Financialnewsmedia.com News Commentary
PALM BEACH, Florida, June 5, 2019 /PRNewswire/ -- Today, many marketers and retailers, seem to think that their brand(s) can become supercharged just by adding two words to their brand(s) name. More awareness. More sales. Significantly increased revenues! All they have to do is to add the following: "CBD infused (insert the brand name here)". Beer, alcohol, candy, foods, lotions… pet food! Recent market reports, however, back up this phenomenon. Recent predictions for the CBD infused products market have created much enthusiasm and the optimists not only see the glass as half full… but they see it as overflowing! The predictions by the Brightfield Group, a well-respected industry reporting firm, in a much-quoted report said, in its headline: " New Report Predicts CBD Market Will Hit $22 Billion by 2022 - Looking forward to relaxed hemp regulations, a new analysis estimates that the CBD market could explode — and outpace marijuana." The company also said on its website that: "CBD is growing faster than cannabis in the U.S. and will soon be a $22 billion industry. It's been flying under the radar but is set to explode…" Active Companies from around the market with current developments this week include: Leafbuyer Technologies, Inc. (OTC: LBUY), Sorrento Therapeutics, Inc. (NASDAQ: SRNE), PotNetwork Holdings, Inc. (OTC:POTN), The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (OTC: TGODF), Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON).
Brightfield also reported that retailers… big box retailers, are "Going after CBD." They continued: "More and more retailers – including larger chains – are announcing both in-house products and partnerships with CBD brands… This is the tip of the iceberg. We expect large-scale entities to publicly enter the CBD market at a faster rate now that these big names have expressed serious interest, and because the potential market growth is staggering. In fact, we estimate that CBD beauty alone will hit nearly $290 million in 2019. This does not account for large sectors in the food, beverage, and pet industries."
Leafbuyer Technologies, Inc. (OTCQB: LBUY) BREAKING NEWS: Leafbuyer Technologies announced today a non-binding letter of intent to acquire majority stake in Las Vegas-based trade show operation CBD.io. CBD.io operates one of the largest and most visible expos in the CBD and vape industries.
The agreement additionally includes an ownership stake in an e-commerce website for wholesale and retail CBD products. Additional terms of the deal were not disclosed.
CBD is the common name for Cannabidiol, a prevalent, non-psychoactive cannabinoid found in cannabis. Preliminary research shows CBD may help relieve pain, anxiety, and other ailments.
"CBD has become a pop culture phenomenon, and trade shows are a lucrative and unsaturated sector of the industry," said Kurt Rossner, CEO of Leafbuyer. "CBD.io is a profitable company and has a proven financial model that will increase Leafbuyer's top line and be a powerful driver for earnings. The significant advantage of this acquisition is the ability for Leafbuyer to drive tremendous brand exposure to another fast-growing segment of the industry. Last year, CBD.io sold nearly 200 booths, this year we will cross sell our platform of over 400 clients and look to double that. We will be uniquely positioned to offer a true 360 solution to customers. Our product clients can access millions of consumers through digital and in-person methods to spread brand awareness and increase profits."
The acquisition would double Leafbuyer's current revenue run rate.
"In 2018, CBD.io hosted one of the largest and most successful hemp and CBD industry expos in the United States. We're expanding this year to focus on more speakers and educational series, host nearly double the booths, and bring more value to our trade show clients," said CBD.io CEO Robb Hackett. "CBD is a hot commodity in the United States, as well as other countries around the world. With Leafbuyer, we have our sights set on locations for trade show expansion in both Europe and Asia in 2020." Read this and more news for LBUY at: https://www.financialnewsmedia.com/news-lbuy/
In the industry developments and happenings in the market this week include:
The Green Organic Dutchman Holdings Ltd. (OTCQX:TGODF) (TSX:TGOD) has secured a cannabis supply agreement with Alberta Gaming, Liquor & Cannabis (AGLC), further expanding its footprint in Western Canada. AGLC, under the brand Alberta Cannabis, is Alberta's legal, non-medical on-line cannabis store.
"Alberta is an important market for us as we continue to expand our distribution channels across Canada," commented Brian Athaide, chief executive officer of the company. "With our production facilities in Hamilton, Ont., and Valleyfield, Que., coming on line in phases, we are thrilled to start distributing TGOD's premium certified organic cannabis to AGLC."
Cronos Group Inc. (NASDAQ:CRON) (TSX:CRON) has entered into a multiyear supply agreement with Medipharm Labs Corp. Medipharm Labs will supply Cronos Group with approximately $30-million of high-quality private label cannabis concentrate over 18 months, and, subject to certain renewal and purchase options, potentially up to $60-million over 24 months. In addition, Cronos Group and Medipharm Labs have entered into a multiyear tolling agreement, where Cronos Group will supply bulk cannabis to Medipharm Labs' state-of-the-art extraction facility in Barrie, Ont., to fulfill certain additional processing needs of the company.
"As the industry develops and matures, we see opportunity to work with companies like Medipharm Labs that provide specialized, high-quality services and inputs for our products," said Mike Gorenstein, chief executive officer of Cronos Group. "Along with our internal capabilities, we are pleased to be working with Medipharm Labs to bring great products to consumers in anticipation of the derivative market launching in Canada this fall."
PotNetwork Holdings, Inc. (OTCPK:POTN) announced this week that the Company's online store generated over $1.1 million in exclusive web-based sales in May 2019. Compared with May 2018, in which online sales totaled $569,671, May 2019's record online revenues represent a year-over-year increase of over 90%.
Diamond CBD's online sales reflect a continual impressive growth of the readership of its website. Recent analytics show that over 330,000 users visited the website in the last 7 days alone.
Sorrento Therapeutics, Inc. (NASDAQ: SRNE) announced yesterday that it has formed a Chinese joint venture, Shenzhen Yunma Biotechnology Co., Ltd. ("Shenzhen Yunma"), with LifeTech Scientific Co., Ltd. to commercialize Sorrento's proprietary water soluble cannabidiol (CBD) formulation technologies for consumer and pharmaceutical applications in Asia (excluding Japan). In addition, Shenzhen Yunma's subsidiary, Yunnan Masheng Health Science Co., Ltd. ("Yunnan Masheng"), has obtained a Yunnan industrial hemp plantation permit, as well as governmental pre-approval to establish an industrialized processing, CBD extraction and isolation operation in Kunming (Yunnan Province, China).
Sorrento holds 40% of the equity in the Shenzhen Yunma joint venture and LifeTech holds the remaining 60% of the equity. Sorrento has contributed the exclusive license to Sorrento's water-soluble CBD technology for the Asian territory to Shenzhen Yunma. With the hemp and CBD supplies from Yunnan Masheng secured, Shenzhen Yunma will build manufacturing capacity to potentially deliver hundreds of metric tons of CBD annually to the global markets.
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