PALM BEACH, Florida, May 16, 2019 /PRNewswire/ -- Reports show and predict that the U.S. will be at the epicenter of the global cannabis/marijuana markets. A report called "The State of Legal Marijuana Markets, 6th Edition", from Arcview Market Research and BDS Analytics report states, "Legal adult-use sales will largely be a North American phenomenon," and today the U.S. reigns in the legal cannabis market worldwide. By 2022, legal cannabis revenue in the U.S. market is projected to hit $23.4 billion (73% of the market). During the same period, Canada is projected to reach $5.5 billion (17%) and at $3.1 billion, the rest of the world will represent almost 10% of the legal cannabis market." Another article by an industry website looking at the global market said: "If more countries fully legalize cannabis, including the United States and all European countries, the global cannabis market could be worth $194 billion in seven years according to a new report from the Bank of Montreal. It could lead to a $30 billion medical cannabis market and a $68 billion recreational market in Europe. In the U.S., legalization would mean up to $19 billion medical cannabis sales and a further $49 billion from the adult-use of cannabis. Active Companies from around the market with current developments this week include: Leafbuyer Technologies, Inc. (OTC: LBUY), The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (OTC: TGODF), Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON), CV Sciences, Inc. (OTC: CVSI), Canopy Growth Corporation (NYSE: CGC) (TSX: WEED).
Reports are indicating the global legal cannabis market amounted to $9.5 billion in 2017, growing by 37 percent on the year. The North America legal cannabis market reached $12 billion in 2018, growing by 30 percent on the year. The largest market was the United States, which totaled $10.4 billion. It was followed by Canada with $1.6 billion. Analysts predicts the overall cannabis market for legal adult-use and medical sales in North America to reach $24.5 billion by 2021 and will grow to $47.3 billion six years later. That brings the compound annual growth rate (CAGR) to almost 28%, however the largest growth rate is predicted within the rest-of-world markets, from $52 million spent in 2017 to a projected $2.5 billion in 2027.
Leafbuyer Technologies, Inc. (OTCQB: LBUY) BREAKING NEWS: Leafbuyer Technologies, a leading cannabis marketing and technology platform, announced today its quarterly sales increased 70% in the quarter ending March 31, 2019. The growth reflects the revenue booked in the quarter versus the same quarter of the previous year.
Leafbuyer's 70% year-over-year growth rate is more than double the industry's national average of 26.7%, according to Arcview Market Research and BDS Analytics.
"Leafbuyer continues to accelerate revenue growth quarter to quarter. The results reflect our aggressive sales strategy and ongoing efforts to drive more value to our dispensary and product clients. The diversification of our revenue streams continues as we expand our loyalty platform nationwide. We plan to continue aggressively growing our client base with a constant eye for the right acquisition partners," said Kurt Rossner, CEO of Leafbuyer.
Leafbuyer garners revenue from the sales of its sophisticated marketing technology platforms, which drive cannabis consumers to dispensaries and product companies. The solutions include texting/loyalty, mobile application-based order ahead, blockchain, and access to millions of cannabis consumers through the Leafbuyer.com website and its network partners.
"We plan to double our sales and support teams by Fall 2019 to manage the increased demand for our products and services," said Rossner. 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. (TSX: TGOD.TO) (OTCQX: TGODF) recently announced that it has obtained approval from Health Canada, under the Cannabis Regulations, to expand operations into its new state-of-the-art building located in Hamilton, Ontario. The 20,000 square feet indoor facility is going to be used for cannabis cultivation; planting will start in the coming weeks.
"This is yet another important milestone for our team as we continue to ramp up production with a focus on executional excellence," commented Brian Athaide, CEO of TGOD. "We have pioneered the concept of sustainably growing all-natural, certified organic cannabis at scale. The product we are able to offer Canadians is clean, pesticide-free and undeniably premium."
Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) and MediPharm Labs Corp recently announced that it has agreed to a multi-year supply deal with Cronos Group Inc. Per the deal, MediPharm will supply Cronos Group's wholly-owned subsidiary, Peace Naturals Project Inc., with roughly $30 million in cannabis concentrate over 18 months. These figures could jump to $60 million over 24 months, subject to certain renewal and purchase options.
Under a separate two-year tolling agreement, Cronos selected MediPharm's Barrie, Ontario extraction facility as its preferred partner for particular processing needs. Peace Naturals will supply bulk dried cannabis to MediPharm for processing bulk resin and other cannabis derivatives which will be sold under the Cronos brand.
CV Sciences, Inc. (OTCQB: CVSI), a preeminent supplier and manufacturer of hemp cannabidiol (CBD) products, recently announced that its industry-dominating PlusCBD Oil™ products were used in the first study to date examining the clinical benefit of CBD for the treatment of Post-Traumatic Stress Disorder (PTSD). The study, published in The Journal of Alternative and Complementary Medicine in April 2019, examined the effect of oral CBD administration on symptoms of PTSD in a series of 11 adult patients at an outpatient psychiatry clinic. CV Sciences provided various PlusCBD Oil products for the study; delivery systems and usage were determined by patient and provider preference. The published study can be viewed at the following link: Cannabidiol in the Treatment of Post-Traumatic Stress Disorder: A Case Series. CV Sciences was not involved in the data collection, data interpretation, the preparation of the article, or the decision to submit for publication.
Canopy Growth Corporation (NYSE: CGC) (TSX: WEED.TO) recently announced that it has signed an offtake agreement with PharmHouse Inc. ("PharmHouse"), a 49 per cent-owned joint venture of Canopy Rivers Inc.. Under the terms of the agreement, PharmHouse has agreed to allocate high quality cannabis flower from an additional 20 per cent of the flowering space available at its Leamington greenhouse facility over the next three years.
Boasting 1.3 million square feet of greenhouse grow space, and leveraging the resources of Canopy Growth, Canopy Rivers and its joint venture partner have worked diligently since October 2018 to prepare the facility for licensing. PharmHouse will leverage Canopy Growth's genetics – selected and supplied by the Company – and flower will be returned to the Company to be sold under Canopy Growth's diverse brands and banners. Under the terms of the new offtake agreement, PharmHouse is committed to producing GMP-certified, high quality cannabis flower within 18 months of its cultivation license and the flower must comply with the Company's high standards for cannabis quality. GMP, or Good Manufacturing Practices, certification is the internationally recognized system to ensure all produced goods meet the highest consumer health and safety standards, allowing the Company to export the flower to its international divisions. Including this new agreement, 30 per cent of PharmHouse's total flowering space has been committed to Canopy Growth.
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