PALM BEACH, Florida, June 17, 2020
Financialnewsmedia.com News Commentary
PALM BEACH, Florida, June 17, 2020 /PRNewswire/ -- Cannabis companies have experienced a rapid growth phase for years. Industry reports say that the COVID-19 outbreak is causing serious jitters among large cannabis companies, with a growing list of multistate marijuana operators scaling back by laying off workers and shuttering operations in a bid to slash costs. Marijuana Business Daily said: "But as the (worldhealth crisis) worsens in the U.S. and destabilizes both the marijuana and mainstream markets, many cannabis businesses have pivoted to restructuring, eliminating inefficiencies and pulling back on plans for expansion. Marijuana Business Daily said: "Coronavirus conditions are prodding cannabis companies to take even more aggressive steps to reduce expenses, lower head count and sell noncore assets in a bid to accelerate their path to profit," said Craig Behnke, equity analyst at Marijuana Business Daily's Investor Intelligence. But an article in Politico sees a bright future, saying: "Coronavirus hasn't kept some cannabis companies down: They're staffing up even as unemployment in many other sectors soars… Weed businesses around the country that were in strong financial shape heading into the pandemic are hiring additional workers in response to robust demand for marijuana products. Almost all states have allowed pot shops to remain open, even though vast swaths of the retail economy have been shuttered for weeks." Active companies in the Cannabis market this week include Cannabis Strategic Ventures, Inc. (OTCQB: NUGS), Cronos Group Inc. (NASDAQ: CRON) (TSX:CRON), Canopy Growth Corporation (NYSE: CGC) (TSX: WEED), OrganiGram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), Medical Marijuana, Inc. (OTCPK: MJNA).
"The primary reason companies are hiring is simply that the cannabis market continues to grow across the country. Legal cannabis sales topped $12 billion last year, according to analytics firm BDSA, and are expected to top $30 billion annually within the next four years, though the projections don't take into account coronavirus' economic impact. The legal cannabis industry in the U.S. employed nearly 250,000 people last year, according to Leafly, a 15 percent jump over 2018."
Cannabis Strategic Ventures, Inc. (OTCQB:NUGS) BREAKING NEWS: Cannabis Strategic Ventures Issues LOI for 300K Square Foot Facility with Potential to Double Current Output and Sales - Cannabis Strategic Ventures, an emerging leader in the U.S. cannabis marketplace, is excited to announce that the Company has issued a Letter of Intent ("LOI") to obtain a new 300K square-foot greenhouse cannabis cultivation facility. Negotiations are underway and further details will be released soon. The new facility would more than double the Company's cannabis production capacity.
"In this environment, the market is going to take as much as we can produce given our steady evolution in product quality, and we see those conditions extending for quite some time," stated Simon Yu, CEO of Cannabis Strategic Ventures. "That strongly points to strategic value in expansion. We have seen recent strong improvements in output, pricing, and sales volume, and we are aggressively interested in expanding capacity to capitalize on micro and macro factors to drive more value for our shareholders."
The LOI, which was issued this week, represents an offer to obtain a cannabis cultivation facility with a 300K square foot ready-to-grow greenhouse in excellent condition. To avoid any unnecessary impact on the negotiation process, few further details will be released at this time.
However, the addition of this amount of cannabis cultivation capacity would more than double the Company's total output potential. Given current trends, management believes this would also result in an increase in total sales by more than 100%.
Yu continued, "More than doubling our production capacity doesn't just mean a proportionate jump in sales. It also represents an additional bonus in terms of market positioning, putting us at a volume level that would likely create additional relationship opportunities with major distribution partners." Read this and more news for Cannabis Strategic Ventures at: https://www.financialnewsmedia.com/news-nugs
Other recent developments and major influences in the cannabis industry include:
Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) recently welcomed Chief Financial Officer Mike Lee to its Board of Directors (the "Board"). Mr. Lee joins a Board that already has executives drawn from multiple industries, a wealth of strategic industry know-how, and significant public company governance experience. The Company expects that Mr. Lee's experience at Canopy Growth, Constellation Brands, Inc. ("Constellation Brands"), and other leading consumer packaged goods and beverage companies will help strengthen its strategic execution as it continues to focus on developing a leading global cannabis portfolio.
"Mike's addition to our Board is another sign of our strong and growing relationship with Canopy Growth and Constellation Brands," said John Bell , Chair of Canopy Rivers' Board. "We expect that this will benefit both of our companies, as well as our portfolio companies, as we exchange industry insights and further leverage the guidance and expertise of the largest cannabis company in the world."
"I'm very pleased to join the Canopy Rivers Board as they continue building a diverse portfolio of cannabis investments. As we at Canopy Growth increase our focus on core markets and core products, there is a renewed need for an aggressive venture arm focused on identifying the next big opportunities in the global cannabis industry," said Mr. Lee.
Cronos Group Inc. (NASDAQ: CRON) recently announced its 2020 first quarter business results. "Cronos Group started 2020 energized and determined to continue to see through our core strategic initiatives to drive long-term and sustainable growth. This quarter, we moved closer to officially entering the Israeli medical cannabis market with our Cronos Israel operations preparing to sell PEACE NATURALS™ branded dried flower products to medical patients. The Israeli medical market is a growing channel, and we look forward to serving this market in 2020 and beyond," said Mike Gorenstein, CEO of Cronos Group.
"Despite the challenges and uncertainty posed by the COVID-19 pandemic, we remain agile and focused as a business. Our brand portfolio continues to launch innovative products to consumers as we adapt to an online-first distribution model in both the U.S. and Canada. We continue to reach our stakeholders and consumers through creative digital marketing. And our product innovation and R&D projects continue to progress. We believe the mission of our Company, to improve lives through cannabinoid innovation, resonates especially well during these times. We remain well-positioned and committed to generating sustainable, long-term value for shareholders and are confident 2020 will be a successful building year for Cronos Group."
OrganiGram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), a leading licensed producer of cannabis, recently announced that it has entered into a multi-year agreement for supply of dried flower to one of Israel's largest and most established medical cannabis producers, Canndoc Ltd. ("Canndoc"), a subsidiary of InterCure Ltd.
Canndoc has been a pioneer in pharmaceutical-grade cannabis for more than 12 years. Its GMP-approved medical cannabis products are sold in pharmacies in Israel, and it holds international cultivation and distribution agreements in the European Union and Canada.
"Success in international cannabis markets requires a disciplined assessment of opportunities and the identification of strong, world-class partners," says Greg Engel, CEO, Organigram. "For this reason, we are proud to work with Canndoc, a company who we believe shares both our focus on the production of high-quality products and deep commitment to helping patients around the world."
Medical Marijuana, Inc. (OTCPK: MJNA) recently announced that its investment company AXIM AXIM® Biotechnologies, Inc has expanded its research division through the establishment of a state-of-the-art laboratory in the biotechnology industry hub of San Diego, Calif. Additionally, respected scientist Dr. Sergei Svarovsky will lead the oncology-focused research team as the Chief Scientific Officer and founder of AXIM's subsidiary, Sapphire Biotech, Inc. ("Sapphire").
"This new laboratory is a giant step forward for AXIM to bring its research completely in-house and continue its scientific discoveries at an accelerated pace," said Dr. Stuart Titus, CEO of Medical Marijuana, Inc. "We are excited to see further innovations from the team to be led by well-recognized researcher, Dr. Svarovsky."
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