During the fourth quarter of the 2023 fiscal year, ending March 31, 2023, there was a total revenue increase of 9% to $11.7 million from $10.7 in the quarter ending March 31, 2022 while net revenue in Q4 FY2023 increased by 33%, to $9.4 million from $7.0 million in the comparable quarter last year.

Canadian Adult-Use Performance
In the 12 months ended March 31, 2023, adult-use revenue increased 24% to $36.0 million, as compared to $29.1 million in the 12 months ended March 31, 2022. And adult-use net revenue increased 13% to $22.4 million, as compared to $19.8 million in the 12 months ended March 31, 2022. This performance was anchored around Divvy, the everyday brand, and complemented by product launches under the Company’s Sunday Market House of Brands. The Company reached a peak #12 market share ranking in its core markets in Q1 FY2023.[4] Within the 2023 fiscal year the Company’s pre-rolls, operating in the fastest growing market segment, peaked at #2 in Ontario market share rankings, while milled flower products gained a #4 Ontario market share ranking.[5] Divvy’s new rotating SKU, Divvy Buyer’s Club, entered the Alberta and Ontario markets, capturing a #7 flower SKU ranking in Ontario’s flow-through sales model in Q4 FY 2023.[6] Based on Divvy’s strong acceptance in Ontario, the Company anticipates many opportunities for expanding Divvy’s brand portfolio, along with strategic growth in new adult-use markets.

In the three months ended March 31, 2023, adult-use net revenue of $3.7 million represented a decline of 32% as compared to the three months ended March 31, 2022, primarily due to overall seasonality in the marketplace, the Company’s liquidity constraints, challenges in making timely payments to high priority vendors, and the Company’s product mix, focused on pre-rolls, which tend to experience higher sales velocity in the spring and summer seasons.

Continued Strong Canadian Medical Performance
Aleafia’s Q4 FY2023 medical results were strong, showing 19% net revenue growth to $3.0 million from $2.5 million in the period ended March 31, 2022. The medical market continues to show steady improvements for the Company, by consistently driving growth in new high value patient groups and entering new geographic regions. Growth in the product portfolio and outreach for patient groups offset medical industry tailwinds as the Company experienced 7% growth year-over-year in net revenue to $12.1 million in the year ended March 31, 2023 compared with $11.3 million in the 12 month period ended March 31, 2022.

International Market Growth
Aleafia posted another quarter of international sales with $0.4 million in Q4 FY2023 net revenue, contributing to a total of $2.1 million in the year ended March 31, 2023, representing 318% growth over $0.5 million in the 12 months ended March 31, 2022. In international markets, Aleafia continues to build a pipeline of opportunities in medical cannabis regions that have the potential to legalize recreational use in the near-term. International net revenue diversifies sales mix, enhances margins, and unlocks new, growing sales channels.

Other Fiscal Year 2023 Highlights included:

• To facilitate growth of sales in international markets, agreed to a total of an estimated $5.6 million^[7] in sales commitments with two European partnerships
• Aleafia’s whole flower product is selling through at European based pharmacies
• Completed 20% indoor grow expansion at the Company’s Paris, Ontario cultivation and processing facility
• Entered a partnership with RWB to serve as the manufacturing and distribution partner for Platinum Vapes’ first international brand expansion.
• Executed a Binding Letter Agreement with RWB to enter into a proposed transaction, whereby the combined company would generate $138 million in net revenue[8]

“The Aleafia team is thrilled about the proposed business transaction with RWB,” said Aleafia CEO, Tricia Symmes. “The Canadian cannabis market is a rapidly changing industry, and we believe we will be well positioned with our new partner RWB to capitalize on value-added synergies.  RWB has award-winning brands and IP and with Aleafia’s Divvy brand and proven cultivation, manufacturing, and distribution capabilities, we expect to create one of the most dynamic cross border companies in the industry.”

“This last fiscal year was a year of focused execution to drive profitable top-line growth, expand our margin profile by tightening up our supply chain, and cost rationalization to right size our fixed cost profile to fit our size and scale,” said Aleafia CFO, Matt Sale. “We are very proud to have achieved this while continuing to allocate capital expenditures prudently and achieving Adjusted EBITDA profitability for three consecutive quarters. The improved financial flexibility and capacity of the Combined Company will enhance the ability to execute on organic and acquisitive growth strategies.”

Adjusted EBITDA Profitability
For the year ended March 31, 2023, the Company generated a loss of $0.2 million Adjusted EBITDA, representing a $18.7 million improvement over 12 months ended March 31, 2022. This increase was primarily driven by the Company’s strategic shift to a branded product portfolio anchored in the adult-use, medical and international sales channels; gross profit margin before fair value margin expansion; and aggressive cost containment and rationalization across all the Company’s facilities, operations and functions.

• Branded cannabis net revenue[9] increased 16% to $36.6 million in the twelve months ended March 31, 2023, as compared to $31.6 million in the 12 months ended March 31, 2022;
• Gross profit before fair value adjustments[10] expanded to $14.2 million in the 12 months ended March 31, 2023, as compared to $4.3 million in the 12 months ended March 31, 2022; this represented an increase in gross profit before fair value adjustments margin from 12% to 33%; and
• 46% decline in Adjusted SG&A[11] to $17.6 million for FY2023 versus $32.3 million in the 12 months ended March 31, 2022.

In the three months ended March 31, 2023, the Company generated Adjusted EBITDA of $0.2 million, representing the third consecutive quarter of Adjusted EBITDA profitability, as compared to an Adjusted EBITDA loss of -$4.4 million in the three months ended March 31, 2022. The profitability in Q4 FY2023 was primarily due to the $1.3 million bulk wholesale[12] gross profit before fair value adjustments which represents two bulk wholesale customers. These input materials exceeded the Company’s near-term supply requirements for its own branded cannabis products and accordingly had previously taken a $1.1 million inventory provision.

