PALM BEACH, Florida, April 25, 2019 /PRNewswire/ -- Cannabis growers are seeking more land to generate more profits and to keep the shelves full in dispensaries across North America. They need more land for more production. After all, they are the first step in the sales chain that is projected for continued growth. It all starts with 'farms'. Forbes recently looked at this key sector saying: "The current "green rush" has brought with it an intense focus on large-scale cannabis cultivation. Across the United States and around the globe, we routinely hear stories of companies building larger and larger cannabis farms. In Arizona, Colorado, California, and Oregon, cannabis is being cultivated in greenhouses in excess of 250,000 sq. ft. that are capable of yielding more than 50,000 pounds of flower. An article in the Marijuana Business Daily said: "Executives with real estate firms that lease to marijuana growers say the market for their services is large and growing, fueled by increased demand for cannabis and the need for land to grow the plant. Investors, meanwhile, are pouring millions of dollars into these businesses. Looking ahead, the expected growth of these companies is expected to transform cannabis cultivation, with mega grow sites becoming more the norm, some experts said. Active companies in the Cannabis market this week include Cannabis Strategic Ventures, Inc. (OTC:NUGS), HEXO Corp. (TSX: HEXO) (NYSE: HEXO), Aphria Inc. (TSX: APHA) (NYSE: APHA), Neptune Wellness Solutions Inc. (TSX: NEPT.TO) (NASDAQ: NEPT), CV Sciences, Inc. (OTCQB: CVSI).
The Forbes article continued: "While large-scale Canadian producers are building greenhouses in the millions of square feet and building similar-sized facilities in Europe, Australia, and elsewhere. In the United States, cultivation licenses are often viewed as the most valuable in the highly competitive application processes that most states use to determine who is allowed to cultivate and dispense in their states."
Cannabis Strategic Ventures, Inc. (OTCPK:NUGS) BREAKING NEWS: Cannabis Strategic Ventures today announces a major addition to its corporate portfolio through the launch of a six-acre cannabis cultivation site expected to produce a minimum of 30,000 pounds of cannabis per harvest, with an anticipation of four to five harvests per year.
The site, which has been named NUGS Farm North, is located in Northern California. NUGS Farm North is primarily a cultivation operation but will also host manufacturing and distribution business units for Cannabis Strategic Ventures. In total, the site holds 24 cultivation, manufacturing and distribution licenses issued by the Bureau of Cannabis Control in the State of California. NUGS Farm North is expected to operate at maximum capacity by late summer of 2019.
"This is a significant event for Cannabis Strategic and its investors," commented Simon Yu, CEO Cannabis Strategic Ventures. "NUGS Farm North has planted over 20,000 marijuana clones this week and will plant 10,000 more next week. Beyond the initiation of this first phase of NUGS farm North, we anticipate further expansion towards maximum capacity, which will increase top line revenue."
Cannabis industry figures show that cannabis plants yield more than one pound of cannabis per harvest. In California, the wholesale price for cannabis opened 2018 at $1,455 per pound and closed the year at $1,196 per pound, averaging $1,197 per pound for the year, according to Cannabis Benchmarks. The Company has retained a highly skilled team to operate NUGS Farm North consisting of experts with over a dozen years of full lifecycle cannabis operations, as well as research scientists with vast scientific, medical and laboratory backgrounds unique to cannabis operations.
"NUGS Farm North is in a prime location. We have assembled a great team to operate the site and to market and distribute its outputs. We have already begun cultivation and believe the marketplace is primed for the type of premium cannabis flower we are cultivating. We look forward to a successful operation at our flagship cultivation site," added Yu. Read this and more news for Cannabis Strategic Ventures at: https://www.financialnewsmedia.com/news-nugs
Other recent developments and major influences in the cannabis industry include:
Aphria Inc. (TSX: APHA) (NYSE: APHA) recently announced it has closed its offering of 5.25% convertible senior notes due 2024 (the "notes") for gross proceeds of US$300 million in a private placement to qualified institutional buyers pursuant to Rule 144A under the U.S. Securities Act of 1933, as amended (the "Act"), and outside the United States to non-U.S. persons in compliance with Regulation S under the Act.
On April 23, 2019, the initial purchasers exercised their option to purchase up to an additional US$50 million principal amount of notes in full, resulting in gross proceeds of US$350 million. The sale of the additional notes to the initial purchasers is expected to settle on April 26, 2019, subject to the satisfaction of customary closing conditions.
Neptune Wellness Solutions Inc. (TSX: NEPT.TO) (NASDAQ: NEPT) recently announced that its Solutions Business has begun offering turnkey product development solutions with hemp-derived ingredients to business customers in the United States. A U.S.-based supply chain of licensed hemp extract producers has been established, and initial purchase orders are now being processed.
Neptune boasts long-standing experience in the management of custom and white label turnkey product development solutions comprising a diverse array of product forms including softgels, liquids, topicals, emulsions, and water-dispersible powders. Branded ingredients and products that have contributed to Neptune's success, such as MaxSimil® and ECSentialsTMformulations, could potentially be used in unique combinations with hemp ingredients, particularly as the U.S. regulatory framework around hemp extracts and cannabidiol (CBD) evolves.
HEXO Corp. (TSX: HEXO) (NYSE: HEXO) recently announced that it has entered into irrevocable hard voting support agreements with shareholders of Newstrike Brands Ltd. ("Newstrike") (HIP.V) representing in aggregate approximately 38.3% of Newstrike's issued and outstanding common shares in connection with definitive arrangement agreement (the "Arrangement Agreement") under which HEXO will acquire, by way of a plan of arrangement under the Business Corporations Act (Ontario), all of Newstrike's issued and outstanding common shares in an all-share transaction (the "Transaction").
"We're pleased to have secured hard lock up support for 38.3% of Newstrike shareholders since announcing the agreement," said Sebastien St-Louis, HEXO's CEO and co-founder. "This is a great recognition of the extreme alignment between both companies' management and boards, as well as a vote of confidence in HEXO's vision for the future. We are eager for the Newstrike family to embark on this journey with us!"
CV Sciences, Inc. (OTCQB: CVSI) a preeminent supplier and manufacturer of hemp CBD products, recently announced that it has appointed Deloitte & Touche LLP ("Deloitte") as the Company's new independent registered public accounting firm. "Following a thorough selection process, the Company's Audit Committee has concluded that Deloitte is best positioned to meet the evolving needs of CV Sciences. We would like to thank Tanner LLC for the quality work and expertise they have provided over the last three years," said Joseph Dowling, Chief Executive Officer of CV Sciences.
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