Financialnewsmedia.com News Commentary
PALM BEACH, Florida, Aug. 6, 2019 /PRNewswire/ -- Since the U.S. Farm Bill became law, global demand for CBD-rich consumer products has been increasing at a rapid pace. In fact, the Brightfield Group estimates the U.S. CBD product market alone to be worth over $23.7 billion by 2023, as CBD finds its way into a variety of consumer product categories including food and beverage, pharmaceuticals, cosmetics, and health and wellness. Better, according to a May 2018 survey from Nielsen, analysts found that consumers are quickly embracing CBD products, particularly when it comes to medicinal purposes. In fact, according to the survey, 40% of head and migraine suffers are considering cannabis in addition to 40% of all arthritis pain suffers, and 41% of all back and neck pain sufferers. That's opening a wide range of opportunity for companies including MYM Nutraceuticals Inc. (OTCQB:MYMMF) (CSE:MYM), Cronos Group Inc. (NASDAQ:CRON), Aphria Inc. (NYSE:APHA) (TSX:APHA), Charlotte's Web Holdings Inc. (OTCQX:CWBHF) (CSE:CWEB) and Canopy Growth Corporation (NYSE:CGC) (TSX:WEED).
MYM Nutraceuticals Inc. (CSE:MYM)(OTC:MYMMF) BREAKING NEWS: MYM Nutraceuticals just announced the incorporation of MYM International Brands Inc. to focus on the growing global demand for CBD-rich consumer products. The passing of the Farm Bill in 2018 allowed for the cultivation of CBD-rich hemp in the United States. "As global cultivators of CBD-rich hemp, we have the expertise and network to expand our business into CBD consumer products," said Howard Steinberg, CEO of MYM. "Erick Factor will lead this initiative as Chairman and CEO of International Brands which is an extremely important initiative for the company. The senior management team is excited about Erick taking on this tremendous opportunity. Erick is well equipped to meet the challenges of product development, branding, and distribution to help us be successful in the CBD consumer products space. In order to focus his full attention on this new role, Erick has decided to resign as Chairman of MYM Nutraceuticals."
"Five years ago, I founded MYM Nutraceuticals with the goal of creating a fully integrated, seed to sale, global cannabis company. Now with offices in six countries and growing, we're in a position to create a new revenue stream with unique brands. To this end, I'm extremely excited to launch MYM International Brands at a time when CBD-rich consumer products are still in their infancy", said Erick Factor, CEO of MYM International Brands. "The team has a tremendous opportunity ahead of us to become global leaders in a burgeoning new consumer products sector. We're eager to hit the ground running and confident our new division can add value to MYM shareholders". FOR MORE INFO ON MYM, PLEASE GO TO https://www.mym.ca/
Other cannabis-related developments from around the markets include:
Cronos Group Inc. (NASDAQ:CRON) just announced that it has entered into a definitive agreement to acquire four of Redwood Holding Group, LLC's operating subsidiaries.
Redwood manufactures, markets and distributes hemp-derived cannabidiol (CBD) infused skincare and other consumer products online and through retail and hospitality partner channels in the United States under the brand, Lord Jones™. Redwood's products use pure hemp oil that contains natural phytocannabinoids and terpenes found in the plant. Under the terms of the agreement, Cronos Group will acquire Redwood for approximately $300 million, net of Redwood's estimated cash and debt and subject to a customary working capital adjustment as described in the agreement. $225 million of the total consideration (subject to the foregoing adjustments) will be paid in cash with the balance paid in newly issued Cronos Group common shares. Cronos Group will fund the cash portion of the transaction with cash on hand.
Aphria Inc. (NYSE:APHA) (TSX:APHA) just reported its results for the fourth quarter and fiscal year ended May 31, 2019. All amounts are expressed in thousands of Canadian dollars, unless otherwise noted and except for per gram, kilogram, kilogram equivalents, and per share amounts.
"It's a new day at Aphria. Our team's solid execution across key areas of our business resulted in strong adult-use revenue growth and a profitable fourth quarter," stated Irwin D. Simon. "Over the last six months, our organization identified immediate priorities to help generate substantial progress near-term and long-term. We built upon existing business fundamentals and capabilities, streamlined processes, strengthened governance, and focused on building brand awareness. Together, we have nurtured an entrepreneurial culture of accountability through data-driven decision-making for value creation in the global medical and adult-use cannabis industry. Today's Aphria has a stronger foundation for long-term growth and success." The company posted net revenue of $128.6 million in the fourth quarter, an increase of 75% from prior quarter and 969% from prior year; revenue for adult-use cannabis of $18.5 million in the fourth quarter, up 158% from prior quarter; net income of $15.8 million and adjusted EBITDA of $0.2 million in the fourth quarter; and adjusted EBITDA from cannabis operations of $1.9 million in the fourth quarter.
Charlotte's Web Holdings Inc. (CSE:CWEB)(OTCQX:CWBHF) just unveiled its newest CBD product line - hemp extract-infused CBD Gummies – made with whole-plant extract from its prized hemp genetics and featuring synergistic functional ingredients to support specific health related functions including everyday stress, sleep, and recovery from exercise or active lifestyles. Available in a variety of flavors, gummies are the latest addition to the Company's expanding line of CBD hemp-extract products. "Gummies are a very popular edible format as a result of convenience and measurable consumption," stated Kelsey Morrison, Associate Director of Product Development at Charlotte's Web. "This new delivery format from Charlotte's Web provides an easy bite-sized way to ingest full-spectrum hemp-extract CBD."
Canopy Growth Corporation (NYSE:CGC)(TSX:WEED) will release its financial results for the first quarter fiscal 2020 ended June 30, 2019 after financial markets close on August 14, 2019. Following the release of its first quarter 2020 financial results, Canopy Growth will host a conference call and audio webcast with Mark Zekulin, CEO and Mike Lee, EVP & CFO at 8:30 AM Eastern Time on August 15, 2019.
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