Medical Marijuana is Expected to Impact the Healthcare Market
NEW YORK, October 31, 2018 /PRNewswire/ --
Cannabis for medical purposes is garnering acceptance globally, here are some companies to keep an eye on as the market grows. According to a new report published by Zion Market Research, the global medical cannabis market was valued at USD 11.8 Billion in 2017 and expected to reach 40.9 Billion by the end of 2024. The market is also projected to register a compound annual growth rate (CAGR) of 19.4% during the forecast period. Medical cannabis has the potential to make an impact on the healthcare market as continued efforts have been focused on the possibility of cannabis use as a treatment option for numerous medical conditions, include chronic pain, peripheral neuropathic pain and others. In addition, the legalization of medical cannabis in emerging countries is projected to boost the demand for medical cannabis. CLS Holdings, USA Inc. (OTC: CLSH), Tilray, Inc. (NASDAQ: TLRY), Innovative Industrial Properties, Inc. (NYSE: IIPR), Zynerba Pharmaceuticals, Inc. (NASDAQ: ZYNE), Pyxus International, Inc. (NYSE: PYX)
North America dominated the global medical cannabis market and is expected to continue its dominance during the forecast period. Based on product, the global medical cannabis market is segmented into dried form and extracts-form. Europe is the second largest market for medical cannabis due to the legalization of medical cannabis in countries like Germany and U.K. Extract-forms accounted for the largest shares in the global market, while the dried form segment is expected to register a higher growth rate.
CLS Holdings, USA Inc. (OTCQB: CLSH) earlier this month announced that, "it has entered into an agreement with a Canadian agent (the "Agent"), whereby the Agent will assist the Company in selling on a commercially reasonable efforts private placement basis, up to US$40 million aggregate principal amount of senior unsecured debentures ("Debentures") with an issue price of US$1,000 per Debenture, convertible into units of the Company (the "Units") at the option of the holder at a conversion price of US$0.80 per Unit (the "Conversion Price") at any time prior to the close of business on the earlier of: (i) the last business day immediately preceding the maturity date of the Debentures, being the date that is three (3) years from the closing date of the Offering (the "Closing Date"), and (ii) the date fixed for redemption (as set out in the Debentures (the "Offering"). Each Unit shall be comprised of one common share of the Company (a "Common Share") and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant shall be exercisable into one Common Share at a price of US$1.10 per Warrant (the "Exercise Price") for a period of 36 months from the Closing Date... The Company intends to use the net proceeds of the Offering to fund the upfront loan payment to In Good Health Inc., to fund construction activities at the Leicester facility, to complete improvements to the North Las Vegas cultivation facility and for general working capital purposes."
On September 17th, 2018 CLS Holdings USA Inc. also announced that, "it has executed two Letters of Intent (LOIs) to enter the rapidly growing Massachusetts market. CLS looks forward to the opportunity to enter the Massachusetts market, which has been operating as a legalized medical jurisdiction since 2015 and has approved legalized recreational use.
CLS has agreed in principle to loan $5 million to In Good Health, a licensed medical dispensary in Brockton, Massachusetts with a significant market share. Along with the loan, CLS will have an option to acquire InGood Health. InGood Health is located 25 miles south of downtown Boston and is one of the 38 licensed dispensaries in the state. The Brockton dispensary was the second licensed dispensary in the state and has been operational since September 2015, which has been medical only up until this time. In Good Health is currently servicing 17,000 registered patients and delivering to 1,700 homes with key product offerings of flower, concentrates, vapes, edibles, pre-rolls and tinctures. CLS has also agreed in principle to form an 80/20 joint venture with CannAssist, which CLS will own 80%. CannAssist plans to build out a recreationally licensed cultivation grow facility in Leicester, Massachusetts. The planned Leicester 86,000 square foot facility is in possession of its host community agreement, is awaiting state acknowledgement of its pending recreational licenses and upon completion will be the third largest cultivation grow in the state. The Leicester facility is anticipated to produce its first harvest in the fourth quarter of 2019 and be able to produce 28,000 lbs of flower along with 858,000 grams of extract once it is operating at capacity. At current pricing of $3,500 per pound of flower and $40 per gram of extract, total capacity is expected to reach $120 million in revenue. CLS anticipates generating substantial positive cash flow from the joint venture. Massachusetts has a population of 6.9 million people as compared to 5.6 million people in Colorado. Massachusetts is also centrally located to the dense population of New England with a less than 100-mile drive from Rhode Island, Connecticut, New York, New Hampshire and Vermont. In 2017, Colorado generated $1.5 billion in legalized marijuana sales and had over 500 licensed dispensaries and over 700 licensed cultivation facilities. Massachusetts currently has issued only 39 licensees.
