NEW YORK, May 1, 2018 /PRNewswire/ --
According to a report by AmeriResearch Inc., the global legal cannabis market was valued at $14.3 billion in 2016 and is projected to grow at a CAGR of 21.1% between 2017 to 2024, while reaching a value of $63.5 billion
Earlier this year, California has started legal sales of recreational cannabis. While sales are ramping up, there are concerns that supply will fall short of demand. According to a report by the Chicago Tribune, Charles Boldwyn, chief compliance officer of ShowGrow in Santa Ana, explained, "We're looking at … hundreds of licensed cultivators and manufacturers coming out of an environment where we literally had thousands of people who were cultivating and manufacturing… So the red tape is a bit of a bottleneck in the supply chain." Despite the concerns, the market is expected to witness strong growth and have economic impacts. Arcview Market Research indicates that estimates show more than $1 billion dollars in wholesale, excise, and cannabis-specific sales taxes were taken into state treasuries during 2016. That number is forecast to grow to just over $1.4 billion in 2017 and then to nearly $2.8 billion by 2021.
Marijuana Company of America, Inc. (OTC: MCOA) just announced breaking news this morning that, "the Company, in partnership with Global Hemp Group Inc. (CSE: GHG / OTC: GBHPF / FRANKFURT: GHG) has acquired a 109 acre agricultural property in Scio, Oregon (the "Property") for the cultivation of high CBD yielding hemp for the upcoming 2018 growing season.
This particular property was chosen as it has a history of hemp cultivation over the last two growing seasons and contains a high level of organic matter in the soil, which makes it ideal for hemp cultivation. In addition, the property has appropriate irrigation infrastructure that includes sufficient authorized water rights to allow for irrigated cultivation, which is expected to greatly enhance yields of the proposed high CBD hemp cultivars that the partners are planning to grow on the property.
The property, located in the fertile Willamette Valley approximately 70 miles south of Portland, Oregon, was acquired for US$1.1 million. The terms of the acquisition include a cash down payment of US$130,000 and the issuance of 2,100,000 common shares in the share capital of GHG valued at US$275,000, to be delivered within 15 days of closing. The partners are each contributing one half of the cash consideration for the down payment purposes, or the amount of US$65,000. MCOA is also contributing a cash payment equal to one-half of the value of GHG's stock consideration, or the amount of US$137,500, that will be paid from the expected profits to be produced from the project during the first year of operations.
The GHG common shares to be issued pursuant to the Acquisition Agreement are considered to be issued on a private placement basis, according to the CSE Policy 6. Such common shares are subject to a customary one (1) year hold period pursuant to the provisions of Rule 144 of the Securities Act of 1933. The balance, the amount of US$695,000, is a promissory note ("the Note") issued to the current owner, which matures on May 1, 2021. Interest on the Note is set at 4.0% per annum, adjustable on the first day of October each year, based on the closing interest rate of the Ten-Year U.S. Treasury Note on September 30th plus 1.15%. The Note calls for monthly payments of US$7,036.54 beginning as of June 1, 2018, and a final payment of the remaining balance on May 1, 2021. The partners have been exploring hemp cultivation and cannabinoid extraction opportunities in the U.S. Pacific Northwest for more than a year. The State of Oregon was chosen for this project due to climate considerations, the current regulatory environment in the State and availability of local experienced personnel.
PotNetwork Holdings, Inc. (OTC: POTN) is a publicly traded company that acts as a holding company for its subsidiaries, First Capital Venture Co., the owner of Diamond CBD, Inc., the maker of Diamond CBD oils, and PotNetwork Inc. Recently, the company announced record breaking Q1 revenues totaling $6.3 Million. Compared with $1,858,347 in revenues for Q1 2017, this year's performance represents an almost three times increase over the same period last year. The Company's growth is being driven by the results of its wholly-owned subsidiary, Diamond CBD, Inc. Diamond CBD distributes premium quality products, and has established a successful, continually broadening distribution footprint. Diamond CBD's products are distributed through 10,000 retail locations, and in Q1 of 2018, 25% of PotNetwork Holdings, Inc.'s overall sales revenue came from Diamond CBD's ecommerce sales performance. Diamond CBD is focused on researching and developing new innovative health and wellness solutions which are being broadly marketed into new Industry segments, establishing a spectrum of diverse new users. Medical Marijuana, Inc. (OTC: MJNA) recently announced that subsidiary Kannaway, LLC, the first hemp lifestyle network to offer cannabidiol (CBD) hemp botanical products, has announced a new product line featuring Hempy's® brand of Responsibly Sourced Hemp Clothing and Accessories. The new line is now available for purchase in Kannaway®'s online store. Hempy's® products are for the environmentally conscious consumer and are created by using responsibly sourced hemp and organic cotton textiles. "We are excited to be able to offer the Hempy's brand experience to Kannaway customers," said Kannaway® CEO Blake Schroeder. "These products are fashionable, sustainably made and durable, three qualities that make for easy, long-lasting use." mCig, Inc. (OTC: MCIG) is a diversified company servicing the legal cannabis, hemp and CBD markets via its lifestyle brands. mCig, Inc. is committed to be the leading distributor of technology, products, and services to fit the needs of a rapidly expanding industry. Recently, the company announced that its subsidiary Grow Contractors (GC) has secured a minimum 3 year exclusive management contract with a client in Sacramento, CA. The project is currently underway and is approximately 50% completed. The GC team helped the client to secure all the necessary construction permits as well as the competitive city licenses. GC has provided consulting, engineering and design work for the production and extraction facility, which is projected to generate between 10 to 12 million a year, with 10 percent of net profits going to Grow Contractors monthly. The cultivation side will feature advanced lighting from Asgard Concepts, the Thor 1000W HPS, as well as two complete extraction lines for ethanol. It will also have automated filling and packaging machinery. This contract alone has already generated 200k in revenues for the company this current financial quarter. American Cannabis Company, Inc. (OTCQB: AMMJ) offers end-to-end solutions to existing and aspiring participants in the cannabis industry. On March 14, 2018, the company announced that its SoHum Living Soils® potting mix and Dr. Marijane Root Probiotic manufactured by Earth Alive Clean Technologies are available for purchase on the Walmart, The Home Depot, and Amazon online store platforms. Terry Buffalo, CEO of American Cannabis Company, commented: "ACC is excited to have the opportunity to offer our products online through these major retailers. We are especially excited to be selling our proprietary SoHum Living Soils® potting mix through these online channels, as we have spent years perfecting our blend, and fine-tuning the messaging around the brand itself."
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