 Operational and Financial Highlights

Cautionary Statement Regarding Non-IFRS Measures
Total Cannabis Sales, Adjusted EBITDA, Adjusted SG&A, International Net Revenue, Wholesale Net Revenue, Branded Cannabis profit, Bulk Wholesale, Bulk wholesale profit, Adjusted EBITDA margin, Gross Profit before Fair Value Adjustments, Adult-Use Cannabis Net Revenue, Branded Cannabis Net Revenue, Cannabis Net Revenue and Medical Cannabis Net Revenue are non-IFRS measures that do not have a standardized meaning and therefore may not be comparable to similar measures presented by other issuers. Definitions of each measure and a reconciliation of Adjusted EBITDA and Adjusted SG&A against the comparable IFRS measure can be found below.  For additional information including the purpose of the non-IFRS measure, see “Cautionary Statement Regarding Non-IFRS Measures” in the Company’s Management’s Discussion and Analysis for the period ended March 31, 2023 found on SEDAR at www.sedar.com.

Adjusted SG&A
Adjusted selling, general and administrative (“Adjusted SG&A”) is defined as SG&A expenses adjusted to exclude non-recurring costs.  These non-recurring items may relate to certain transaction costs, one time subsidies, and severances. Adjusted SG&A is not recognized or defined under IFRS, and as a result, it may not be comparable to the data presented by competitors.

Adjusted EBITDA
The Company considers Adjusted EBITDA a key metric for measuring operating performance and cash flow, to manage working capital, debt repayments and capital expenditures.  Adjusted EBITDA is calculated as net income (loss), excluding (i) amortization and depreciation, (ii) fair value changes in biological assets and changes in inventory sold, (iii) share-based payments, (iv) bad debt expense, (v) business transaction costs, (vi) non-operating expenses (income), (vii) taxes, (viii) interest expenses, (ix) one-time sale of assets, and (x) unrealized gain (loss) on marketable securities and (xi) other non-recurring expenses (income).  Adjusted EBITDA is not recognized or defined under IFRS, and as a result, it may not be comparable to the data presented by competitors.

• Cannabis net revenue is sale of cannabis revenue less excise duties
  • Adult-use cannabis net revenue is net cannabis revenue for Canadian adult-use sales.
  • Medical cannabis net revenue is net cannabis revenue for Canadian medical sales and clinic revenue.
  • International cannabis net revenue is net cannabis revenue for international medical sales.
  • Bulk Wholesale cannabis net revenue is net cannabis revenue in sales to other LPs.

• Branded Cannabis Net Revenue is calculated as Adult-use cannabis net revenue, Medical cannabis net revenue and International cannabis net revenue. It excludes bulk wholesale net revenue.
• Total Branded Cannabis Revenue is calculated as Adult-use cannabis revenue, Medical cannabis revenue and International cannabis revenue.  It excludes bulk wholesale cannabis revenue.
• Gross profit margin before fair value adjustments on branded cannabis net revenue represents gross profit margin on branded cannabis net revenue. It is calculated by subtracting costs of sales relating to bulk wholesale and dividing by branded cannabis net revenue.
• Gross profit before fair value adjustments on bulk wholesale represents gross profit on bulk wholesale. It is calculated by subtracting costs of sales relating to bulk wholesale net revenue.
• Gross profit margin before fair value adjustments on bulk wholesale represents gross profit margin on bulk wholesale. It is calculated by subtracting costs of sales relating to cannabis net revenue and dividing by bulk wholesale net revenue.
• Gross profit before fair value adjustments margin is the gross profit before fair value adjustments and inventory provision divided by total net revenue. Management believes that this is a useful metric to assess the profitability of cannabis sales, as it eliminates the effects of non-cash fair value changes in inventory and biological assets.
• Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by total net revenue.

For Investor & Media Relations
Matthew Sale, CFO
IR@AleafiaHealth.com
LEARN MORE: www.AleafiaHealth.com

About Aleafia Health
The Company is a federally licensed Canadian cannabis company offering cannabis products in Canada and destined for international markets, including Australia and Germany. The Company operates a virtual medical cannabis clinic staffed by physicians and nurse practitioners which provide health and wellness services across Canada.

The Company operates three licensed cannabis production facilities all in the province of Ontario, including the largest, outdoor cannabis cultivation facility in Canada.   The Company produces a diverse portfolio of cannabis and cannabis derivative products including pre-roll, milled, dried flower, vapes, oils, capsules, edibles, sublingual strips, and topicals, for sale in Canada in the medical and adult-use markets, and in select international jurisdictions.

Forward Looking Information
Certain statements herein relating to the Company constitute “forward looking information”, within the meaning of applicable securities laws, including without limitation, statements regarding future estimates, business plans and/or objectives, sales programs, forecasts and projections, assumptions, expectations, and/or beliefs of future performance, are “forward-looking information”. Such forward-looking statements involve unknown risks and uncertainties that could cause actual and future events to differ materially from those anticipated in such statements. Forward looking statements include, but are not limited to, statements with respect to our long term profitability, product strategy, brand performance, market share, revenue, margins, net revenue, international net revenue, adult-use revenue, strategic growth in new adult-use markets, growth in medical market and new high value patient groups, the estimated value of contracts, new market entries, Adjusted EBITDA, and other financial outlook projections for fiscal year 2024, our commercial operations, including production and / or sales of cannabis, potential for legalization of cannabis in international markets, quantities of future cannabis production, anticipated revenue in connection with such sales, potential benefits and synergies arising from the proposed transaction with RWB, cultivation, manufacturing, and distribution capabilities of a potential business combination with RWB, and other Information that is based on forecasts of future results, estimates of production yet determinable, and other key management assumptions. The following material factors or assumptions were used to develop the forward looking information: stable currency exchange, parties will perform contracts in accordance with their terms, parties to contracts will purchase the minimum quantities required to retain any exclusivity rights under the contract, ability to obtain listing agreements in new markets, market size and growth of the Canadian adult-use and medical cannabis markets, retail store penetration, script trends, cultivation and processing capacity, costs of production, gross and net revenue per gram. Actual results may differ materially from those expressed or implied by such forward looking statements and involve risk and uncertainties relating to: currency conversion, ability to source flower and supplies of sufficient quantity, quality and price point, performance of competitors, laws and government policies, future cultivation yield and quality, actual operating performance of facilities, product launches, facility licenses and amendments, average selling prices, cost of goods sold, operating expenses, Adjusted EBITDA, regulatory changes in the Canadian and international markets, and other uninsured risks. The forward looking information was approved by Management as of June 13, 2023. The Company assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by law. The forward looking information is provided for information purposes only and readers are cautioned that it may not be appropriate for other purposes. This presentation is provided for general information purposes only and does not constitute an offer to sell or solicitation of an offer to buy any security in any jurisdiction.

