Data Shows Global Cannabis Market Could Eclipse USD 30 Billion by 2021
NEW YORK, July 30, 2018 /PRNewswire/ --
According to a report published by Forbes, Brightfield Group estimates that the global cannabis industry was worth USD 7.7 Billion at the end of 2017 and is projected to cross the USD 30 Billion mark by 2021. Earlier, California voted in favor of recreational cannabis laws, which were officially implemented on January 1st, 2018. Currently, California is considered to be the largest market for cannabis. The United States itself accounts for about 90% of the whole market, but its control of the market is expected to decrease to about 57%, as legalization and decriminalization of cannabis products continue in other nations. Holdings USA Inc. (OTC: CLSH), GW Pharmaceuticals plc (NASDAQ: GWPH), Canopy Growth Corporation (NYSE: CGC), Aphria Inc. (OTC: APHQF), Tilray Inc. (NASDAQ: TLRY)
Outside the U.S.A., Canada had recently passed a nationwide legalization of recreational cannabis usage, following Uruguay to become just the second nation to do so. According to CBC, Canada is one of only two countries, besides Netherlands, that exports cannabis, which allows firms in Canada to reap the instant benefits of recent medical cannabis legalizations in more than 20 countries. CBC reported that the "offerings in today's Canada medical marijuana market differ little from those used recreationally - the smokable plant and, more recently, oil extracts. More than 70 companies have licenses from the federal drug regulator, Health Canada, to cultivate, produce and sell medical marijuana, with more than half those licenses granted in 2017 or 2018."
Holdings USA Inc. (OTCQB: CLSH) recently provided "an update to the first complete year of adult use cannabis in Nevada, the first state the Company is operating in. According to the Nevada Department of Taxation, marijuana flower/bud accounted for roughly 50% of all combined medical and adult-use marijuana purchases by consumers in Nevada, followed by concentrates at about 25% and infused edibles at 13%. Oasis Cannabis announced that packaged marijuana flower/bud and pre-rolled joints represented 67% of the total sales, followed by concentrates at 20% and infused edibles at 9%.
The Co-Founder of Oasis Cannabis, Ben Sillitoe, commented on the sales mix, 'Convenience items like disposable vapor pens and pre-rolled joints are very popular with our tourist customers and together they make up about 25% of total sales at Oasis.'
Oasis Cannabis served over 127,000 customers in its 1st year of adult-use sales. About 13% of those orders and 22% of total sales were to medical patients. The average order from a medical customer was USD 73 whereas a typical recreational customer spent USD 41 per order. 'A medical patient will typically consume more cannabis than an average retail customer, so we expect to see larger average purchases from that group,' explained Sillitoe.
Home deliveries made up 5% of the total orders and 11% of total revenue, reflecting a higher average order of USD 98 versus USD 42 from in-store customers. The average delivery order from a medical customer was USD 114 and the average delivery to a recreational customer totaled about USD 87. 'Medical customers make up about 50% of total delivery sales for a couple reasons,' Sillitoe explained. 'We've been delivering to medical patients since we opened in 2015 so we've had time to build a loyal customer base in that segment. Medical patients are also more likely to be inconvenienced by a trip to the store because of various health reasons.'
About Oasis Cannabis (http://oasiscannabis.com) - Oasis Cannabis has operated a cannabis dispensary in the Las Vegas market since dispensaries first opened in Nevada in 2015 and has been recognized as one of the top marijuana retailers in the state. Its location within walking distance to the Las Vegas Strip and Downtown Las Vegas in combination with its delivery service to residents allows it to efficiently serve both locals and tourists in the Las Vegas area. The Company recently commenced wholesale offerings of cannabis in Nevada with the launch of its City Trees brand of cannabis concentrates and cannabis-infused products in August 2017. An expansion of its cultivation and production facility is currently underway and is expected to be completed during the second half of 2018."
