NEW YORK, January 24, 2019
NEW YORK, January 24, 2019 /PRNewswire/ --
FinancialBuzz.com News Commentary
Recent trends in the cannabis industry have led to a global spread of legalization. Most countries exploring the industry are interested in the medical sector, but countries like the U.S. and Canada are expected to dominate the recreational segment. According to data compiled by Zion Market Research, the global legal cannabis industry generated approximately USD 16.71 Billion of revenue in 2017 and is expected to deliver revenues of USD 62.96 Billion by the end of 2024. Additionally, the market is projected to grow at a CAGR of 21% throughout the forecast period from 2018 to 2024. The increasing efforts to legalize cannabis internationally for either the medical or recreational purpose are continuously accelerating the market growth. The industry is also growing due to many large private or public sector investments which are flowing into the cannabis market in an effort to research new delivery methods such as oils, tinctures, vapes and others. 3 Sixty Risk Solutions Ltd. (OTC: PTVYF), DSW Inc. (NYSE: DSW), Cronos Group Inc. (NASDAQ: CRON), Aurora Cannabis Inc. (NYSE: ACB), TerrAscend Corp. (OTC: TRSSF)
Cannabis has quickly become heavily prominent in regions where it has been legalized as U.S. states like California, Colorado, Washington, and Nevada are seeing thriving sales after legalizing recreational use. As a result, more and more businesses are entering into popular cannabis segments such as those of retailers, cultivators, or processors. However, regardless of the field, the need for security has caught the attention of many. Companies are looking to acquire security services such as cybersecurity, secure transportation, surveillance, or on-site guards in order to protect their facilities and profits. "So, while the industry is clearly on the rise as more and more states pass laws legalization the use of cannabis, the industry also needs to consider the privacy and security of its systems and networks from the ground up. Because this industry is so heavily regulated, and tracked, there is also a heavy amount of data collection and storage of personally identifiable information and other sensitive data," said Kathryn Rattigan, member of the Business Litigation Group and the Data Privacy and Security Team.
3 Sixty Risk Solutions Ltd. (OTC: PTVYF) is also listed on the Canadian Securities Exchange under the ticker (CSE: SAFE). Yesterday, the Company announced breaking news that, "its wholly-owned subsidiary, 3 Sixty Secure Corp., is supporting the Ontario Cannabis Store ("OCS"), which focuses on providing safe and responsible access to cannabis in Ontario. 3Sixty has entered into a multiyear agreement with OCS to provide secure transport services which contribute to the safe delivery of cannabis products within the OCS distribution network.
"I am extremely pleased that we were selected by OCS to provide security services and to contribute to safe and responsible access to cannabis in Ontario," said Thomas Gerstenecker, CEO and Founder of 3Sixty. "We believe that our agreement with OCS highlights the world-class quality of our security services and the impressive pedigree of our customer base. We continue to seek new services to offer to our existing customers and we are looking beyond our borders for geographic expansion opportunities that allow us to export our expertise across Canada, the US and internationally as we seek organic growth and consider disciplined M&A opportunities to accelerate growth."
"Ontario, with a population of more than 14 million people, is Canada's largest cannabis market," added Thomas Gerstenecker. "Estimates by the Federal Government indicate that Ontario's potential market for cannabis is more than $2 billion which is a tremendous opportunity for 3Sixty and for Canada's 144 Licensed Producers, of which 76 are in the province of Ontario. 3Sixty has relationships with Canada's largest LP's, we continue to grow our customer base, and our agreement with the OCS is expected to contribute to significant revenue growth at 3Sixty as the Ontario market develops."
About 3 Sixty Risk Solutions Ltd: 3 Sixty Risk Solutions Ltd., operating through its wholly-owned subsidiary, 3 Sixty Secure Corp., is one of Canada's leading security service providers to the cannabis sector, transporting approximately $250 million of product every month. 3Sixty provides cannabis security consulting, guarding and secure transport security services to more than 500 customers and more than 60 licensed cannabis producers, including some of the world's largest, such as licensed producers owned by Canopy Growth Corporation. 3Sixty has a staff of over 275 employees and employs a fleet of over 60 vehicles, which management believes provides a combined security footprint to approximately 30 million square feet of patrolled area.