Jeff Binder, Chief Executive Officer of CLS Holdings USA, commented, 'We are extremely excited to have the opportunity to enter the Massachusetts market. It's something we have been eyeing for a long time given the attractive characteristics and recent approval of adult use cannabis. This opportunity fits into our stated objective of entering markets that are on the cusp of implementing a robust adult use market.'
David Noble, President of InGood Health and Partner of CannAssist, commented, 'I am proud of all our team has accomplished to create a leading medical marijuana dispensary. I look forward to continuing our mission and hard work We look forward to the opportunity to be part of one of the top companies in the field. This will ensure that we can provide the highest quality products to patients and customers for many years to come.'
Jon Napoli, Managing Partner, CannAssist, stated, 'We have been working with the city of Leicester for the past 12 months on this project and are pleased to receive all necessary approvals. This will bring a number of employment opportunities to this community and we look forward to being a reliable partner and producing some of the finest quality cannabis in the state.'"
To view our exclusive interview with Director Andrew Glashow of CLS Holdings USA Inc. Live from Times Square in New York City, please see HD video here: https://www.youtube.com/watch?v=SvNA_pzi4iE
Tilray, Inc. (NASDAQ: TLRY) is a global pioneer in the research, cultivation, production and distribution of medical cannabis and cannabinoids currently serving tens of thousands of patients in twelve countries spanning five continents. Tilray, Inc. recently announced that it has completed an acquisition of its existing import and distribution partner Alef Biotechnology SpA. The acquisition will allow Tilray to import, produce and distribute Tilray branded medical cannabis products in Chile and to create a hub to distribute Tilray products throughout Latin America. "Today's announcement marks another milestone for Tilray as we expand our global footprint and solidify our presence in Latin America by officially welcoming Alef to the Tilray team," said Brendan Kennedy, President and Chief Executive Officer of Tilray. "The Chilean government has been a pioneer legitimizing and regulating medical cannabis in Latin America, and we are thrilled to be investing in one of the region's most exciting markets for biopharmaceutical development."
Innovative Industrial Properties, Inc. (NYSE: IIPR) is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities. Innovative Industrial Properties, Inc. recently announced that it closed on the acquisition of the property located at 10070 Harvest Park in Dimondale, Michigan, which is currently under development and expected to comprise approximately 56,000 sq. ft. upon completion. Michigan, with nearly ten million residents, represents one of the largest medical cannabis markets in the country, having originally passed the Michigan Marijuana Act in 2008. In September 2016, Michigan signed legislation to establish a licensing framework for medical cannabis operators, with Green Peak being one of the very first companies to receive pre-approval for vertical integration. ArcView Research Group estimates 2018 spending on medical cannabis to reach approximately USD 869 Million, and total regulated cannabis sales to grow to nearly USD 1.4 Billion by 2022. "We are very pleased to enter into this long-term relationship with Green Peak and its strong management team, and to bring our platform to Michigan, a state that we see as presenting a tremendous opportunity," said Paul Smithers, President and Chief Executive Officer of the Company. "With this acquisition, we have acquired nine properties across seven states, continuing our diversification and growth, while remaining focused on executing in line with our rigorous underwriting standards."
Zynerba Pharmaceuticals, Inc. (NASDAQ: ZYNE) is the leader in pharmaceutically-produced transdermal cannabinoid therapies for rare and near-rare neuropsychiatric disorders. Zynerba Pharmaceuticals recently reported new open-label clinical data in an oral presentation at the 16th NFXF International Fragile X Conference. In a podium presentation entitled, "Transdermal Cannabidiol (CBD) Gel for the Treatment of Fragile X Syndrome (FXS)," Liza A. Squires, M.D., Zynerba's Chief Medical Officer, will present new 12- and 38-week data describing significant and sustained improvements in behavioral symptoms with continued use of ZYN002 in children and adolescents with FXS. The presentation includes data through 38 weeks of treatment with ZYN002 in the open-label Phase 2 FAB-C (Treatment of Fragile X Syndrome Anxiety and Behavioral Challenges with CBD) trial. "These data are consistent and compelling, and suggest that ZYN002 may have a clinically meaningful and durable effect on the most common observable behaviors associated with childhood and adolescent Fragile X syndrome," said Honey Heussler, FRACP, DM, Associate Professor, University of Queensland and Medical Director Child Development, Children's Health Queensland, and lead investigator in the FAB-C study. "The goal of an ideal therapeutic intervention is to reduce the severity and impact of these core symptoms, and thus improve the child's ability to engage with the world around them, including with their parents, caregivers, teachers and peers. It is very encouraging that measurable improvements in behaviors were observed in this study across a variety of instruments, whether validated for use by caregivers or physicians. I am delighted by these data; however, we need the results from the recently initiated CONNECT-FX study for confirmation. I look forward to participating in the continued development of ZYN002 for these children."
