NEW YORK, March 19, 2020 /PRNewswire/ -- Over the past several years, the sale of cannabidiol-based (CBD) products has rapidly increased due to varied, yet successful, legalization efforts. Specifically, in regions such as the U.S. and Canada, consumers have shown a strong demand to purchase such products in retailers, where CBD is sold in various forms such as topicals, beverages, tinctures, and patches. Notably, major retail corporations such as Amazon, Walgreens, and CVS have all decided to sell CBD products in-store as well as on their online platforms. The passage of the U.S. Farm Bill in late 2018, which legalized the commercialization of hemp-derived products, was a major contribution to the acceleration of the market. Shortly after the passage of the bill, retailers throughout the country began to stock up on CBD products as consumers became increasingly inquisitive. At the market's inception, most consumers generally had little to no knowledge about CBD, except for the fact that it was derived from the cannabis plant. With hemp-derived CBD growing in popularity, in particular within the health, wellness, and anti-pharma segments, the market is on track to grow to USD 23.7 Billion by 2023, according to the Brightfield Group. CanaFarma Hemp Products Corp. (CSE: CNFA), Canopy Growth Corporation (NYSE: CGC) (TSX: WEED), Aphria Inc. (NYSE: APHA) (TSX: APHA), Charlotte's Web Holdings, Inc. (OTC: CWBHF) (TSX: CWEB), Neptune Wellness Solutions Inc. (NASDAQ: NEPT).
Generally, most consumers use CBD products for medicinal purposes. Similarly, retailers are advertising CBD products as therapeutic treatments, however, there is still a large recreational market for the industry. Primarily, most consumers intake CBD to treat a wide range of medical conditions such as chronic pain, mood disorders, neurological disorders, and diabetes. In the healthcare industry, most independent pharmacies have already begun selling CBD products. While there are many ways to consume CBD, the oils marketplace is expected to be the fastest growing segment within the overall CBD sector. For instance, the CBD oil market size will grow by USD 3.52 Billion during the period of 2020 to 2024, according to Technavio. "The 29 U.S. states reporting licensed hemp cultivation acreage total almost half a million acres in combined cultivation land area, which is a massive increase compared to 2018 figures of a total land area barely over 100,000 acres. While there continues to be uncertainty and a healthy amount of confusion around hemp cultivation for CBD production, it is clear that demand is nonetheless continuing to rise across the U.S.," noted Giadha Aguirre de Carcer, New Frontier Data CEO and Founder. "As states issue more licenses, consumer demand increases, and mass-market retailers such as CVS and Walgreens continue to expand their own product offerings, we expect the FDA may be forced to provide further regulatory clarifications sooner rather than later."
CanaFarma Hemp Products Corp. (CSE: CNFA) just announced breaking news that, "it has signed a lease for 100 acres of farmland in Cato, New York, almost doubling the size of the farm the Company had in 2019.
In 2019, CanaFarma Hemp worked a 55 acre farm in New York State and delivered 128,000 lbs. of Hemp Biomass, achieving a yield of over 2,300 lbs. per acre which is 50% better than the average farm yield, which the management of the Company believe to be in the range of 1,500 lbs. per acre. Furthermore, the CBD potency of our Biomass was over 14%, compared to the average potency which we believe to be approximately 10%.
David Lonsdale, CEO of CanaFarma, commented: "We are obviously very pleased with the harvest we achieved in 2019 and we will be endeavoring to continue this level of performance in 2020."
CanaFarma Hemp is also actively looking at further expanding its Farm acreage both in New York State and in neighboring States.
About CanaFarma Hemp Products Corp.: CanaFarma Hemp is a full-service company operating in the hemp industry offering a full range of hemp-related products and services. These products and services include growing top-quality hemp, providing hemp-processing services, and offering hemp-based products to consumers utilizing a direct-to-consumer marketing approach."
Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) award-winning retail brand Tokyo Smoke announced earlier in January that it will be working with a total of ten recently-announced Ontario retail licence holders to open new Tokyo Smoke branded retail cannabis stores across the province. "With ten new stores set to open in the first half of this year, we are pleased with the momentum we've built and excited to bring the Tokyo Smoke experience to more Ontarians," said Rade Kovacevic, President, Canopy Growth. "Increasing Tokyo Smoke's presence across the province will expand access to high-quality cannabis products and education, continuing to migrate cannabis sales from the illicit to the regulated market." Once licensed, this will bring the number of Tokyo Smoke branded retail cannabis stores in Ontario to a total of 12, joining Tokyo Smoke 333 Yonge at Dundas Square in Toronto, and Tokyo Smoke Oshawa.
Aphria Inc. (NYSE: APHA) (TSX: APHA) announced last November that it had 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 140,000 kg. 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 255,000 kg. "We are extremely pleased to receive the licence for our long-awaited Aphria Diamond facility, which more than doubles our Canadian production capacity," said Irwin D. Simon. "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."
Charlotte's Web Holdings, Inc. (OTCQX: CWBHF) (TSX: CWEB) announced on March 13th, the establishment of Charlotte's Web Labs (CW Labs) an internal division for research & development substantially expanding on the Company's efforts around the science of hemp derived phytocannabinoids, terpenes and flavonoid compounds. The Company is placing its existing R&D team under the leadership of recently hired Senior Vice President of Innovation, Tim Orr, who will lead CW Labs' expanded team of a dozen external and internal research specialists based in Buffalo, New York and Boulder, Colorado. Mr. Orr is a global healthcare executive with more than three decades of commercial and product development experience in the diagnostics, life sciences, and medical device industries. Mr. Orr has held top executive and management positions at Johnson & Johnson and Abbott Laboratories. "The launch of CW Labs formalizes our reach into the science, efficacy and safety of hemp plant compounds," said Deanie Elsner, CEO of Charlotte's Web. "CW Labs demonstrates our commitment to innovation and our cutting-edge position with consumer wellness products derived from our proprietary hemp. We want to thank Governor Cuomo for his leadership in this space and we are looking forward to being even a bigger part of things in New York through our partnership with SUNY in the great city of Buffalo."
Neptune Wellness Solutions Inc. (NASDAQ: NEPT) announced last November that it had entered into a collaboration agreement with International Flavors & Fragrances Inc. to co-develop hemp-derived CBD products for the mass retail and health & wellness markets. App Connect Service, Inc. is also a party to the agreement to provide related branding strategies and promotional activities. In conjunction with the co-development partnership, Neptune will issue to warrants(1) to IFF. "The agreement represents a significant event in the development of our global cannabis business, expanding our business model from primarily B2B to include a robust B2C business platform. IFF has an impressive track record, remarkable capabilities and global reach. This partnership will accelerate Neptune's vision and growth strategy to be the leading producer of hemp extracts ingredients and finished products for the global health & wellness and Consumer Packaged Goods industries. We are also now better positioned to leverage our management's experience building brands and relationships with key North American retailers," stated Michael Cammarata, CEO of Neptune.
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