Apr 08, 2021 (Financial News Media via COMTEX) -- Palm Beach, FL - April 8, 2021 - Cannabis extracts have gained wide recognition in recent years and are expected to provide impetus to cannabis market growth. Based on product type, cannabis extracts are classified into oils and tinctures. Growing legalization of cannabis in various countries, preference for cannabis oil and tinctures, and adoption of medical marijuana for treating chronic diseases like arthritis, anxiety, and Alzheimer's are the major factors propelling the growth. According to a report from Grand View, the oils segment is expected to dominate the market and is anticipated to witness the fastest CAGR of 17.5%, through 2027. The report added that the global cannabis extract market size is expected to be valued at US $28.5 billion by 2027, and it is projected to expand at a CAGR of 16.6% through 2027 also. Other key findings of the report are that: "In 2019, oils held the largest revenue share of 66.5% owing to ease of availability and low price of the product; The full spectrum segment was valued at USD 4.3 billion in 2019, owing to its entourage effect-a synergistic relationship between cannabinoids and terpenes that exhibits an increase in the healing properties of each cannabinoid." Active companies in news today include: Pure Extracts Technologies Corp. (otcpk:PRXTF) /zigman2/quotes/222359307/delayed CA:PULL -3.13% , Sundial Growers Inc. /zigman2/quotes/213489825/composite SNDL -8.59% , Organigram Holdings Inc. /zigman2/quotes/209289540/lastsale OGI -6.15% CA:OGI -0.44% , Planet 13 Holdings Inc. (otcqb:PLNHF) /zigman2/quotes/202325829/delayed CA:PLTH -5.94% , 4Front Ventures Corp. (otcqx:FFNTF) /zigman2/quotes/206762463/delayed CA:FFNT -0.61% .
Grand View continued: "Marijuana isolates is anticipated to emerge as the second largest type segment over the forecast period, owing to several advantages that have increased its adoption. For instance, the purest form of isolates, such as CBD oil, have no psychoactive effects as they have no THC content. In 2019, North America accounted for the largest share in the global cannabis concentrates market. This can be attributed to high utilization owing to government approvals. Based on extract type, the market is segmented into full spectrum cannabis extracts and cannabis isolates. The full spectrum cannabis extracts dominated the market in 2019, with a revenue of USD 4.3 billion, owing to the added advantage of the entourage effect. Various manufacturers prefer full spectrum cannabis products owing to their advantages over the isolates. Thus, the segment is expected to remain dominant over the forecast period (2027)."
Pure Extracts Technologies Corp. /zigman2/quotes/202137327/delayed PRXTF -2.27% /zigman2/quotes/222359307/delayed CA:PULL -3.13% (PULL.CNX) BREAKING NEWS – Pure Extracts to Enter US Market through JV in Michigan – Pure Extracts Technologies Corp. ("Pure Extracts" or the "Company") is pleased to announce the signing of a Letter of Intent ("LOI") with the affiliate of a publicly traded multi-state operator (MSO) to form a Joint Venture (the "JV") to install a cannabis and hemp extraction system in an existing Michigan facility.
This MSO has a long history of success in Oregon offering a family of products including sun-grown and indoor premium flower, along with patented nitro sealed indoor and sun-grown pre-rolls and jars. These products are also grown and packaged in Michigan for retail sale in over 100+ dispensaries throughout the state.
Pure Extracts is a plant-based extraction company focused on cannabis, hemp, functional mushrooms and the rapidly emerging psychedelic sector, from a state-of-the-art processing facility located just north of Whistler, British Columbia.
In Michigan, the companies plan to join forces by combining the MSO affiliate's local permitting, licensing and marketing expertise with Pure Extracts' extraction, vape, live resin and edibles manufacturing skills. The venture partners plan to build-out 2,600 sq. ft. of existing, under utilized, space in the MSO's current facility, which is strategically located in central Michigan within a 2-hour drive of several major markets.
Pure Extracts expects to contribute a mix of equipment and cash to the venture, which will allow the partners to rapidly scale-up to meet the rising demand for recreation cannabis concentrates and edibles throughout the state.
Michigan is anticipated to follow similar consumer trend patterns experienced in other states such as California and Colorado where sales of extracts and concentrates eventually overtake sales of dry-flower. Bruce Linton, co-founder and former CEO of cannabis giant Canopy Growth and executive chairman of Michigan-based and newly public Gage Growth Corp. /zigman2/quotes/225913647/delayed CA:GAGE +7.08% , recently commented in Forbes that, "Michigan is one of the fastest growing cannabis markets in the U.S." According to the Michigan Marijuana Regulatory Agency (MRA), during February 2021, Michigan cannabis sales increased 160% from a year ago to US $106.2 million, with medical sales improving 48% to US $38.1 million and adult use sales soaring 353% to US $68.1 million.
In addition to manufacturing Pure Extracts' proprietary brands of vapes and edibles, the JV partners anticipate an initial white-label order for live-resin concentrates from the MSO affiliate as that company continues to build on the outstanding reputation its dry-flower products have already garnered within the Michigan marketplace.
Pure Extracts CEO, Ben Nikolaevsky, remarked, "We are really excited about launching our first US initiative into the dynamic Michigan market, especially with experienced and entrenched partners. There is strong demand throughout the state for the products we know best: full spectrum oil (FSO) vapes, live resin concentrates, and edibles. With immediate access to the MSO affiliate's 100+ dispensary customers out of Michigan's nearly 400 licensed dispensaries, we expect our products to be distributed and on-shelves in Q4 of this year." Read this full release and more news for Pure Extracts by visiting: https://www.financialnewsmedia.com/news-pull/
In other industry news of note:
Planet 13 Holdings Inc. (otcqb:PLNHF) /zigman2/quotes/202325829/delayed CA:PLTH -5.94% , a leading vertically-integrated Nevada cannabis company, recently announced its financial results for the three-month and twelve-month period ended December 31, 2020. Planet 13’s financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”).
“Based on our performance in March 2021, it is clear that Las Vegas is back.” Said Larry Scheffler, Co-CEO of Planet 13. “We dwarfed our single month record with $9.7 million in revenue in March, and we believe that as more people get vaccinated and Las Vegas continues to open, revenue will continue to increase. Looking back on 2020, we weathered the perfect storm of COVID-19 and the resulting 55% decrease in tourism and still increased revenue year over year, generating over $70 million while maintaining our share of the Nevada market.”
4Front Ventures Corp. (otcqx:FFNTF) /zigman2/quotes/206762463/delayed CA:FFNT -0.61% recently announced its financial results for the fourth quarter and fiscal year ended December 31, 2020. All financial information is presented in U.S. dollars unless otherwise indicated.
“4Front’s strong fiscal 2020 performance is validation that our core strategy of replicating low-cost production methods, developed and refined within our Washington facilities, combined with our steadfast focus on execution is working,” said Leo Gontmakher, Chief Executive Officer of 4Front. “We ended 2020 with tremendous business momentum that we have carried into the new year, as we scaled and replicated our operations across the growing adult-use markets of Massachusetts, Illinois and California.”
Sundial Growers Inc. /zigman2/quotes/213489825/composite SNDL -8.59% recently reported its financial and operational results for the full year and fourth quarter ended December 31, 2020. All financial information in this press release is reported in millions of Canadian dollars and represents results from continuing operations, unless otherwise indicated.