It’s time for your Daily Hit of cannabis financial news for July 28, 2020.
On The Site
As announced in early June, Clever Leaves International is expected to be one of a few cannabis companies listed on the NASDAQ making this investment available to a substantially broader base of investors. The company has one of the largest cultivation and extraction operations in Latin America and is among the largest in the world, including Canada’s licensed producers and top extractors.
It is making its way onto the NASDAQ through the Schultze Special Purpose Acquisition Corp. (NASDAQ: SAMA). The deal is expected to close in the fourth quarter and will be known as Clever Leaves Holding Corp. Kyle Detwiler, Chief Executive Officer and Andrés Fajardo, President, will continue to lead the combined company.
The passage of the 2018 Farm Bill legalizing hemp sparked a CBD rush with millions in sales and seemingly everyone starting a company using some form of hemp-derived cannabis oil. Last year’s BDSA and Arcview Market Research, industry report estimated that CBD sales in the U.S. would surpass $20 billion by 2024. New York-based investment bank Cowen & Co forecast that the market would hit $15 billion by 2025.
A new report from the Brightfield Group, “US CBD Market July 2020“, warns those numbers will be much lower as a result of the impact of COVID-19 on shoppers. Several reasons are behind the drop in sales from lockdowns causing brick and mortar store closures, to shifts in retailers making deliveries and even the job crisis that is hurting consumers’ wallets. The report stated that in 2020, the US hemp-derived CBD market is projected to reach $4.7 billion in sales, with 14% growth from 2019 sales of $4.1 billion. The market had been expected to grow by over 30%.
In Other News
Orchid Ventures, Inc. (OTC: ORVRF) reported that for the second month in a row, the company has continued to set purchase order records totaling over $2MM CAD, or over 100% month-over-month growth. On July 23, 2020, through its wholly-owned subsidiary, PurTec Delivery Systems, the company received purchase orders from both its licensee in Oregon and from other substantial PurTec customers. The company also announces that its Chief Operating Officer, Eric Vaughan, has taken a leave of absence. During this time and upon his return, Mr. Vaughan will act as a consultant to the Company.
Megalabs today announced its partnership with Medterra to bring their well-known CBD products to Mexico, Argentina and Brasil. With the populations in these countries showcasing an increased interest in high-quality CBD products, Megalabs will utilize its advanced