Cannabis Trends: New Jersey Among Next 4 U.S. States in Line to Legalize

Cannabis Trends: New Jersey Among Next 4 U.S. States in Line to Legalize

FN Media Group Presents Potstocknews.com Market Commentary

 

New York, NY – June 12, 2019 – America’s cannabis market continues to expand, with 33 medical marijuana-legal states, 10 states with legalized adult consumption, and 4 states on the path to becoming the next to legalize recreational marijuana: Illinois, Ohio, New York, and New Jersey. In turn, cannabis companies are taking strategic steps to ensure their international expansion plans include making inroads into the world’s largest economy. Among the cannabis companies actively positioning themselves for U.S. market penetration are Chemistree Technology Inc. (CSE:CHM) (OTCQB:CHMJF), Aurora Cannabis Inc. (NYSE:ACB) (TSX:ACB), Tilray, Inc. (NASDAQ:TLRY), HEXO Corp (TSX:HEXO) (NYSE-A:HEXO), and CannTrust Holdings Inc. (TSX:TRST) (NYSE:CTST).

 

New Jersey, in particular, currently has Senate and Assembly support for 3 bills that would legalize adult-use marijuana, a move that would ultimately create the need for around 100 new cannabis cultivators to meet what’s expected to be an $850 million annual market by 2020. More immediately, New Jersey announced on June 3, 2019, that, starting July 1st, applications will be open for up to 108 new medical marijuana (MMJ) licenses.

 

In response, Chemistree Technology Inc. (CSE:CHM) (OTCQB:CHMJF) has already announced its strategic partner, Applied Cannabis Sciences of New Jersey (ACS), will be applying for all 3 permit types New Jersey is making available: cultivation endorsements, manufacturing endorsements, and dispensary endorsements. The plan is to create an on-the-ground vertically integrated model for ACS while giving Chemistree a valuable presence in the eastern U.S. cannabis market.

 

With other U.S. states moving toward their own forms of legalization, cannabis companies are finding various and creative ways to position themselves to score their share of the U.S. market as it emerges: Aurora Cannabis Inc. (NYSE:ACB) (TSX:ACB) formed a partnership with the mixed martial arts organization UFC® that will include athlete-targeted research in Nevada; Tilray, Inc. (NASDAQ:TLRY) acquired Manitoba Harvest in Q1 2019 along with its distribution to 16,000+ retail locations in the U.S. and Canada; HEXO Corp (TSX:HEXO) (NYSE:HEXO) formed HEXO USA Inc. and onboarded a U.S.-based CFO; and CannTrust Holdings Inc. (TSX:TRST) (NYSE:CTST) started trading on the New York Stock Exchange in late February.

 

At the same time that New Jersey announced an 800% increase in MMJ licenses, the state also announced an upcoming voter referendum on adult-use legislation in 2020. This has understandably caught the cannabis market’s attention; New Jersey needs to greatly increase the number of cannabis companies in the state to meet demand.

 

Meeting the New Jersey MMJ Opportunity

 

With the doors about to open much wider for New Jersey’s MMJ market, Chemistree Technology Inc. (CHM-CHMJF) took quick action in April 2019 by partnering with and acquiring 10% of Applied Cannabis Sciences (ACS), a medical retail dispensary comprised of a team of New Jersey-based industry professionals from both the MMJ and adult-use sectors. ACS is no lightweight by any standard, with a management team representing 50+ years of collective experience and 20+ cultivation, processing, and manufacturing licenses across 4 U.S. states.

 

Chemistree President Karl Kottmeier commented on the partnership saying, “The potential to expand Chemistree’s presence outside of California and Washington state and ultimately introduce our signature brand Sugarleaf to the large New Jersey consumer base by partnering with ACS is consistent with our growth strategy.”

 

To gain just some idea of the depth of the ACS team, counted among their founding members is Nicholas J. Zitelli, also known by his penname Nico Escondido, under which he has written hundreds of industry articles, most notably for High Times. Zitelli is the founder and CEO of the Amsterdam-based medicinal research and development Cannabis Genetics Institute (CGI), and has established industry expertise spanning everything from cultivation to genetics, garden technologies, lab testing, and regulatory and compliance measures. Chemistree wisely appointed Zitelli to its Board of Directors in April.

 

With New Jersey representing 9 million+ people, a mere 6 active cannabis operators, and up to 108 new licenses up for application, the partnership with ACS is only the latest example of how the Chemistree corporate strategy is playing out.