Pyxus International, Inc. (NYSE: PYX) is a global agricultural company with 145 years' experience delivering value-added products and services to businesses and customers, and is a trusted provider of responsibly-sourced, independently-verified, sustainable and traceable products and ingredients. Alliance One International, Inc. recently announced that its indirect subsidiary, FIGR Cannabis Inc., has taken a significant step forward in its expansion plans as Goldleaf Pharm Inc., a subsidiary of FIGR Cannabis, completed the purchase of a 20-acre property adjacent to the Goldleaf facility in Simcoe, Ontario, Canada. "Goldleaf Pharm is advancing through focused expansion in order to meet the needs of Canadians as we prepare for the legalization of recreational cannabis in Canada," said Larry Huszczo, co-founder of Goldleaf Pharm Inc. "The additional 20-acres of land will give us more production space with the ability to grow our current footprint to more than 700,000 square feet."
Subscribe Now! Watch us report LIVE https://www.youtube.com/FinancialBuzzMedia
Follow us on Twitter for real time Financial News Updates: https://twitter.com/financialbuzz
Follow and talk to us on Instagram: https://www.instagram.com/financialbuzz
Facebook Like Us to receive live feeds: https://www.facebook.com/Financialbuzz
About FinancialBuzz.com
FinancialBuzz.com, a leading financial news informational web portal designed to provide the latest trends in Market News, Investing News, Personal Finance, Politics, Entertainment, in-depth broadcasts on Stock News, Market Analysis and Company Interviews. A pioneer in the financially driven digital space, video production and integration of social media, FinancialBuzz.com creates 100% unique original content. FinancialBuzz.com also provides financial news PR dissemination, branding, marketing and advertising for third parties for corporate news and original content through our unique media platform that includes Newswire Delivery, Digital Advertising, Social Media Relations, Video Production, Broadcasting, and Financial Publications.
Please Note: FinancialBuzz.com is not a financial advisory or advisor, investment advisor or broker-dealer and do not undertake any activities that would require such registration. The information provided on http://www.FinancialBuzz.com (the 'Site') is either original financial news or paid advertisements provided [exclusively] by our affiliates (sponsored content), FinancialBuzz.com, a financial news media and marketing firm enters into media buys or service agreements with the companies which are the subject to the articles posted on the Site or other editorials for advertising such companies. We are not an independent news media provider and therefore do not represent or warrant that the information posted on the Site is accurate, unbiased or complete. FinancialBuzz.com receives fees for producing and presenting high quality and sophisticated content on FinancialBuzz.com along with other financial news PR media services. FinancialBuzz.com does not offer any personal opinions, recommendations or bias commentary as we purely incorporate public market information along with financial and corporate news. FinancialBuzz.com only aggregates or regurgitates financial or corporate news through our unique financial newswire and media platform. For cls holdings, usa inc. financial and corporate news dissemination, FinancialBuzz.com has been compensated five thousand dollars by the company. Our fees may be either a flat cash sum or negotiated number of securities of the companies featured on this editorial or site, or a combination thereof. The securities are commonly paid in segments, of which a portion is received upon engagement and the balance is paid on or near the conclusion of the engagement. FinancialBuzz.com will always disclose any compensation in securities or cash payments for financial news PR advertising. FinancialBuzz.com does not undertake to update any of the information on the editorial or Site or continue to post information about any companies the information contained herein is not intended to be used as the basis for investment decisions and should not be considered as investment advice or a recommendation. The information contained herein is not an offer or solicitation to buy, hold or sell any security. FinancialBuzz.com, members and affiliates are not responsible for any gains or losses that result from the opinions expressed on this editorial or Site, company profiles, quotations or in other materials or presentations that it publishes electronically or in print. Investors accept full responsibility for any and all of their investment decisions based on their own independent research and evaluation of their own investment goals, risk tolerance, and financial condition. FinancialBuzz.com. By accessing this editorial and website and any pages thereof, you agree to be bound by the Terms of Use and Privacy Policy, as may be amended from time to time. None of the content issued by FinancialBuzz.com constitutes a recommendation for any investor to purchase, hold or sell any particular security, pursue a particular investment strategy or that any security is suitable for any investor. This publication is provided by FinancialBuzz.com. Each investor is solely responsible for determining whether a particular security or investment strategy is suitable based on their objectives, other securities holdings, financial situation needs, and tax status. You agree to consult with your investment advisor, tax and legal consultant before making any investment decisions. We make no representations as to the completeness, accuracy or timeless of the material provided. All materials are subject to change without notice. Information is obtained from sources believed to be reliable, but its accuracy and completeness are not guaranteed. For our full disclaimer, disclosure and Terms of Use, please visit: http://www.financialbuzz.com.
Media Contact:
info@financialbuzz.com
+1-877-601-1879
Url: www.FinancialBuzz.com [http://www.financialbuzz.com ]
SOURCE FinancialBuzz.com
