PALM BEACH, Florida, August 21, 2018 /PRNewswire/ --MarketNewsUpdates.com News Commentary
The quicklyrising demand for Cannabidiol (CBD) and Hemp based products is expected to push both markets into new territories in terms of sales value in the next coming years as Companies race to get involved on any level. The global industrial hemp market size
Sugarmade, Inc. (OTCPK: SGMD) BREAKING NEWS: Sugarmade, one of the largest publicly traded hydroponics supply companies, today announces a new corporate initiative in the booming hemp market. Sugarmade is committing up to $1,0000,000 in capital over the next twelve months to invest in Hempistry, Inc. a privately held Nevada corporation, which has begun planting an ultra-high cannabidiol (CBD) industrial hemp strain in the U.S. State of Kentucky. Additionally, Sugarmade expects to sign an agreement with Hempistry for hemp cultivation supplies. Hempistry has already begun planting and has signed an agreement reserving up to 23,000 acres of prime Kentucky farmland for its exclusive use for hemp cultivation. Additionally, Sugarmade's CEO, Jimmy Chan, announces he has become an advisor to and a shareholder in Hempistry, Inc.
According the Hemp Business Journal, the U.S. Hemp industry produced at least $820 million in revenues during 2017, with growth to over $1 billion for 2018, and an expected 14% compound annual growth rate through 2022. Much of the recent growth has come from the demand for hemp-derived CBD for use in health and wellness products. The strain of industrial hemp being grown by Hempistry is ultra-rich in CDB, but contains less than 0.3% of THC, the psychoactive ingredient found in marijuana. Hempistry has already begun planting and thus far has 100 acres of this high CDB strain under cultivation. In total, Hempistry has optioned 23,000 acres.
Sugarmade's investment into the market for high-CBD hemp is expected to be highly accretive for common shareholders in two ways. First, Sugarmade's investment will be in the form of common shares in Hempistry allowing Sugarmade common shareholders to possibly benefit from any future initial public offering of Hempistry. Second, Sugarmade is expected to sign a supply agreement with Hempistry for cultivation supplies, which would be additive to corporate revenues.
Jimmy Chan, CEO of Sugarmade commented, "Demand for industrial hemp and products derived from hemp is soaring with no let up in sight. We expect our direct investment into Hempistry to be accretive to common shareholders and our supply agreement to be lucrative. All of us at Sugarmade see a tremendous opportunity to become a supplier to this fast growing sector, thus we are today launching our first in a series of activities within the hemp markets. We plan to provide additional details relative to these hemp initiatives over the coming weeks." Read this and more news for Sugarmade at http://www.marketnewsupdates.com/news/sgmd.html
In the industry developments and happenings in the market this week include:
Cannabis Strategic Ventures (OTCPK:NUGS) recently announced the signing of a definitive agreement to acquire the Fitamins CBD brand. Under the terms of the agreement, Fitamins will be distributing their vitamin and hemp derived CBD formulations through their network of 600+ wholesalers catered to the Asian-American market. "We have selected Fitamins because of its substantial distribution network and because of the import/export and marketing channels that Fitamins already possesses, giving it a distinct advantage once the brand comes online this next quarter," commented Simon Yu, CEO of Cannabis Strategic. "The Fitamins team includes two principles who have proven track records with developing and selling multi-million dollar brands in the Asian Nutraceuticals market along with significant resources including ownership of multiple "as seen on TV" local and DirecTV channel segments." The agreement between the companies calls for Fitamins to initially produce a proprietary CBD product as part of Cannabis Strategic's brand portfolio, initially targeting the United States' distribution networks and eventually expanding into other Asian markets that have legalized CBD products.
Hemp Inc. (OTCPK:HEMP) recently announced it is continuing to tour states across the country to meet with potential industrial hemp growing and processing partners as Congress moves closer to hemp legalization. Recently, the U.S. Senate decided to conference on the historic 2018 Farm Bill to work out disparities between the Senate and the House's versions of the bill. The Senate's version of the Farm Bill contains the Hemp Farming Act that would remove industrial hemp from the federal government's schedule of controlled substances. Hemp Farming Act of 2018 is sponsored by Leader Mitch McConnell and co-sponsored by a bipartisan coalition of more than two-dozen Senators, including Senate Minority Leader Chuck Schumer. McConnell, who introduced the Hemp Farming Act, put himself on the conference committee. Lawmakers are also expected to advance the measure when they meet next month to draft the final, bicameral version of the legislation, according to The Washington Post. As previously announced, Hemp, Inc. executives are in discussions regarding an industrial hemp processing facility with farmers in Oregon, which is seeing an increase of marijuana farmers turning to hemp as the price per pound for marijuana drops and hemp's value continues to climb. The Hemp Business Journal estimates the U.S. hemp industry will grow to a $1.9 billion-dollar market by 2022.
Canopy Growth Corporation (NYSE:CGC) (TSX:WEED.TO), through its wholly-owned subsidiary Tweed Inc., has been selected as an approved supplier by the Ontario Cannabis Store ("OCS") to supply a wide variety of cannabis products through its online store starting October 17th, 2018. Specific quantities will be disclosed once those details have been released by the province. In total, Tweed has successfully listed over 100 cannabis SKUs across multiple formats including pre-rolled joints, dried flower, oils, and softgel capsules. "Today marks another significant milestone for us as we've officially ensured Ontarians will have access to a huge variety of Tweed -branded products," said Mark Zekulin , President & Co-CEO, Canopy Growth. "With our private retail plan being rolled out in other provinces, our attention in Ontario will now turn to bricks and mortar shops in this key market."
Smart Cannabis Corp. (OTC: SCNA) recently announced it has begun installation of greenhouse equipment at a property permitted to grow cannabis in Yolo County. The contract with CompassLeaf LLC is being fulfilled by SCNA subsidiary, Next Generation Farming, and the deposit has been received. The project involves installation and retrofitting of eight, 30'x96' (23,040 sq.ft.) pre-existing greenhouse frames and fully equipping them with an entire suite of equipment necessary for a successful cannabis cultivation site. "We were dissatisfied with the bare greenhouse structures installed by another company and their slow construction progress so we reached out to Next Generation Farming. They immediately responded with solutions to help us get our facilities up and running. Within three weeks, we've experienced a dramatic transformation in the structures, complemented by professionalism and a high level of expertise throughout the process. We are thrilled that we can finally accelerate and improve this project with Next Generation's help," stated Kyu Kim, Co-Founder and CFO of CompassLeaf LLC.
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