 

Keeping Pace with the Greater Cannabis Opportunity

 

With the cannabis industry emerging and expanding as fast as it is, Chemistree Technology Inc. (CHM-CHMJF) understands that time is of the essence. Unlike the typical and slower start-up approach of many other companies in the space, Chemistree uniquely positions itself as a U.S.-facing cannabis investment company. This approach has enabled Chemistree to accelerate its international presence and footprint by acquiring and developing cannabis assets that are vertically integrated across the cultivation, processing, distribution and retail sectors.

 

For example, their April 2019 acquisition of an ownership stake in Arizona-based The Physician’s Choice CBD came with a pre-existing suite of 9 proprietary full spectrum health-targeted CBD-from-hemp products and Q1 2019 booked sales of around $150,000.

 

An earlier strategic acquisition was Washington-based Sugarleaf, which came with turnkey facilities and the ability to market existing and popular brands, including 18 different strains of dried cannabis flower available in 50+ dispensaries throughout Washington. Other acquisitions include a 50% interest in Humbolt County-based C3 Molecular cannabis-processing company, 9.55 acres in Southern California’s “Cannabis Zone” in Desert Hot Springs, and Pasha Brands in the Canada-based cannabis sector.

 

The approach appears to be working, judging by the interest in Chemtree’s capital raise of over $10.8 million in March 2019 and the signing on of industry experts such as Nicholas J. Zitelli (Nico Escondido) and the partnership with ACS.

 

Other Market Expansion & Positioning Activities

 

Alberta-based Aurora Cannabis Inc. (NYSE:ACB) (TSX:ACB) announced Q3 fiscal 2019 revenue growth averaging 20% thanks to scaled up production and strong performance across their Canadian and international markets. With additional production facilities expected to receive European Union Good Manufacturing Practices (EU GMP) certification, Aurora expects its rate of supply to international markets will increase. Aurora began full spectrum cannabis extract exports in Germany in Q3, which are expected to contribute to the company’s growth thanks to the higher margins associated with extracts.

 

Tilray, Inc. (NASDAQ:TLRY) has been busy on multiple expansion fronts, including forming sales and distribution arrangements that would see medical cannabis being supplied through major pharmaceutical channels across Germany and elsewhere within the EU. In May 2019, Tilray announced its Biocant Park facility in Cantanhede, Portugal, had received a standard manufacturing license and Good Manufacturing Practices (GMP) certification in accordance with the European Medicines Agency’s (EMA) standards. Tilray has invested roughly €20 million in the ~250,000-square-foot manufacturing facility.

 

Big expansion news for HEXO Corp (TSX:HEXO) (NYSE-A:HEXO) was the April 2019 completion of its first harvest from the company’s 1-million-square-foot greenhouse expansion. The harvest represents an important milestone toward HEXO’s goal of annual production of 108,000 kg of dried flower per year. An idea of the scale of operations can be gained from the headcount involved: 600+ employees total, with another 500 hires expected in the near term.

 

Q1 2019 results for CannTrust Holdings Inc. (TSX:TRST) (NYSE:CTST) include multiple indicators of company expansion toward becoming a global provider of innovative cannabis products and brands. Harvested production exceeded 9,400 kg for a 96% increase in production over the prior quarter. CannTrust also acquired 81 acres of land in British Columbia, representing a potential outdoor yield of 75,000 kg of production. In Ontario, CannTrust began its Phase 3 expansion with an eye on adding another 50,000 kg to its annual capacity.

 

For a free research report on Chemistree Technology Inc. (CSE:CHM) (OTCQB:CHMJF), visit potstocknews.com.

 

Disclaimer:  Potstocknews.com (PSN) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. FN Media Group (FNM) is a third-party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated with PSN or any company mentioned herein. The commentary, views and opinions expressed in this release by PSN are solely those of PSN and are not shared by and do not reflect in any manner the views or opinions of FNM. Readers of this Article and content agree that they cannot and will not seek to hold liable PSN and FNM for any investment decisions by their readers or subscribers. PSN and FNM and their respective affiliated companies are a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

 

The Article and content related to the profiled company represent the personal and subjective views of the Author (PSN), and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author (PSN) has not independently verified or otherwise investigated all such information. None of the Author, PSN, FNM, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment. FNM was not compensated by any public company mentioned herein to disseminate this press release but was compensated twenty five hundred dollars by PSN, a non-affiliated third party to distribute this release on behalf of Chemistree Technology Inc.

 

FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

 

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and PSN and FNM undertake no obligation to update such statements.

 

Media Contact:

FN Media Group, LLC

info@financialnewsmedia.com

+1(561)325-8757

Source: Potstocknews.com

 

Sign Up & Get FREE News Alerts From FNM Today!