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Nov. 7, 2019, 9:01 a.m. EST

Craft Cultivators Amass Plaudits as the Cannabis Industry Swells

FinancialBuzz.com News Commentary

NEW YORK, Nov. 7, 2019 /PRNewswire/ -- Canada became just the second nation ever to legalize cannabis in 2018. However, despite legalization, the industry continues to face multiple legal barriers within its borders. But, despite hindrances, the Canadian market is projected to experience one of the fastest growth rates among global markets. Additionally, Canada's legal spending on the plant is also expected to grow at a much more rapid rate compared to other regions, primarily because of its large addressable market. In comparison, Uruguay's cannabis market is still relatively small, despite having legalized cannabis entirely nearly 6 years ago. In 2018, it was estimated that 147,000 Uruguayans between the ages of 18 and 65 consumed cannabis, according to CBS. On the other hand, Statistics Canada estimated that approximately 5.3 million or 18% of Canadians aged 15 years and older reported using cannabis during the first quarter of legalization. Nonetheless, a major drawback to a large consumer base is that it makes it challenging for cultivators and vendors to meet the demand, especially when the industry is relatively new. Consequently, Canadian retailers experienced nationwide shortages due to limited licensing approvals. And, as such, many Canadian provinces decided to provide additional licenses to operators in order to close the growing gap between the supply and demand. And while Canada has officially marked its first year of legal cannabis sales just last month, the marketplace is still in its infancy stage. Now, as regulations begin to loosen, the Canadian legal industry is positioned for exponential growth. And according to data compiled by ArcView Market Research and BDS Analytics, the worldwide consumer spending on legal cannabis reached an estimated USD 12.2 Billion in 2018. By 2022, it is expected for consumer spending to reach USD 31.3 Billion while registering a CAGR of 26.7% from 2017 to 2022. Pasha Brands Ltd. /zigman2/quotes/212784086/delayed CRFTF -3.38% /zigman2/quotes/212657074/delayed CA:CRFT 0.00% , Canopy Growth Corporation /zigman2/quotes/200603886/composite CGC -5.47% /zigman2/quotes/202205609/delayed CA:WEED -5.73% , Aphria Inc. /zigman2/quotes/207425803/composite APHA -3.89% /zigman2/quotes/205566616/delayed CA:APHA -3.57% , Organigram Holdings Inc. /zigman2/quotes/209289540/lastsale OGI -0.75% CA:OGI -0.44% , The Green Organic Dutchman Holdings Ltd. /zigman2/quotes/204266798/delayed TGODF -5.80% /zigman2/quotes/206870535/delayed CA:TGOD -5.38%

Generally, in the Canadian marketplace, large-scale corporations stand out among the competition and thrive because of their efficiency. Specifically, large licensed producers are able to produce tons and tons of cannabis each harvest because of their efficient and optimal grow houses. As a result, large producers are then able to sell their harvests at a wholesale rate. Typically, these large producers are focused on growing quantity, which can completely diminish the quality of a strain. On the other hand, smaller businesses have decided to focus more on quality to compete with the industry's behemoths. Notably, small businesses have engaged in the artisanal profession of "craft cannabis." Craft cannabis is known to come from an attentive procedure of tending to each individual plant to ensure premium and high-quality buds. The tedious process requires growers to constantly examine each plant to avoid molding or infestations and while the process may be laborious and tiresome, craft cultivators are able to achieve a premium end product that large-scale companies are simply unable to grow. "Legalization always creates consumers who are new to cannabis, and their profiles and habits stand apart," cannabis research firm BDS Analytics said. "Brands must remain highly attuned to their customers and offer a wide range of products to achieve and maintain marketplace triumph. Depending on one winning product is not enough to carry a brand."

Pasha Brands Ltd.   /zigman2/quotes/212784086/delayed CRFTF -3.38% /zigman2/quotes/212657074/delayed CA:CRFT 0.00% is also listed on the Canadian Securities Exchange under the ticker /zigman2/quotes/212657074/delayed CA:CRFT 0.00% . Earlier last week, the Company announced that, "Between 2014 and 2018 global sales of legal cannabis more than tripled from $3.4 billion to $10.9 billion, according to the State of the Legal Cannabis Markets report from Arcview Market Research. BDS Analytics calls for a near-quadrupling from 2018 levels to $40.6 billion by 2024 at an annual growth rate of 21.9%. This has led many people to wonder, why the recent market downturn in the cannabis sector?

'Legal cannabis, particularly in Canada, has been struggling under the weight of burdensome regulations, poor supply-chain management, and quality issues,' said Jamie Shaw, Chief Communications and Culture Officer for Pasha. 'Coupled with that, companies in the sector were slow to deliver the results expected and were generally seen as overvalued. Share prices were determined at a time when there were relatively few licences that seemed to have a stranglehold on the regulated marketplace.'