GW Pharmaceuticals plc (NASDAQ: GWPH) is a biopharmaceutical company focused on discovering, developing and commercializing novel therapeutics from its proprietary cannabinoid product platform in a broad range of disease areas. The Company, along with its U.S. subsidiary Greenwich Biosciences, recently announced that the U.S. Food and Drug Administration (FDA) has approved EPIDIOLEX(R) (cannabidiol) oral solution for the treatment of seizures associated with Lennox-Gastaut syndrome (LGS) or Dravet syndrome in patients two years of age or older. EPIDIOLEX is the first prescription pharmaceutical formulation of highly-purified, plant-derived cannabidiol (CBD), a cannabinoid lacking the high associated with marijuana, and the first in a new category of anti-epileptic drugs (AEDs). Product availability is pending rescheduling which is expected to occur within 90 days. LGS and Dravet syndrome, which develop in childhood, are rare, severe forms of epilepsy that are notoriously treatment-resistant. Most patients with LGS and Dravet syndrome require multiple seizure medications and the majority are resistant to currently approved AEDs. The day-to-day impact of these conditions is significant with high rates of early mortality. "Today's approval of EPIDIOLEX is a historic milestone, offering patients and their families the first and only FDA-approved CBD medicine to treat two severe, childhood-onset epilepsies," said Justin Gover, GW's Chief Executive Officer.
Canopy Growth Corporation (NYSE: CGC) is a world-leading diversified cannabis and hemp company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms. Continuing the theme of securing major supply agreements in every Canadian province and territory with announced supply plans, Canopy Growth Corporation recently announced that cannabis grown in its Delta and Aldergrove facilities, its other sites across the country, and products from its CraftGrow partners, will be sold in fine retailers, both government-operated and private, across the province of British Columbia post-prohibition. Canopy Growth entered into a supply MOU with the BC Liquor Distribution Branch to make available 5,719 kg of high-quality cannabis products in the first 12-months following October 17th, 2018. The quantity referenced is a delivery requirement agreed to in the MOU, not an internal allocation. "Investing in a reliable, national production footprint early has made all the difference as provincial partners assess potential supply sources," said Mark Zekulin, President & Co-Chief Executive Officer. "We've established a strong presence in BC with state-of-the-art greenhouse facilities in Delta and Aldergrove and we can't wait to see the BC bud we're currently growing and harvesting at both sites readily available on store shelves."
Aphria Inc. (OTCQB: APHQF) is a leading global cannabis company driven by an unrelenting commitment to our people, product quality and innovation. Aphria recently announced that it has completed its largest international shipment of cannabis oil to date to Australian medical life science company, Medlab Clinical Limited. The shipment is part of the previously announced agreement between Aphria and Medlab in which Aphria produces and supplies high-yield cannabis extracts for Medlab to be used in a human trial to test the management of intractable pain in oncology patients - the first trial of its kind globally. For the purposes of the clinical trial, Aphria has provided a high-CBD cannabis oil and a high-THC cannabis oil, both of which were designed specifically for Medlab. Once at Medlab, the products are then combined with Medlab's patented medicine delivery system, NanoCelle(TM). Medlab's clinical trial is posited to provide an effective and efficacious pain therapy targeted to advanced cancer pain, that rivals standard opioid use. The product formulation, manufacturing, and final product validation have met the TGO93 standard set by the Australian Therapeutic Goods Administration ("TGA") and permits have been approved by Health Canada. "Aphria is proud to support Medlab's important and vital clinical research on the use of medical cannabis as an alternative treatment for pain management," said Vic Neufeld, Chief Executive Office at Aphria. "Medlab was our very first international partner, and as Aphria expands its operations around the globe, we will continue support the advancement of medical cannabis research through these valuable partnerships."
Tilray Inc. (NASDAQ: TLRY) an affiliate company, High Park Company, was established to develop, sell, and distribute a broad-based portfolio of world-class cannabis brands and products. High Park Company(TM) announced earlier this month that the Company has signed a Memorandum of Understanding (MOU) with the BC Liquor Distribution Branch (LDB) to supply British Columbia cannabis retailers with a diverse array of cannabis products in anticipation of legalization later this year. Under the terms of the MOU, High Park and LDB will negotiate a definitive agreement to supply the BC market with a variety of new and established cannabis brands and products once adult-use cannabis legalization takes effect, as expected, later this year. "As a company with its roots in BC, we are pleased to work with the LDB towards a supply of cannabis for the BC market," said Adine Fabiani-Carter, Chief Marketing Officer at High Park. "Our goal is to deliver on the high expectations that British Columbians have of us by cultivating and distributing a portfolio of high-quality adult-use products."
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