Data Shows Medical Cannabis Will Dominate the Market by 2025
FinancialBuzz.com News Commentary
NEW YORK, August 7, 2018 /PRNewswire/ --
According to a report published by Grand View Research, the global legal cannabis market is expected to reach USD 146.4 Billion by the end of 2025. Based on the type of cannabis, the market can be segmented into medical and recreational. Increasing use of cannabis in medical applications for ailments such as cancer, mental disorders, chronic pain, among others, is expected to drive the growth of the medical cannabis market. While the accelerating pace of cannabis legalization in the North American is the factor that boosts the recreational cannabis market, it is the medical segment that is expected to dominate the market by 2025, valuing at USD 100.03 Billion. WeedMD Inc. (OTC: WDDMF), CV Sciences Inc. (OTC: CVSI), Lexaria Bioscience Corp. (OTC: LXRP), iAnthus Capital Holdings Inc. (OTC: ITHUF), Terra Tech Corp. (OTC: TRTC)
North America accounts for the largest share of the global cannabis market, while the European market is growing rapidly. Recently, the United Kingdom legalized cannabis-derived medicinal products prescriptions. According to Marijuana Business Daily, Deepak Anand, Vice President of the consultancy, Cannabis Compliance, said: "This is a significant step. With a population of 65 Million people, it's a massive potential market for medical cannabis. The U.K. has also been the largest exporter of medical cannabis in the world, despite not having a regulated federal medical cannabis program."
WeedMD Inc. (OTC: WDDMF) is also listed on the Toronto Stock Exchange Venture under (TSX-V: WMD). Earlier last month, the Company announced, "the results of its annual meeting of shareholders and to provide a corporate update detailing its recently accomplished milestones and current growth initiatives.
"As a trusted and proven LP in the cannabis industry, WeedMD has a reputation for pursuing complimentary business and corporate development initiatives in the emerging cannabis market," said Keith Merker, CEO of WeedMD. "We have a strong balance sheet which allows us to comfortably execute our expansion plans as well as provides us with the flexibility to continue pursuing strategic relationships and partnerships in Canada and internationally. We remain committed to our expanding medical business as well as capitalizing on the upcoming adult-use market opportunity."
Go Forward Plan: WeedMD is focused on delivering shareholder value through disciplined execution of its core strategy: a differentiated medical platform, focused on long-term care and seniors market; product innovation, led by industry-leading genetics, a leading cultivation program, and research and development capabilities; and a multi-channel distribution strategy, with institutional supply agreements for both medical and adult-use markets. With more than USD 50 Million in treasury, all of WeedMD's operational and expansion commitments are fully funded.
Funded Capacity: WeedMD is fully funded for more than 640,000 sq. ft. of indoor and greenhouse production. The Company's recently licensed state-of-the-art greenhouse, in Strathroy, Ontario is now operational, with two 10,000 sq. ft. grow rooms in cultivation and a further sixteen 10,000 sq. ft. flowering rooms coming online by year-end. Furthermore, the Company has begun retrofitting an additional seven acres of greenhouse onsite, expected to commence cultivation in early 2019. An additional 50 acres of land is also available on the property for low-cost outdoor cultivation, pending regulations.
Quality Product & World Class Genetics: WeedMD has a comprehensive catalog of leading genetics which has contributed to the cultivation of quality production for both its medical patients and future adult-use consumers. In addition, by selling clones and starting materials to more than 20% of licensed producers, WeedMD has established an ancillary business with recurring revenue and high margins.
Multiple Distribution Channels: WeedMD has experience and execution in the long-term care and seniors care markets as demonstrated by its multiple established supply contracts covering more than 3,400 beds. In addition, WeedMD has also secured a supply agreement with Shoppers Drug Mart. For the upcoming adult-use market, the Company has negotiated supply agreements with both Alberta Gaming, Liquor, & Cannabis Commission (AGLC) and British Columbia Liquor Distribution Branch (LDB) to date, with additional supply agreements expected to be announced soon.
Production Innovation: WeedMD continues to pursue research, development and formulation for both medical and for adult-use products. In medical, six products selling through three brands have been established. For adult-use and future natural health product (NHP) markets, the Company has pursued infused beverages with a best-in-class partner in Phivida Holdings Inc. (CSE: VIDA) and is working jointly with Revive Therapeutics Ltd. (TSX-V: RVV) for CBD-based therapeutics.
