NEW YORK, Nov. 12, 2019 /PRNewswire/ -- The rapid emergence of the cannabis industry has finally caught Wall Street's attention as numerous analysts have initiated their coverage on the marketplace. Notably, firms such as RBC Capital Markets, Cowen, Piper Jaffray, and Bank of America Merrill Lynch have all realized the growth potential of the industry. For instance, Cowen analysts Vivian Azer, Brian Nicholas Velez, and Gerald Pasacarelli, see strong upside for the cannabis industry and forecast that U.S. cannabis sales are expected to reach USD 75 Billion by 2030. Specifically, Cowen points to a number of factors that will accelerate the marketplace, such as continued cannabis trial and use, lower levels of binge drinking, and cannabis being considered as a solution to opioids. On the other hand, RBC Capital Markets analyst Nik Modi believes that the cannabis industry is being propelled by the increasing recreational usage, particularly within the concentrates and edibles segments. Moreover, Modi believes that investments from public and private sectors such as the alcohol industry will also bolster the overall cannabis marketplace. However, Bank of America Merrill Lynch analyst Chris Carey predicts that Canada will reach oversupply by 2021 and views the oversupply, along with the ongoing U.S. legalization efforts, as major events expected to shift the market. As such, the collective insight from the analysts signals that the cannabis industry is continuing to expand. And according to data compiled by Zion Market Research, the global marijuana market was valued at approximately USD 16.71 Billion in 2017. By 2024, the market is expected to generate revenue of USD 62.96 Billion while growing at a CAGR of 21% from 2018 to 2024. Pasha Brands Ltd. /zigman2/quotes/212784086/delayed CRFTF -6.39% /zigman2/quotes/212657074/delayed CA:CRFT -10.53% , Tilray, Inc. /zigman2/quotes/209129655/composite TLRY +0.68% , Neptune Wellness Solutions Inc. /zigman2/quotes/207537677/composite NEPT -1.62% /zigman2/quotes/203840062/delayed CA:NEPT -3.23% , Medmen Enterprises Inc. /zigman2/quotes/201940908/delayed MMNFF -2.60% /zigman2/quotes/206551904/delayed CA:MMEN -1.16% , The Supreme Cannabis Company, Inc. /zigman2/quotes/203819708/delayed SPRWF -1.27% /zigman2/quotes/209645734/delayed CA:FIRE -2.53%
Currently, the medical cannabis industry accounts for the majority of the overall global market share. However, industry experts believe that the recreational sector will soon eclipse the medical sector as the U.S. and Canadian markets continue to mature. But while the recreational cannabis market is growing at a much faster pace, medical cannabis is much more accessible around the world. Nonetheless, the recreational market is being driven by the number of U.S. states exploring potential opportunities as well as Canada's recently launched "cannabis 2.0." Specifically, "cannabis 2.0" legalized the next wave of cannabis-based products such as extracts, edibles, and beverages. To note, when Canada initially legalized cannabis back in October 2018, only sales of flower were legal. And while flower still remains popular among consumers, the extracts and concentrates market is quickly gaining market share as flower sales begin to dwindle. Concentrates and extracts are becoming widely popular because consumers are beginning to demand for products that are potent and deliver effects immediately. However, with the ongoing vaping epidemic, retailers have witnessed their extracts and concentrate sales slide in the past few months. In light of the epidemic, consumers began to demand for more organic alternatives, and as a result, "craft cannabis" came into the spotlight. Craft cannabis is known as a unique farming technique for growing natural and potent cannabis, which is similar to craft beer or craft coffee. Craft producers take immense pride in their work and strive to provide consumers with premium-grade products that stand out against other competitors. Specifically, craft cultivators engage in an organic growing process, which means they avoid using fertilizers, pesticides, or genetic modifications. As such, organic cannabis is alluring to many consumers because it offers a more natural and safer product, whilst delivering potent effects. Moreover, craft cannabis is also environmentally sustainable because it does not add harmful chemicals to the surrounding soil and water. And while the process of growing craft cannabis is highly tedious, the end results create a high-quality strain that other cultivators cannot compete against. "Artisanal cannabis and artisanal cannabis products have been around for a long time. Many of the cannabis products produced in that time were created by small business collectives, and were crafted in small batches using high-quality ingredients," said Mindy Galloway, Chief Executive Officer and Co-Founder of Sacramento's Khemia Manufacturing. "Our mission is to revive cannabis artistry and preserve cannabis history by bringing back the artisanal manufacturers, backed with years of experience making artisanal products."
