Cannabis industry saw 2016 as a key and essential year. According to a research by New Frontier Data, the legal cannabis market was worth an estimated $6.6 billion in 2016, and is projected to grow at a compound annual growth rate (CAGR) of 16% or reaching more than $24 billion by 2025.
FinancialBuzz.com published an article saying that the medical market is projected to grow at 12% CAGR through 2025 and growing from $4.7 billion in 2016, to an estimated $13.3 billion in 2025. These projections are made under the assumption that no more states will legalize cannabis products throughout the forecasted period.
New Frontier Data also explains the current state of the legal cannabis market. The firm estimates that 95% of the U.S. population lives in a state where there is some form of legal cannabis (including adult use, medical use, CBD only laws.) In addition, 93% of Members of Congress represent constituents in markets, where some form of cannabis is legal and 412 members in the House of Representatives and 86 Senators. New Frontier CEO & Founder, Giadha Aguirre De Carcer, explained that, “While the cannabis industry has been anxious to gain more clarity into how President Trump’s Administration is going to treat the legal cannabis market in the U.S., it has also provided the opportunity for rigorous debate on the issue. This data highlights the complexity of this debate and the number of Americans that would be impacted by the outcomes of this policy debate.”
Naturally Splendid Enterprises Ltd. this week announced that the company has, “entered into a marketing and distribution agreement with First Step Japan (FSJ), to market its NATERA CBD product line in Japan, the world’s third largest economy.”
The mutually exclusive relationship between FSJ and NSE involves FSJ representing CBD-based products offered by NSE. Additionally, NSE can expand this offering to include other products and ingredients including HempOmega that NSE and FSJ feel have commercial merit for the Japanese market. This exclusivity has a two-year initial period with options to extend. FSJ will construct a Japanese consumer specific, e-commerce platform focusing on a Business-to-Consumer strategy; thus capitalizing on the robust e-commerce market still growing in Japan. Additionally, FSJ will assist NSE’s Business to Business strategy marketing directly to distributors, brokers and retailers. This comprehensive marketing strategy is designed to cover multiple distribution channels.
First Step Japan is a Japan-based market entry and consulting firm that serves a variety of businesses and non-governmental organizations. They guide clients to achieve their sales goals and to make successful and lasting entries into the Japanese market. The principals of FSJ have combined for over 30 years of experience in Japan. They are uniquely equipped to navigate the local business environment and generate results for their clients. Leveraging an extensive network of associates covering all angles of business operations, FSJ offers a single-entry point to the market.”
On March 27, 2017, General Cannabis Corp. announced that its security division, Iron Protection Group (IPG), the premier provider of protection services for the regulated cannabis industry, will begin offering its services in California. By opening an office in Sacramento, IPG will serve the largest regulated cannabis market in the world, now that the state voted to legalize the recreational use of marijuana for adults last November. “The demand for security services in California is skyrocketing,” said Hunter Garth, Managing Director of IPG. “As a known security leader in Colorado, we are now seeing a dramatic rise in security and transportation requests from companies throughout the state. By opening our first office in the state capital, we plan to fulfill a vital component of the regulated cannabis industry in this substantial market.”
United Cannabis Corporation is a pioneer in the application of cannabinoids for medical applications and is building a platform for designing targeted therapies to increase the quality of life for patients around the world. On February 23, 2017, the company announced that it has signed an exclusive licensing agreement with Vessel Life Sciences (VLS) to produce and distribute its products, including the award-winning Prana Bio Nutrient Medicinals, throughout Pennsylvania. United Cannabis’ Prana line offers a wide selections of raw and active cannabinoid supplements with multiple delivery methods that have accurately dosed medicine from 1mg to 100mg.
MassRoots Inc. is a leading technology platforms for the regulated cannabis industry. The Company’s mobile apps enable consumers to make educated cannabis purchasing decisions through community-driven reviews. On March 27, 2017, the company announced it has launched a new website. Powered by more than one million registered users, MassRoots enables consumers to rate products and strains based on their efficacy (i.e. effectiveness for treating ailments such back-pain or epilepsy) and then presents this information in easy-to-use formats for consumers to make educated purchasing decisions at their local dispensary.
Aurora Cannabis Inc. recently announced that it has completed the acquisition of Peloton Pharmaceuticals Inc. (Peloton), a Montreal-area late-stage ACMPR-applicant. Peloton is completing construction of a state-of-the-art 40,000 square foot cannabis production facility in the City of Pointe-Claire, Québec, which received a ‘ready to build’ letter from Health Canada in 2014. At full capacity, the facility is expected to be capable of producing up to 3,900 kg of high quality cannabis per year. Aurora management believes the Peloton facility is approximately 80% complete, and can be ready for Health Canada’s pre-licensing inspection by the second half of 2017.