While these challenges are most pronounced in today's market, for Pasha it has been an affirmation of its business plan. 'We never bought into the big-box mentality that's causing many of these problems," Shaw said. "Pasha has focused on small batch, craft producers, and has been meeting its goals at a quick pace, with the first micro-cultivation harvest expected in December.'

Pasha has been on-boarding brands and people that made legalization possible, including Baked Edibles, Earth Dragon Organics, and Beard Brothers Collective, and has acquired a Health Canada licensed facility on Vancouver Island. Pasha expects to be the first licensed, nation-wide, all-craft company to be operational by end of Q4 2019/early Q1 2020.

Of the first 5 micro-licences issued by Health Canada, Pasha has signed supply agreements with all of them. Pasha also has signed supply agreements with 60 more applicants currently in the CTLS queue with Health Canada, and another 40 navigating the licensing process with Pasha subsidiary, BC Craft Supply Co. Ltd. With 100 micro-cultivators each permitted to produce up to 500kg per year, Pasha could have the ability to bring up to 50,000kg per year of high-quality craft cannabis to Canadian consumers.

'The legal market has yet to see products with the same care and attention to detail that went into the highest quality, illicit products," said Patrick Brauckmann, Executive Chair of Pasha Brands. "Pasha is committed to bringing products to the marketplace that put the consumer first.'

Partnered with powerful distributors like Great North and developing innovative industry solutions like Craft Labs, Pasha looks to disrupt how people think of legal cannabis.

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 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 ."

For our latest "Buzz on the Street" Show featuring Pasha Brands Ltd. recent corporate news, please head over to: https://www.youtube.com/watch?v=FlEwtMmB7fA

Canopy Growth Corporation /zigman2/quotes/200603886/composite CGC -5.47% /zigman2/quotes/202205609/delayed CA:WEED -5.73% is a world-leading diversified cannabis, hemp and cannabis device company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms, as well as medical devices through Canopy Growth's subsidiary, Storz & Bickel GMbH & Co. KG. Canopy Growth Corporation recently provided updates on key developments in the United Kingdom and Luxembourg. In these countries, the Company's pharmaceutical business, Spectrum Therapeutics, continues to expand its sophisticated, pan-European cannabis production and distribution network serving the needs of physicians and their patients. Canopy Growth is committed to transforming healthcare in Europe by providing better access to medical cannabis treatments that have the potential to improve the lives of millions of patients. In the UK, Spectrum Therapeutics has received licenses from the Medicines and Healthcare products Regulatory Agency ("MHRA") and Home Office to store and distribute cannabis-based medicinal products ("CBMPs"). The first of its kind facility in the UK is designed to reduce prescription delivery time, a key development as the company establishes its footprint in the UK. The license also allows the company to import CBMPs to the UK directly from Spectrum's European and global networks, optimizing its supply chain and reducing overheads, without need for third-party suppliers. Spectrum Therapeutics has become the exclusive supplier of medical cannabis to the Grand Duchy of Luxembourg ("Luxembourg"). The contract will see Luxembourg receive medical cannabis from Spectrum's licensed facilities in Denmark and around the world until December 31, 2021. 

Aphria Inc. /zigman2/quotes/207425803/composite APHA -3.89% /zigman2/quotes/205566616/delayed CA:APHA -3.57% is a leading global cannabis company driven by an unrelenting commitment to our people, the planet, product quality and innovation. Aphria Inc. recently announced it has received a cultivation license from Health Canada for Aphria Diamond, the Company's second Leamington, Ontario cannabis greenhouse facility, bringing an additional 1,300,000 sq. ft. of production space with an annual growing capacity of 140,000kg. Combined with the Company's Aphria One facility and its subsidiary Broken Coast Cannabis, the Company now has more than 2,400,000 sq. ft. of cultivation space capable of reaching a total annualized production capacity of 255,000kg. "We are extremely pleased to receive the license for our long-awaited Aphria Diamond facility, which more than doubles our Canadian production capacity," said Irwin D. Simon, Interim Chief Executive Officer "Reaching industry-leading production levels coinciding with the expansion into new categories and new opportunities for cannabis in Canada and around the world is a transformative moment for Aphria Inc."

Organigram Holdings Inc. /zigman2/quotes/209289540/lastsale OGI -0.75% CA:OGI -0.44% is a NASDAQ Global Select and TSX listed company whose wholly owned subsidiary, Organigram Inc., is a licensed producer of cannabis and cannabis-derived products in Canada. Organigram Holdings Inc. the parent company of Organigram Inc. recently announced that it had entered into an advance payment and purchase agreement with 703454 N.B. Inc. (carrying on business as 1812 Hemp,) under which the Company will pre-fund hemp purchases to receive access to as much as 60,000 kilograms of dried hemp flower to be harvested in calendar 2019 for extraction into cannabidiol ("CBD") isolate. "Access to a large, consistent volume of CBD-producing hemp has become increasingly important as Canadians express their demand for CBD-rich products for use in both recreational and medical capacities," said Greg Engel, Chief Executive Officer, Organigram. "We've heard the call for CBD in the market and this agreement positions Organigram to meet that demand."