For our "Buzz on the Street" Show featuring 3 Sixty Risk Solutions Ltd. latest corporate news, please head over to: https://www.youtube.com/watch?v=FLUgUjNfCKs
DSW Inc. (NYSE: DSW) and Green Growth Brands recently announced an agreement to sell hemp-derived cannabidiol (CBD) personal care products under the Seventh Sense Botanical Therapy brand at select DSW stores throughout the U.S. The Agreement was received by Green Growth Brands on January 9, for 54,960 units and covers sales in 96 U.S.-based DSW stores. Seventh Sense brand offers high-quality CBD-infused products and affordable prices, including muscle balms, body lotions, body washes and foot creams. The Agreement follows a successful test phase conducted last autumn in which Green Growth Brands sold select Seventh Sense products in 10 DSW stores. During the first 10 weeks of the test period, 74.4% of the product presented on shelves was sold, significantly exceeding expectations. "We have seen recent shifts in consumer behavior accelerate changes in the retail industry," said Roger Rawlins, Chief Executive Officer of DSW Inc., "North America's widespread adoption of the use of CBD products is one of the best examples of these shifts, and we could not be more excited about our partnership with Green Growth Brands and the introduction of their products to our customers."
Cronos Group Inc. (NASDAQ: CRON) is a globally diversified and vertically integrated cannabis company with a presence across five continents. Cronos Group Inc. recently announced that it has entered into a subscription agreement with Altria Group, Inc., pursuant to which Altria has agreed to make an approximately CAD 2.4 Billion equity investment in Cronos Group on a private placement basis in exchange for common shares in the capital of the Company. Altria will also receive Warrants of Cronos Group, that if fully exercised, would provide the Company with an additional approximately CAD 1.4 Billion of proceeds. This strategic partnership provides Cronos Group with additional financial resources, product development and commercialization capabilities, and deep regulatory expertise to better position the Company to compete, scale and lead the rapidly growing global cannabis industry. "Altria is the ideal partner for Cronos Group, providing the resources and expertise we need to meaningfully accelerate our strategic growth," said Cronos Group's Mike Gorenstein, Chairman, President and Chief Executive Officer. "The proceeds from Altria's investment will enable us to more quickly expand our global infrastructure and distribution footprint, while also increasing investments in R&D and brands that resonate with our consumers. Importantly, Altria shares our vision of driving long-term value through innovation, and we look forward to continuing to differentiate in this area. As one of the largest holding companies in the adult consumer products sector, Altria has decades of experience in regulatory, government affairs, compliance, product development and brand management that we expect to leverage, particularly as new markets for cannabis open around the world."
Aurora Cannabis Inc. (NYSE: ACB), headquartered in Edmonton, Alberta, Canada with funded capacity in excess of 500,000 kg per annum and sales and operations in 22 countries across five continents, is one of the world's largest and leading cannabis companies. Aurora Cannabis Inc. recently announced that the Company had entered into a letter of intent to acquire all the issued and outstanding shares of privately held Whistler Medical Marijuana Corporation, in an all-share transaction valued at up to approximately USD 175 Million, including certain milestone payments. "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," said Terry Booth, Chief Executive Officer of Aurora. "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."
TerrAscend Corp. (OTCQX: TRSSF) is a biopharmaceutical and wellness company that is committed to quality products, brands and services for the global cannabinoid market. TerrAscend Corp. recently announced the signing of a definitive agreement to acquire substantially all of the assets of Grander Distribution, LLC. Grander is an industry leader in the production and distribution of innovative hemp-derived wellness products. Their whole-plant hemp extract products are made in the USA and are available for sale in ~10,000 retail locations worldwide. Grander expects 2018 sales to exceed USD 10,000,000 with the most recent one-month run rate of over USD 14,000,000 on an annualized basis. The USD 13,000,000 purchase price is an equal combination of cash and stock with the potential for additional consideration of up to USD 10,000,000 based on revenue targets of USD 35,000,000 in 2019 and USD 50,000,000 in 2020. The transaction is expected to close by January 15, 2019, upon completion of standard closing requirements. "We are thrilled to welcome the Grander team and look forward to leveraging their expansive distribution and branding expertise as we complete the first acquisition of our US strategy. In addition to their seasoned sales force, Grander has a proven track-record of driving the development, manufacturing and processing of innovative hemp-derived cannabinoid products. With the passing of the 2018 US Farm Bill, and the closing of this transaction, TerrAscend will be well positioned to take advantage of the substantial hemp-derived product opportunity," said Matthew Johnson, President TerrAscend Corp., and TerrAscend USA, Inc.
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