PALM BEACH, Florida, April 3, 2019 /CNW/ -- Articles projecting potential revenues for cannabis seem to continue to rise and rise and rise… The optimism is almost tangible… but they do seem to be backed up by the progress this market has seen in the last year alone. While the projections differ, they all forecast robust sales figures just over the horizon. Here are some of those projections in ascending order. One of the first such reports in The Rolling Stone, which said: "For years, experts have predicted that if the cannabis industry expands at its current rate, the American market will reach $20 billion by 2020. Another article said: "… (the) U.S. cannabis market to surpass $24 billion by 2025" and"Another study with projections for 2021 was conducted by the Brightfield Group. That particular study estimated that the international market for cannabis will hit $31.4 billion by 2021. That same article also added: "The cannabis market is booming these days, now operating legally in a number of states and countries across the globe… (projected) $40 billion in economic impact by 2021, saying (the) successful and growing cannabis industry has a butterfly effect on the economies that are involved. Active companies in the cannabis industry includes: CROP INFRASTRUCTURE CORP. (CSE:CROP) (OTC:CRXPF - News), OrganiGram Holdings Inc. (TSX-V:OGI.V - News) (OTCQX:OGRMF - News), Cresco Labs Inc. (CSE:CL) (OTCQX:CRLBF - News), HEXO Corp. (NYSE-A:HEXO - News) (TSX:HEXO.TO - News), iAnthus Capital Holdings, Inc. (CSE:IAN) (OTCQX:ITHUF - News).
ArcView Market Research in conjunction with BDS Analytics released a report at the beginning of 2018 which estimated that the overall economic impact of the cannabis industry would increase to $40 billion by 2021. Finally an article in Forbes, added: "… Spending on legal cannabis worldwide is expected to hit $57 billion by 2027. The adult-use (recreational) market will cover 67% of the spending; medical marijuana will take up the remaining 33%.
CROP INFRASTRUCTURE CORP. (CSE:CROP) (OTCPK:CRXPF - News) (Frankfurt: 2FR) BREAKING NEWS: CROP has been advised by its tenant brand sales team that the Hempire and Evolution brands are now available in 40 retail locations, mostly along the coastal cities of Washington.
The flower is available in eight different strains across seven sizes with concentrates being made available in five different concentrates across 20 separate strains giving the retail locations over 100 SKUS to offer their consumers.
The Washington market for 2018, according to Statista.com, was a $534.06 Million market with RBC Capital Markets analyst Nik Modi writing: 'The legal cannabis category [in the U.S.] is set to grow at a 17% CAGR over the next decade to as much as $47 billion in annual sales.'
Crop's tenanted Washington facility has a major advantage with low cost electricity at $0.02 per kWh and greenhouse style growing, making it one of the most efficient growing operations available in the state of Washington for high quality product.
CROP CEO, Michael Yorke, stated: "Our tenant growing team and their sales team have made outstanding progress with product placement in 40 retail locations for both flower, oils and extracts. We continue to build out our brands in California and Nevada and our objective is, ultimately, to be in as many states as possible." Read this full announcement and more news for CROP Infrastructure at: https://www.financialnewsmedia.com/news-crop/
Additional cannabis industry related developments from around the markets:
OrganiGram Holdings Inc. (TSX-V:OGI.V - News) (OTCQX:OGRMF - News) recently provided an update on its previously announced mandatory conversion (the "Conversion") of the Company's 6.0% convertible unsecured debentures due January 31, 2020 (the "Debentures") (OGI.DB).
As announced on February 27, 2019, the Company elected to exercise its right under the Debenture Indenture between the Company and the TSX Trust Company dated as of January 31, 2018 (the "Indenture") governing the Debentures, to convert all of the principal amount outstanding of the remaining Debentures on April 1, 2019 (the "Conversion Date") into common shares of the Company (the "Common Shares").
Cresco Labs Inc. (CSE:CL) (OTCQX:CRLBF - News) and CannaRoyalty Corp., doing business as Origin House, have entered into a definitive agreement pursuant to which Cresco Labs will acquire all of the issued and outstanding shares of Origin House. Under the terms of the agreement, holders of common shares of Origin House will receive 0.8428 subordinate voting share of Cresco Labs for each Origin House share.
The transaction represents a total consideration of approximately $1.1-billion on a fully diluted basis, or $12.68 per Origin House share (based on the exchange ratio and the closing price of Cresco Labs shares on March 29, 2019, the last trading day prior to the announcement of the transaction). The transaction represents the largest public company acquisition in the history of the U.S. cannabis industry. The combined entity will be: one of the largest vertically integrated multistate cannabis operators in the United States; a leading North American cannabis company, by footprint; and one of the largest cannabis brand distributors.
HEXO Corp. (NYSE-A:HEXO - News) (TSX:HEXO.TO - News) has completed the first harvest in its one-million-square-foot expansion, marking an important execution milestone in the company's continuous growth.
Since early January, plants have been moving into the greenhouse and the first plants have now been harvested. The company continues to ramp up to full harvest capacity using the continuous harvest methodology, the latest step toward reaching the full annual production capacity of 108,000 kilograms of dried flower per year.
"Completing the first harvest in our one-million-square-foot greenhouse expansion showcases the dedication and hard work of the entire Hexo team," said Sebastien St-Louis, Hexo's chief executive officer and co-founder. "We are very proud of our continued ability to execute on our plans, creating value for our shareholders and demonstrating our commitment to our customers. This cultivation milestone means that an expanded Hexo product offering will be available to more Canadians shortly."
iAnthus Capital Holdings, Inc. (CSE:IAN) (OTCQX:ITHUF - News) has received approval from the Florida Department of Health to sell whole flower smokable product to its Florida patients. iAnthus will source flower from its state-of-the-art, 240,000-square-foot cultivation facility in Lake Wales, Fla. iAnthus currently serves Florida's 246,000 registered patients through delivery and three open dispensaries in West Palm Beach, Brandon and Lake Worth, and plans to open 17 additional locations in the state in 2019.
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