Cannabis Retail Sales Continue to Grow as New Markets Appear and More States Legalize


 
 
01:15 08/11/2018

Recent developments in the state of New York indicates that it might be the next state to look towards legalization. According to Forbes, the administration of New York Gov. Andrew Cuomo has released a state Health Department report on Friday that says the positive effects of legalization outweigh the potential negative impacts. "Regulation of marijuana benefits public health by enabling government oversight of the production, testing, labeling, distribution, and sale of marijuana. The creation of a regulated marijuana program would enable NYS to better control licensing, ensure quality control and consumer protection, and set age and quantity restrictions," the report states.

According to a research report provided by Marijuana Business Daily, cannabis retail sales continue to grow year-over-year as new markets appear and more states legalize medical and recreational cannabis products.

Sales in 2018 are expected to increase by approximately 50% when compared to 2017. Sales value is also on track to reach USD 8 Billion - USD 10 Billion by the end of this year. Furthermore, the report indicates that by 2022, annual retail cannabis sales in the United States could surpass the USD 20 Billion mark, representing a 200% increase from 2017. Legal cannabis markets currently grow in major states such as California, Nevada, Colorado and Washington amongst others.

On June 19th, Canada has legalized cannabis on a national level, and is now the first G20 nation to do so. New Frontier Data Founder & CEO, Giadha Aguirre de Carcer, explained, "New Frontier Data projects the domestic Canadian cannabis market will reach CAD 9.2 Billion by 2025. Combined, the Canadian medical and adult-use markets will rival that of California - which boasts the 6th largest overall economy internationally. Canadian usage rates in the medical market are higher on average than in the U.S. When the adult-use Canadian market opens the combined domestic and international opportunities will increase dramatically and create new momentum around the world.”

Legal Marijuana and cannabis related companies making headlines recently are:

Cronos Group Inc. (NASDAQ:CRON) CRON  is a globally diversified and vertically integrated cannabis company with a presence across four continents. Cronos recently announced that it has entered into a joint venture partnership with a group of investors led by Bert Mucci, one of Canada's most sophisticated greenhouse operators and builders. This partnership will function through a newly formed entity, Cronos Growing Company Inc., which will develop, construct and operate a state-of-the-art purpose-built greenhouse for cannabis production in Kingsville, Ontario. Cronos Group expects that once the Facility is fully operational and licensed, the Facility will produce approximately 70,000 kilograms of cannabis per annum for Cronos GrowCo. The state-of-the-art Facility has been designed to optimize cutting-edge greenhouse technology and Cronos Group's best practices in cannabis cultivation coupled with the latest in efficient environment control technologies. This is expected to provide ideal and consistent environmental conditions for cannabis cultivation in an energy efficient manner. The Facility is also designed to meet GAP and GMP requirements and standards for cultivation, extraction and manufacturing activities.

Canopy Growth Corporation (NYSE:CGC) CGC  is a world-leading diversified cannabis and hemp company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms. Continuing the theme of securing major supply agreements in every Canadian province and territory with announced supply plans, Canopy Growth Corporation recently announced that cannabis grown in its Delta and Aldergrove facilities, its other sites across the country, and products from its CraftGrow partners, will be sold in fine retailers, both government-operated and private, across the province of British Columbia post-prohibition. Canopy Growth entered into a supply MOU with the BC Liquor Distribution Branch to make available 5,719 kg of high-quality cannabis products in the first 12-months following October 17th, 2018. The quantity referenced is a delivery requirement agreed to in the MOU, not an internal allocation. "Investing in a reliable, national production footprint early has made all the difference as provincial partners assess potential supply sources," said Mark Zekulin, President & Co-Chief Executive Officer. "We've established a strong presence in BC with state-of-the-art greenhouse facilities in Delta and Aldergrove and we can't wait to see the BC bud we're currently growing and harvesting at both sites readily available on store shelves.”

GW Pharmaceuticals plc (NASDAQ:GWPH) GWPH  is a biopharmaceutical company focused on discovering, developing and commercializing novel therapeutics from its proprietary cannabinoid product platform in a broad range of disease areas. The Company, along with its U.S. subsidiary Greenwich Biosciences, recently announced that the U.S. Food and Drug Administration (FDA) has approved EPIDIOLEX® (cannabidiol) oral solution for the treatment of seizures associated with Lennox-Gastaut syndrome (LGS) or Dravet syndrome in patients two years of age or older. EPIDIOLEX is the first prescription pharmaceutical formulation of highly-purified, plant-derived cannabidiol (CBD), a cannabinoid lacking the high associated with marijuana, and the first in a new category of anti-epileptic drugs (AEDs). Product availability is pending rescheduling which is expected to occur within 90 days. LGS and Dravet syndrome, which develop in childhood, are rare, severe forms of epilepsy that are notoriously treatment-resistant. Most patients with LGS and Dravet syndrome require multiple seizure medications and the majority are resistant to currently approved AEDs. The day-to-day impact of these conditions is significant with high rates of early mortality. "Today's approval of EPIDIOLEX is a historic milestone, offering patients and their families the first and only FDA-approved CBD medicine to treat two severe, childhood-onset epilepsies," said Justin Gover, GW's Chief Executive Officer.


This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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