Yahoo Finance Cannabis Companies Expect Big Growth as Public Opinions Turn Favorable
CORAL GABLES, FL / ACCESSWIRE / January 17, 2019 / If someone were to tell any medical expert twenty years ago that cannabis would become a revolutionary form of treatment for a myriad of ailments, one can assume they'd think this person was crazy. Having said that, the landscape for healthcare we've become accustomed to over time is changing before our very eyes. Given that diseases are becoming more difficult to treat, it would seem that we are in desperate need of major advancements in healthcare technology, and many of these steps forward have been made possible through the advent of legalized medical marijuana. Towards the tail-end of last year, Canadian Prime Minister Justin Trudeau and members of the Canadian government agreed to legalize recreational/medicinal cannabis usage, resulting in a rush of energy for Canada's cannabis industry.
With the global medical marijuana market predicted to reach $55.0 billion by 2024, according to a new research study published by Global Market Insights, Inc, it stands to reason that companies with the ability to combine the complex medical applications of cannabis with integrative healthcare frameworks could create potential opportunities from entering the nascent marijuana industry. One such company, Premier Health Group (OTC:PHGRF) (CSE:PHGI) for instance, has made great strides in seeking out lucrative mergers and acquisitions to provide innovative treatment solutions for their patients.
Earlier this year the company acquired HealthVue. With this acquisition, Premier was able to instantly enter the primary care clinic and potentially lucrative healthcare technology business.
HealthVue is a group of four Greater Vancouver based fully integrated, paperless and electronic medical record based medical clinics with a 10-year history, 22 healthcare professionals and over 100,000 active patients.
Further to this, Premier Health Group (OTC:PHGRF) (CSE:PHGI) has gone steps further. On December 17, 2017, the Company announced that it had signed a binding Letter if Intent to acquire all outstanding securities of Cloud Practice Inc, and earlier last week, Premier Health Group (OTC:PHGRF) (CSE:PHGI) solidified the LOI by signing a definitive agreement to complete the transaction.
The significance of this definitive agreement involves Cloud Practice Inc's cloud-based healthcare services made accessible to Premier's active patient ecosystem. Cloud's Juno EMR system is currently used by 287 clinics, over 3,000 licensed practitioners, 1,500 staff and 2,870,000 registered patients. Its ClinicAid processes upwards of $30,000,000 in payments to over 3000 health providers on a monthly basis.
Recently, Premier Health Group (OTC:PHGRF) (CSE:PHGI) today announced that as part of its international expansion strategy, it has entered into a strategic partnership with China's 360 Health, a healthcare subsidiary of 360 Security Technology. As part of the collaboration, Premier and 360 Health will implement an infrastructure whereby Premier will be providing second opinion services by connecting 360 Health's patients in China with doctors in Canada both remotely and in person.
In other news, Canopy Growth Corporation (CGC) (WEED.TO), recently provided investors, as well as consumers in the marijuana market, with an update that it had been granted the necessary licensing by New York State officials to process and produce hemp. Following the passing of the US Farm Bill, hemp cultivars across the states have been upgrading their facilities and ramping up capabilities to distribute hemp-based products, once the bill takes effect later this year. Following Canopy's announcement about their New York license, Bruce Linton, Chairman and Co-CEO, explained that, "Canopy Growth was founded to drive innovation within the cannabis and hemp industries. In New York we see an opportunity to create products that improve people's lives. Linton went on to say that "the process, we will create jobs in an exciting, highly profitable new industry. I applaud the political leadership at the federal and state level that has allowed today's announcement to become reality."
As more states start to recognize the potential opportunities that can be generated by passing marijuana legalization, US cannabis producers may see impressive gains, as well as an increase in investor interest in the space.
Earlier this week, Aurora Cannabis Inc, (ACB) one of the largest cannabis producers in global marketplace, announced that it had entered into a Letter of Intent agreement to acquire all issued and outstanding shares of privately held Whistler Medical Marijuana Corporation, in an all share transaction valued at up to approximately $175 million, including certain milestone payments.
Located in Whistler, British Columbia, Whistler Medical Marijuana has built up one of Canada's most iconic cannabis brands, and if the acquisition deal goes through, Aurora will gain access to the Company's differentiated organic certified product suite, expanding both its medical and adult-use offerings, as well as reinforcing Aurora's presence in the well-established west coast cannabis market.
Following the announcement of Aurora's LOI with Whistler, Terry Booth, CEO of Aurora, commented, "This transaction adds an iconic, organic certified BC-based brand with exceptional traction and a significant price premium in both the medical and retail markets. We intend to accelerate the completion of Whistler's Pemberton expansion project and leverage our domestic and international distribution channels to increase market reach for their exceptional products. Whistler has established leadership in the organic cannabis market, and we look forward to welcoming Christopher and his team to the Aurora family."
In an attempt to bring the nascent cannabis industry to the global marketplace, Tilray, Inc (TLRY) made headlines earlier this week with an exciting announcement. The Company said, via a press release regarding the matter, that it had signed a long-termrevenue sharing agreement with Authentic Brands Group, an owner of a portfolio of lifestyle and entertainment brands, to market and distribute consumer cannabis products within ABG's brand portfolio. As cannabis garners more favorable public opinion, one of the greatest challenges for producers is tapping into consumer markets to distribute high-quality products to the masses.
As the owner of more than 50 trusted brands, ABG's partnership with Tilray will allow the cannabis producer to work within a framework of best-in-class manufacturers, operators, and retailers through ABG's 5,000 plus branded freestanding stores.
Brenden Kennedy, Tilray's President, and Chief Executive Officer, lauded the agreement earlier this month, saying that "We are thrilled to partner with ABG, a global leader known for expertly managing and marketing an owned portfolio of iconic brands. As we work to expand Tilray's global presence, this agreement leverages our complementary strengths and will be accretive to our shareholders as we reach new consumers across the entertainment, fashion, beauty, home and health and wellness sectors. We look forward to working with ABG to bring unique and sought-after branded cannabis products to the marketplace."
With new pieces of legislation being discussed in political arenas all over the world, the cannabis market will only continue to expand, resulting in the legal cannabis industry coming into the sights of investors in 2019. As the excitement surrounding recreational marijuana has caught attention, it may be the medical side of the industry that secures a larger market share.
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