Liberty Cannabis Detroit in Corktown Welcomes Customers Seeking Recreational Cannabis

DETROIT, Feb. 3, 2023 /PRNewswire/ — Liberty Cannabis announced that its Detroit store in Corktown, opened in 2020 for medical patients, is now officially licensed for adult-use sales. The dispensary is located at 2540 Rosa Parks Boulevard and store hours are Monday, Wednesday – Saturday 11 AM – 7 PM and Sunday 12 PM – 6 PM.

“The people of Detroit deserve access to the highest quality cannabis whether they are a patient or a consumer, so we’re excited to expand access to serve both with a new adult-use license for our provisioning center in Detroit,” said Buzz Thomas, CEO of North Corktown Legacy, doing business as Liberty Cannabis. “The bustling neighborhood of Corktown is lively, trendy, and has a unique identity and charm. It’s been the perfect location for Liberty Cannabis and we now look forward to welcoming a new set of customers into the store.”

Just off of I-75 on Rosa Parks Boulevard in Corktown, Liberty Cannabis’ mission is to use cannabis for good, to build community, in addition to promoting health and wellness for patients and consumers. In 2022, Liberty partnered with various nonprofits and organizations across Metro Detroit, including the Detroit’s Motor City Makeover, Gleaners Community Food Bank and other local shelters and food banks for neighborhood cleanups, food rescues and year-end food and holiday drives

In addition to the widest variety of high quality flower, edibles and concentrates at competitive prices, consumers and patients can download the Liberty Wallet App before stopping in for a visit. In the app customers can shop without cash and earn rewards towards future Liberty purchases.

About NCL/Liberty Cannabis

North Corktown Legacy (NCL), which does business as Liberty Cannabis Detroit is led by CEO, Buzz Thomas – a tenth generation Detroiter who has dedicated his life in service to the city of Detroit. NCL has a rich history of community engagement in both the state of Michigan and the City of Detroit. In addition to providing access to high quality cannabis, NCL/Liberty Cannabis is committed to empowering the community in Corktown and creating meaningful economic opportunities for all Detroiters with a focus on education and employment initiatives that can turn our city into a hub for cannabis entrepreneurship and thought leadership across the country.

SOURCE North Corktown Legacy

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.

Adult-use, full spectrum and microdose are just a few newly adopted phrases

By CHRISTINE RICCIARDI | cricciardi@denverpost.com | The Denver Post

In 2014, The Cannabist, a subsidiary of The Denver Post, published a robust glossary of need-to-know marijuana terms like flower and dabbing to help ease local consumers into the newly legal recreational market.

Since then, times have dramatically changed. You can buy edibles not just for getting high, but also for fitness and sleep aid. Cannabis “bars” where tokers can legally consume joints and THC-infused beers are on the precipice of opening. You can even score pre-made cannabutter and infused olive oil to stock your kitchen.

As times have changed, so too has the vernacular. Here are 10 more recently adopted terms you should know.

Adult-use: Synonymous with recreational marijuana; also known as retail marijuana. The term is most commonly used by regulatory agencies and public officials to distinguish recreational from medical marijuana. It emphasizes the fact that only adults age 21 and up can legally purchase cannabis.

Cart: Shorthand for cartridge. Cartridges are filled with marijuana oil concentrate and used when vaporizing the substance.

Cannabigerol (CBG): A minor cannabinoid that’s gaining popularity for use in therapeutic contexts, including to reduce inflammation, pain and nausea. The non-psychoactive compound is most commonly found in cannabis strains that are low in THC and high in CBD, including hemp.

Cannabinol (CBN): A minor cannabinoid with mildly psychoactive effects that often resemble sedation. The cannabinoid is gaining popularity as a sleep aid. It’s also been linked to reducing inflammation, helping regulate the immune system, and acting as an anticonvulsant.

Full spectrum: Refers to marijuana products that maintain a variety of cannabinoids such as THC, CBD, CBG, CBN and more, versus products created with a single, isolated cannabinoid. Full-spectrum products are touted as superior because cannabinoids are more effective when working together, a concept known as the entourage effect.

Hospitality: Refers to a type of business (or business license) that provides a space where patrons can consume cannabis. Marijuana hospitality businesses can sell marijuana products or allow patrons to bring their own. The model was legalized by the state of Colorado in 2019, though local jurisdictions need to opt in to allow these establishments. Denver approved a hospitality program in 2021.

Live rosin: A marijuana concentrate extracted from the plant without the use of a solvent, such as butane or propane. After harvest, the plant is frozen (instead of dried and cured) and then put through a press that applies heat and pressure to extract oil. Proponents of this method say the process maintains the plant’s terpene and flavor profile without the use of chemicals. Conversely, live resin is a marijuana concentrate extracted from frozen plants with the use of a solvent.

