Craft Cultivators Seek to Satisfy Both Spectrums of the Cannabis Industry
Medical patients can easily obtain a prescription for drugs to treat a variety of ailments. Whether it is simply a common cold or a condition as severe as cancer, medically licensed professionals can prescribe treatment or a drug that they think are best suited for their patients. However, research conducted on some of the treatments has shown that they entail a plethora of drawbacks. There is a wide range of prescription drugs from depressants to opioids to stimulants and generally, prescription drugs are known to be highly addictive and can also cause bodily harm by damaging the heart, brain, and liver. Consequently, if patients abuse prescription drugs, it can ultimately prove to be life-threatening. For instance, the constant use of prescription drugs can cause severe damage to the heart and induce abnormal heart rates and other cardiac problems. Eventually, a patient can suffer from heart attacks, heart failure, and collapsed veins, according to Talbott Recovery. The concern over the growing epidemic of prescription drug abuse has led medical institutions and professionals to reconsider what patients are given. Notably, in regions where cannabis is legalized for medical purposes, more and more patients are beginning to use cannabis as an alternative to pharmaceutical medications. Specifically, Canada has witnessed its medical patient user base grow significantly over the past several years. There were 296,702 patients registered under Health Canada's Access to Cannabis for Medical Purposes Regulations (ACMPR) program as of March 2018. Compared to the same period a year prior, the number of registered patients grew by 76.9%. The robust growth reflects how rapidly the user base is growing as more people turn to cannabis as a medical alternative. Moreover, the global user base is projected to continually grow as more countries begin to implement medical cannabis programs. According to data compiled by MarketsAndMarkets, the global cannabis market is projected to grow from USD 10.3 Billion in 2018 to USD 39.4 Billion by 2023. Furthermore, the market is anticipated to grow at a CAGR of 30.7% during the forecast period. Pasha Brands Ltd. (OTC: CRFTF) (CSE: CRFT), Tilray, Inc. (NASDAQ: TLRY), Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT), Acreage Holdings Inc. (OTC: ACRGF) (CSE: ACRG.U), Green Thumb Industries Inc. (OTC: GTBIF) (CSE: GTII)
Canadian Regulators Open Door to More Robust Cannabis Market Growth
Canada made headlines in 2018 after it became the second country in the world to completely legalize adult cannabis use. Canada's Prime Minister Justin Trudeau was a strong advocate for legalization and ultimately, the country decided to pass new legislation and initiate legal adult-use in late 2018. However, despite Canada's legal market, the enormous U.S. market continues to cast a cloud over its northern neighbor, even though the U.S. has not yet moved to federally legalize cannabis. Instead, U.S. states are given the jurisdiction to legalize cannabis for either medical or recreational purposes. And as of June 2019, 33 states and the District of Columbia allowed the use of cannabis for medical applications. Moreover, 11 of those states, including the District of Columbia, have legalized adult recreational use. The U.S. adopted cannabis as early as the late 1990s when states such as California, Oregon, Alaska, and Washington were the first to implement a medicinal cannabis program. However, the industry was completely reshaped when Colorado and Washington legalized recreational cannabis in 2014. Throughout the beginning phases, legal cannabis sales were slow. For instance, Colorado reported total marijuana sales of USD 683 Million in 2014. But by the end of 2018, Colorado's legal cannabis market delivered revenues of USD 1.54 Billion, according to the Colorado Department of Revenue. Furthermore, Colorado is on pace to report another record-breaking year in marijuana sales for 2019. As of January 2019 to April 2019, the state had already reported sales of USD 522 Million. While Canada's market may seem minuscule in comparison to the U.S. market, it is still positioned to become a major global growth driver. Unlike the U.S., Canada has federally legalized cannabis, meaning that its market penetration is much greater, even as Canada's legal market still remains relatively new. Nonetheless, the market will continue to mature as the legal business progresses. And according to data compiled by ArcView Market Research and BDS Analytics, the legal cannabis spending in Canada was USD 569 Million in 2018. By 2024, the spending is expected to reach USD 5.2 Billion while exhibiting a CAGR of 44.4%. Canopy Rivers Inc. (OTC: CNPOF) (TSX-V: RIV), Tilray, Inc. (NASDAQ: TLRY), Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON), Curaleaf Holdings, Inc. (OTC: CURLF) (CSE: CURA), Green Thumb Industries Inc. (OTC: GTBIF) (CSE: GTII)
Zenabis Closes $30 Million Non-Dilutive Financing via Supply Agreement with Tilray®
Zenabis Global Inc.'s (TSX:ZENA) ("Zenabis" or the "Company") wholly-owned subsidiary, Zenabis Ltd., has closed its previously-announced non-dilutive financing via a pre-paid supply agreement with High Park Holdings Ltd. ("High Park") (the "Supply Agreement"), a wholly-owned subsidiary of Tilray, Inc. (NASDAQ:TLRY) ("Tilray").