Financialnewsmedia.com News Commentary
PALM BEACH, Florida, June 26, 2019 /PRNewswire/ -- A recent article in the Green Fund said that: "The global cannabis market is thought to be worth USD$150 billion today (March 15, 2019). Barclays, in their European Consumer Staples Report in September 2018, suggests that this figure could increase to USD$272 billion by 2028." Every day more articles and new revenue projection are released opining on what has happened and are replete with newer and higher projections. Inside his tsunami of information one common thread becomes obvious. The market will rise in 2019. There will be more product, more revenues, more infrastructure, more projections and more news. Active companies in the market today includes: Relevium Technologies Inc. (TSX-V: RLV) (OTCQB: RLLVF), PharmaCielo Ltd. (TSX-V: PCLO) (OTCPK: PHCEF), Khiron Life Sciences Corp. (TSX-V: KHRN.V) (OTCQB: KHRNF), Sorrento Therapeutics, Inc. (NASDAQ: SRNE), Liberty Health Sciences Inc. (CSE: LHS.CN) (OTCQX: LHSIF).
One of the key sub-markets will be the expansion of the cultivation & extraction business operations. As the medicinal markets grow, there needs to be supervision at every level in the growth, cultivation and extraction operations. Many companies will look to Latin America to add these operations to their vertical marketing operations. Why Latin America? Because, the Green Fund says: "... the region is known for almost perfect growing conditions, and when coupled with large amounts of available farming land, very low costs of labor, sunshine that can drive up to two harvests per annum, and the booming home grow culture mentioned above, you have a region primed to potentially become the global leader's in low-cost cannabis production…." The region boasts exceptional climatic conditions, with lots of sunshine and good rainfall. This coupled with acres and acres of arable land, could make the LATAM region the global leaders in cannabis production.
Relevium Technologies Inc. (TSX-V: RLV) (OTCQB: RLLVF) (Frankfurt: 6BX) BREAKING NEWS: Relevium Technologies, a Health and Wellness portfolio company, announced today it is positioning itself as an important player in the Colombian medical cannabis market by cementing medical and research relationships in the country in order to establish clinical validation programs for its Endo Nutraceutical Supplements (ENS) and Oral Nutritional Supplements.
On June 13th, 2019, the Company announced a binding LOI to acquire LifeLine Pharma SAS, a binding agreement to acquire the shares of Lifeline Pharma SAS, a Cali based cultivation and extraction business in the burgeoning agro-pharma market in Colombia. With a much lower cost of production, a robust commercial and legal framework and a culture that is open to Phyto therapeutic medicine, Colombia is quickly becoming a global center of medical cannabis supply and it is forecasted that the Country will be looking to supply as much as 44% of the World's demand.
"This is a major strategic step in the development of our Phyto therapeutic biopharma business" stated Aurelio Useche, CEO of Relevium Technologies. The Company's subsidiary, Biocannabix Health Corporation, is a vertically integrated medical cannabis company with strategic positioning in three major markets: Canada, Latin America and Europe.
The company's operations in Montreal allows Biocannabix to leverage leading edge scientific and research platforms as well as government incentives in the province of Quebec. The recent acquisition of LifeLine in Colombia allows the company to leverage lower costs of cultivation and processing as well as to manage its own genetics for the production of targeted Phyto therapeutic formulations. Colombia, Canada and Germany combined are central to the clinical validation program for the ENS and ONS products that will be offered in all three markets. Read this and more news for Relevium at: https://www.financialnewsmedia.com/news-rlv/
In other cannabis-related developments from around the markets:
PharmaCielo Ltd. (TSX-V: PCLO) (OTCPK: PHCEF) the Canadian parent of Colombia's premier cultivator and producer of medicinal-grade cannabis oil, PharmaCielo Colombia Holdings S.A.S., recently announced that it has entered into a scheme implementation agreement (the "Implementation Agreement") pursuant to which PharmaCielo has agreed to acquire all of the issued and outstanding shares and listed options of Creso Pharma Ltd. for an aggregate purchase price of approximately A$122 million (the "Acquisition"). Creso Pharma is a global medicinal cannabis company that specializes in research, development and production of therapeutic, nutraceutical and animal health products. PharmaCielo will pay A$0.63 per Creso Pharma share, representing a premium of 50% over the closing trading price of the Creso Pharma shares on May 31, 2019. The purchase price for the Creso Pharma shares will be satisfied by the issuance of PharmaCielo common shares ("PharmaCielo Shares") priced at C$7 .6166 per PharmaCielo Share being the 3-day volume weighted average trading price for the PharmaCielo Shares representing an exchange ratio of a 0.0775 PharmaCielo Shares per each Creso Pharma share.
Khiron Life Sciences Corp. (TSX-V: KHRN.V) (OTCQB: KHRNF) a cannabis company with core operations in Latin America, recently announced that it has completed the acquisition of NettaGrowth International Inc. ("NettaGrowth"), previously announced on January 25, 2019 and April 9, 2019 , and its wholly-owned subsidiary Dormul S.A. ("Dormul"), a Uruguayan company that has obtained the first licence to produce and export medical cannabis with THC for commercialization in Uruguay . As consideration for the acquisition of NettaGrowth, Khiron has issued 8,498,821 common shares to the shareholders of NettaGrowth at a deemed price of $1.61 per common share.
Alvaro Torres, Khiron CEO and Director, comments, "Closing of the acquisition of Nettagrowth represents an important milestone for Khiron. With this deal we expand our geographic footprint into a market we know well, and secure access to potential patients in Uruguay and in Southern Brazil.
Sorrento Therapeutics, Inc. (NASDAQ: SRNE) recently announced that it has formed a Chinese joint venture, Shenzhen Yunma Biotechnology Co., Ltd. ("Shenzhen Yunma"), with LifeTech Scientific Co., Ltdto 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.
Liberty Health Sciences Inc. (CSE: LHS.CN) (OTCQX: LHSIF) a provider of high quality cannabis, recently announced that it had opened its 16th dispensary in the capital city of Tallahassee, Florida on June 19th after obtaining approval from the Florida Department of Health on June 14, 2019. This will be Liberty's first dispensary to open in Leon County.
"On behalf of the entire Liberty team, it is truly an honor and a privilege to establish a dispensary in the state's capital," said Victor Mancebo, Interim Chief Executive Officer of Liberty. "As we continue to expand our Florida footprint, we are proud to provide patients access to our beautiful, modern, and educationally equipped dispensaries. We are also excited to continue to witness Liberty's growth and achievements in such a short time span, while at the same time executing on our solid growth strategy. Every day we strive to be the best at what we do and provide our patients with the best care and products on the market today."
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