Microdose: A noun or verb that refers to consuming less than the standard serving size of THC, which is 10 milligrams. Some edibles are sold in microdoses, such as 5 or 2.5 milligrams. Some consumers microdose marijuana throughout the day by eating a little bit at a time. Also used commonly in the context of psilocybin.

Rapid onset: A term for edibles for which the effects will be felt by the consumer more quickly, sometimes as soon as 5 to 15 minutes after ingesting them.

Solvent-free: A marijuana extraction method that does not use chemicals such as butane or propone. Proponents of this method tout it as a more natural approach to extracting oil from the marijuana plant. Live rosin is an example of a solvent-free concentrate because it’s created using a press that applies heat and pressure to extract oil from the cannabis plant. Edibles can also be manufactured using solvent-free oil.

Sources: Crestco Labs, Leafly

A sometimes overlooked aspect of the cannabis industry is the global potential for North American companies. To be sure, the United States and Canada represent the largest and most mature legal cannabis markets, and many companies are rightfully focused on them exclusively. But some companies are set up to not only capitalize on these domestic markets but to pioneer emerging industries in the European Union and elsewhere. It’s not easy for North American companies to do business across the pond from a regulatory perspective, but companies that manage to pull it off might be worth considering due to the greatly increased addressable market.

One company that is aggressively expanding internationally is RYAH Group, Inc. (CSE: RYAH) and its wholly-owned subsidiary RYAH Medtech Inc. The company has developed a suite of smart cannabis and plant-based medicine devices designed to help everyone involved, from patients to doctors to researchers to growers, make more informed decisions based on accumulated data and analysis. Over the last few weeks, and on the heels of the company going public, RYAH has announced a few international deals that provide a look at the global potential for the business model.

Here is an overview of the company’s product offerings, data-centric model, and AI-fueled approach to deciphering that data. Short version: RYAH has developed smart inhalers, patches, and pens that allow patients to precisely control their dosing while recording their experiences by using the proprietary software that RYAH built. Prescribing doctors have access to this information, allowing them to perfect the treatment regimen in concert with the patient. RYAH assembles this data into a mass of information managed and analyzed by the RYAH Cloud data engine. The parsed data is then made available to interested parties from all angles of the medical cannabis world, helping them make better decisions based on a broad data set.

International Expansion

Since commencing trading on the Canadian Securities Exchange on May 10, 2021, RYAH has announced three deals in international markets. Most recently, the company shipped its proprietary Smart Dose-Measuring Inhalers to Italy where they will be used in a pioneering study of medical cannabis use there. The client is CLINN medical center in Milan, the first and only cannabis-specialized clinic in Italy. CLINN was recently named the Best Medicinal Cannabis Clinic in Europe by Canex.

CLINN is utilizing the inhalers to study medical cannabis use, utilizing the precise dosing and patient feedback functions to gain greater insight into how patients use cannabis and their experiences resulting from that use. Though CLINN is Italy’s only cannabis-specific clinic, the country represents Europe’s second largest medical cannabis market. Sales in Italy increased 30% in 2020 over the previous year in spite of the pandemic, in the seventh year of legal medical cannabis there.

In France, RYAH announced an exclusive distribution and development agreement for its inhalers with DelleD SAS. France’s government is conducting a two-year national experiment to gather data about the effectiveness and safety of medical cannabis in anticipation of eventual legalization. Here, RYAH is laying the groundwork in a potentially lucrative market while possibly participating in the government study. The company’s inhalers provide just the sort of data required for such a study, but at this point it is not certain they will be used there.

In New Zealand, RYAH has an exclusive supply and distribution agreement with Medical Kiwi Ltd., a multi-faceted and market leading medical cannabis company involved in cultivation, distribution, and device manufacturing. The deal will enable RYAH’s suite of connected IoT devices and cloud-based data analytics to be connected with Medical Kiwi’s cultivated medical cannabis formulations and patient network for pre-clinical and clinical trial settings as well as medical patient care in New Zealand. The companies are also looking at registering RYAH’s inhaler as a medical device in the country, which would be the first of its kind there.

In addition to that, RYAH has also very recently completed a shipment for a previously announced UK-based clinical trial. This 5-year study is expected to cover tens of thousands of patients suffering from chronic pain, which makes it one of the largest and most ambitious research projects to be conducted in the plant-based treatment arena.

Put It All Together

You can see RYAH’s approach to the international cannabis industry taking shape here. By partnering with prominent companies in both established and potential markets, RYAH is able to establish a presence in the early stages of development. The company is already active in Australia and is surely pursuing deals in other countries as well.

Another aspect of these deals is the addition of valuable data to RYAH’s growing database of medical cannabis information. The database already contains information from over 300,000 medical cannabis users, perhaps the largest repository of its kind in the world. Regardless of the country of origin, more data means better information for all of the users in the RYAH ecosystem. Keep an eye on the company as it continues its quest to bring order and insights from its big, smart data to the sometimes chaotic world of the emerging cannabis industry.

Disclaimer

The above article is sponsored content. CannabisFN.com and CFN Media, have been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Robin Lefferts

Robin Lefferts has been involved in the legal cannabis industry since 2012, sometimes as an active participant and always as an interested observer.

Cannabis extracts are poised to become a $28.5 billion market by 2027, according to Grand View Market Research, representing a 16.6% compound annual growth rate. At the same time, the functional mushroom market is forecast to reach $34.3 billion by 2024, which represents a respectable 8% compound annual growth rate.

Let’s take a look at the growing demand for cannabis and other extracts and why Pure Extracts Technologies Corp. (CSE: PULL) is well positioned to capitalize on the market.

Powering Next-Gen Products

Canada legalized cannabis extracts in October 2019, opening the door to edibles, beverages, topicals and vaping products. While dried cannabis still represents about 70% of sales, cannabis extracts and edibles have each captured about 14% of the market. Cannabis edibles, in particular, have become one of the fastest growing segments of the market.