Pasha Brands Ltd. /zigman2/quotes/212784086/delayed CRFTF -6.39% /zigman2/quotes/212657074/delayed CA:CRFT -10.53% is also listed on the Canadian Securities Exchange under the ticker /zigman2/quotes/212657074/delayed CA:CRFT -10.53% . Today, the Company announced breaking news that it, "expects nation's first micro-cultivator harvest next month.
While the large-scale licensed producers continuing to experience pressure in the market, Pasha's approach looks to solve both industry and consumer issues by bringing small-scale growers into the legal marketplace. Pasha has signed supply agreements with over 100 micro-cultivator applicants, including the first five micro-cultivators licensed by Health Canada. North 40 in Saskatchewan, Hearst in Ontario, and Canandia in BC are all expected to harvest before the end of December.
"Craft" is a word often thrown around in this new industry, but it is one that Pasha embodies through meaningful relationships with some of the country's most recognized brands. But what makes cannabis "craft" has less to do with reputation and more to do with the care and attention to detail with which these plants are cultivated.
'To me, craft cannabis is about quality over quantity, and a more individualistic approach to cultivation,' said Jamie Shaw, Chief Communications and Culture Officer at a Pasha Brands. 'It's the whole reason our model exists, allowing the grower to stay autonomous and avoiding large plant-to-grower ratios. This allows them to function independently and ensures a move away from big-box, cookie-cutter production,' she added.
The Founder of North 40 Cannabis, Gord Nichol, explains the mindset this way, "having Pasha's support has allowed me to focus on the plant and give it the attention required to bring out the very best in it. The market is ready for hand-crafted cannabis products and Pasha's experience is a vital resource in helping us deliver the goods"
Pasha remains committed to bringing small farmers to market and expects the first legal micro-cultivated dried cannabis to hit store shelves by early 2020.
About Pasha Brands: Based in Vancouver, British Columbia, Pasha is a vertically integrated, prohibition-era brand house firmly rooted in BC's craft cannabis industry, which boasts an international reputation. With proven capabilities in cannabis cultivation, genetic research and development, product processing, and retail, Pasha is uniquely positioned in the new legal cannabis market through its network of hundreds of craft cannabis suppliers under the Pasha umbrella. Pasha subsidiary, Medcann Health Products Ltd., is a Health Canada licensed cultivator and processor with a licence to sell medical cannabis products in Canada. Pasha and its subsidiary, BC Craft, are also developing a craft cannabis campus, which is dedicated to bringing craft quality into the newly legal cannabis market in Canada. BC Craft is driven to assist craft growers in obtaining security clearance and licensing to grow as micro-cultivators, specializing in education and compliance to bring growers into the regulated cannabis supply market. Pasha's common shares trade on the CSE under the symbol "CRFT" and on the FSE under the symbol "ZZD". For more information, please visit www.pashabrands.com ."
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Tilray, Inc. /zigman2/quotes/209129655/composite TLRY +0.68% is a global pioneer in the research, cultivation, production and distribution of cannabis and cannabinoids currently serving tens of thousands of patients and consumers in 13 countries spanning five continents. Tilray, Inc. recently announced that it had entered into an agreement with Cannamedical Pharma GmbH through its wholly-owned subsidiary Tilray Portugal Unipessoal Lda., to export a wholesale shipment of USD 3.3(EUR 3) Million worth of medical cannabis from Portugal to Germany. The shipment, which is expected to be completed in fall 2019, will be Tilray's first from its state-of-the-art EU campus in Portugal to supply patients in Germany. "This is a significant milestone for Tilray as we ramp up our capacity to serve international markets and generate revenue from our EU campus through the end of 2019," says Tilray Chief Executive Officer Brendan Kennedy. "We believe our 2.5 million square feet of cultivation and state-of-the-art processing space in Europe is an important differentiator, which will enable us to reduce costs and improve margins while hedging against regulatory risk."
Neptune Wellness Solutions Inc. /zigman2/quotes/207537677/composite NEPT -1.62% /zigman2/quotes/203840062/delayed CA:NEPT -3.23% specializes in the extraction, purification and formulation of health and wellness products. Neptune Wellness Solutions Inc. recently announced that its Solutions Business has begun offering turnkey product development solutions with hemp-derived ingredients to business customers in the United States. A U.S.-based supply chain of licenced hemp extract producers has been established, and initial purchase orders are now being processed. Neptune boasts long-standing experience in the management of custom and white label turnkey product development solutions comprising a diverse array of product forms including softgels, liquids, topicals, emulsions, and water-dispersible powders. Branded ingredients and products that have contributed to Neptune's success, such as MaxSimil® and ECSentialsTM formulations, could potentially be used in unique combinations with hemp ingredients, particularly as the U.S. regulatory framework around hemp extracts and cannabidiol (CBD) evolves. "The U.S. market for hemp is developing rapidly and represents a significant opportunity for the consumer products industry. Neptune is now offering products and services to American brands that want to create a unique hemp-based portfolio, with products made exclusively in the U.S. for the U.S." said Jim Hamilton, President and Chief Executive Officer of Neptune.
Medmen Enterprises Inc. (otcqx:MMNFF) /zigman2/quotes/206551904/delayed CA:MMEN -1.16% , founded in 2010, is North America's premium cannabis retailer. MedMen Enterprises Inc. recently announced the opening of two new locations in the state of Florida: Central Orlando and Tallahassee. The Company now has seven operational stores in Florida, with five additional store openings in the state planned for the remainder of the calendar year. The Company is licensed for 35 retail locations in the state. MedMen Buds, the Company's new loyalty program will be available to all patients at these locations. In addition, MedMen's fully owned and operated, same-day delivery platform, which currently services California and Nevada, will be available to Florida patients soon. Together with loyalty and delivery, the Company's new store locations align with MedMen's national retail strategy of providing an industry-leading omni-channel experience to all consumers. In addition to expanding its retail footprint, MedMen remains one of the lead supporters of the recently launched constitutional amendment campaign to bring safe, regulated, and legal cannabis for adults 21 years and older in the state of Florida. The campaign committee "Make it Legal Florida" is chaired by MedMen's own Vice President of Government Affairs, Nick Hansen.
The Supreme Cannabis Company, Inc. (otcqx:SPRWF) /zigman2/quotes/209645734/delayed CA:FIRE -2.53% is a global diversified portfolio of distinct cannabis companies, products and brands. The Supreme Cannabis Company, Inc. recently announced that Blissco Cannabis Corp. ("Blissco"), Supreme Cannabis' premium wellness brand and a multi-licensed processor and distributor, has received licensing approval from Health Canada for the sale of cannabis oils from its facility in Langley, British Columbia (the "Facility"). The cannabis oil sales license granted by Health Canada (the "License") allows Blissco to sell full spectrum cannabidiol (CBD) oil products. As previously announced, Supreme Cannabis closed its acquisition of Blissco in the first quarter of fiscal 2020. The Company has since integrated, focused and advanced Blissco's business, initiating construction on a large-scale ethanol based extraction lab to expand upon Blissco's existing CO2-based extraction capability. By the end of calendar year 2019, Supreme Cannabis expects that the Facility will have the capacity to produce over 7,000,000 tincture bottles annually. Supreme Cannabis also expects the Blissco brand to meaningfully contribute to projected revenue in fiscal 2020. "With the receipt of the License and expanded extraction capacity, Blissco will be positioned to address the growing unmet demand for high-quality CBD oil products across Canada," said Navdeep Dhaliwal, Chief Executive Officer of Supreme Cannabis. "Blissco's legacy of premium whole flower products established a brand that represents quality and authenticity to wellness consumers. For over a year, Blissco's team developed advanced oil processing and formulation capabilities based on the same ethos. Consumers will soon be able to experience high-quality CBD oil products from a premium wellness brand they have come to trust. The team at Blissco has developed sophisticated expertise and diligently executed against ambitious business objectives, their hard work and vision has led to this significant milestone."
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