Data Shows That Medical Cannabis is set to Dominate the North American Market by 2025

FinancialBuzz.com News Commentary

NEW YORK, September 10, 2018 /PRNewswire/ --

According to a report published by Grand View Research, the global legal cannabis market is projected 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 products. 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 a major factor that boosts the recreational cannabis market, it is the medical segment that is expected to dominate the market by 2025, reaching a value of about USD 100.03 Billion. Koios Beverage Corp. (OTC: KBEVF), Aphria Inc. (OTC: APHQF), Emblem Corp. (OTC: EMMBF), India Globalization Capital, Inc. (NYSE: IGC), United Cannabis Corporation (OTC: CNAB)

In a report by Global News, Ryerson University instructor and cannabis business expert Brad Poulos, explained that there's "no excuse" for Canada to miss its opportunity to become a global player in the cannabis industry - especially since there are over 30 countries that have now legalized medicinal cannabis. "We're currently shipping cannabis to several of these countries already. We're already taking advantage of this opportunity," Brad said, citing Europe as a current client for several major Canadian marijuana growers.

Koios Beverage Corp. (OTC: KBEVF) is also listed on the Canadian Stock Exchange under (CSE: KBEV). Earlier last week, the Company announced that it, "plans to market its line of cannabis and cannabidiol-infused beverages through an innovative distribution model, generally known as direct store delivery (DSD) and direct to customer (D2C) sales.

Cannabis beverages are produced and distributed through the company's wholly owned subsidiary, Cannavated Beverage Corp., in partnership with Keef Brands.

Direct store delivery involves selling and shipping directly to retail stores that carry Koios products, with no use of any independent third party -- neither an independent wholesaler, nor the retailer's own warehouses.

'We're a company that thrives on innovation, and we're not afraid to do things differently when it makes sense to do so,' said Koios chief executive officer Chris Miller. 'Building out distribution partnerships takes a lot of time and a lot of money, and adds additional cost to your products as you pay the middleman.'

'By shipping directly to our retail partners and to our customers, we avoid a lot of these costs, and at the same time we better control our sales, our marketing and our business relationships.'

Koios has now purchased the first of what will be a fleet of branded delivery vans that will soon be seen travelling the streets and highways of Colorado.

'Many of the other companies in this space don't employ their own sales teams and rely instead on third parties,' Mr. Miller explains. 'In our experience, this can hurt your brand in the early days as you hand over the important job of building relationships at all levels to someone else.'

'Instead, we've chosen to own those relationships. Our branded vans and delivery routes create more awareness as we build out our retail and direct to consumer channels, and if you ever spend a day in the field with our route sales staff, you can see the relationships we've built at the store level are very strong.'

Mr. Miller said Koios is also seeing growing success with its direct to consumer on-line sales, which doubled this month over last month. 'We're building relationships with our stores and our customers, and this process also allows us to cut our costs and pass those savings on to the consumer,' Mr. Miller said.

The direct distribution model is particularly important, Mr. Miller explains, as Cannavated begins to distribute its CBD-infused or cannabis beverages. While cannabis is legal in Colorado and several other states, very few distributors are knowledgeable about cannabis and CBD beverages. The direct to consumer model is growing rapidly, and in 2015 comprised 9.4 per cent of the entire retail market in the United States.

'This is particularly important to us in this very new industry, where we're still figuring out what consumers really want in a CBD- or cannabis-infused beverage,' said Mr. Miller. 'By controlling our own production, our own distribution and our relationship with the consumer, we can constantly improve our products based on the input from our customers and our retailers, while reducing our cost of managing our inventory.'

The first Koios direct delivery van is already rolling on the streets of Denver today, Mr. Miller said, and the company has also introduced an improved direct to customer experience on its on-line portal."

Aphria Inc. (OTCQB: APHQF) is a leading global cannabis company driven by an unrelenting commitment to its people, product quality and innovation. The Company recently announced that it has entered into a supply agreement with the Nova Scotia Liquor Corporation to provide a range of high-quality branded cannabis and cannabis derivative products for sale in Nova Scotia's adult-use market starting on October 17th, 2018. "When the opening bell rings, Aphria's will be ready to hit the ground running and has the infrastructure, know-how and capacity to deliver on all of our supply commitments," said Vic Neufeld, Chief Executive Officer of Aphria. "We're also continuing our laser-focus on developing the cannabis products, product categories and innovations of tomorrow, to ensure Aphria drives the evolution of the market not just this coming year but in the many years to follow."

Emblem Corp. (OTCQX: EMMBF), through its wholly-owned subsidiary Emblem Cannabis Corporation, is a fully integrated licensed producer and distributor of medical cannabis and cannabis derivatives in Canada under the Access to Cannabis for Medical Purposes Regulations. Emblem Corp. recently announced that its wholly owned subsidiary, Emblem Cannabis Corporation, one of Canada's leading licensed producers, has completed an agreement with the Alberta Gaming, Liquor & Cannabis Commission ("AGLC") to supply the province with high quality cannabis products. Products will be available under Emblem's new adult-use focused brand, which is expected to be announced shortly. "Emblem is excited to have been selected to bring our adult-use products to Alberta's recreational cannabis market upon legalization on October 17th, 2018. We are looking forward to working together with the AGLC to build the foundation for a safe and responsible marketplace for consumers," said Maria Guest, Chief Marketing Officer with Emblem. "With our soon to be announced adult-use cannabis brand, Emblem is ready to meet the needs of Albertans seeking a trusted source of cannabis products, offering a curated range of dried flower and cannabis oils."

India Globalization Capital, Inc. (NYSE: IGC) has two lines of business, a legacy infrastructure business and a cannabis pharmaceutical business that has developed a lead product for Alzheimer's patients. India Globalization Capital, Inc. recently announced that it has designated California as a priority market for Hyalolex, its lead cannabis-based supplement for treating and managing Alzheimer's patients. "The cannabis market is showing explosive growth and we are aggressively moving forward with our vision of owning and marketing the leading brands for large medical indications such as Alzheimer's, Parkinson's, PTSD, pain, veterinary medicine and cancer. With 8 patents filed, IGC has made significant strides towards achieving these goals and building value for our shareholders as a NYSE American listed company," stated Ram Mukunda, Chief Executive Officer of IGC.

United Cannabis Corporation (OTCQB: CNAB) is a biotechnology company dedicated to the development of phyto-therapeutic based products supported by patented technologies for the pharmaceutical, medical, and industrial markets. United Cannabis Corporation recently announced that it has initiated clinical trials on its Prana Bio Nutrient Medicinals P1 Capsules for the treatment of chronic pain at Jamaica's University of the West Indies. The study, titled, "An Open Label, Phase 1, 2-Way crossover study evaluating the pharmacokinetics of Prana P1 THC activated capsules," is be conducted in conjunction with Cannabinoid Research & Development ("CRD"), the Company's Jamaican subsidiary, at the Centre For Cannabis Research at the University's Mona Campus. Earnest Blackmon, Chief Executive Officer of United Cannabis, commented on the announcement, "We are very proud to announce the commencement of our clinical trials; we have been working toward this goal since we started the Company. The Prana products represent the culmination of years of research and development, and I am confident that the results will confirm the anecdotal evidence we have seen with patients since first introducing our Prana product line six years ago."

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