Growth in Cannabis Edibles – Source: Canada Government

There’s no doubt that cannabis extracts, such as edibles and beverages, appeal to a wider consumer market than dried cannabis. On the other hand, the production of hash, rosin and other extract-based products has provided legal alternatives to popular black-market products – where much of sales remain outside of legal dispensaries.

Many large, licensed producers have begun scaling up their in-house extraction capabilities, but many others have outsourced extraction to specialists. With experienced teams and equipment, these companies offer better economies of scale by taking in raw cannabis and converting it into a variety of extract-based products for resale to consumers.

Recurring Revenue & Blue-Sky Potential

Pure Extracts Technologies Corp. (CSE: PULL) provides tolling and white-labeling services via its state-of-the-art 10,000 sq. ft. EU GMP-compliant cannabis and hemp extraction facility. After securing a processing license and agreements with Licensed Producers, the Company is already generating revenue through tolling agreements and will soon scale up its white label business.

Click here to receive and investor presentation and corporate updates

In addition, the Company has developed its own nationally recognized vape pen brand, called Pure Pulls, with over 34 proprietary formulations. The team is in the process of applying for a sales license to bring Pure Pulls back to market in the near-term, along with its edibles brand, Pure Chews, which could open the door to blue sky revenue potential.

The Company is also expanding its business to include mushroom extracts by working on functional mushroom extraction processes compatible with its existing infrastructure. Management believes that there exists a significant opportunity for it to become an important extraction partner for the commercialization of new functional mushroom products.

Exceptional Management Team

Pure Extracts Technologies (CSE: PULL) has assembled an impressive management team and advisory board. With a flat management structure, the team is laser-focused on creating high-quality products and building a sustainable business that’s EBITDA positive. These efforts could unlock significant long-term shareholder value in a growing market.

 CEO Ben Nikolaevsky joined the Company after serving as President and CEO of Natura Naturals Inc., a private Licensed Producer that was sold to Tilray Inc. (NASDAQ: TLRY). Founder and COO Doug Benville brings substantial experience with cannabis extracts, while Andy Gauvin brings a wealth of sales experience after serving as a vice president at Moosehead Breweries.

In addition to its management team, the Company recently appointed Dwight Duncan, a senior member of the Ontario Legislature, to its Board of Directors, as well as Dr. Alexander MacGregar, an expert in drug delivery technologies, to its Advisory Board. These appointments reflect its focus on regulatory compliance and research and development.

Click here to receive and investor presentation and corporate updates

The Bottom Line

Pure Extracts Technologies Inc. (CSE: PULL) recently secured a processing license from Health Canada and went public on the Canadian Securities Exchange. With an experienced and focused team at the helm, investors may want to take a look at the stock as a way to capitalize on the growing demand for cannabis and other plant-based extracts.

For more information, visit the Company’s website or download their investor presentation.

Disclaimer

The above article is sponsored content. CannabisFN.com and CFN Media, have been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.

Colorado cannabis sales hit $1 billion in total cannabis-related revenue in 2019, becoming the first state in the country to hit that milestone five years after legalization. In addition, Colorado has the highest per-person spending on cannabis at $280 per year, which is significantly higher than the $220 and $130 annual spend in Washington State and Oregon, respectively.

General Cannabis Corp. (OTCQX: CANN) recently signed a purchase agreement to acquire SevenFive Farms, a cultivation facility in Boulder, Colorado, to expand its operations into the state, marking another step towards building a network of mature cannabis business across Colorado, California, and eventually, Oregon.

Click here to receive an investor deck and corporate updates

Building a Foundation

SevenFive Farms operates a 17,000 sq. ft. light deprivation greenhouse cultivation facility that has been in place for over four years. Boulder is strategically located along the Front Range where it has easy access to Denver, Colorado Springs, Fort Collins and other major metro markets, as well as an easy path to mountain towns that draw tourists.

General Cannabis expects to improve production at the facility to approximately 300 pounds of flower per month, which could generate over $5 million in annual revenue and $3 million in positive contribution towards EBITDA. The product will be sold primarily to the wholesale market until the company adds retail operations to its larger business.

“This acquisition represents another step in executing our Cannabis 3.0 strategy,” says CEO Steve Gutterman. “We are acquiring a proven, successful facility. We will deploy Next Big Crop, our cultivation consulting business, to improve production over existing levels. And we will use the production from the facility to supply dispensaries as we add them.”

The all stock acquisition is pending approval from the Colorado state regulators (MED) and will close when the approval process is complete.

Click here to receive an investor deck and corporate updates

Cannabis 3.0 Approach

General Cannabis aims to capitalize on “second-mover advantage” by cherry-picking assets in mature markets and allocating capital efficiently and effectively to produce outsized returns. Rather than taking execution risk and starting from scratch, the company applies the expertise of its diverse team to find mature opportunities with lesser risk.

Prior to the purchase agreement with SevenFive Farms, the company announced a letter of intent to acquire Hälsa Holdings Inc., which has purchase agreements or letters of intent with three retail dispensaries in California. The acquisition will also add Chris Colón to the executive team, bringing a wealth of operational experience.

“We have painstakingly picked out marquee assets in California,” said President Chris Colón. “The assets we have under contract are excellent revenue-producing stores with extraordinary possibilities for expansion.”

Investors could see similar acquisitions over the coming quarters focused on mature opportunities in California, Colorado and Oregon where it can apply its expertise to expand revenue, improve profitability and ultimately add tangible EBITDA to its bottom line for shareholders.

Click the image to watch an exclusive interview with General Cannabis CEO Steve Gutterman and Hälsa Holdings CEO Chris Colón

Click here to receive an investor deck and corporate updates

Looking Ahead

With the pending Hälsa and SevenFive Farm acquisitions, General Cannabis Corp. (OTCQX: CANN)  is executing on the Cannabis 3.0 strategy. The company is focusing on profitability and smart growth, and investors may want to take a closer look at the stock over the coming quarters as it grows its operational footprint in key U.S. markets.

