Despite Ups and Downs, Cannabis Market Still Projected To Reach $89 Billion by 2024
Palm Beach, FL – April 29, 2020 – It seems that as the global cannabis market continues to ebb and flow, its tentacles are reaching into traditionally unrelated markets such as cosmetics, biopharmaceuticals, food & agriculture and the beverages markets. The worldwide cosmetics market is projected at $758 billion by 2025; the global biopharmaceuticals market is estimated to reach $389 billion by 2024; the global food & agriculture technology and products market is estimated at $729 billion by 2023; and the worldwide food and beverage market is estimated to reach $9.5 trillion by 2022. These are fertile grounds for cannabis market expansion and M&A activity. The cannabis market itself, is projected to reach $89 billion by 2024 and to record a robust CAGR of 14.5% during that time. Mordor Intelligence says that the medicinal properties of cannabis, increasing the legalization of cannabis, and increasing advances in genetic development and intellectual property of cannabis are and will be the drivers in the market. Medicinal cannabis accounts for the majority share of the cannabis market revenues. Their report said that the increasing legalization of cannabis is and will continue to be the most important event to continue driving the market with the introduction of new consumer products in the pain relief, skincare, nutraceuticals, pharmaceuticals, agriculture, and veterinary fields. Major medical discoveries are triggering an eruption of new products in consumer-packaged goods (CPG) – reaching millions of consumers across different demographics – bringing CBD into the mainstream. Active cannabis companies in the markets this week include: Pressure BioSciences, Inc. (OTCQB: PBIO), Canopy Growth Corporation (NYSE: CGC) (TSX: WEED), Tilray, Inc. (NASDAQ: TLRY), Aphria Inc. (NYSE: APHA) (TSX: APHA), Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON).
As part of the cannabis industry itself, the expanding CBD sub-market is estimated to grow at an explosive rate – from $5 billion in 2019 to $23.7 billion by 2023 and the nanoemulsion market is estimated to rise to $14.91bn by the end of 2025 and that other recent industry reports show that the recreational cannabis beverage industry is also on the rise, and nanoemulsions are a large part of that. Nanoemulsions can be absorbed into the body and brought into the brain more quickly without requiring any external oils or fats. These attributes make nanoemulsions useful for both the beverage and pharmaceutical purposes. Also, users feel the benefits immediately, potentially averting cases of over-usage.
Pressure BioSciences, Inc. (OTCQB: PBIO) BREAKING NEWS: Pressure BioSciences Announces Plans to Acquire Cannaworx, Inc. – Pressure BioSciences, a leader in the development and sale of broadly enabling, pressure-based instruments, consumables, and platform technology solutions to the worldwide biotechnology, biotherapeutics, cosmeceuticals, nutraceuticals, and food & beverage industries, today announced that it has signed a binding letter of intent to merge with Cannaworx, Inc. (USA) and its diverse portfolio of products and intellectual property developed by its founders Bobby Ghalili, DMD and Adrienne Denese, MD, PhD.
Drs. Ghalili & Denese bring extensive medical expertise and product innovation, along with a successful multi-year track record of developing and selling personal care and nutrition products into the newly combined public company. Currently, Cannaworx and its principals have twelve products, including several novel products that utilize the company’s patented/patent pending, full and partial spectrum, hemp-derived phytocannabinoid formulations for pain relief. Cannaworx plans to launch many of these products in 2020, two of which with a pain indication allowed under an FDA OTC monograph, which the company believes will make them the only oral hemp-derived phytocannabinoid-containing products available in today’s market with such a claim. (www.cannaworx.io)
Post-merger, Cannaworx products will utilize PBI’s proprietary Ultra Shear Technology™ (UST™) platform. UST is a revolutionary, patented method for processing oil-based products (e.g., hemp-derived CBD oil in water) into long-term stable, highly bioabsorbable, top quality nanoemulsions PBI UST CBD Video 022720. The Company believes UST processing will further increase the bioavailability and efficacy of the Cannaworx human, veterinary, and agricultural products; reduce manufacturing costs; increase profit margins; and distinguish the Cannaworx product lines for quality and performance within multiple markets.
Mr. Richard T. Schumacher, President and CEO of PBI, said: “We have been actively searching for an opportunity to participate in the end-product growth and upside we believe our UST platform creates and delivers. We are very excited to bring our companies together for what we believe to be a momentous inflection point in significant new growth and increased shareholder value.”
Now equipped with an extensive intellectual property portfolio utilizing a proprietary pressure platform, nanotechnology and advanced delivery systems, the merged company plans to disrupt large, addressable markets, including the U.S. hemp-derived CBD market, which is anticipated to reach $23.7 billion by 2023. In addition, the merged company is targeting the international cosmetics market (projected at $758 billion by 2025), the global biopharmaceuticals market (expected to reach $389 billion by 2024), the global food & agriculture technology and products market (estimated at $729 billion by 2023), and the worldwide food and beverage market.
