A Tempe, Arizona based company named Harvest of Arizona with retail shops throughout Tempe and Scottsdale, has announced a merger this past Tuesday that would in turn make it one of the largest companies in the growing industry.
The deal will in theory be a benefit to the state’s already registered 115,000 patients by lowering prices and bringing with it more variety than ever.
A Marijuana Industry PowerHouse
The merger is occurring with another Arizona cultivator named Modern Flower, currently the leading wholesale supplier in the state. The company has stated that it will soon become “the largest medical marijuana operator in Arizona.”
By January of this year, Harvest will own eight dispensaries and in addition, seven cultivation centers within the state of Arizona, said the company’s CEO, attorney Steve White.
White also was quoted saying that the merger will improve competition, not stifle it. An interesting thought as the company monopolizes on the industry.
With Harvest becoming the state’s largest wholesaler, it will be able to influence the prices of its various vendors while bringing down retail prices.
As more competition enters the market inevitably, prices are expected to come down.
The Arizona Department of Health Services, which grants licenses and oversees the state’s medical marijuana program, reports that 98 dispensaries currently open in the state. Last October, the state decided to give out more licenses than ever, granting 130 licenses to various entrepreneurs looking to open new shops and cannabis-growing facilities across the state. This is expected to increase tax revenues and open the market more than ever.
White has predicted that by 2018, the Arizona industry may be producing more marijuana flowers than can be consumed by patients, which simple economics states would cause prices to fall.
Harvest is expected to triple the number of its employees from around 100 to 300 by next year giving new possibilities, and leaving expansion on the rise.
Although the Canadian medical marijuana suppliers are larger, Medical Marijuana, Inc. (NASDAQOTH: MJNA) is the largest U.S. marijuana stock right now. This excludes a few larger biotech companies dealing with the development of cannabinoid drugs. Medical Marijuana, Inc. has a market cap of slightly less than $300 million which is surprising in an industry where the annual revenue is projected to hit somewhere in the $50 billion range within the next ten years.
The only answer to this is that the marijuana industry is getting ready for bigger companies to step forward and claim their place; and who better for the job than the tobacco giants such as: Altria Group (NYSE: MO), Philip Morris (NYSE:PM), and Reynolds American (NYSE: RAI). So, is there a major change coming to the medical marijuana industry with big tobacco entering the scene?
Will Marijuana Stocks Make Their Own Path?
In the 1960s and 70s rumors floated around stating that the major tobacco companies were considering going into the marijuana market and that some were trademarking brand names for their potential marijuana products. The rumors led to many denials by the companies themselves and that put the idea to rest for a short amount of time.
On April 1, 2016, the website Abril Uno published an article titled “Philip Morris Introduces Marlboro ‘M’ Marijuana Cigarettes.” The article stated that “the company has been high on the idea of marketing cannabis, and has been monitoring it for some time.” As the name of website translates to ‘April first’, this had been an interesting April Fools’ Joke despite the serious possibility of it occurring.
The overlap possibilities between the tobacco companies and medical marijuana industries are large with some big tobacco companies even entering the vaping market. In 2014, Altria acquired the e-vapor business of Green Smoke for $110 million. In 2013, Reynolds launched its e-cigarette brand named Vuse.
Now yes, that’s not the same thing as entering the marijuana market, but when looking at the numbers for projections in the industry, it only makes sense that there is a place staked out for the large tobacco companies. In the next ten to fifteen years, we may see a large jump in the medical marijuana industry done by big tobacco entering the scene.
PotNetwork Holding, Inc. (POTN) With over $2.1 Million in Total Revenues
PotNetwork Holding, Inc. (OTC Pink: POTN) is pleased to announce today that its wholly owned subsidiary, Diamond CBD, Inc., after a strong record breaking first quarter, continues building momentum into the summer with heightened expectation for Diamond CBD’s highly sought after consumable product line. After the past two months of this quarter, revenue totals have reached $2,106,245.87, considerably exceeding the Company’s first quarter results.