For more information, visit the company’s website or sign up to download their investor presentation and receive corporate updates.

Disclaimer

CannabisFN.com is not an independent financial investment advisor or broker-dealer. You should always consult with your own independent legal, tax, and/or investment professionals before making any investment decisions. The information provided on https://www.cannabisfn.com (the ‘Site’) is either original financial news or paid advertisements drafted by our in-house team or provided by an affiliate. CannabisFN.com, a financial news media and marketing firm enters into media buys or service agreements with the companies that are the subject of the articles posted on the Site or other editorials for advertising such companies.  We are not an independent news media provider. We make no warranty or representation about the information including its completeness, accuracy, truthfulness or reliability and we disclaim, expressly and implicitly, all warranties of any kind, including whether the Information is complete, accurate, truthful, or reliable. As such, your use of the information is at your own risk. Nor do we undertake any obligation to update the items posted. CannabisFN.com received compensation for producing and presenting high quality and sophisticated content on CannabisFN.com along with financial and corporate news.

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.

Legal cannabis has become one of the fastest growing industries in history. In less than a decade, it has grown from zero to upwards of $15 billion in global sales, driven by the liberalization of laws around the world. These growth rates are expected to accelerate as more states and countries legalize medical and adult-use cannabis, while researchers continue to explore the therapeutic potential of cannabinoid-based medicines.

CFN Media recently caught up with General Cannabis Corp. (OTCQX: CANN) CEO Steve Gutterman and Hälsa Holdings CEO Chris Colón to discuss the industry’s evolution over the past five years and how they are positioning themselves for Cannabis 3.0 and beyond.

Click here to receive an investor deck and corporate updates

The Evolution from 1.0 to 3.0

The legal cannabis industry began in 2015 when Canada legalized medical marijuana. Canadian operators began raising capital on the Cannabis 1.0 thesis that Canada would become a global distribution hub and Canadian operators could quickly expand south of the border into the United States. Of course, many licensed producers have failed to meet these lofty expectations and export growth has been very slow to materialize.

In 2018, California and many other states began legalizing recreational marijuana following voter ballot initiatives. Cannabis 2.0 companies began raising capital on the thesis that they could aggregate and aggressively deploy capital into these limited license states to create near-monopolies that could become tremendously valuable. Of course, the uncertainty around timing, patient counts, and regulations reined in these hopes.

Potential Sales from States without Full Legalization – Source: Statista, New Frontier Data

The industry’s next phase — Cannabis 3.0 — will be about maturity and profitability. Public companies that are transparent with access to capital will be able to move into mature markets and aggregate proven assets at a good value, apply conventional retail strategies to manage them well, and ultimately grow significant shareholder value. These companies could become the future industry bellwethers that withstand the test of time.

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The Second-Mover Advantage

General Cannabis CEO Steve Gutterman believes that ‘second-mover advantage’ will be key to succeeding in Cannabis 3.0. After acquiring mature operators in mature markets, the company plans to apply proven retail approaches to the cannabis industry by looking at traffic counts, traffic generators, populations and other factors. These are the same strategies that have helped fast food chains and other businesses predictably grow.

The company’s acquisition of Hälsa Holdings represents a step in the right direction. After a painstakingly picking three marquee assets in California, Hälsa Holdings established purchase agreements or letters of intent signed with retail dispensaries in California that are generating a combined ~$12 million in revenue. The company plans to refurbish and expand operations at all three locations to boost revenue over the long-term.

In addition to acquiring these agreements, Hälsa Holdings CEO Chris Colón will become President of General Cannabis and bring tremendous value to the management team. Prior to joining Hälsa, Mr. Colón was President of Nectar Cannabis, the largest vertically integrated cannabis company in the state of Oregon with seventeen retail locations and over four hundred employees. He was also an executive at Consumer Capital Partners.

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Looking Ahead

General Cannabis Corp. (OTCQX: CANN) is using its second-mover advantage to position itself for Cannabis 3.0. By acquiring high-quality assets in mature markets, the company aims to build long-term value for shareholders. The acquisition of Hälsa Holdings represents a great first step in the right direction by potentially bringing three retail locations into the fold that could generate upwards of $12 million in revenue.

For more information, visit the company’s website or sign-up to download their investor presentation and receive updates.

Disclaimer

CannabisFN.com is not an independent financial investment advisor or broker-dealer. You should always consult with your own independent legal, tax, and/or investment professionals before making any investment decisions. The information provided on https://www.cannabisfn.com(the ‘Site’) is either original financial news or paid advertisements drafted by our in-house team or provided by an affiliate. CannabisFN.com, a financial news media and marketing firm enters into media buys or service agreements with the companies that are the subject of the articles posted on the Site or other editorials for advertising such companies.  We are not an independent news media provider. We make no warranty or representation about the information including its completeness, accuracy, truthfulness or reliability and we disclaim, expressly and implicitly, all warranties of any kind, including whether the Information is complete, accurate, truthful, or reliable. As such, your use of the information is at your own risk. Nor do we undertake any obligation to update the items posted. CannabisFN.com received compensation for producing and presenting high quality and sophisticated content on CannabisFN.com along with financial and corporate news.

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.

The legal cannabis industry is projected to grow from $12.4 billion in 2019 to $23 billion by 2025, according to New Frontier Data, driven by the liberalization of medical and adult-use laws around the country. While federal regulations have started to catch up, the industry continues to struggle with a lack of access to the banking industry.

CannaTrac(R) developed the CannaCard(R) and the CannaCard App(R) to provide consumers and retailers with a convenient way to benefit from the increased safety and convenience of cashless purchases within the legal cannabis industry. By capturing early market share, the company aims to become the go-to payment solution for the cannabis industry and beyond.

