PALM BEACH, Florida, Jan. 9, 2020 /PRNewswire/ -- CBD. Those three little letters led to a banner year of beauty and wellness product launches, retail partnerships and big-money acquisitions. The non-psychoactive cannabinoid known for its ability to fight everything from inflammation to insomnia is still ascending. CBD's impact on the consumer packaged goods segment, especially in the beauty and wellness market segments, is inescapable, Cannabis industry data firm Brightfield Group forecasts CBD product revenue will grow from $620 million in 2018 to $23.7 billion by 2023. The Brightfield Group report far exceeded other industry forecasts and paints the picture that projects highly optimistic figures anticipated in the hemp-derived CBD industry over the next four years. These figures should make health and wellness product owners feel even more confident about building their businesses, knowing they're in the center of the next big enterprise in health and wellness—one that's every bit beneficial as it is sustainable. Active Companies from around the market with current developments this week include: Marijuana Company of America, Inc. (OTCQB:MCOA), Kona Gold Solutions, Inc. (OTCPK: KGKG), HEXO Corp. (NYSE: HEXO) (TSX: HEXO), PotNetwork Holdings, Inc. (OTCPK: POTN), OrganiGram Holdings Inc. (NASDAQ: OGI) (TSX: OGI).
Last year saw Wall Street equity firms announce the creation of funding vehicles concentrated on investments at the intersection of cannabis and beauty, health and wellness. One such firm, LB Equity Emerging Growth Fund, expects CBD brands will remain hot commodities in 2020, and the firm says it is acting today in preparation for beauty's biggest players entrance into the CBD game tomorrow. "Right now, partly because of the regulations and partly just the uncertainty, the murky environment, the big guys are still not anywhere involved," says LB Equity founder Jay Lucas. "So, whether it be Procter & Gamble or L'Oréal or any of the big players, they're totally on the sidelines. While that stops them, it doesn't stop us." Within the next 18 to 24 months, Lucas projects that the conglomerates will enter the CBD fray through acquisitions. He says, "We want to make sure that we're the people moving expeditiously to build really great brands during this window of opportunity such that, when the legal environment clarifies and the big guys decide that they do want to get in, we want to be standing there owning the really terrific brands for them to acquire."
Marijuana Company of America, Inc. (OTCQB:MCOA) BREAKING NEWS: Marijuana Company of America, a diversified hemp and cannabis company, is excited to announce that it will be aggressively marketing its hempSMART™ CBD products through numerous distribution and retail channels globally under the leadership of a new Global Marketing and Sales Manager. This new strategy will be supplemental to the current affiliate-marketing model that the Company has used as its primary marketing method for its hempSMART products in the past and will be focused on the wellness and beauty segments – two valuable pieces of a CBD market that is forecasted to be worth $22 billion by 2022.
Ms. Gloria Albarran-Lynch will be leading the hempSMART marketing team as the Company's new Global Marketing and Sales Manager. She brings over 25 years of deep experience in business development, sales and marketing in previous roles at both private and public companies. Ms. Lynch is currently the Managing Director and Chief Executive Officer for Fuse Digital Group, a private digital media company. Ms. Lynch is originally from Mexico City, Mexico, is bilingual and bicultural, and holds a BA in industrial design and an MBA from Harvard Business School.
Since January 2013, Ms. Lynch has served as a business development and business growth consultant for numerous ventures in South Florida. She has extensive expertise in opening new markets and launching new products in Latin America and in the Hispanic market in the U.S. She also has wide-ranging knowledge of marketing and sales strategies for many different markets, both B2B and consumer, and has held senior management positions with several corporations in Mexico, including First Data Corporation – Latin America, Banco Azteca, S.A. de C.V., and GasoPLUS, S.A. de C.V., as well as with businesses in the U.S., including GlobeTel Communications Corp., Trimax Wireless Inc., SafetyPay Inc., and International Hotel & Travel Systems, Inc.
Jesus Quintero, Chief Executive Officer of the Company, stated, "Through Ms. Lynch's leadership and implementation of this robust new marketing strategy, our premium-quality hempSMART products will be positioned in front of a larger audience of potential customers. With the strength of the CBD wellness and beauty markets that are expected to be worth as much as $25 billion globally in the next decade, we intend to take advantage of this tremendous market opportunity."