InCaseYouMissedIt: Your Marijuana Stocks Portfolio Could Benefit from CBD Companies
A great deal of progress is being made on learning how marijuana’s chemical cannabinoids can be used as medicine, and among the most interesting of these marijuana compounds is cannabidiol their wise known as CBD. It’s one of at least 113 active cannabinoids found in marijuana, it’s not responsible for marijuana’s psychoactive effect, and it accounts for about 40% of the marijuana plant’s extract.
Nevada’s governor has authorized a state of emergency declared for recreational marijuana regulations, after the state’s tax authority reported that many stores are running out of marijuana.
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Are CBD Companies An Asset To Your Marijuana Stock Portfolio?
A great deal of progress is being made on learning how marijuana’s chemical cannabinoids can be used as medicine, and among the most interesting of these marijuana compounds is cannabidiol their wise known as CBD. It’s one of at least 113 active cannabinoids found in marijuana, it’s not responsible for marijuana’s psychoactive effect, and it accounts for about 40% of the marijuana plant’s extract.
InCaseYouMissedIt: Marijuana Stocks Could Fly If This Measure Gets Passed
U.S. Attorney General Jeff Sessions is reportedly trying to build support to go after companies that sell marijuana in states that have legalized the drug. However, while the executive branch contemplates fighting marijuana, the legislative branch is taking the opposite approach!
The marijuana market is growing faster than most would believe and that’s creating a lot of interest in owning marijuana stocks. However, those willing to invest their money need to choose what marijuana stocks to buy carefully.
A great deal of progress is being made on learning how marijuana’s chemical cannabinoids can be used as medicine, and among the most interesting of these marijuana compounds is cannabidiol their wise known as CBD. It’s one of at least 113 active cannabinoids found in marijuana, it’s not responsible for marijuana’s psychoactive effect, and it accounts for about 40% of the marijuana plant’s extract.
At the forefront of research into CBD’s use as a medicine is GW Pharmaceuticals (NASDAQ: GWPH), a U.K. drug developer that currently markets a tetrahydrocannabinol (THC)-derived drug in Europe for the treatment of muscle spasms in multiple sclerosis patients.
Is CBD The True Medical Catalyst Of Marijuana?
GW Pharmaceuticals recorded data from three separate scientifically controlled tests this past year identifying that its purified CBD, Epidiolex, reduces seizures by about 40% in patients with rare forms of childhood-onset epilepsy, including Dravet syndrome and Lennox-Gastaut syndrome.
GW Pharmaceuticals’ findings back up anecdotal evidence that CBD heavy marijuana strains and oils provide relief to epilepsy patients. Perhaps the most well known of these high CBD strains is Charlotte’s Web, which has extremely low THC content (0.3%), and was named after the childhood epilepsy patient it was created to help.
In states that have passed medical marijuana legislation, growing evidence of cannabidiol’s efficacy in epilepsy patients is leading to greater availability at marijuana dispensaries. At last count, 28 states have passed medical marijuana laws, and 16 states have passed laws allowing the prescription of CBD oil.
Epidiolex isn’t commercially available yet, but it could be within a year. GW Pharmaceuticals hopes to file for Food and Drug Administration approval of Epidiolex soon, and an official decision would come within 10 months of that filing.
If Epidiolex becomes victorious in getting a regulatory green light, it will provide advantages to doctors and patients over CBD heavy marijuana strains and oils. While Epidiolex has been scientifically proven to work, the same rigorous proof isn’t available for CBD products like Charlotte’s Web that are sold at dispensaries. If Epidiolex is approved, it will be available nationally, regardless of each state’s laws, and that means it skirts risks associated with a federal crackdown on marijuana dispensaries by Washington. Furthermore, an FDA blessing would likely convince doctors who are otherwise hesitant to recommend medical marijuana to prescribe it.
Despite this interesting headline, North Korea has a much stricter policy than its Southern family, however you could be forgiven for believing so due to a group of recent headlines.
