Palm Beach, FL –July 30, 2019 – Projections show rapid growth in revenues across all cannabis market segments, including flower and edibles. Research also shows that illicit sales will decrease as the legal markets mature and more retail outlets come online, making it easier to buy and at lower price points. An article in the Marijuana Business Daily said that: “Canada’s direct cannabis market will double to 11 billion Canadian dollars ($8.2 billion) in the next six years, and flower market share will halve as consumption shifts toward noncombustible methods, according to research by Ernst & Young. While the accounting and consulting firm said dried flower currently makes up 84% of sales, it expects that figure to fall to 46% by 2025. The projections are for the legal and illicit markets and do not include ancillary sales.” The article’s insight on the discussion continued with: “… by 2025, the expectation is “the percentage coming from the illicit (market) would be significantly lower, especially if quality and price of legal product is commensurate with the illicit market and if access continues to improve,” said Duncan Yang, EY Canada’s real estate and cannabis practice senior manager. Extracts, edibles and nonedible derivatives will make the biggest gains, underpinned by Canada’s upcoming regulations for those products later this year. EY estimates that extracts will grow from the current 10% of the market to 37%, while edibles will rise from the current 5% to 12% by 2025. Active companies in the industry making moves to ready that include: Choom™ Holdings Inc. (OTCQB: CHOOF) (CSE: CHOO), Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB), Fire & Flower Holdings Corp. (OTCPK: FFLWF) (TSX-V: FAF), Green Thumb Industries Inc. (OTCQX: GTBIF) (CSE: GTII), Trulieve Cannabis Corp. (OTCPK: TCNNF) (CSE: TRUL).
The report concluded with “… additional product formats will be catalysts of growth… “Retail and distribution frameworks across Canada have been implemented at a slower pace than anticipated since legalization, diverting many consumers to the illicit market,” wrote the report’s author, Zachary Pendley, cannabis real estate and valuation leader. “However, as the industry matures, access to legal cannabis products increase and higher margin derivatives come online, we expect the Canadian direct cannabis market to grow by over 50% in 2025… Average annual spending per adult consumer for all cannabis products – both recreational and medical – is expected to grow from CA$1,200 this year to CA$1,600.”
Choom™ Holdings Inc. (CSE: CHOO) (OTCQB: CHOOF) BREAKING NEWS: Choom™ an emerging adult use cannabis company that has secured one of the largest retail networks in Canada, is pleased to announce the appointment of Corey Gillon as President, effective August 26th, 2019. Gillon joins the company as a seasoned global retail executive to strengthen Choom’s management team as it prepares for rapid growth within the Canadian cannabis retail market.
Gillon’s executive leadership roles were established at Walmart and Aritzia where the corporate strategies he implemented were customer-focused and ensured operational retail development. Walmart is recognized as a global leader in retail operations and Aritzia is one of Canada’s most preeminent lifestyle retailers. During Gillon’s career, he led multibillion-dollar operations spanning multiple countries and was responsible for up to 22,000 associates. Gillon has a proven track record for delivering year over year revenue growth as a result of executional excellence, leveraging global best practices and customer-focused retail strategies. Gillon is a graduate of the prestigious Harvard Business School from their executive leadership program.
“As Choom prepares for its next phase of cannabis retail growth, it is critical to bring on a retail executive of Corey’s caliber to further grow and develop our company. Corey’s experience at Walmart and Aritzia comes with a proven record of innovation, long-term planning, driving change and developing brands for two of the world’s most innovative and fastest growing retailers.” states Chris Bogart, President & CEO of Choom. “We are thrilled that Corey is joining the Choom team in the capacity of President. He will play an integral role in the execution of our retail strategy especially during this critical time of our aggressive opening scheduled for the coming months.”
Gillon said, “I am excited to lead a growing part of the Choom business, particularly during such a dynamic and exciting period. Choom is building an iconic brand and I look forward to stewarding the expansion of the Choom cannabis retail network as it prepares for rapid growth within the Canadian cannabis retail landscape.” Read this and more news for Choom™ at: https://financialnewsmedia.com/news-choo/
Additional industry related developments from around the markets:
Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB) recently announced the launch of a joint clinical research program that will produce multiple studies under the terms of their recently announced partnership. The research will examine the use of hemp-derived CBD as an effective treatment for pain, inflammation, wound-healing, and recovery on MMA athletes.
The ground-breaking research partnership is aimed at understanding key health and recovery needs of elite athletes in such a highly physical and competitive sport as mixed martial arts. Research data will then be used to drive the development of science-backed, hemp-derived CBD topicals that will be safe and reliable. These new products will help combat the rapidly growing market of untested CBD treatments currently being used by high-performance and non-professional athletes.
Fire & Flower Holdings Corp. (TSX-V: FAF.V) (OTCPK: FFLWF) recently announced that shareholders representing more than 50% of the issued and outstanding common shares of the Company (the “Shares”) have delivered written consents approving the proposed transaction (the “Transaction”) contemplated by the subscription agreement (the “Subscription Agreement”) entered into by the Company on July 23, 2019 , with an indirect wholly-owned subsidiary of Alimentation Couche-Tard Inc. (the “Investor”) (TSX: ATD.A; ATD.B).
Pursuant to the terms of the Subscription Agreement and upon completion of the Transaction, the Investor will have the right to acquire up to 50.1% of the Shares (on a pro-forma fully-diluted basis) as further described in the Company’s press release dated July 24, 2019 . The Company is relying on an exemption in the Toronto Stock Exchange Company Manual which permits the Company to obtain shareholder approval for the Transaction by way of a written consent instrument executed by the holders of more than 50% of the issued and outstanding Shares.
Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) recently announced that it will hold a conference call on Wednesday, August 28, 2019, at 5:00 pm ET following the release of its second quarter 2019 financial results after market close.
The earnings conference call may be accessed by dialing 877-273-8145 (Toll-Free) or 647-689-5400 (International) with conference ID: 2278778. A live audio webcast of the call will also be available on the Investor Relations section of GTI’s website at www.gtigrows.com/investors and will be archived for replay.
Trulieve Cannabis Corp. (CSE: TRUL) (OTCPK: TCNNF) recently announced the appointment of Peter T. Healy to its Board of Directors. With continuing growth of the Company in Florida and the expansion of operations into new U.S. states, the addition of Peter Healy broadens the knowledge and experience base of Trulieve’s Board of Directors and further supports the execution of the Company’s strategic vision.
“We are very pleased to welcome Peter to the Trulieve Board,” said Kim Rivers , CEO of Trulieve. “Having advised a number of boards of public and private companies alike, and with a proven track record in financing, M&A, and cross-border listings, Trulieve will benefit from the unique knowledge and perspectives that Peter offers as we continue to bring high-quality products and an industry-leading customer experience to cannabis markets throughout the United States .”
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