Financialnewsmedia.com News Commentary
PALM BEACH, Florida, June 13, 2019 /PRNewswire/ -- CBD has been created one of the biggest growth stories of 2019 with consumers clamoring for products. Neiman Marcus is pushing ahead with CBD sales at some of its stores and online. Simon Property Group is partnering with Green Growth Brands to open 108 stores in its malls just in 2019. Barney's will launch "The High End." Even the Vitamin Shoppe just announced it's selling CBD soft gels, and will soon begin selling CBD drops. Even the CEO of Whole Foods has indicated he's keeping a close eye on cannabis regulation, suggesting that it could show up on shelves. In addition, according to the Brightfield Group, worldwide CBD sales are expected to soar from $591 million in 2018 to as high as $22 billion by 2022 – a compound growth rate of 147%. Some of the stocks benefiting from the cannabis market boom include Lifestyle Delivery Systems Inc. (CSE:LDS)(OTCQX:LDSYF), CannTrust Holdings Inc. (NYSE:CTST)((TO:CTST), and The Supreme Cannabis Company Inc. (TSX:FIRE)(OTCQX:SPRWF), Emerald Health Therapeutics Inc. (OTCQX:EMHTF)(TSX-V:EMH), and The Green Organic Dutchman Holdings Ltd. (TSX:TGOD)(OTCQX:TGODF).
Lifestyle Delivery Systems Inc. (CSE:LDS)(OTCQX:LDSYF) BREAKING NEWS: Lifestyle Delivery Systems Inc. announced that its flagship product CannaStrips has been delivered to multiple new stores. The Company has been diligently working on marketing strategies to increase the brand awareness of Cannastrips. The California market seems to be reacting to it quite well as almost every Cannabis event the Company has participated in has sold completely out of product. Cannastrips also won first place at the most recent Kushstock event. President of LDS Casey Fenwick has stated "the frequency of reorders has been steadily increasing as well as the order sizes. It is exciting to see we are moving through a healthy amount of product for a brand that has only been on the shelves for 4 months. I have been speaking with some of the larger California brands about branding collaborations, once the new website is finished, it will be a perfect time to finalize those and start the roll out." The Company has been exploring with different printed mylar bags for the 10 packs in an effort to continually refine the amount of packaging labor. The style of printing as well as the arrangement of the state required legal information on the bag are being panel tested in order to perfect the aesthetics of the outer bag. The Cannastrips sales team is continuously performing vendor days in the stores and providing customers of the stores more information about the science of the product. For additional news for Lifestyle Delivery, please visit: https://www.lifestyledeliverysystems.com/lds-press-release
Other cannabis-related developments from around the markets include:
CannTrust Holdings Inc. (NYSE:CTST)((TO:CTST) released its financial results for the first quarter ended March 31, 2019, including record quarterly revenue of $16.9 million, a 115% increase over the first quarter of 2018, 67% was through the medical channel and 33% through the recreational channel. Total active patient count reached 68,000 at March 31, 2019, a 70% increase over the first quarter of 2018; Harvested production increased by more than 400% to over 9,400kg, versus the first quarter of 2018, and 96% over the fourth quarter of 2018; Sold over 3,000kg of dried cannabis equivalent, a nearly 200% increase over the prior year, at an average net price of $5.47 per gram.
"The CannTrust team delivered exceptional operational growth in the first quarter, with harvested production of over 9,400kg. This is a 96% increase in production over the prior quarter and reflects the impact of the investments made into our facilities, as well as process improvements to increase throughput," said Peter Aceto, CEO. "With the successful closing of our equity offering providing gross proceeds of US$170 million (before exercise of the over-allotment option), we are well positioned to execute on our growth plans. Our fully-permitted Phase 2 expansion is expected to reach its full capacity of 50,000kg on an annual basis in the third quarter of 2019, and our 81 acres of land for outdoor cultivation has been prepared and we are awaiting regulatory approval to start planting. We have commenced work on our Phase 3 expansion in Niagara, which we expect will add a further 50,000kg of annual capacity. All told, we continue to expect to exit 2020 at a production rate of between 200,000kg to 300,000kg per year. This is a very exciting time for CannTrust and we plan to continue executing on our vision of becoming a global provider of innovative cannabis products and brands."
The Supreme Cannabis Company Inc. (TSX:FIRE)(OTCQX:SPRWF) announced its financial and operating results for the three and nine months ended March 31, 2019. "Our Company is pleased with the results of our third quarter financials and with the progress made thus far on our strategic priorities for the 2019 calendar year. This quarter saw a marked increase in revenue on both an annual and quarter-over-quarter basis. This revenue growth was driven by an increase in our capacity at the 7ACRES facility, a ramping up of our product packaging capabilities and, we believe, consumer preference for high-quality cannabis," said Navdeep Dhaliwal, CEO of The Supreme Cannabis Company, Inc.
"As we report the Company's third quarter of fiscal 2019, we reflect on our first six months of legal cannabis sales in Canada. While Supreme Cannabis was originally viewed as a contrarian for taking a consumer-oriented approach to the cannabis market, 7ACRES' strong consumer feedback, status as a top-ten revenue producer in the industry and recognition as a coast-to-coast award-winning premium brand affirms that our approach to the Canadian cannabis market is winning with the people who will drive revenue: consumers."
Emerald Health Therapeutics Inc. (OTCQX:EMHTF)(TSX-V:EMH) has been appointed by the American Trade Association for Cannabis and Hemp (ATACH) to lead its International Affairs Council on CBD and Hemp in ATACH's engagement with the US Food & Drug Administration (FDA) regarding policy pertaining to CBD-containing products and associated cross-border trade. The FDA is slated to begin public consultation on May 31 to discuss potential pathways for CBD products to come to market in the US. "Emerald Health Therapeutics is one of Canada's original Licensed Producers and has expertise on CBD extraction and associated regulatory development," said Michael Bronstein, President of ATACH. "We look forward to leveraging Emerald's knowledge and experience as we participate in the FDA process on how to best navigate and implement a potentially-new regime for products containing cannabinoids in the United States."
The Green Organic Dutchman Holdings Ltd. (TSX:TGOD)(OTCQX:TGODF) just announced that it entered into a multi-year agreement with Neptune Wellness Solutions Inc. for extraction, formulation and packaging services. As part of the agreement, TGOD will have exclusivity on extraction, formulation and packaging of certified organic products within and for the Canadian market. Neptune's expertise will enable TGOD to quickly scale up production of a wide range of consumer wellness products. Under the terms of the agreement, TGOD will allocate more than 230,000 kilograms of cannabis and hemp biomass for Neptune to process and transform into premium certified organic consumer wellness products, making this the largest deal for a processor in the industry to date. The contract between TGOD and Neptune covers a period of three years and is expected to be back-end loaded with the first year accounting for approximately 20% of the total value. It also marks a significant milestone for cannabis manufacturing in Quebec, creating high value jobs, complementing TGOD's large investment in Valleyfield where the Company is nearing the completion of the first phase of what will become the world's largest organic cannabis growing facility at over 1.3 million square feet.
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