The Global Cannabis Market Continues its Growth With Increasing Latin American Presence
NEW YORK, December 11, 2018 /PRNewswire/ --
The cannabis industry is rapidly growing around the globe due to many countries beginning to accept the plant for both medical and recreational purposes. Although the cannabis market still remains in a very gray area because it is not legalized entirely, more and more countries are beginning to explore opportunities within the industry. Cannabis companies are beginning to expand internationally, leading to a widespread global growth. According to data compiled by MarketsandMarkets research, the global cannabis market is projected to grow from USD 10.3 Billion in 2018 to USD 39.4 Billion by 2023. Additionally, the market is expected to grow at a CAGR of 30.7% during the forecast period. Internationally, medical cannabis is spreading rapidly throughout countries within Europe and Latin America. Cannabis companies have already begun to establish themselves within countries in Europe, like Germany and the U.K. Meanwhile, in Latin America, companies are moving to create facilities in countries like Argentina, Uruguay and Chile. MariCann Group Inc. (OTC: MRRCF), Aleafia Health Inc. (OTC: ALEAF), Organigram Holdings, Inc. (OTC: OGRMF), Auxly Cannabis Group Inc. (OTC: CBWTF), Emblem Corp (OTC: EMMBF)
Europe and Latin America are both seen as growth opportunities for cannabis companies. Specifically, Latin America is already positioned for strong growth due to Uruguay having previously legalized cannabis. Now, Mexico is potentially looking to legalize cannabis as well, leading other Latin American countries to explore into cannabis. Many cannabis companies have already established themselves in countries like Argentina, Chile and Uruguay. According to research by Prohibition Partners, the Latin America cannabis industry is projected to grow to USD 12.7 Billion by 2028, with approximately USD 8.5 Billion of the market value to come from medical cannabis alone. "We believe that the expansion of a Latin American market will significantly impact the global cannabis industry, undercutting producers and pricing worldwide. Strong forecast population growth, a perfect climate for cannabis cultivation, bolstered by progressive legislation and regulatory change are set to ensure Latin America remains a very attractive prospect for cannabis companies, and investors," said Stephen Murphy, Managing Director at Prohibition Partners.
MariCann Group Inc. (OTCQB: MRRCF) is also listed on the Canadian Securities Exchange under the ticker (CSE: WAYL). Just earlier today the company announced breaking cannabis news, "it has entered into an agreement to purchase 819 hectares of existing developed agriculture land in San Juan Province in Argentina.
San Juan Province is ideal for cannabis cultivation due to the provinces's climate and altitude. The presence of a stable economy and infrastructure to support business development is another contributing factor for the Company's interest in the country. Recent construction of 120 MW of hydroelectricity production, new roads and a highly skilled labour pool, with a rich history of agricultural production and further processing capabilities make San Juan an ideal choice for development for Wayland.
"We have been welcomed warmly by the government of San Juan and the people of Argentina. We look forward to developing this major global project which will directly impact and benefit the local community, state and country. We are committed to long term economic development that supports our global plan, to enhance lives through cannabis," Stated Ben Ward, Wayland Group CEO.
Wayland has developed and is implementing a long-term growth strategy based on centres of efficiency from international operations which will result in greater long-term profitability. The Company continues to see the rapid global expansion of the regulated market for cannabis, replacing unregulated "black" markets. The Company is dedicated to providing safer products, and innovative delivery forms to patients and consumers. Following the legalization of cannabis in Canada, Wayland maintains its commitment to the medical market internationally, and building a truly global business focused on enhancing lives through cannabis.
"The medical cannabis industry is one of the fastest growing areas of business in the world, both for what it implies in the health sector and for the high economic performance per hectare. Wayland found in our province an ideal place because of the climate, the stable economy and the infrastructure that San Juan provides. The government of San Juan has been very cautious on this matter since we were looking for the establishment of serious pharmaceutical-grade companies to implement the new Medicinal Cannabis Law. As Governor I am proud to welcome a project of such magnitude to our Province," - stated Sergio Unac, Governor of San Juan Province.
Total purchase price for the acquisition is USD$8.5MM compromised of USD$4MM in stock (3,225,806 shares based on a $1.65 stock price) and USD$4.5MM in cash. The payment in common shares is conditional on receipt of stock exchange and any other applicable approvals.
Maricann Group Inc., through its subsidiaries, is operating under the Wayland Group name. For further details see the press release dated September 24, 2018.
