Medical Cannabis’ Burgeoning Reputation is a Boon for the Market’s Expansion
NEW YORK, Feb. 26, 2021 /PRNewswire/ — The cannabis industry has drastically changed over the course of the last five years. Thanks to shifting consumer sentiments, legislative victories across several major states, and the availability of new products for a wide demographic, the cannabis industry has become a major market attracting investors from all over the world. Slowly, more and more states are implementing legislating to regulate such products. For example, New Jersey voters legalized an adult-use marijuana market last year. This week Gov. Phil Murphy finally delivered on a 2017 campaign promise, signing legislation that legalizes cannabis for adults, decriminalizes the possession of up to six ounces of the drug, and codifies criminal justice reforms that will upend how police officers interact with underage offenders. However, some obstacles remain, and according to a report by Politico, the newly-formed Cannabis Regulatory Commission has been tasked with overseeing both the adult-use and medical marijuana markets and developing rules that will dictate the distribution of dispensary and cultivation licenses. Red White & Bloom Brands Inc. (CSE: RWB) (OTC: RWBYF), Sundial Growers Inc. (NASDAQ: SNDL), Aurora Cannabis Inc. (NYSE: ACB), Acreage Holdings Inc. (OTC: ACRHF), Canopy Growth Corporation (NASDAQ: CGC)
Currently, the medical cannabis sector accounts for the majority of the market share. Additionally, progress is slowly being made in removing the stigmas associated with such products. Medical cannabis is predominantly being used to alleviate symptoms associated with afflictions such as chronic pain, cancer, and epilepsy. Positive data has even led many U.S. states to legalize medical cannabis, as CBD products, in particular, have become more popular and well-known due to their lack of psychoactive effects many associates with cannabis. For example, in a HelloMD and Brightfield Group survey, approximately 60% out of 2,400 patients said that CBD participants used the compound to treat insomnia or other sleep problems successfully. Meanwhile, 42% of CBD users stopped using traditional medications and now use cannabis instead, and 80% of CBD users found CBD to be very or extremely effective for treatment.
Red White & Bloom Brands Inc. (CSE: RWB) (OTC: RWBYF) announced yesterday breaking news that “it has entered into a definitive agreement with HSCP, LLC (the seller” a subsidiary of Acreage Holdings Inc. (“Acreage”) (CSE: ACRG.A.U, ACRG.B.U) (OTCQX: ACRDF, ACRHF), pursuant to which a newly incorporated subsidiary of the Company, RWB Florida LLC will purchase all of the issued and outstanding shares of common stock of Acreage Florida, Inc. (“Acreage Florida”) from the Seller. The Company will also acquire certain owned and leased real estate assets used in Acreage Florida’s operations.
Acreage Florida is licensed to operate medical marijuana dispensaries, a processing facility, and a cultivation facility in the state of Florida. The deal also includes the sale of property in Sanderson, Florida, that includes over 15 acres of land and has a 113,546 SF facility for cultivation and a 4,360 SF freestanding administrative office building. In addition, Acreage Florida has 8 leased stores in prime locations throughout the state.
RWB intends to introduce its award-winning Platinum Vape brands immediately and leverage the previously announced rights to High Times® branded products at both the RWB store level and throughout the State of Florida following the closing of this acquisition.
Brad Rogers, Chief Executive Officer of RWB, stated, “Our core strategy has always been to focus on a limited number of markets within which to operate at scale, and Florida has always been one of those targeted markets. Today we have our path to entry into the third-largest market by revenue in the US and are excited with what we can do with the brands we have amassed as well as the skill to execute on our vision.”
When coupled with the Company’s recently announced acquisition in Illinois, this transaction further expands the Company’s representation in States with limited cannabis licenses. Upon closing existing definitive agreements, RWB will have a presence through licensed operations and/or the licensing of its brands in 6 States…
About Red White & Bloom Brands Inc.: The Company is positioning itself to be one of the top three multi-state cannabis operators active in the U.S. legal cannabis and hemp sector. RWB is predominantly focusing its investments on the major US markets, including Florida, Illinois, California, Michigan, Oklahoma and Arizona with respect to cannabis, and the US and internationally for hemp-based CBD products.”
