Nov 26, 2019 (Baystreet.ca via COMTEX) -- Analysts say the Latin America cannabis market could be worth up to $9.8 billion, according to New Frontier Data. “Latin America will play an increasingly important role in the evolving global cannabis marketplace, and the legal regulated industry will be a catalyst for economic development, job creation, and new opportunities in healthcare and wellness across the region,” they added, as quoted by Cannabis Now. Colombia for example is just beginning to transform itself into a multi-billion-dollar cannabis producer. With time, growers estimate that the country could capture as much as a fifth of a global market and be worth up to $40 billion a year, according to Reuters. It’s all opening a wide range of opportunity for cannabis companies including The Yield Growth Corp. /zigman2/quotes/202014329/delayed CA:BOSS 0.00% /zigman2/quotes/200119040/composite BOSQF -6.54% , HEXO Corp. /zigman2/quotes/206508254/composite HEXO -1.73% /zigman2/quotes/200008967/delayed CA:HEXO 0.00% , The Supreme Cannabis Company Inc. /zigman2/quotes/209645734/delayed CA:FIRE 0.00% /zigman2/quotes/203819708/composite SPRWF -1.27% , The Green Organic Dutchman /zigman2/quotes/206870535/delayed CA:TGOD -5.38% /zigman2/quotes/204266798/composite TGODF -5.80% , and Innovative Industrial Properties Inc. /zigman2/quotes/208038978/composite IIPR -2.57% .
The Yield Growth Corp. /zigman2/quotes/202014329/delayed CA:BOSS 0.00% (otcqb:BOSQF) BREAKING NEWS: The Yield Growth Corp. just announced that on November 21, 2019 it entered into an addendum agreement to add the territories of Costa Rica, El Salvador, Ecuador, Argentina, Panama and Peru to its existing distribution agreement with Organic Medical Growth OMG3 Inc. (“OMG3”) for the exclusive distribution of Urban Juve products in Colombia and Brazil for a term of 5 years. OMG3 is in the process of distributing Urban Juve hemp-infused products in Colombia and other countries of Central and Latin America. The first products to be offered will be Urban Juve’s Face Moisturizers and its signature Anti-Aging Serum. The first purchase order for 3,500 units has been placed and will be delivered once the products are registered for sale in Colombia. Yield Growth has completed the required paperwork to submit the products for registration and registration is expected to be completed in early 2020.
OMG3, through an exclusive 10-year distribution agreement, has access to more than 9,000 points of sale in Colombia (pharmacies and specialized stores). Through the same distribution partner, OMG3 can reach more than 44,000 retail locations in other countries in South America, including Brazil, Costa Rica, Panama, Argentina, El Salvador, Ecuador and Peru. Yield Growth and OMG3 have now expanded their distribution agreement to cover all of these territories. In addition to this channel, OMG has partnered with LATAM’s start up on-demand delivery giant Rappi, as the first to have its cannabis products available on the platform across Colombia. Rappi was founded in Colombia in 2015 and has become the unicorn of the LATAM start up scene having just received $1 billion in venture capital funding from Softbank. Rappi is located in 55 cities Across 7 LATAM countries including Brazil, Argentina, Chile, Colombia, Peru, Uruguay, Mexico and plans to expand to 100 new cities by the end of 2019. OMG has signed an exclusive agency agreement with Ariadna, LATAM’s largest independent marketing communications group based in Colombia, with a regional team of over 700 specialists in 15 countries and delivering services to 22 countries in the Americas. With cannabis being such a new emerging industry, OMG will be utilizing Ariadna’s skills to build its data technology, measure consumer behaviour and build a data centre that will prove valuable for the successful activation of OMG’s products into the various markets and channels across LATAM. Ariadna will build campaigns for OMG that will influence its brand reputation and brand equity in LATAM. From traditional-digital media planning to search, affiliate marketing, content amplification, ecommerce and influencer products, OMG will immediately capture all of its data to build what is nonexistent in LATAM in the cannabis category today.
“We are very pleased to welcome Urban Juve to our distribution portfolio and exclusively distribute their products in South and Central America. In addition to creating in-house and co-branded hemp seed and cannabis-based product lines, our strategy is to bring major international brands to the market in the areas of cosmetics, therapeutic and pharmaceutical products,” says Jorge Diaz, President & CEO of OMG3. “We strongly believe that the Urban Juve products will be an excellent addition to the current retail offer, finding their way to customers across borders due to their natural formulas and benefits. Urban Juve products will be initially distributed in Colombia, and we look forward to working with their team on expanding the reach within our network throughout the Americas.” Urban Juve products are now fully registered for sale in the European Union and are for sale in retail stores in Canada and the U.S. Agreements are in place to distribute Urban Juve in Canada, Greece, Cyprus, Romania, Bulgaria, Serbia, Colombia, Brazil and now also Costa Rica, Panama, Argentina, El Salvador, Ecuador and Peru. Yield Growth is currently in talks with distributors to add the United Kingdom, Germany and other European countries to the Urban Juve distribution network.
