Projections and analysis of the ever-expanding legal cannabis market are extremely positive, with several financial experts reporting that projections will bring in billions of dollars in revenue, and create hundreds of thousands of jobs.
According to a report from Brightfield Group, the global cannabis market is currently valued at about USD 7.7 Billion and is projected to reach USD 31.4 Billion by 2021. The United States accounts for about 90 percent of the whole market, but its domination of the industry is anticipated to decline to approximately 57 percent due to the legalization of cannabis products in other nations. Canada is considered to be one of the largest markets for legal cannabis products, and it plans to legalize recreational cannabis later this year. Meanwhile, in the United States, California’s new recreational cannabis laws were officially implemented on January 1st, 2018. Data published by Hexa Research shows the U.S. medical cannabis market size was valued at USD 5.44 Billion in 2016 and is projected to hit USD 19.48 Billion by 2024. Scythian Biosciences Corp (OTC: SCCYF), Insys Therapeutics Inc. (NASDAQ: INSY), Axim Biotechnologies, Inc. (OTC: AXIM), Cannabis Sativa. Inc. (OTC: CBDS), Organigram Holdings Inc. (OTC: OGRMF)
An analysis by the Arcview Group is projecting an increase in the sales of cannabis, however, Troy Dayton, CEO of The Arcview Group explained, “The economic excitement around the legal cannabis industry is no longer just theory. Due to the giant impact adult-use legalization is already having in the United States, it’s vital for key stakeholders to understand the full impact of legalization, beyond just retail sales numbers.” The legalization of adult-use sales in California is projected to lead to the creation of nearly 99,000 cannabis industry jobs in the state by 2021, about a third of all cannabis jobs nationwide, and 146,000 jobs overall when indirect and induced effects are considered.
Scythian Biosciences Corp (OTCQB: SCCYF) is also listed on the TSX Venture Exchange under the ticker (TSX-V: SCYB). Earlier this week the company announced that it, “will be changing its name from “Scythian Biosciences Corp.” to “SOL Global Investments Corp.” The Company will put the name change resolution before its shareholders at its next scheduled annual general meeting, which will be sometime in August 2018. The name change is also subject to approval by the TSX Venture Exchange (“TSXV”).
Details of the annual meeting to approve the name change will be set out in the Company’s management information circular that will be mailed to shareholders.
In connection with the name change, the Company has applied to change its trading symbol on the TSXV from “SCYB” to “SOL”.
Rob Reid, CEO of Scythian, said, “SOL Global Investments better reflects our strategy of identifying and developing cultivation assets, nurturing branded products and opening up ancillary opportunities outside of Canada. SOL also embodies a balanced, positive and healthy way of life – something that’s increasingly important today. We look forward to this new chapter in our Company’s development.”
The Company also announces the grant of an aggregate of 480,000 options and 32,646 deferred share units (“DSUs”) to Rob Reid, CEO of the Company. The options were granted at an exercise price of $4.00 per share and exercisable for a period of five years following the date of grant. 1/3 of the options vest as of the first anniversary following the grant date, 1/3 of the options vest as of the second anniversary following the grant date and the remaining 1/3 of the options vest as of the third anniversary following the grant date.”
Insys Therapeutics Inc. (NASDAQ: INSY) is a specialty pharmaceutical company that develops and commercializes innovative drugs and novel drug delivery systems of therapeutic molecules that improve patients’ quality of life. Using proprietary spray technology and capabilities to develop pharmaceutical cannabinoids, INSYS is developing a pipeline of products intended to address unmet medical needs and the clinical shortcomings of existing commercial products. A leader in the development, manufacture, and commercialization of pharmaceutical cannabinoids and spray technology, the company recently initiated a Phase 2 clinical trial of its cannabidiol (CBD) oral solution for evaluation of safety and efficacy in pediatric patients with Prader-Willi syndrome, a rare genetic disease characterized by insatiable appetite in children that often leads to obesity, type 2 diabetes and premature death. “Our formulation of CBD has the potential to be an important addition to the limited range of treatment options for this condition,” said Steve Sherman, senior vice president of regulatory affairs for INSYS Therapeutics.
But that is just one report on the legal cannabis market.
Axim Biotechnologies, Inc. (OTC: AXIM) focuses on the research, development, and production of cannabis-based pharmaceutical, nutraceutical, and cosmetic products. A world leader in cannabinoid research and development, the company recently announced it has secured the additional funding needed to further its clinical development program through S-3 stock purchases. “This deal will allow AXIM to move forward with a number of clinical projects including our bio-equivalent dronabinol chewing-gum based product and the MedChewRx™ program for treatment of pain and spasticity in Multiple Sclerosis patients,” said George E. Anastassov, MD, DDS, MBA and Chief Executive Officer of AXIM Biotech. AXIM’s flagship pharmaceutical product MedChew Rx™ is the world’s first patented cannabinoid controlled-release chewing gum. Credence Research, Inc. estimates the global drug market size for MS patients was $16.13 billion in 2016 and is expected to reach $27.38 billion by 2025.
Cannabis Sativa. Inc. (OTCQB: CBDS) is engaged in the licensing of cannabis-related intellectual property, marketing and branding for cannabis-based products and services, the operation of cannabis-related technology services, and ancillary business activities. The company announced recently that it entered into an agreement to acquire the intellectual property for the White Rabbit brand of cannabis sprays and cannabis mints. The acquisition will include the exclusive and proprietary product formulations, product mixes, manufacturing methods and branding. The White Rabbit product line currently consists of fast acting low dose cannabis oral sprays and popular low dose cannabis mints. Both the spray and the mints are formulated as CBD only, THC only and CBD/THC blends. The Company’s President David Tobias stated, “The White Rabbit line of products is very attractive to us given its low dose and metering, which are important qualities for medicinal use.”
Organigram Holdings Inc. (OTCQB: OGRMF) 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. It recently announced that Health Canada has issued the Company a License for Controlled Drugs and Substances making Organigram a “Licensed Dealer”. The Dealer’s License is the product of over twelve months of work with Health Canada to ensure Organigram can engage in research and development initiatives that will be critical to the Company’s forward-looking strategic plan both in Canada and internationally. This provides Organigram with an ability to develop, test and export an extensive range of products including its current range of cannabis oils as well as an extensive range of derivative-based formulations. The License will also allow the Company to import input materials such as synthetic cannabidiol (CBD) referenced in a previously announced press release with alpha-cannabis® Pharma GmbH as well as other international organizations participating in the legal medical cannabis market. Now that we have our Dealer’s License in hand, we’ll be aggressively moving forward on plans for alternative forms and partnerships to fully maximize the value of our planned production of over 113,000 kg of cannabis through 2020,” said Greg Engel, CEO of Organigram.
These reports on the legal cannabis market are highly encouraging to advocates, farmers, patients, and recreational enthusiasts, but the fact that the legal cannabis market creates so many jobs is truly fantastic in its own right. With innovation and automation ending many jobs, and yet others being sent overseas, the legal cannabis market in the US is definitely a welcome shift.