Although the news has not become popular in the U.S., the big news in South Korea is a marijuana scandal surround the singer T.O.P. who hails from a popular K-pop band named Big Bang. T.O.P. could face five years in jail after a hair follicle test by the Seoul Metropolitan Police came back positive for marijuana. The singer was forced to take the test after a young woman claimed him as a supplier for “liquid marijuana” following her arrest.
The conflict could see the end of Big Bang whose extremely large fan base makes them one of the largest boy-bands in South Korea currently. T.O.P. was found unconscious in his home from an apparent overdose of tranquilizers leading the public to believe the old myth of marijuana being a gateway drug.
A popular news outlet titled Korea Exposé notes that the hemp plant has in fact been grown on the Korean Peninsula for thousands of years where it has been mostly used to manufacture rope and traditional fabrics. The plant wasn’t outlawed in South Korea until the Narcotics Act in 1957 under pressure from Washington.
The law only mentioned “Indian Marijuana” technically leaving the locally grown product legal. Not until the 1960s did smoking the plant become popular with Korea’s youth.
Its rising popularity prompted a crackdown by then dictator Park Chung-hee, South Korea’s longest ruling military strongman. Chung-hee forced curfews and regulations upon hairstyles as well as clothing aimed at destroying the rising counterculture. The technicality in the law soon became irrelevant as conservative values became more and more emphasized.
Although marijuana users in North Korea would be sent straight to death if they could even find the plant, South Korea’s drug-policy remains extremely tense.
Maybe one day, the people of North Korea and South Korea will be able to pass a blunt across the DMZ, but for now the plant remains strictly illegal on both sides.
The premier of the first part of the History Channel’s new four-part series called, America’s War on Drugs aired last night and this documentary has many people excited.
The first episode opens with the voice of former CIA officer Lindsay Moran saying, “The agency was elbow deep with drug traffickers.”
America’s War on Drugs provides describes how the CIA became allies with the mafia and foreign drug traffickers to keep America safe in the fight against communism over the last 50 years. The series will disclose information through firsthand accounts of former CIA and DEA officers, major drug traffickers, gang members, well-known experts, and insiders.
Richard Stratton, a marijuana smuggler turned writer and television producer, said, “Most Americans would be utterly shocked if they knew the depth of involvement that the Central Intelligence Agency has had in the international drug trade.”
An Untold Story of Corruption at the Highest Level of Power
America’s War on Drug provides new information from a time when the United States allowed the groups to grow their drug trade in exchange for support against foreign enemies.
This series is significant since it represents a first for the United States television industry. For the first time in history, a television station will report the true story behind one of the most significant issues of the 20th century.
The war on drugs has been one of the largest resource drains in America’s history and has resulted in the incarceration of hundreds of thousands of non-violent offenders. The series explains how the Federal government engaged in a shifting series of alliances of convenience with some of the world’s largest and most dangerous drug cartels.
In 1971, former President Richard Nixon declared the war on drugs and since then, the incarceration rate has quintupled. While this was going on, the country’s biggest dealers enjoyed the protection provided from the highest levels of power in America.
Cleaning out America’s Closet
Although many proponents to the war on drugs know this story (and most likely told it several times), a vast majority of America is unaware. The series could serve as a watershed moment as the masses learn the reality behind of one the most cynical and cruel policies in America’s history.
From Florida mob boss Santo Trafficante, Jr. to the Sandinista government in Nicaragua, the CIA had its hands in everything. This series provides some interesting insight to events that took place during our 16-year-long war in Afghanistan and is one that cannot be missed!
Hemp, Inc. to Plant Over 550 Acres of CBD-Rich Hemp Plants
Hemp, Inc. ( OTC PINK : HEMP ) announced today that its farming associates, who are licensed in the state of North Carolina by the NC Industrial Hemp Commission, have secured 150+ pounds of CBD-rich hemp seeds which are to be planted this weekend and/or next week. According to CEO Bruce Perlowin, the 150+ pounds of seeds equate to over 550 acres to go along with the 17 acres of high-CBD clones they are planting in North Carolina and Colorado. It will be one of, or, the largest CBD hemp grows in the United States to date.