Other related cannabis industry developments include:
HEXO Corporation /zigman2/quotes/206508254/composite HEXO -1.73% /zigman2/quotes/200008967/delayed CA:HEXO 0.00% is providing additional information about licensing at its facility in Niagara, Ontario. In November 2018, prior to HEXO Corp’s acquisition of Newstrike Brands Ltd., the UP-Cannabis cultivation facility in Niagara was licenced by Health Canada and production from that facility began shortly after. Block B – the space in question – was included in the licence application. In October 2018, Health Canada requested additional information for the application, pertaining specifically to the building where Block B is housed. When the licence was received, the team was under the impression that Block B was included in the licence. In February 2019, Health Canada conducted an inspection of the facility, which included Block B and no observations were made about cultivation in this space. This further reinforced the assumption that it was indeed a licensed growing space.On July 30, 2019, shortly after the Newstrike Brand Ltd. acquisition closed, HEXO discovered that cannabis was being grown in Block B, which was not adequately licensed. HEXO management immediately ceased cultivation and production activities in the unlicensed space. The Company notified Health Canada instantly, and the regulator was satisfied with HEXO management’s corrective actions. The Company is confident that all product cultivated and produced in all its facilities is grown according to the highest quality standards and following all standard operating procedures. As an additional quality assurance measure, HEXO’s Chief Operating Officer personally inspected and certified any shipments for sale from that facility. All of the inventory on site at that time was held from shipping and scheduled for destruction. “HEXO is keenly focused on producing high-quality products that Canadians can trust,” said HEXO CEO and co-founder Sebastien St-Louis.
The Supreme Cannabis Company Inc. /zigman2/quotes/209645734/delayed CA:FIRE 0.00% /zigman2/quotes/203819708/composite SPRWF -1.27% announced today that John Griese has joined the Company as Chief Operating Officer. Mr. Griese brings over 30 years of executive consumer packaged goods and global cannabis operations experience to Supreme Cannabis. In his role as COO, Mr. Griese will be responsible for driving continuous improvements across all operating assets and leading supply chain management for Supreme Cannabis’ diverse portfolio of products. Prior to joining Supreme Cannabis, Mr. Griese gained unique operational experience in the cannabis industry as the COO for medical and recreational cannabis companies Creso Pharma Limited, and Bloom Farms in California. As Supreme Cannabis evolves into a cannabis CPG company focused on building leading brands, it benefits from Mr. Griese’ impressive experience in CPG. Mr. Griese has held executive level positions in operations and supply chain with Nestle and Pepsico. “It is a privilege to welcome John Griese to our maturing leadership team during a key time when Supreme Cannabis is evolving into a leading cannabis CPG company. He has over 30 years of CPG, supply chain and cannabis experience in the U.S., Canada, Australia and Europe with companies such as Nestle and Pepsico,” said Navdeep Dhaliwal, CEO of Supreme Cannabis. “His diverse experience, which includes recent cannabis industry experience with Bloom Farms and Creso Pharma, makes him a valuable asset as we scale and optimize our 7ACRES’ facility, ramp-up oil production at Blissco and add to our focused suite of best-in-class operating assets.”
The Green Organic Dutchman /zigman2/quotes/206870535/delayed CA:TGOD -5.38% /zigman2/quotes/204266798/composite TGODF -5.80% announced that it has received its inaugural purchase order from the BC Liquor Distribution Branch, further expanding its Canadian distribution footprint. The Company also obtained a licence amendment from Health Canada, allowing it to launch cultivation operations at its flagship Valleyfield hybrid greenhouse. The addition of British Columbia means that TGOD now has the ability to distribute its products to a total of 527 retail locations across five provinces, or 82% of Canada’s current store count. With the number of cannabis stores poised to increase from 639 to over a thousand in 2020, the Company is continuing to strategically develop and nurture solid relationships with provincial boards and retailers, cementing its position as the leading certified organic brand. ”TGOD’s high-quality certified organic product and commitment to sustainable cultivation practices resonate with BC consumers. Based on the exceptionally positive feedback we received from our BC medical patients as well as on market research, we believe the province represents an enormous market opportunity for our brand,” commented Brian Athaide, CEO of TGOD. “As we continue ramping up production, we remain focused on expanding our distribution channels and achieving our goal of distributing nationally in Q1 2020.”
Innovative Industrial Properties Inc. /zigman2/quotes/208038978/composite IIPR -2.57% announced today that it closed on a sale-leaseback transaction with Green Thumb Industries Inc. (GTI) /zigman2/quotes/206151134/delayed CA:GTII -3.94% (otcqx:GTBIF) for its licensed cannabis cultivation and processing facility in Danville, Pennsylvania. The purchase price for the property was $20.3 million (excluding transaction costs). GTI is also expected to make certain improvements to the property that will significantly enhance production capacity, for which IIP has agreed to provide reimbursement of up to $19.3 million. Assuming full reimbursement for such improvements, IIP’s total investment in the property will be $39.6 million. As the pioneering real estate investment trust (REIT) for the medical-use cannabis industry, IIP partners with experienced medical-use cannabis operators and serves as a source of capital by acquiring and leasing back their real estate assets, in addition to offering other creative real estate-based capital solutions. GTI is a leading national cannabis consumer packaged goods company and owner of Rise and Essence retail stores. GTI has 13 manufacturing facilities, licenses for 96 retail locations and operations across twelve U.S. markets.
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