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Last month, Sundial Growers Inc. (NASDAQ: SNDL) reported that it had launched high-quality cannabis derivative products under the Top Leaf brand in response to rising consumer demands for solventless cannabis extracts. This most recent launch is consistent with Sundial’s focus on premium inhalable, following branded retail offerings of flower, pre-roll, and vape cartridges. “We made a strategic decision to produce these premium products based on demand for solventless, flavorful, pure, and potent cannabis concentrates from a growing group of consumers,” said Andrew Stordeur, President and Chief Operating Officer of Sundial. “Our control of the entire manufacturing process from cultivation to extraction enables us to deliver premium quality products consistently. Adding bubble hash and other advanced concentrates to our product portfolio will expand Sundial’s share of this rapidly expanding market segment.”
Aurora Cannabis Inc. (NYSE: ACB) announced in November that it has entered into a strategic Supply Agreement with Cantek Holdings, one of Israel’s leaders in the medical cannabis field. Under the terms of the Agreement, Aurora will supply Cantek with dried bulk flower over a two-year period, with the option to extend. The Company intends to provide Cantek with a minimum of 4,000 kgs of bulk dried flower annually, which will be processed into a finished product and co-branded under the Aurora and Cantek brand names for the Israeli market potential for additional international market sales. “We are excited about our strategic relationship with Cantek, a leader in the Israeli market. This Agreement provides Aurora with a great opportunity to expand our medical cannabis brand and industry-leading science in one of our key international markets of focus,” said Miguel Martin, Chief Executive Officer of Aurora. “Today’s announcement demonstrates more than just a supply agreement. It’s about the strength and quality of the Aurora medical brand being validated once again by the world’s medical cannabis markets, including countries like Israel. We had no distribution before today. We consider this Agreement to be a significant step for Aurora, and we look forward to bringing our high-quality medical cannabis products to patients in Israel.”
Acreage Holdings Inc. (OTCQX: ACRHF) and Canopy Growth Corporation reported earlier last year that following the implementation of their amended arrangement, Acreage has developed a plan to market Canopy Growth’s diverse beverage portfolio in the United States. Leading with legal adult-use markets in Illinois and California, Acreage anticipates launching Canopy Growth’s select, sessionable THC beverage formulations in summer 2021. In addition to selling products in its own dispensaries, Acreage will access existing distribution channels through strategic corporate relationships. “We have had an incredibly successful introduction into the Canadian cannabis-infused beverage industry with over 1.7 million cans of our THC-infused RTD beverages, like Tweed’s Houndstooth & Soda and Bakerstreet & Ginger sold to date,” shared Canopy Growth CEO David Klein. “We introduced a new product category to cannabis consumers that we knew had the potential to disrupt one of the most mature industries, and since launching in Canada, Canopy Growth now owns 5 of the top 6 SKUs in the beverage category with a 74% market share. We are excited for Canopy’s beverages to be introduced to the U.S. market next summer.”
Canopy Growth Corporation (NASDAQ: CGC) announced this week that it had closed the previously announced plan of arrangement under the Business Corporations Act (Ontario) (the “Arrangement”) involving Canopy Growth, RIV Capital Inc. (formerly Canopy Rivers Inc.) (“RIV Capital”) (TSX: RIV) (OTC: CNPOF) and its wholly-owned subsidiary, RIV Capital Corporation (formerly Canopy Rivers Corporation) (“RCC”), as well as Canopy Growth’s wholly-owned subsidiary, The Tweed Tree Lot Inc. (“Tweed NB”). “Our conditional ownership in TerrAscend is a key component of our U.S. ecosystem strategy and strengthens our U.S. exposure ahead of the promising cannabis reform in the U.S.,” said David Klein, Chief Executive Officer of Canopy Growth. “Also, the divestiture of our interest in RIV Capital allows Canopy Growth to improve our focus as an organization further.”
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