Mr. Quintero continued, "As the new CEO of MCOA, I am making the necessary strategic changes to ensure we achieve our projected sales goal for 2020 of $2M in gross revenue in our hempSMART product line by introducing a more traditional and aggressive sales approach. We are confident that our quality CBD products will sell themselves as people see the brand, try the products, and become loyal to the brand. Our hempSMART products deliver premium-quality, lab-tested, and verified CBD to consumers and help promote personal health and wellness. We are elated to have hired a successful sales veteran such as Ms. Albarran-Lynch to help us spearhead this strategy." Read this and more news for MCOA at: https://www.financialnewsmedia.com/news-mcoa/
In the industry developments and happenings in the market this week include:
PotNetwork Holdings, Inc. (OTCPK: POTN) recently test launched its long-awaited entry into the private label CBD business at the MJBizCon tradeshow, Las Vegas, December 11-13, 2019, where its booth promoted its "Private Label CBD Lab" offering private label gummies, creams, tinctures, oils and other products. The launch was enthusiastically received by a huge audience of potential buyers.
"The excitement that we generated at MJBizCon from what we are calling our Private Label CBD Lab was almost overwhelming," said Kevin Hagen, CEO of PotNetwork Holdings, Inc. "We have been preparing to offer this full line of quality, private label CBD products for some time. As an industry leader with a solid positive reputation for product quality and customer service dependability, we found this move logical and a further way to grow our business while simultaneously indirectly increasing our distribution footprint. This entry capitalizes on the groundwork that we have built over the years and will greatly assist in our penetration of a rapidly expanding market. For 2020, we anticipate building a significant revenue stream from this private label business to complement our traditional branded sales."
HEXO Corp. (NYSE: HEXO) (TSX: HEXO) recently announced it has closed its previously announced registered direct offering with institutional investors (the "Offering"). Under the Offering, the Company sold 14,970,062 common shares at an offering price of US$1.67 per share for gross proceeds of US$25.0 million before deducting fees and other estimated offering expenses. The Company also issued to the investors common share purchase warrants to purchase 7,485,032 common shares of the Company. The warrants will have a five year-term and an exercise price of US$2.45 per share. A.G.P./Alliance Global Partners acted as sole placement agent for the Offering.
The Offering was made in the United States only under the Company's amended and restated short form base shelf prospectus dated December 14, 2018 (the "Base Shelf Prospectus"), filed with the securities regulatory authorities in each of the provinces and territories of Canada, and the corresponding registration statement on Form F-10 (the "Registration Statement") filed by the Company with the U.S. Securities and Exchange Commission ("SEC") under the U.S./Canada Multijurisdictional Disclosure System ("MJDS"). A prospectus supplement (the "Supplement") to the Base Shelf Prospectus was filed on a non-offering basis with applicable securities regulatory authorities in Canada and with the SEC as part of the Registration Statement under the MJDS. Copies of the Supplement and the Base Shelf Prospectus are or will be available on SEDAR at www.sedar.com and copies of the Supplement and the Registration Statement are or will be available on EDGAR at www.sec.gov.
OrganiGram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), a leading licensed producer of cannabis, recently announced the first of its 'Cannabis 2.0' products have been released, including Trailblazer Spark, Flicker and Glow 510-thread Torch vape cartridges.
Shipments of the custom-designed cartridges were sent to Manitoba, Saskatchewan, Ontario, New Brunswick and Nova Scotia, starting December 17, from the Company's Moncton production campus. The first release from Organigram's suite of vaporizer offerings affirms the Company's commitment to supporting Canadians' access to a variety of regulated recreational cannabis products.
Kona Gold Solutions, Inc. (OTCPK: KGKG), a hemp and CBD lifestyle brand focused on product development in the functional beverage sector, recently announced the Company has scheduled its second meeting with one of the largest supermarket chains in the Southeast, consisting of 550 locations over its portfolio of supermarkets. The Company will also be meeting with a Floridabased, fourth generation run, food distributor as well, who covers the Southeast United States. Both meetings are set for the end of the month.
Kona Gold also announced, in November and December, it had met with the majority of beer distribution houses in the state of Florida, receiving great response from its product portfolio. The Company is currently scheduling following up meetings with those beer distributors as those distributors ramp up for the new year and look to add non-alcoholic beverages to their portfolios.
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