It’s time for your Daily Hit of cannabis financial news for September 3, 2019.
On The Site
A new report from BDS Analytics titled “The Global Cannabinoids Market: Will CBD Overtake THC?” is forecasting that CBD sales will reach $20 billion by 2024. This would account for nearly 44% of the $45 billion total forecasted
cannabinoid market (which includes legal cannabis).
Cannabidiol or CBD is a natural compound found within the cannabis plant. The report notes that CBD was first extracted from the cannabis plant in 1940, but it wasn’t until 1946 that Dr. Raphael Mechoulam identified the structure of CBD and later discovered properties within the compound to treat epilepsy. Since that time, the FDA approved the GW Pharmaceutical CBD drug Epidiolex for use in treating rare forms of epilepsy. Congress also passed the 2018 Farm Bill, which legalized help and set off a tsunami of hemp-derived CBD products onto the marketplace.
Reforms to the Netherland’s opaque cannabis laws are finally underway after an agreement was struck on a four-year trial to provide cafes with a legal and regulated supply of the product.
Under existing law, cannabis can be sold over the counter in licensed coffee shops, but it is illegal to produce and supply the drug.
From 2021, 10 areas will acquire a legal supply of top quality cannabis from regulated producers for their cafes, in a bid to reduce black market activity.
In Other News
GrowGeneration Corp. (OTCQX: GRWG), has purchased the assets of Grand Rapids Hydroponics (GRH), with 1 location in Grand Rapids, MI. Following the acquisition, GrowGen now has 4 retail and warehouse locations in the Michigan market. 3rd Quarter Revenue is Tracking in Excess of $20 Million
“Grand Rapids Hydro marks our 7th acquisition in 2019, adding an accretive $8.0 Million in revenue to our Company. GRH, strategically located in Grand Rapids, MI., adds one of the largest and highest volume hydroponic garden centers in the country. Further, this acquisition positions the Company to service the ever-growing Michigan market. GRH has a seasoned team and we are excited that the founder, Christopher Nicholson will be continuing in an executive sales and business development role for GrowGen.”
Golden Leaf Holdings Ltd. (CSE: GLH) (OTCQB: GLDFF) announced that Jeffrey Yapp will succeed John Varghese as CEO of Golden Leaf Holdings. Upon the resignation of Gary Zipfel on September 2, Mr. Yapp joined the Board of Directors. Mr. Varghese, who served as Interim CEO, will transition to the role of Executive Chairman and lead all capital markets related activities.
Rick Miller, current Chairman of the Company’s Board of Directors stated, “We are enthusiastic about the wealth of experience, innovative thinking and consumer-oriented vision that Jeff will bring to the role of CEO. The Board remains confident in the great potential and growth prospects for Golden Leaf Holdings. We want to thank John Varghese who stepped up to lead Golden Leaf through this transitional phase, for his professionalism and leadership over the last few months. As John takes on the role of Executive Chairman, I will continue to work closely with both gentlemen as the Company’s lead director.”
The Green Organic Dutchman Holdings Ltd. (TSX:TGOD) (US:TGODF) has obtained approval from Health Canada, under the Cannabis Regulations, to expand operations into its new hybrid greenhouse located in Hamilton, Ontario. The 123,000 square foot state-of-the-art facility will serve to increase TGOD’s premium organic cannabis production as it expands its sales in Canada.
TGOD’s hybrid greenhouse is the fruit of years of research and development. From its cutting-edge climate control systems and water recapture systems to LED lighting, it combines the latest technologies with natural elements such as living soil and natural sunlight. This organic growing facility has a much better environmental footprint and lower waste than traditional large-scale cannabis growing.
“We are thrilled to start using this purpose-built hybrid greenhouse as we ramp up our production of premium organic cannabis, an underserved segment of the market,” commented Brian Athaide, CEO of TGOD. “Our team pioneered the concept of growing organic cannabis at scale; this hybrid greenhouse has been artfully designed for organic cultivation, allowing us to reliably produce clean, safe and non-irradiated cannabis.”