About Wayland Group: Wayland is a vertically integrated cultivator and processor of cannabis. The Company was founded in 2013 and is based in Burlington, Ontario, Canada and Munich, Germany, with production facilities in Langton, Ontario where it operates a cannabis cultivation, extraction, formulation, and distribution business under federal licenses from the Government of Canada. The Company also has production operations in Dresden, Saxony, Germany, Regensdorf, Switzerland, Allesandria, Piedmont, Italy, Ibague, Colombia and now London, UK. Wayland will continue to pursue new opportunities globally in its effort to enhance lives through cannabis."
Aleafia Health Inc. (OTCQX: ALEAF) is a vertically integrated, national cannabis company with major medical clinic, cannabis cultivation and R&D operations. Recently, Aleafia Health Inc. and CannaPacific Pty Ltd., have signed a non-binding term sheet in which, upon completion of the transaction, Aleafia will acquire a 10% equity stake in CannaPacific. CannaPacific is a Licensed Australian Medical Cannabis company based in Newcastle and the Macleay Valley on the mid-north coast of NSW, Australia. As at the date of the Term Sheet, CannaPacific has been granted multiple licenses to cultivate, produce and research medical cannabis in Australia and has a 53,000 sq. ft. cannabis cultivation and plant research facility currently under construction. "We are extremely pleased to collaborate with CannaPacific, a company with the team in place to quickly capture market share in Australia," said Aleafia Chief Executive Officer Geoffrey Benic. "This transaction, once completed, will place Aleafia at the epicentre of what we expect will be a major growth centre in the global medical cannabis market."
Organigram Holdings Inc. (OTCQX: OGRMF) is a TSX Venture Exchange listed company whose wholly owned subsidiary, Organigram Inc., is a licensed producer of cannabis and cannabis-derived products in Canada. Organigram Holdings Inc. recently announced that it has closed the previously-announced private placement investment in Eviana Health Corporation. Organigram along with an institutional strategic investor each participated 50% in a USD 10 Million debenture offering by Eviana. "Our investment in Eviana represents just the beginning of our international aspirations," said Greg Engel, Chief Executive Officer of Organigram. "It is representative of our approach to work with trusted local partners to both move quickly with boots on the ground and to navigate regional regulatory issues effectively."
Auxly Cannabis Group Inc. (OTCQX: CBWTF) is a collective of entrepreneurs with a passion for the cannabis industry past, present and future. Auxly Cannabis Group Inc. recently provided the following operational update on the Company's operations in Uruguay conducted through Inverell S.A. Inverell, founded and operated by Dr. Raul Urbina, a world-renowned expert in large scale outdoor cultivation, micropropagation, plant breeding and extraction operations, is a federally licensed cannabis operator based in Montevideo, Uruguay. Inverell has finalized its 2018/2019 cultivation plan where it will plant 150 hectares, composed of over 1,500,000 hemp plants, starting in mid-October 2018. Inverell's land parcel contains key pieces of infrastructure needed for the mass cultivation of hemp plants, including a large fresh water lake that feeds into an existing irrigation system infrastructure. Inverell expects that the first harvest, once completed in April 2019, will yield approximately 75,000 kilograms of biomass to be used as feedstock for its extraction facility. Hugo Alves, President and Director of Auxly commented: "Taking into consideration that Inverell is a key partner and contributor to the upstream segment of the Auxly platform, we could not be more pleased with the progress Dr. Urbina and his team have made in the short time since the announcement of the acquisition. The depth of Dr. Urbina's team's knowledge on plant breeding, micro-propagation, high density outdoor cultivation and extraction of high value molecules from plants is truly unmatched. For these reasons, we believe that Inverell is poised to be a dominant player in the production of CBD extract for export in South America with their world class hemp cultivation and processing assets."
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 (ACMPR). Emblem Corp. recently announced that its Board of Directors has approved the Company's formation of a joint venture under the name "Emblem Germany" with German pharmaceutical wholesaler, Acnos Pharma GmbH, for the purpose of exporting Emblem branded cannabis products from Canada and importing them into Germany. Subject to completion of definitive agreements with respect to the JV, the JV will be 60% owned by Emblem and 40% owned by Acnos. With a population of approximately 82 million and federal health insurance coverage for medical cannabis, Germany's adoption of cannabis has created one of the largest legal medical cannabis markets in the world. "Forming Emblem Germany with Acnos supports our market development efforts to establish world-class distribution channels in the regions where cannabis use is federally legal," said Nick Dean, President and Chief Executive Officer of Emblem. Upon completion, Emblem's new 30,000 sq. ft. Good Manufacturing Practices ("GMP")-certified extraction facility will provide increased oil production capacity and significantly increase its extract and derivative product output to meet the expected demands of the German market.
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