The company also plans on purchasing its second CBD Extractor this year. As announced in Hemp, Inc.’s last press release, the company has already purchased its first industrial NuAxon Tech CO2 Supercritical extractor from NuAxon BioScience, the manufacturer and producer of the world class, large capacity CO2 Supercritical Extraction equipment. However, with the industry’s expanding CBD market and ever-increasing consumer CBD sales over the past few years, executives feel it is in the best interest of its shareholders to acquire a second extractor to capture a solid, sizeable share of the market while still in the early growth stage.
The CBD market is expected to “grow to a $2.1 billion market in consumer sales by 2020 with $450 million of those sales coming from hemp-based sources. That’s a 700% increase from 2016. In 2015, the market for consumer sales of hemp-derived CBD products was $90 million, plus another $112 million in marijuana-derived CBD products which were sold through dispensaries — bringing a total CBD market to $202 million last year,” according to Forbes.com.
David Schmitt, COO of Hemp, Inc.’s wholly owned subsidiary, Industrial Hemp Manufacturing, LLC (IHM), said they have been researching CBD extraction methods and manufacturers for the past 2 years, weighing the pros and cons of both. For its second CBD extractor purchase, executives found another manufacturer they feel would produce another superior CBD extractor that utilizes a different technology. Based on Hemp, Inc.’s research, building a CBD extractor takes extensive testing, product knowledge and continual process improvement to ensure a superior product that is held to the highest of standards. A collaborative design engineering team that ensures the quality of each component, coupled with a customizable approach, guarantees the extractor will meet all of Hemp, Inc.’s specifications and standards.
Schmitt expects both extractors to have optimized production levels. “The CO2 Supercritical Extractor that is currently in-house is expected to be assembled over the next 3 months. Once assembled, we will be ready to process and extract CBD oil,” said Schmitt.
Bruce Perlowin, CEO of Hemp, Inc. ( OTC PINK : HEMP ) said, “The CBD market has been growing by leaps and bounds. CBD’s medicinal qualities have been making waves across America. Residents in states that have not legalized medical marijuana are finding that CBDs from hemp are an alternative to pharmaceutical drugs to treat debilitating medical conditions. There have been recent studies showing CBDs are preferred over addicting pharmaceutical drugs.”
Earlier this year, the National Academies of Science, Engineering, and Medicine (NASEM) released a comprehensive report regarding cannabis’ health benefits. The study confirmed substantial evidence that cannabis is useful in the treatment of some common and severe medical ailments such as chronic pain, multiple sclerosis, and chemotherapy-induced nausea and vomiting. It was also interesting to note that pharmaceutical companies have started creating cannabis-like drugs for multiple sclerosis, nausea and vomiting. While the pharmaceutical alternative, CBD, is viewed as a more appealing option, it is often expensive and not readily available to patients.
The pharmaceutical choices, such as prescribed opioid pain medications, are addictive and users are at high risk of fatal overdose.
Cannabidiol (CBD) is the part of the cannabis plant that has significant medical benefits, but does not make people feel “high” and can even counteract the psychoactivity of THC (that part that does make people feel “high”). Since CBDs are non-psychoactive, it’s an appealing option for medical patients seeking alternative ways to relieve conditions such as inflammation, pain, anxiety, psychosis, seizures, and spasms, without disconcerting feelings of lethargy.
The Canadian cannabis industry should see even stronger growth in the back half of 2017 after Health Canada announced a major change to its rules that will streamline the application process and increase overall cannabis production.
Under the new regulations, licensed medical cannabis producers can better manage production to meet demand as they are now able to increase production within their facility to the maximum they are authorized to store, based on the capacity and security level of their vault(s) or safe(s).
This is a significant change to the Health Canada’s rules and licensed producers will benefit from this development. Several Canadian cannabis companies have announced important developments since this change was made and we want to highlight some of these announcements.