CFN Media recently caught up with CannaTrac(R) CEO Thomas Gavin at MJBizCon in Las Vegas to discuss the company’s recent progress and upcoming catalysts:

Let’s take a look at where CannaTrac(R) is headed over the coming months, why investors should take note, and how interested investors can learn more.

Are you an accredited investor? Click here to receive the CannaTrac(R) investor deck and corporate updates.

Following a Very Successful Model

Starbucks launched its mobile payment product back in 2011. By 2017, nearly one-third of all transactions were paid through the app rather than credit cards or cash. Customers paying with the mobile app spent three times more than the average customer, while the company was able to reduce credit card costs and fulfill orders more quickly.

The company’s success was driven by two factors:

• Loyalty Systems – Starbucks built a lucrative rewards system with immediate ‘stars’ for each purchase, free drink offers, free refills and drink upgrades. Customers were already scanning their loyalty cards every day and adding a payment method was a small jump to make.
• Customer Engagement – Starbucks doubled-down on digital marketing by data mining their audience. Using these insights, they improved marketing campaigns and addressed the real needs of their customer base.

CannaTrac(R) is using these same levers in the burgeoning cannabis and hemp space. Customers are rewarded with points for each purchase that can be used at participating locations, while retailers can sidestep thorny banking issues and focus on growing their business. The solution also ensures that retailers are following compliance and KYC laws.

In addition to brick-and-mortar locations, the company built an online plugin for CBD retailers that enables them to easily integrate CannaCard(R) payments into their ecommerce platforms. These retailers also have easy access to loyalty and rewards capabilities to incentivize repeat purchases that are difficult to implement as a standalone solution.

Leveraging Partners for Distribution

It’s no secret that the payment space is very competitive with high barriers to entry. Many successful payment startups rely on industry partnerships to break through these barriers and reach the scale needed to succeed. For instance, new credit card startups often partner with existing banks rather than trying to acquire their own banking license.

CannaTrac(R) signed an agreement with Valid USA Inc. in December 2019. Under the terms of the agreement, Valid will provide the technology to implement, distribute, license and promote the company’s payment solution software and products under the CannaCard(R) brand name. In essence, the company will be able to launch more features to more people.

The partnership is a big deal because Valid is the fifth largest producer of SIM cards in the world and one of the top ten global manufacturers of banking cards with 6,000 employees across 16 countries — it has the scale required to help CannaTrac(R) rapidly expand across borders and quickly launch the features needed to set it apart from the competition.

The company also partnered with Pacific Banking Corp. in 2019 to provide state-licensed dispensaries and CBD retailers with the ability to apply for the CannaCard(R) payment platform and banking services with PBC simultaneously with a single application. For many potential customers, it’s the first time they have the opportunity for traditional banking services.

On the marketing front, the company recently announced a gifting booth partnership with GBK and In-Stand Media to take place from January 23 through January 26 to celebrate the 2020 GRAMMY Awards nominees and past winners. The off-site gifting booth will be giving away CannaCard® merchandise to celebrity attendees to raise awareness.

Looking Ahead

CannaTrac(R) is currently raising a $3 to $5 million seed round on top of a $15.7 million Series A to scale both domestically and internationally. The company plans to launch a redesign of its app in March 2020 and continue marketing at marquis and red carpet events.

Are you an accredited investor? Click here to receive an investor deck and corporate updates.

Disclaimer

CannabisFN.com is not an independent financial investment advisor or broker-dealer. You should always consult with your own independent legal, tax, and/or investment professionals before making any investment decisions. The information provided on https://www.cannabisfn.com(the ‘Site’) is either original financial news or paid advertisements drafted by our in-house team or provided by an affiliate. CannabisFN.com, a financial news media and marketing firm enters into media buys or service agreements with the companies that are the subject of the articles posted on the Site or other editorials for advertising such companies.  We are not an independent news media provider. We make no warranty or representation about the information including its completeness, accuracy, truthfulness or reliability and we disclaim, expressly and implicitly, all warranties of any kind, including whether the Information is complete, accurate, truthful, or reliable. As such, your use of the information is at your own risk. Nor do we undertake any obligation to update the items posted. CannabisFN.com received compensation for producing and presenting high quality and sophisticated content on CannabisFN.com along with financial and corporate news.

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.

With cannabis legalization sweeping across North America after decades of prohibition, there are some natural concerns surrounding the introduction of the drug to the legal marketplace. In the area of safety, most of the questions have surrounded the issue of impaired driving. One topic that hasn’t gotten a lot of press is that of workplace safety. The most widely-used, current workplace testing solution involves urinalysis, a cumbersome process that is often applied to screen applicants but is not necessarily practical for the detection of recent use on a regular basis.

Cannabix Technologies Inc. (CSE: BLO) (OTC: BLOZF) is actively developing the Cannabix Marijuana Breathalyzer, designed for roadside use by law enforcement officials. The company recently announced the licensing of patent-pending technology, developed by researchers at the University of British Columbia (UBC), that will be focused to offer a cannabis testing solution for workplace and even parental use. Recognizing that the requirements of potential end users vary greatly, Cannabix is looking to offer flexible solutions to meet the needs of a variety of markets.

Workplace Safety and Cannabis

In general, there is still much to be learned from scientific research into cannabis. This is an unsurprising side effect of nearly a century of cannabis prohibition, which greatly limited research on the plant. However, there is growing research that points to workplace issues surrounding cannabis.

A study of postal workers from 1992 showed that employees who tested positive for marijuana in pre-employment screening had significantly more accidents, injuries, and absenteeism compared with those who tested negative. Another study from 2010 pointed to the shortcomings of relying on pre-employment drug screening as a tool to improve workplace safety. Major conclusions included the fact that recent cannabis use (within 4 hours) led to impairment, something that urinalysis screening would not catch. Additionally, urinalysis was not shown to have a meaningful impact on job accident rates.