The Green Organic Dutchman Holdings Ltd. (otcqx:TGODF) /zigman2/quotes/206870535/delayed CA:TGOD -5.38% is a publicly-traded, premium global organic cannabis company, with operations focused on medical cannabis markets in Canada, Europe, the Caribbean and Latin America, as well as the Canadian adult-use market. The Green Organic Dutchman Holdings Ltd. recently announced that it had completed its inaugural shipment to the Ontario Cannabis Store, marking the Company's entrance into Canada's recreational market. Ontario consumers will soon be able to experience TGOD's acclaimed Unite Organic dried flower, the Company's high THC signature strain. "We are thrilled to introduce Unite Organic dried flower to Ontario adult consumers. Launched earlier this year with our Grower's Circle, Unite Organic was highly praised by medical patients. Our small pilot confirmed that market demand for premium certified organic cannabis exceeds available supply," commented Brian Athaide, Chief Executive Officer of TGOD. "Today's milestone gets us one step closer to achieving our vision of becoming the world's leading brand for premium certified organic cannabis in both medical and recreational segments.  We look forward to continuing to expand our distribution network as we ramp up production in the months ahead."

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US : U.S.: OTC
$ 0.09
-0.0032 -3.38%
Volume: 6,361
Aug. 11, 2020 11:22a
P/E Ratio
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Market Cap
$10.76 million
Rev. per Employee
N/A
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CA : Canadian Securities Exchange
$ 0.11
0.00 0.00%
Volume: 25,000
Aug. 11, 2020 3:49p
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Dividend Yield
N/A
Market Cap
$14.36 million
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US : U.S.: NYSE
$ 16.95
-0.98 -5.47%
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P/E Ratio
N/A
Dividend Yield
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Market Cap
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$115,039
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CA : Canada: Toronto
$ 22.56
-1.37 -5.73%
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Market Cap
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Rev. per Employee
$150,142
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US : U.S.: Nasdaq
$ 4.45
-0.18 -3.89%
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N/A
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Market Cap
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Rev. per Employee
$147,410
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CA : Canada: Toronto
$ 5.94
-0.22 -3.57%
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Aug. 11, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
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Rev. per Employee
$190,843
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US : U.S.: Nasdaq
$ 1.33
-0.01 -0.75%
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P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$259.35 million
Rev. per Employee
$49,972
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CA : Canada: TSX Venture
$ 6.85
-0.03 -0.44%
Volume: 392,662
Aug. 21, 2019 12:00a
P/E Ratio
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Dividend Yield
N/A
Market Cap
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Rev. per Employee
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US : U.S.: OTC
$ 0.33
-0.02 -5.80%
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N/A
Dividend Yield
N/A
Market Cap
$133.97 million
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$8,428
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CA : Canada: Toronto
$ 0.44
-0.03 -5.38%
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P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$178.84 million
Rev. per Employee
$10,924
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US : U.S.: OTC
$ 0.09
-0.0032 -3.38%
Volume: 6,361
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P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$10.76 million
Rev. per Employee
N/A
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/zigman2/quotes/212657074/delayed
CA : Canadian Securities Exchange
$ 0.11
0.00 0.00%
Volume: 25,000
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P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$14.36 million
Rev. per Employee
N/A
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/zigman2/quotes/212657074/delayed
CA : Canadian Securities Exchange
$ 0.11
0.00 0.00%
Volume: 25,000
Aug. 11, 2020 3:49p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$14.36 million
Rev. per Employee
N/A
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/zigman2/quotes/200603886/composite
US : U.S.: NYSE
$ 16.95
-0.98 -5.47%
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P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$6.65 billion
Rev. per Employee
$115,039
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/zigman2/quotes/202205609/delayed
CA : Canada: Toronto
$ 22.56
-1.37 -5.73%
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P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$8.88 billion
Rev. per Employee
$150,142
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/zigman2/quotes/207425803/composite
US : U.S.: Nasdaq
$ 4.45
-0.18 -3.89%
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P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$1.33 billion
Rev. per Employee
$147,410
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/zigman2/quotes/205566616/delayed
CA : Canada: Toronto
$ 5.94
-0.22 -3.57%
Volume: 2.11M
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P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$1.78 billion
Rev. per Employee
$190,843
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/zigman2/quotes/209289540/lastsale
US : U.S.: Nasdaq
$ 1.33
-0.01 -0.75%
Volume: 2.99M
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P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$259.35 million
Rev. per Employee
$49,972
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CA : Canada: TSX Venture
$ 6.85
-0.03 -0.44%
Volume: 392,662
Aug. 21, 2019 12:00a
P/E Ratio
31.08
Dividend Yield
N/A
Market Cap
$1.07 billion
Rev. per Employee
$64,794
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/zigman2/quotes/206870535/delayed
CA : Canada: Toronto
$ 0.44
-0.03 -5.38%
Volume: 1.88M
Aug. 11, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$178.84 million
Rev. per Employee
$10,924
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