Branded Product Strategy: WeedMD has an established brand portfolio covering a wide product spectrum across the medical market. The Company anticipates adding more brands as the medicinal market evolves but will start with WeedMD (medical), Axis (oil for long-term care and seniors), Entourage (oil for ACMPR patients) and Phivida (infused beverages)
Annual Shareholder Meeting: WeedMD is pleased to report that all matters were approved at the Company's annual and special shareholder's meeting held on July 11th, 2018. The shareholders re-elected Keith Merker, Michael Kraft, Bruce Dawson-Scully, Gail Paech, Kevin McGovern and Rick Moscone as Directors of the Company to hold office until successors are duly elected or appointed.
In addition, in accordance with the rules and policies of the TSX Venture Exchange, the Company's shareholders re-approved WeedMD's 'rolling' incentive stock option plan. The Company's shareholders also re-appointed RSM Canada LLP, as the Company's auditor to hold office until the next annual meeting of shareholders or until its successor is duly appointed, and the directors of the Company were authorized by shareholders to fix the auditor's remuneration."
CV Sciences Inc. (OTCQB: CVSI) operates two distinct business segments: a drug development division focused on developing and commercializing novel therapeutics utilizing synthetic CBD; and, a consumer product division focused on manufacturing, marketing and selling plant-based CBD products to a range of market sectors. Last week, CV Sciences announced its financial results for the second quarter ended June 30th, 2018. Second quarter financial highlights include: Record Sales of USD 12,349,000, an increase of 203% compared to Q2 2017; Record Gross Profit of USD 9,060,000; Record GAAP Net Income of USD 3,186,000; Increased Retail Channel Distribution to 1,968 Stores as of June 30, 2018, an 11% sequential increase over the Company's retail store count for the first quarter of 2018; Continued Progress in Drug Development Division including preclinical progress with CVSI-007, the Company's patent-pending synthetic-based cannabidiol, which will be co-administered with nicotine to provide treatment options for smokeless tobacco use and addiction, currently a multibillion-dollar market with no currently FDA-approved drugs available to help patients.
Lexaria Bioscience Corp. (OTCQX: LXRP) has developed and out-licenses its disruptive delivery technology that promotes healthier ingestion methods, lower overall dosing and higher effectiveness of lipophilic active molecules. Recently, the Company reported significant bioavailability results from its randomized, placebo-controlled, double-blind European human clinical study that evaluated TurboCBDTM - a proprietary, DehydraTECH™ powered, cannabidiol ("CBD") fortified hemp oil capsule developed by Lexaria. The degree and speed of CBD absorption into blood plasma and potential cardiovascular and cognitive performance enhancement in 12 healthy male volunteers were studied. These results corroborate and confirm earlier in vitro and in vivo studies that have evaluated Lexaria's DehydraTECHTM technology and have consistently measured higher levels of drug delivery much more quickly than positive controls with matching CBD concentrations.
iAnthus Capital Holdings Inc. (OTCQB: ITHUF) owns and operates best-in-class licensed cannabis cultivation, processing and dispensary facilities throughout the United States, providing investors diversified exposure to the U.S. regulated cannabis industry. The Company recently announced that its wholly-owned subsidiary, Citiva Medical LLC, has begun construction on its 39,500 sq. ft. medical cannabis cultivation and processing facility, located at the former Mid-Orange State Correctional Facility in the Town of Warwick, New York. Citiva, one of only ten New York State licensed medical cannabis Registered Organizations, received its license to operate one cultivation/processing facility and four dispensaries starting on August 1st, 2017. The facility will implement high-end technology and cultivation practices to maximize efficiencies and production, including a positive pressure air system, mobile containers, desiccant dehumidification systems, acrylic glazing, and a unified program for environmental, irrigation and lighting controls. These state-of-the-art processes will enable perpetual harvesting, with an estimated yearly production of 2,400 kg of medical cannabis.
Terra Tech Corp. (OTCQX: TRTC) is a vertically integrated cannabis-focused agriculture company. Terra Tech recently announced it has been granted two permits by the City of Santa Ana to operate one retail dispensary on Dyer Road and one on Carnegie Avenue in Santa Ana, California. The first dispensary will be located at 620 East Dyer Road, with plans to become a fully vertical cannabis complex. The Company purchased this 44,000 sq. ft. facility in January 2018, to expand its presence in Southern California. Following the receipt of the permit, the Company will avail itself of the opportunity to acquire vertically integrated permits from the City of Santa Ana to conduct cultivation, distribution, and manufacturing on site. The Company plans to develop the property to include a retail dispensary; increase the size of the facility to over 50,000 sq. ft. and transform it into a vertically integrated cannabis complex.
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