Dr. Ghalili described the vision and motivation behind the decision to merge Cannaworx into PBI: “We have worked for years to bring state-of-the-art effectiveness to the formulation of a diversity of human and veterinary products that were created to deliver oil-based nutrients and therapies into the water-based biology of humans and animals. Our plan to introduce a variety of important, health-promoting phytocannabinoid ingredients into these products multiplied the challenge of achieving water-solubility for these oil-based components. As we evaluated technologies for achieving effective nanoemulsion delivery of oil-based materials in water, we discovered that PBI’s UST platform was in a class of its own, clearly out-performing all competing technologies evaluated. The opportunity to combine our capabilities, products, intellectual property, marketing and distribution channels, and proprietary methods with those of PBI was an astonishingly valuable opportunity to leverage and enable our product lines for real differentiation in our served markets and to help propel significant growth.” Read this and more news for Pressure BioSciences at: https://financialnewsmedia.com/news-pbio/
Other recent developments in the cannabis/cbd/hemp industries:
Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) – Clever Leaves, a leading multinational operator (MNO) and licensed producer of pharmaceutical-grade cannabis and hemp extracts, and Canopy LATAM Corporation, a wholly owned and controlled subsidiary of Canopy Growth Corporation announced that both parties have entered into a regional supply agreement.
Under the terms of the agreement, Clever Leaves will supply Canopy LATAM with extracted products from its GMP-certified, licensed cannabis processing system and cultivation sites in Colombia. Clever Leaves has delivered the first of these products to Canopy Growth under the terms of the one-year agreement, which includes an option to renew for two additional years.
“With Canopy Growth’s large-scale capacity and network in Latin America, we expect this agreement to provide Clever Leaves with significant near-term revenue,” said Kyle Detwiler, CEO of Clever Leaves. “It also validates Colombia as a key source for the future of the cannabinoid supply chain, an important milestone for both Canopy Growth and Clever Leaves. Certified with Good Manufacturing Practices (GMP) to produce medical cannabis, Clever Leaves is well positioned to supply companies such as Canopy Growth, enhancing their returns on capital invested and enabling greater focus on downstream commercial activities.”
Tilray, Inc. (NASDAQ: TLRY) recently announced that the Board of Directors of Tilray unanimously approved the pro rata release of 11 million shares of Class 2 common stock held by the former equity holders of Privateer Holdings, Inc. (“Privateer”).
The shares are being released from lock-up agreements entered into in under the Agreement and Plan of Merger and Reorganization, dated September 9, 2019, by and among Tilray, Privateer, Down River Merger Sub, LLC, a Delaware limited liability company and wholly owned subsidiary of Tilray, and Michael Blue, as the Stockholder Representative. The waiver and release will take effect on April 3, 2020, and the released shares may be sold on or after that date, subject to applicable securities law or contractual limitations. Tilray, Inc. engages in the research, cultivation, processing, and distribution of medical cannabis. The company offers its products to patients, physicians, pharmacies, governments, and hospitals; and for researchers for commercial purposes, and compassionate access and clinical research applications.
Aphria Inc. (NYSE: APHA) (TSX: APHA) a leading global cannabis company, recently reported its financial results for the third quarter ended February 29, 2020. All amounts are expressed in Canadian dollars, unless otherwise noted and except for per gram, kilogram, kilogram equivalents, and per share amounts.
“We are proud of our sustained growth in Canada and continued expansion of our international capabilities,” stated Irwin D. Simon, Chairman and Chief Executive Officer. “During this unprecedented time, the well-being of our employees, patients, consumers, partners and the communities we operate in is our primary focus. Our facilities, offices and patient care teams remain open and operational to continue to provide our patients and consumers with what we believe is best-in-class care and service with appropriate measures in place to protect the health and safety of employees. As we face uncertain times, I am proud of how the Aphria team has come together to navigate these uncharted waters. Going forward, we believe Aphria continues to be differentiated in the cannabis industry through our brands, cultivation expertise, high quality standards, cash position and balance sheet. We continue to focus on the highest return opportunities for growth and long-term value creation.”
Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) will hold its 2020 First Quarter Earnings Conference Call on Friday, May 8, 2020 at 8:30 a.m. EDT. Cronos Group’s senior management team will discuss the Company’s financial results and will be available for questions from the investment community after prepared remarks. Audio webcast of the earnings call will be available on the Company’s website at. The webcast of the call will be archived for replay on the Company’s website. Participants may also listen via telephone by dialing (866) 795-2258 toll-free from the U.S. and Canada, or (409) 937-8902 if dialing from outside the U.S. and Canada (passcode:9069454). If joining by phone, please dial into the call 15-20 minutes earlier to avoid any long hold times.
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