CW Improves Portfolio of Streaming Partners
Yesterday, Cannabis Wheaton (CBW.V: TSX Venture) (KWFLF) and ABcann Global Corporation (ABCN.V: TSX Venture) announced a binding interim agreement to fund the construction of a 50,000 square foot cultivation facility at ABcann’s proposed facility in Napanee, Ontario known as the Kimmett facility.
Under the agreement, Cannabis Wheaton has agreed to invest $30 million in ABcann as follows:
On the date that is the earlier of 10 days of the final closing of Cannabis Wheaton’s previously announced financing or by June 30th. The company will buy $15 million of common stock at $2.25 a share
On the date that is the earlier of 10 days of CW raising an aggregate of $150 million or March 31, 2018. Cannabis Wheaton will subscribe for an additional $15 million at a priceequal to the greater of two times the 10 day volume average trading price of ABcann at the relevant time or $2.25.
Upon completion of the $30 million investment, and upon accepting ABcann’s construction budget and timeline for the new production facility, Cannabis Wheaton will provide funding to complete the construction of it. In return, Cannabis Wheaton will receive 50% of the proceeds (net of certain costs) of future wholesale or retail sales completed by ABcann with respect to cannabis produced in the new production facility. Cannabis Wheaton’s entitlement to the allocation will not start until after the completion of the $30 million investment.
Aurora Expands International Presence into Germany
On Friday, Aurora Cannabis (ACB.V: TSX Venture) (ACBFF: OTCQX) announced that it was acquiring Pedanios GmbH, a leading wholesale importer, exporter, and distributor of medical cannabis in the European Union (EU).
The market responded mixed to this development and Aurora Cannabis came off its highs ended the day up less than 2%. This was a significant development for the company as it now is leverage to three legal cannabis markets (Canada, Australia, and Germany).
Since December 2015, Pedanios has been importing, exporting, and distributing medical cannabis into and within the EU. The company holds all relevant licenses and permits and is a federally licensed medical and narcotic wholesale and GMP inspected narcotic import business.
In March 2017, when Germany’s new law came into effect Pedanios’ monthly sales immediately doubled and growth continues to accelerate as Germany’s new regulations have made it much easier for its 80 million citizens to access medical cannabis.
Mobile Payment App Enters Cannabis Industry
Glance Technologies Inc. (GET.CN: OTC) (GLNNF) entered the legal cannabis industry after agreeing to license its mobile payment technology to Cannapay Financial for $1,000,000. Cannapay is developing a mobile payment app that will allow users to order products from their phones, tablets or computer and have them delivered to their physical location in compliance with local rules and regulations.
Pursuant to the agreement, Cannapay was issued a non-exclusive global license to white label Glance’s mobile payment processing platform and its anti-fraud technology for the legal cannabis industry. The license has an initial term of 10 years and is renewable for two additional 10 year periods. Glance will receive a 50% royalty on the revenue from all sub-licenses and additional fees for any development work required for customization/operation of the Cannapay platform.
Glance Technologies owns and operates Glance Pay, a streamlined payment system that revolutionizes how smartphone users choose where to dine, order food, settle bills, access digital receipts, earn great rewards, and interact with merchants. The Glance Pay mobile payment system consists of proprietary technology, which includes user apps available for free downloads in IOS (Apple) and Android formats.
This is an interesting development within the Canadian cannabis industry and will monitor how the market responds to these announcements from the sidelines. While we view this area as a major global opportunity, we are cautious and want to monitor how the company continues to execute.
Biotech Firm Enters Canadian Cannabis Industry
One of the Canadian cannabis firms under pressure has been Revive Therapeutics Ltd. (RVV.V: TSX Venture) (RVVTF).Despite the shares being up more than 70% so far this year, the shares are down more than 33% in the last quarter and will monitor how the market responds to itssponsored research agreement with the University of Wisconsin-Madison.
Under the agreement, Revive will work with the university to evaluate a novel drug delivery technology with a focus on cannabinoids for the potential to treat various diseases.
