NEW YORK, Nov. 26, 2019 /PRNewswire/ -- In 2017, it was reported that 3.8% of the global population, or 284 million people, suffered from anxiety disorders, according to Our World in Data. The number of people diagnosed with anxiety outpaced those suffering from depression, making it the most prevalent mental health disorder. In particular, the nearly 40 million U.S. adults are affected by anxiety, however, only 36.9% of those diagnosed with anxiety seek treatment. Generally, people with anxiety disorders are three to five times more likely to visit a doctor and six times more likely to be hospitalized for psychiatric disorders than those who do not suffer from anxiety disorders. The large discrepancy between people who seek treatment and those that don't is most likely due to the cost of treatment: typically, low-cost treatments such as cognitive-behavioral therapies can cost roughly USD 100.00 or more per hour. Moreover, some healthcare insurers do not provide coverage for certain medications, making it increasingly difficult for people suffering from anxiety to manage their symptoms. Consequently, many have decided to turn towards CBD or cannabidiol to treat their anxiety. CBD is a compound derived from the hemp plant, which is classified under the cannabis family. Not to be confused with marijuana, hemp is the non-psychoactive portion of the cannabis plant. In the past, health regulators around the world deemed CBD to be unsafe because of its psychotropic marijuana counterpart. However, more recent, extensive research has undermined previous stereotypes regarding CBD and proved that the compound provided therapeutic benefits to consumers. As a result, many countries began to adopt CBD-based medications in order to treat a plethora of medical conditions. And the global cannabidiol market is expected to increase from USD 303 Million in 2018 to USD 2.28 Billion by 2025 while registering a CAGR of 33.5%, according to data compiled by QY Research. Newleaf Brands Inc. , Aphria Inc. /zigman2/quotes/207425803/composite APHA +3.10% /zigman2/quotes/205566616/delayed CA:APHA +2.50% , Aurora Cannabis Inc. /zigman2/quotes/210559470/composite ACB +3.88% /zigman2/quotes/203734337/delayed CA:ACB +3.45% , The Green Organic Dutchman Holdings Ltd. /zigman2/quotes/204266798/delayed TGODF -3.07% /zigman2/quotes/206870535/delayed CA:TGOD -4.49% , The Supreme Cannabis Company, Inc. /zigman2/quotes/203819708/delayed SPRWF -2.79% /zigman2/quotes/209645734/delayed CA:FIRE -2.44%
Researchers have proved that CBD can effectively be used to treat serious medical conditions such as cancer, multiple sclerosis, Alzheimer's, Parkinson's, depression, and anxiety. The wide-range use of CBD makes it a highly versatile treatment for a cheaper cost than traditional medications. Consumers can obtain a medical cannabis license in order to purchase their products from an authorized licensed medical vendor. And generally, prices vary between different regions. For instance, a gram of medical-grade dried flower is approximately USD 7.00 to USD 20.00, while an ounce can range anywhere from as low as USD 170.00 to USD 375.00. Depending on the severity of the medical conditions, some patients may consume an ounce in just a few days, while others may take months to finish the same amount. However, most consumers tend to prefer extracts or concentrates because they are much more potent and deliver the effects almost instantaneously. Nevertheless, the initial cost of cannabis oils can be quite costly. For example, a 500 mg can range anywhere from approximately USD 20.00 per cartridge to around USD 60.00 depending on the quality. Similar to dried cannabis flowers, the usage of oils highly depends on the consumer's tolerance. Whereas some consumers may use an entire half-gram cartridge in just a matter of a day or two, infrequent consumers may see their product last upwards of several months. On the other hand, CBD-based products such as patches, tinctures, and topicals have also become widely popular because they do not require direct consumption, as users can simply apply the patch, oil, or cream to their body. However, despite the growing usage of CBD-based products, industry experts believe the market will hit a roadblock as regulatory frameworks continue to clear up in the next year. Nonetheless, as regulations continue to change and more regions begin to adopt CBD, the marketplace is positioned to experience exponential growth. "We anticipate most of 2019 to remain rather murky," said Sean Murphy, Director of hemp analytics at New Frontier Data. "But later this year, or in early 2020, the market will clear up as a regulatory framework is established, paving the way for top hemp CBD products to hit the shelves of mass market retailers."
