Aurora Shares"), reflecting a valuation of approximately C$63.4 million on a fully diluted basis.
For more than 12 years Hempco has been a trusted and respected pioneer, innovator and provider of quality, hemp-based foods, hemp fiber and hemp nutraceuticals. Hempco produces and markets the brands PLANET HEMP™ and PRAISE, hemp-based foods and nutritional supplements for people and animals. Hempco has developed multiple international distribution channels, selling through highly visible platforms, such as Amazon.com, Well.ca and Metro Inc. Through its combined hemp assets, Aurora is well positioned to drive growth through the sale of hemp products to more than 100 countries around the globe.
Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) a leading vertically integrated cannabis operator in the United States, recently announced that it completed the acquisition of EC Investment Partners, LLC ("Eureka").
"The acquisition of Eureka cements our foundation in California and positions us well in the largest cannabis consumption market in the U.S.," said Joseph Lusardi, CEO of Curaleaf. "The closing of this transaction marks an important milestone for Curaleaf, enabling us to enter the highly attractive California market as a vertically integrated operator with plans to expand across the state."
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