The research program will be led by Jess D. Reed, Ph.D., Professor of Animal Sciences at the University of Wisconsin-Madison. His team will evaluate the role and potential use of a chitosan-tannins based formula for the delivery of cannabinoids.
Although we are favorable on this development, we are cautious with Revive and continue to prefer Canadian companies like Emblem Corp (EMC.V) (EMMBF), which also has a biotech strategy to complement its legal cannabis sales strategy.
Disclaimer: Pursuant to an agreement between MAPH and Cannabis Wheaton (KWFLF) we were hired for 30 Days to publicly disseminate information about (KWFLF) including on the Website and other media including Facebook and Twitter. We are being paid $150,000 (CASH) for and were paid “0” shares of restricted common shares of Cannabis Wheaton. We may buy or sell additional shares of (KWFLF) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable
Organigram Holdings Inc. (TSX VENTURE:OGI)(OGRMF) (“Organigram” or the “Company“) is proud to announce the recent hire of Jeff Purcell as Vice President of Operations, filling a key role on the company’s Senior Leadership Team. A seasoned professional in the areas of large scale production and facility expansion, Purcell will assume the position as of June 12, 2017.
“Our recruitment process was very comprehensive and rigorous, and we are ecstatic as a company to welcome such as a well-respected and experienced individual to this role,” said Greg Engel, Chief Executive Officer at Organigram. “We expect the value that Jeff brings to the role will provide immediate benefit to an already stellar operations team and will help cement our place as a cultivation and production leader in the industry.”
Purcell will assume responsibility and oversight for the entire production facility including production, engineering and maintenance, construction, quality assurance, safety, security and the company’s vision for oils and extract products. “I realize it’s a significant scope of responsibility, however I feel it aligns well with my experience over the past several years and I am confident I will add value to the foundation already established at Organigram,” commented Purcell. “In meeting with key members of the team and understanding the company’s vision, it was too interesting a challenge to pass up and I look forward to the opportunity”.
Purcell brings over 25 years of experience to the role, most recently as Vice President of Operations at Ganong Bros. Limited with responsibilities including implementation of quality systems, safety, and continuous improvement initiatives. While in the role, he was also responsible for a significant facility expansion, essentially creating an entirely new production environment. Prior to Ganong, Purcell spent over 15 years in progressively senior roles leading operations at McCain Foods.
“Jeff is the ideal candidate we were looking for to fill the role,” added Engel. “And to find the right candidate here in New Brunswick made the fit that much stronger.” A resident of New Brunswick, Purcell and his family are looking forward to moving to Moncton shortly. “We’ve seen incredible progress over the past several months on Phase II of our expansion, with 23 new grow rooms now being fitted with racking and air handling units. The addition of Jeff to the team is going to facilitate completion of this phase, and keep our current trend of being on time and on budget,” added Engel.
The company is also pleased announce the appointment of Larry Rogers to the role of Vice President of Business Development and Special Projects; with this move, Rogers will no longer be an officer of the company as of June 12th, 2017. In this position, Rogers will play a key role in developing International Opportunities and other peripheral business interests for the company.
Both Purcell and Rogers will report directly to Organigram Chief Executive Officer, Greg Engel.
For more information visit www.organigram.ca.
About Organigram Holdings Inc.
Organigram Holdings Inc. is a TSX Venture Exchange listed company whose wholly owned subsidiary, Organigram Inc., is a licensed producer of medical marijuana in Canada. Organigram is focused on producing the highest quality, condition specific medical marijuana for patients in Canada. Organigram’s facility is located in Moncton, New Brunswick and the Company is regulated by the Access to Cannabis for Medical Purposes Regulations (“ACMPR”).
In February 2017, Organigram was ranked in the top ten Clean Technology & Life Sciences Sector on the TSX Venture Exchange 50.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking information which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors – including the availability of funds, the results of financing efforts, crop yields – that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time on SEDAR (see www.sedar.com). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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