Hydroponics Revenues Set To Become Larger Sector Of Global Cannabis & Hemp Revenues

Financialnewsmedia.com News Commentary

PALM BEACH, Florida, Oct. 31, 2019 /PRNewswire/ -- Every new report on projected revenues for cannabis, hemp and CBD seem to be larger than the last "newest" report. It has been this way for some time now and it appears that it will continue well into the future… and as the overall global revenues increase it also appears that the growth in one sub-sector may well outpace the growth of all other sectors. While cannabis/hemp has been experiencing continued growth, so has the global hydroponics market (across all cultivation categories) and the marriage of both the bodes well for the hydroponics market cannabis/hemp sector growth share of the global cannabis/hemp markets. Hydroponics will become a larger segment in the cannabis/hemp global markets and cannabis/hemp will become a larger part of the hydroponics global markets. The numbers bear this out. According to a ZION Market Research report, the global industrial hemp market was approximately USD 3.97 billion in 2018 and is expected to generate around USD 9.64 billion by 2025, at a CAGR of around 13.5% between 2019 and 2025. According to a ResearchAndMarkets report The cannabis market was valued at USD 14.5 billion in 2018, and it is projected to reach 89.1 billion by 2024, with a CAGR of 37% during the forecast period… and according to Maximize Market Research, the Global Hydroponics Market was valued at US$ 22.6 Bn in 2017 and is expected to reach US$ 37.7 Bn by 2026, at a CAGR of 6.61% during a forecast period. Active cannabis companies in the markets this week include: Sugarmade, Inc. (OTCQB: SGMD), KushCo Holdings, Inc. (OTCQX: KSHB), The Supreme Cannabis Company, Inc. (TSX: FIRE) (OTCQX: SPRWF), Hemp, Inc (OTCPK: HEMP), CV Sciences, Inc. (OTCQB: CVSI).

One of the reasons the cannabis/hemp industries will/are embracing hydroponics is that hydroponic systems give growers more control over how and when their plants grow and it gives cultivators more control over the crops they produce. This means higher CBD content, making their plants more valuable. It enhances quality and consistency.  Hydroponics is controlled growth, in a controlled facility, indoors, all year long despite seasonal changes… and it conserves the farmland for other crops or uses… and plants have more harvests per year than they would in an outdoor setting. More growth cycles in a given period and higher quality product equal higher profits as well.

Sugarmade, Inc. (OTCQB: SGMD) BREAKING NEWS: Sugarmade, a major supplier to the hydroponic cultivation and hemp sectors, is excited to announce the closing of the Company's acquisition of BZRTH, LLC ("BZRTH"), a leading ecommerce supplier to the rapidly expanding hydroponic agricultural space. The Company expects the new combined entity to drive EBITDA profitability, net-positive cash flows, and top-line sales of $37 million on a forward basis.

"As of today, Sugarmade is one of the largest publicly traded hydroponics companies in the world," remarked Jimmy Chan, CEO of Sugarmade. "The most important idea we want to convey to our committed shareholders right now is that this move was not a one-off deal. It's part of a multi-step roll-up strategy designed to create the dominant force in this market as we look ahead to a world where hydroponics becomes the difference between success and failure for producers in the rapidly growing market for hemp and hemp-related crops in North America."

Management notes that the integration of BZRTH implies the vertical integration of ecommerce through ZenHydro.com (and several additional hydroponics ecommerce sales portals) with a 55k sq. ft. fulfillment center and a market leading logistics platform. The Company also continues to negotiate with several other entities to continue to drive its aggressive M&A-based expansion strategy.

Mr. Chan continued, "We plan to continue to be very aggressive on the M&A side. This space is extremely ripe for disruption through consolidation of successful entities. And we have strong momentum right now to snowball this process by combining and coordinating undervalued assets into a single dominant market force that benefits from powerful overlapping growth in ecommerce, hemp, and hydroponics."   Read this and more news for Sugarmade at:  https://www.financialnewsmedia.com/news-sgmd/ 

Other recent developments in the cannabis/cbd/hemp industries:

Hydroponics may be the future of cannabis/hemp cultivation not just in North America, but globally as well. It has already taken hold in the E.U. With the higher yields hydroponics provide, minus the risk of pests, fungi, weeds and other things that could harm cannabis plants or consumers, more cultivators and growers will be moving to or adding hydroponics consider as an alternative to the traditional cultivation techniques.

KushCo Holdings, Inc. (OTCQX: KSHB)  the premier producer of ancillary products and services to the cannabis and hemp industries, has named Sentia Wellness ("Sentia"), a new hemp-derived CBD company with manufacturing and distribution capabilities, as its first brand partner for its new Retail Services division focused on CBD mass distribution, industry education, and compliance.

Sentia will utilize KushCo's partnership with C.A. Fortune, a leading full-service national consumer products sales and marketing agency focused on lifestyle brand partnerships, to activate its Social CBD brand across a variety of retail channels. The partnership commenced on October 1, 2019 and enables Sentia to leverage KushCo's enhanced distribution capabilities across the U.S. with many of the largest conventional retailers.

The Supreme Cannabis Company, Inc. (TSX: FIRE.TO) (OTCQX: SPRWF) recently announced that Supreme's premium wellness brand - Blissco Cannabis Corp - and a multi-licensed processor and distributor, has received licensing approval from Health Canada for the sale of cannabis oils from its facility in Langley, B.C.

The cannabis oil sales licence 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 carbon-dioxide-based extraction capability. By the end of calendar year 2019, Supreme Cannabis expects that the facility will have the capacity to produce over seven million tincture bottles annually. Supreme Cannabis also expects the Blissco brand to meaningfully contribute to projected revenue in fiscal 2020.

Hemp, Inc (OTCPK: HEMP) recently announced that Hemp's KING OF HEMP® is now officially registered with the federal government's Patent and Trademark Office.   The Company's KING OF HEMP® registration is one of the first trademark registrations to issue in the PTO's post-Farm Bill era of allowing trademark registrations on products containing less than .3 percent THC and the first trademark registration for "hemp cigarettes," specifically in connection with "Hemp cigarettes comprised of industrial hemp with a delta-9 tetrahydrocannabinol (THC) concentration of not greater than 0.3 percent on a dry weight basis."

CV Sciences, Inc. (OTCQB: CVSI) announced its support of the U.S. Department of Agriculture's (USDA) progress on implementation of the hemp provisions of the 2018 Farm Bill. On October 29, 2019, U.S. Secretary of Agriculture Sonny Perdue announced the interim final rule for the U.S. Domestic Hemp Production Program. USDA regulation of hemp farming provides a consistent regulatory framework that supports responsible and sustainable hemp production in the United States. A strong USDA regulatory framework is needed to differentiate hemp, an agricultural commodity, from marijuana, a controlled substance, and to protect farmers and consumers.

USDA announced that later this week, an interim final rule formalizing the program will be published in the Federal Register. This will allow hemp to be grown under federally-approved plans and make hemp producers eligible for agricultural programs, like crop insurance. The rule includes provisions for USDA to approve hemp production plans developed by states and Indian tribes including: requirements for maintaining information on the land where hemp is produced; testing the levels of THC to ensure compliance with the law; disposing of noncompliant plants; and licensing requirements.

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