Newleaf Brands Inc. is also listed on the Canadian Securities Exchange under the ticker . Yesterday, the Company announced that, "it has entered into a letter of intent (the "LOI") with an arm's length-party, Vida Concepts, LLC ("Vida") and its wholly-owned subsidiary NXTGEN CBD Supplements, LLC ("NXTGEN"), pursuant to which the Company has agreed to acquire 100% of the issued and outstanding share capital of Vida, its products lines and inventory (the "Acquisition"). In consideration for the Acquisition, the Company has agreed to the following terms: (i) the issuance of 8,517,308 common shares at a deemed value of $0.39 in the capital of the Company to the shareholders of Vida; (ii) make a cash payment of $300,000 USD ($398,610 CAD); and (iii) the Company will enter into an executive employment agreement with Michael Alexander with its terms to be determined.
About Vida: Vida was founded with wellness spirit and a lofty objective: to be a go-to brand in providing huge science proven cannabinoids-based medicine and its health benefits for a better and improved life, while leading the way for 100% non-GMO, phytocannabinoid-rich industrial hemp for healthy life sustainability.
Vida and NXTGEN are well known within the CBD space in Southwestern United States. Their product offerings include a plethora of wellness and fitness based options that include topical rubs, tinctures and specialized wellness capsules focused on mental health and a balanced lifestyle.
NXTGEN's products provides high-quality CBD to assist in reducing athletic injuries while improving the healing process to increase total body performance for all levels of athlete and sports. NXTGEN products contain zero THC levels, which makes them safe as a sports aid for all athletes and lifestyle needs.
Michael Alexander, CEO and Co-Founder of Vida, commented, "We are excited for this emerging opportunity with NewLeaf Brands. Consolidation in the CBD industry is looming as an inevitable outcome for multi-state operators to achieve their full potential, we were searching for a strategic and likeminded partnership focused on exceptional customer care, quality of product ingredients, and a focus in building distribution channels. This is made possible partnering with NLB."
Joshua Bartch, CEO of NewLeaf Brands, commented, "The NewLeaf Brands team is incredibly excited for the LOI to purchase Vida Concepts. We've known the management team at Vida for some time and have watched them be successful on various endeavors. We've watched Vida grow since inception. The Vida team brings an expertise throughout many industries and an attention to detail and innovation that's hard to match. Acquiring Vida will fill the holes in the Company's current product offerings to make NewLeaf Brands a one stop shop for everyone's CBD needs. We look forward to closing this transaction and moving forward with the brand and current management."
The Company confirms that a control person will not be created as a result of the Acquisition. Closing of the Acquisition is subject to definitive documentation, receipt of all necessary corporate and regulatory approvals, including the Exchange. All securities issued in connection with the Acquisition will be subject to a statutory hold period of four months and one day from the date of issuance in accordance with applicable securities legislation.
About NewLeaf Brands: NewLeaf Brands, Inc. is an innovative Cannabidiol ("CBD") lifestyle Company. Through the Company's wholly-owned subsidiaries We are Kured, LLC, Drink Fresh Water, LLC, ReLyfe Brand, LLC and TeaLief Brand, LLC the Company's main business activities encompass the development, marketing, and distribution of CBD products (including vaporizer pens/cartridges, hot/cold tea, softgel capsules and beverages) throughout North America, South America, and Europe. In addition, NewLeaf Brands, Inc. has extensive retail and cultivation land investments in Oregon, USA."
