Recent Developments in the Legal Cannabis Industry
According to recent data provided by Arcview Market Research, in partnership with BDS Analytics, the total economic output from legal cannabis will grow 150% from $16 billion in 2017 to $40 billion by 2021. The report indicates economic multiplier effects through which US consumer spending on legal cannabis in 2021 of $20.8 billion will generate $39.6 billion in overall economic impact, 414,000 jobs, and more than $4 billion in taxes. Arcview also estimates that the legalization of adult-use (recreational) sales in California, will lead to the creation of nearly 99,000 industry jobs in the state by 2021, about a third of all cannabis jobs nationwide.
California's new recreational cannabis laws went into effect this month. New Frontier Data, CEO, Giadha Aguirre De Carcer, explained, "California offers the perfect example of why it is so important to understand trends in consumer behavior. The state's legal cannabis industry is forecast to grow from $2.8 billion in 2017 to $5.6 billion in 2020. That spending will be increasingly directed at products and retailers who understand and serve the market's evolving tastes and preferences. The market is changing, and the most successful operators will be those who adapt most quickly to the change."
Industry highlights
AmeriCann recently announced that their CEO, Tim Keogh is set to be a featured speaker at the 3rd Annual Canna East Compliance Summit to be held in Orlando, FL, on January 17-19, 2018.
The Canna East Compliance Summit brings leading state regulators and policymakers together with cannabis operators, testing labs, equipment and technology providers. Mr. Keogh will be discussing best manufacturing practices for cultivation and processing and AmeriCann's state of the art facilities.
Mr. Keogh was recently selected by Marijuana Business Daily's "People to Watch in 2018." Marijuana Business Daily is the leading source of financial, legal and other business news for the cannabis industry. Mr. Keogh was acknowledged alongside a small group of notable industry executives and three other CEO's of publicly traded companies including Bruce Linton of Canopy Growth, Rob Sands of Constellation Brands, Jim Hagedorn of Scotts Mircle-Gro.
AmeriCann is developing the Massachusetts Medical Cannabis Center (MMCC), a state-of-the-art cannabis cultivation and processing development in the midst of the rapidly growing Massachusetts medical cannabis market. The MMCC project is approved for 1 million square feet, which will be developed in phases and is expected to be one of the most technologically advanced cultivation facilities in the nation. The project first phase will consist of a 30,000 square foot greenhouse, laboratory and research center. AmeriCann has agreements with Coastal Compassion, Inc. one of a limited number of licensed operators in the Massachusetts cannabis market. Coastal Compassion, Inc. will lease 100% of the first phase of MMCC upon completion."
Canopy Growth Corporation is a world-leading diversified cannabis and hemp company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms. On December 18, 2017, they announced a joint venture agreement with Canopy Rivers to form a new company, Les Serres Vert Cannabis, together with Les Serres Stéphane Bertrand Inc., a largescale tomato greenhouse operator in Mirabel, Quebec. Bertrand currently produces tomatoes and other vegetables under 700,000 sq. ft. of modern greenhouse, most of which was built in 2015. The entire greenhouse will be upgraded and retrofitted for cannabis production by April 2018. With the assistance and guidance of Canopy Growth, the application for this site has been submitted; and subject to Health Canada and other standard regulatory approvals, they anticipate being ready to begin production by May 2018.
Kush Bottles is a dynamic sales platform that provides unique products and services for both businesses and consumers in the cannabis industry. They have facilities in the three largest U.S. cannabis markets and a local sales presence in every major U.S. cannabis market. On November 28, 2017, the company reported financial results for its fiscal year ended August 31, 2017. Revenue was up 129% Year-over-Year to $18.8 million; revenues included four months of sales from CMP Wellness which was acquired on May 1, 2017. "Fiscal year 2017 was a pivotal year for us as we began a new and exciting chapter," commented Nick Kovacevich, Chairman and Chief Executive Officer of Kush Bottles. "We implemented a series of growth initiatives intended to expand our product portfolio, strengthen our supply chain, increase our sales force and position Kush Bottles as the leading provider of ancillary products and solutions to the rapidly growing cannabis market. As a result of these initiatives, our sales growth steadily gained momentum throughout the year, resulting in record revenues of $18.8 million in fiscal year 2017, representing an increase of 129% compared with fiscal year 2016.
India Globalization Capital is engaged in the development of cannabis based combination therapies to treat Alzheimer's, pain, nausea, eating disorders, several end points of Parkinson's, and epilepsy in dogs and cats. On December 7, 2017, they recently announced that it has launched two new websites to detail their cannabinoid pipeline for the indications of pain, seizures, eating disorders and Alzheimer's. They have six provisional patent filings in the phytocannabinoid-based combination therapy space for the indications of pain, medical refractory epilepsy, and cachexia. In addition, in May 2017, they also acquired exclusive rights to a patent filed by the University of South Florida Research Foundation entitled "THC as a Potential Therapeutic Agent for Alzheimer's Disease."
Lexaria Bioscience has developed and out-licenses its disruptive delivery technology that promotes healthier ingestion methods, lower overall dosing and higher effectiveness of lipophilic active molecules. Lexaria has multiple patents pending in over 40 countries around the world and has patents granted in the USA and in Australia for utilization of its DehydraTECHTM delivery technology. Lexaria's technology provides increases in intestinal absorption rates; more rapid delivery to the bloodstream; and important taste-masking benefits, for orally administered bioactive molecules including cannabinoids, vitamins, non-steroidal anti-inflammatory drugs (NSAIDs), nicotine and other molecules. On December 13, 2017, they announced that the United States Patent and Trademark Office has granted patent number 9,839,612 B2 for the use of DehydraTECHTM technology as a delivery platform for a wide variety of Active Pharmaceutical Ingredients including all cannabinoids including THC; fat soluble vitamins; non-steroidal anti-inflammatory pain medications; and nicotine.