Parents have their own set of concerns. A 2008 study found that heavy adolescent use of marijuana negatively impacts attention, memory, and learning. A longitudinal study published in 2004 showed a correlation between cannabis use and lower educational attainment. As we have seen with the recent college admissions scandal, there are definitely pressures to do whatever it takes to help children succeed. Being able to conveniently test for marijuana use probably lies at the least invasive, ethically clean end of the spectrum of potential parental actions.

Marijuana Breathalyzer technologies

Cannabix Technologies recognizes the varying needs of the wide range of its potential clients as it develops reliable and portable cannabis testing units. As a first step, the company knows that everyone would prefer a test that doesn’t have to be sent to a lab to analyze results. The breathalyzer model is universally preferred as well, when compared to tests that require the collection of bodily fluids. From that basis, needs start to diverge.

Roadside breathalyzers need to work in all manner of environmental conditions, be rugged and accurate, returning results that will eventually hold up in court. Workplace and parental users will usually be operating in much more controlled environments, and the scrutiny of the results will usually not rise to the level of court proceedings. There is price sensitivity between the markets as well. Employers want to know if someone can safely do their job, and parents want to know if their child has been smoking marijuana before getting behind the wheel of the family car.

Cannabix’s THC Breath Analyzer.

The Cannabix Marijuana Breathalyzer uses field asymmetric waveform ion mobility spectrometry (FAIMS) technology to detect THC from breath samples. FAIMS is an analytical chemistry technology that filters and identifies substances by separating ions. It has the ability to connect directly with Mass Spectrometry technology to confirm its highly sensitive roadside results in the lab, improving the chance that the results stand up in the courts. The THC Breath Analyzer utilizes lower-cost yet highly-effective, versatile, microfluidic sensors that can provide results quickly and cost efficiently.

The Upshot

As with any product company, Cannabix is analyzing the needs of its potential target markets and developing products with features to match those markets. The recent licensing announcement greatly expands the company’s potential client base, and the company expects the resulting THC Breath Analyzer to be available for expanded testing soon, so keep an eye out for further developments as Cannabix Technologies does its part to solve some of the public safety concerns surrounding cannabis use behind the wheel, on the job, and amongst adolescents.

About CFN Media

For Visitors and Viewers 

CFN Media’s Cannabis Financial Network (CannabisFN.com) is the destination for savvy investors and business people profiting from the worldwide cannabis industry. Viewers will see breaking news, exclusive content and original programming involving the people, companies and investments shaping the industry.

For Cannabis Businesses & Companies 

CFN Media is a leading agency and financial media network dedicated to the cannabis industry. We help private, pre-public and public cannabis companies in the US and Canada attract capital, investors and media attention.

Our powerful digital media and distribution platform conveys a company’s message and value proposition directly to accredited and retail investors and national media active in the North American cannabis markets.

Since 2013, CFN Media has enabled the world’s preeminent cannabis companies to thrive in the capital and public markets.

About Robin Lefferts

Believe it or not, the world’s first blockbuster drug is still one of the most commonly used today. Acetylsalicylic acid, better known as Aspirin®, is a synthetic derivative of the natural substance salicylic acid, an extract from the bark of the white willow tree. Any company would like to invent a drug that enjoys 100+ years of massive global usage and the possibility exists that cannabis could play a role in making that happen for someone.

Charting a Similar Path

People have been using salicylic acid to treat inflammation and fevers for over 2,400 years.  That’s right, when Greek engineers invented the catapult about 400 B.C., they may have used salicylic acid to treat their achy joints after moving some heavy rocks into position. Later, chemist Charles Frédéric Gerhardt made a breakthrough in 1853 by creating acetylsalicylic acid for the first time.  By 1899, Bayer dialed-in the chemical structure and was selling Aspirin® to the world.

Hemp, a cousin to cannabis that lacks tetrahydrocannabinol (THC), the cannabinoid responsible for the psychoactive high in marijuana, is regarded as one of the world’s oldest industrial crops.  It’s history dates back more than 10,000 years.

About 8,000 years ago, cannabis seeds and oil were used for food in China, with the first documented use of medical cannabis happening by Chinese Emperor Shen Neng roughly 4,750 years ago.  Interestingly, the Chinese world for “anesthesia” (mázui 麻) translates to “cannabis intoxication” because it was used to sedate people (along with wine) before surgery.

Now that the ending of cannabis prohibition is sweeping the globe, there has been a huge upswing in laboratory and clinical research as biotechs and pharmas seek to bring new cannabis-based products to market.  Will one of these drugs become the next aspirin?

Massive Potential

In an interview with Bloomberg, Marc Feldmann, an immunologist who helped discover a class of drugs that includes the blockbusters Humira and Remicade, commented that there is “massive potential” for the medical uses related to cannabis. Dr. Feldman now has dedicated himself to the market opportunity, teaming with cannabis researcher legend Dr. Raphael Mechoulam to start Toronto-based CannBioRex Pharmaceuticals.

While most companies are looking to the cannabis plant for active ingredients, Dr. Feldmann believes that the key to a new class of drugs resides in synthetic cannabis.

Dr. Joseph Tucker, an experienced executive and expert in synthetic active pharmaceutical ingredients (APIs) and drug development and commercialization, shares the view of Dr. Feldmann insomuch that synthetic cannabis represents the future for purity and repeatability in cannabis-based drug development.  Dr. Tucker is the Executive Chair and Co-Founder of Willow Biosciences (CSE: WLLW)(OTC: CANSF) with the purpose of becoming the largest manufacturer of biosynthetically produced cannabinoids.

Click here to receive an investor deck and corporate updates

The synthetic biology company was formed this year through the merger of BIOCAN Technologies: a team of experienced executives from Calgary and researchers from the University of British Columbia, and Epimeron: a team of researchers from the University of Calgary in Alberta, