NEW YORK - Hemp is known for its multifarious applications, however, it is most commonly associated with cannabis in recent times as hemp's classification under cannabis itself, had it declared federally illegal. After researchers evaluated hemp and realized that it is the non-psychoactive derivative of the cannabis plant, many people's position regarding the plant began to change. Now, hemp is being leveraged for medical applications through researchers extracting its main component: CBD. In combination with the recent passage of legislation like the U.S. Farm Bill and the delisting of CBD as a Schedule 1 drug, the overall hemp industry is positioned to see tremendous growth.
According to data compiled by Hemp Business Journal, a division of New Frontier Data, the total sales for the U.S. hemp industry totaled USD 820 Million in 2017. The research suggests that the industry is expected to grow to USD 1.9 Billion by 2022, and at a CAGR of 14.4% during the 5-year period. In particular, hemp-derived CBD products accounted for the majority of the industry's sales, delivering USD 190 Million in sales total. Furthermore, the segment is expected to continue to dominate the overall hemp industry in the future.
The U.S. hemp industry grew by 16% in 2017 amid continued domestic legalization and regulatory challenges. Aside from hemp-derived CBD products, the market had also witnessed explosive growth from other segments such as food, personal care, and industrial products. Based on current trends, CBD products are projected to deliver sales of USD 646 Million while industrial applications follow shortly behind with estimated sales of USD 527 Million. The U.S. market is expected to dominate the hemp industry, however, with the growing spread of legalization and understanding, it is expected the hemp industry will grow on a massive global scale. "So far, CBD is the most promising compound from both a marketing and a medical perspective. Many users believe it helps them relax, despite it not being psychoactive, and some believe regular doses help stave off Alzheimer's and heart disease," said Alex Halperin, who writes The Guardian's regular column 'High Time,' and co-host of the podcast WeedWeek. "While studies have shown CBD to have anti-inflammatory, anti-pain and anti-psychotic properties, it has seen only minimal testing in human clinical trials, where scientists determine what a drug does, how much patients should take, its side effects and so on. Despite the government ruling, CBD is widely available over the counter in dispensaries in states where marijuana is legal."
Weekend Unlimited Inc. (OTC: WKULF) (CSE: POT) also listed on the Canadian Securities Exchange under the ticker (CSE: POT). Last week the company announced that, "its Canna Candy brand has signed an exclusive distribution deal with Infinity One LLC., to introduce its product beyond California, into the US Northeast, Midwest and Southeast regions.
"This is an exciting step for Canna Candys and Weekend. It represents the first of many deals to expand into new markets with our products," said Mr. Paul Chu, Weekend President and CEO. "The first order is for Canna Candys, 5 mg 99.6% Hemp Oil extract (0% THC) mixed fruit gummies in gummy packs containing 20 servings," added Mr. Chu.
The agreement with Infinity One LLC to distribute Canna Candys products will begin with a rollout of 1 million gummies per month, with additional SKUs to follow beyond candies and gummies. The initial month's purchase order is for US $350,000.
"Infinity One, LLC is proud to become a master dealer for Weekend Unlimited. The first month's allotment of 1 million pieces of Canna Candys' fruit gummies will be distributed through our sales channels and distribution network beginning in the Northeast, Midwest and Southeast," said Mr. Rae Kim, President of Infinity One, LLC.
Following Weekend's Consumer Packaged Goods strategy, Infinity One LLC, will focus on sales through supermarket chains, pharmacies and convenience stores.
"We have existing relationships with HSN, Target, Bed Bath & Beyond and Amazon in addition to our vast indirect sales channels," added Mr. Kim. "Most of our chain store accounts range from 200 to 400 retail locations. The plan we have developed with Weekend sees us expanding in the second phase to add edibles and beverage products to our product line as we expand distribution in these regions and add Texas in the coming months," noted Mr. Kim.
Subsequent orders will depend on the success of the products. The distribution agreement is for one year, with options to renew.
About Weekend Unlimited Inc: Weekend Unlimited is capitalizing on its vast industry relationships to establish a lifestyle brand featuring premium products and delivering life's highest moments. The company aggregates and scales small to medium brands, primarily in the categories of flower, extracts and edibles. Weekend Unlimited brands have best of class operations, distribution and strong revenue trajectories, making them ideal candidates for the deployment of capital and expertise through access to technologies, infrastructure and centralized systems. Learn more at www.weekendunlimited.com"
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Liberty Health Sciences Inc. (OTCQX: LHSIF) (CSE: LHS.CN) is the cannabis provider committed to providing a trusted, high-quality cannabis experience based on its genuine care for all cannabis users and a focus on operational excellence from seed to sale and beyond. Liberty Health Sciences Inc. recently announced that it had plans to open two new dispensaries in Miami and Dania Beach by the end of November and three more in Hollywood, Bonita Springs and Orange Park by the end of this December. Each of the dispensaries feature free 24-hour delivery service throughout their service area. "Liberty is now expanding exponentially and has become a formidable player in the Florida market," said George Scorsis, Chief Executive Officer of Liberty Health Sciences. "As we expand our footprint, we remain laser focused on the customer experience. We always place the customer at the forefront of everything we do – from growing and cultivating cannabis, to processing, extraction and developing branded cannabis-related products – the customer always comes first. We control our entire supply chain, from seed to sale and beyond."
United Cannabis Corporation (OTCQB: CNAB) is a biotechnology company dedicated to the development of phyto-therapeutic based products supported by patented technologies for the pharmaceutical, medical, and industrial markets. United Cannabis Corporation recently announced that it has launched an industrial hemp testing facility in Golden, Colorado. The Company will provide independent testing for processors and manufacturers working under the 2018 Federal Farm Bill and Colorado's Department of Agriculture's Industrial Hemp Program. The facility is currently offering potency testing services, with terpene profiling, residual solvent analysis and heavy metal testing to follow. Chad Ruby, Chief Operating Officer of United Cannabis, commented on the announcement, "We have been performing our own internal testing for the last several months and are now ready to offer our services to the entire hemp industry. Testing is an increasingly important component of any hemp-related business, for processors, manufacturers, formulators and resellers looking to ensure their end products are produced as intended."
Sport Endurance Inc. (OTCQB: SENZ) foundation is the belief that good health practices and nutrition contribute to and promote a higher quality of life. Sport Endurance, Inc. recently announced that it has signed a Letter of Intent to acquire Bona Vida Inc., an innovative emerging CBD platform, focused on developing a portfolio of brand and product verticals within the animal and human health and wellness space. Bona Vida will be exclusively focused on CBD derived from industrial hemp, with the goal of becoming the dominant worldwide player in this high growth industry. "The potential acquisition of Bona Vida is a key step forward towards becoming a leader in the CBD pet space," said David Lelong, Chief Executive Officer of Sport Endurance. "As part of our business strategy, we have been exploring opportunities to further develop a CBD-infused line of animal products. Bona Vida offers a range of trusted CBD products as well as expertise in formulation, research and development, manufacturing support, quality control, and company oversight that will prove to be extremely valuable as the Company continues to grow. Additionally, the integration of Bona Vida allows us to diversify our product development and distribution strategy in a way that will be synergistic with our proposed acquisition of TruPet, which offers its own unique product line and distribution channels."
mCig, Inc. (OTCQB: MCIG), headquartered in Jacksonville, Florida, is a diversified company servicing the legal cannabis, hemp, and CBD markets via its lifestyle brands. mCig, Inc. recently signed a binding Memorandum of Understanding with a California based investment firm for collaboration on growing, processing and distribution of medical cannabis under MCIG's current licenses held within the state. As part of the collaboration, a new joint venture will strive to obtain additional licenses in multiple states, in an effort to establish a nationwide presence. Under the terms of the Agreement, said Investment firm will provide operating capital as well as various other operational activities, which will include introductions to customers and distribution networks, while MCIG has the required know-how and skills for carrying out the operations. Located halfway between the Angeles and Sequoia National Forests, the property is ideal for growing and cultivation. Under the current plan, MCIG will develop a state-of-the-art 30,000 sq. ft. cultivation facility, with an option to expand to 50,000 sq. ft. and a 2,000 to 4,000 sq. ft. manufacturing facility to create extracts, manufacture products, and a distribution center that will be used to move these products to retailers. This 30,000 sq. ft. facility is projected, when fully operating, to generate more than USD 20 Million in annual income for the company.