For our latest "Buzz on the Street" Show featuring Newleaf Brands Inc. recent corporate news, please head over to: https://www.youtube.com/watch?v=uGBrkWdMsiI
Aphria Inc. /zigman2/quotes/207425803/composite APHA +3.10% /zigman2/quotes/205566616/delayed CA:APHA +2.50% is a leading global cannabis company driven by an unrelenting commitment to our people, product quality and innovation. Aphria Inc., through its subsidiary Aphria Deutschland GmbH, recently launched the Company's first CBD-based nutraceutical, the first product in its CBD-based cosmetics line for the German market. Featuring CBD derived from hemp, the CannRelief brand of products are being produced in the European Union and distributed by the Company's subsidiary, CC Pharma, which has access to more than 13,000 pharmacies throughout Germany. "We are excited to introduce our first brand of CBD products for the German nutraceutical and cosmetics market," said Jakob Ripshtein, President of Aphria. "Supported by our extensive distribution network through CC Pharma, CannRelief provides a natural extension to Aphria's growing business opportunities in the German medical cannabis market. We look forward to providing a full range of CannRelief CBD products this year."
Aurora Cannabis Inc. /zigman2/quotes/210559470/composite ACB +3.88% /zigman2/quotes/203734337/delayed CA:ACB +3.45% , headquartered in Edmonton, Alberta, Canada with funded capacity in excess of 625,000 kg per annum and sales and operations in 25 countries across five continents, is one of the world's largest and leading cannabis companies. Aurora Cannabis Inc. recently announced the completion of the previously announced plan of arrangement with Hempco Food and Fiber Inc. /zigman2/quotes/200243723/delayed HEMP 0.00% pursuant to which Aurora has acquired all of the issued and outstanding common shares of Hempco ("Hempco Shares") not already owned by Aurora, reflecting a valuation of approximately CAD 63.4 Million on a fully diluted basis. Hempco is now a wholly-owned subsidiary of Aurora. The Hempco Shares will be delisted from the TSX Venture Exchange, and Aurora will apply to the relevant securities commissions for Hempco to cease to be a reporting issuer under Canadian securities laws. "Aurora is defining the future of cannabis and hemp, globally," said Terry Booth, Chief Executive Officer of Aurora. "Through the addition of Hempco, we have assembled a world-class portfolio of high-quality hemp assets that together form the basis of a strong new operating division that will develop CBD-from-hemp around the world. Aurora Hemp brings together the cultivars, strategic partners, brands, and distribution networks to service medical, consumer, and wellness markets and further advances Aurora's entry into the US hemp food and hemp-derived CBD markets."
The Green Organic Dutchman Holdings Ltd. (otcqx:TGODF) /zigman2/quotes/206870535/delayed CA:TGOD -4.49% 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 its wholly-owned subsidiary, HemPoland, has entered into an agreement with Mediakos UG haftungsbeschraenkt (Mediakos) to be the exclusive distributor of CannabiGold, its premium hemp CBD brand, for the German pharmacy market. Mediakos UG spun out of Aponeo.de , a leading German online pharmacy, and is managed by a team of seasoned industry executives with demonstrated expertise in marketing and distribution of health and wellness products. It currently distributes a broad portfolio of products to a network of more than 15,000 pharmacies and can capitalize on over 10 million customers. "With a population of over 82 million, Germany plays a pivotal role in TGOD's international expansion strategy," commented Brian Athaide, Chief Executive Officer of TGOD. "We are thrilled to be working with Mediakos' experienced team as we continue to solidify CannabiGold's position as a leading brand within the European market."
The Supreme Cannabis Company, Inc. (otcqx:SPRWF) /zigman2/quotes/209645734/delayed CA:FIRE -2.44% is a globally diversified portfolio of distinct cannabis companies, products and brands. The Supreme Cannabis Company, Inc. recently announced that Blissco Cannabis Corp., Supreme Cannabis' premium wellness brand and a multi-licensed processor and distributor, had received licensing approval from Health Canada for the sale of cannabis oils from its facility in Langley, British Columbia. The cannabis oil sales license granted by Health Canada 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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