PALM BEACH, Florida, March 20, 2019 /CNW/ -- The potential future revenues for the cannabis global market is unknown, but each report projects growth, growth and more growth. The renowned Bank of Montreal (BMO) had two of the bank's cannabis sector analysts, to seek: "… to determine just how big the total addressable market Canadian producers will be competing for in the coming years, one that doesn't stop at Canada's borders." said an article in the Financial Post. The article revealed what the bank's report said: "The potential of the global cannabis industry is so vast that it could eventually make the sky-high valuations of some Canadian licensed producers look like bargains, according to a new report from Bank of Montreal. Assuming a blue-sky scenario in which the U.S. and all 28 countries in the EU legalize marijuana for both recreational and medical use — and in which Latin America allows the medical use of cannabis — they project that in seven years the market could reach $194 billion, a number that significantly dwarfs the $5.9 billion in potential revenue they anticipate will be generated by the Canadian medical and recreational markets." Active Companies from around the market with current developments this week include: MYM Nutraceuticals Inc. (CSE:MYM) (OTC:MYMMF - News), The Green Organic Dutchman Holdings Ltd. (TSX:TGOD) (OTC:TGODF - News), Aphria Inc. (NYSE:APHA - News) (TSX:APHA.TO - News), HEXO Corp. (NYSE:HEXO - News) (TSX:HEXO.TO - News), Newstrike Brands (TSX-V:HIP.V - News) (OTC: NWKRF).
The article continued: "The report also predicts the total addressable market if all 28 countries in the European Union legalize cannabis for medical use would be $30 billion in seven years, with another $68 billion if they also legalize recreational cannabis. Again, that is a best-case scenario calculation given that a only a number of European nations including Germany, Italy, Portugal, Denmark, Switzerland, Croatia and the Netherlands have legalized medical cannabis, to varying degrees. The drug still remains illegal, albeit decriminalized, in most of the EU.
MYM Nutraceuticals Inc. (CSE:MYM) (OTCQB:MYMMF - News) BREAKING NEWS: MYM Nutraceuticals is pleased to announce that it has increased its stake in Colombia Organica to 80%. Colombia Organica currently holds 3 licenses which include: production of cannabis derivatives, cultiviation of psychoactive cannabis, and cultiviation of non-psychoactive cannabis. All licenses include the capacity to export. Colombia Organica has submitted an application to certify cannabis seeds for commercialization. In addition, it holds a lease for a 36-acre property located 44 kms from Medellin. The region's climate is conducive for growing cannabis with an average temperature of 16-18 °C, and an elevation of 2,475 meters above sea-level. They have secured an option to buy the property.
MYM and Colombia Organica are building a production facility near Medellin, Colombia for the cultivation and processing of cannabis and cannabis products. Currently, Colombia Organica is developing and registering seed strains with the Colombian Agricultural Institute.
MYM will acquire eighty 80% of Colombia Organica from its existing shareholders for consideration of cash, equity and loans to the company for a total package of up to $2.26 million. MYM will employ Colombia Organica principals Daniel Alonso and Gabriel Ramirez as Territory Managers for South American operations.
"After further review we've decided to increase our stake in Colombia Organica under much more favourable terms", said Howard Steinberg, CEO of MYM. "Colombia presents an exciting opportunity for MYM to expand its cultivation operations into South America, bringing with it increased value to our shareholders. The addition of Daniel and Gabriel to our team will provide the company with boots on the ground for all current and future projects in South America." Read this and more news for MYM Nutraceuticals at: https://www.financialnewsmedia.com/news-mym/
In the industry developments and happenings in the market this week include:
The Green Organic Dutchman Holdings Ltd. (TSX:TGOD.TO - News) (OTCQX:TGODF - News) recently announced that it has entered into a multi-year extraction services contract with Valens GroWorks Corp. ("Valens"). Valens is a licenced provider of cannabis products and services specializing in various proprietary extraction, distillation, cannabinoid isolation and purification technologies. Partnering with Valens will accelerate TGOD's Canadian hemp strategy and allow for early market entry of TGOD's organic hemp-derived CBD product lines within the coming months.
Under the terms of the initial 2-year agreement, Valens will process, extract and purify TGOD's cannabis and hemp biomass under conditions specified by TGOD as demanded by final product manufacturing and formulation requirements. TGOD will supply Valens with significant quantities of cannabis and hemp and Valens will provide extraction purification services processing the cannabis and hemp into premium quality resins and distillates.
Aphria Inc. (NYSE:APHA - News) (TSX:APHA.TO - News) recently announced that Health Canada has granted the Company its license amendment, permitting Aphria to commence production in an additional 800,000 square feet of facilities at its Aphria One location, as part of the Company's completed Part IV and Part V expansions.
"This is a major milestone for Aphria on its path to becoming a leading global cannabis producer, as well as a positive development greatly anticipated by the Canadian cannabis industry," said Irwin D. Simon, Interim CEO of Aphria. "Aphria's progress expanding production and automation is essential to our strategy of securing scale and long-term advantages that enable the evolution of the cannabis industry through product and brand innovation. With Aphria One, we now have the ability to expand our production capacity by over three times."
HEXO Corp. (NYSE:HEXO - News) (TSX:HEXO.TO - News) has recently indicated that the acquisition of the Newstrike Brands (TSX-V:HIP.V - News) (OTCPK: NWKRF) would see the resulting company obtain over $400 million in net profit by 2020. Considering the figure the business combination could result in the company having forward sales trading at 3.8x. Cannabis industry competitors have forward sales trading of 69x, and therefore this could mean that the market undervalues HEXO based on analysts who have assessed the acquisition.
HEXO Corp has its headquarters in Gatineau Canada, and it produces and sells most of its cannabis products in the country. Apart from the main cannabis products such as cannabis oil sublingual mist and well-milled cannabis products, the company also produces and markets dried cannabis.
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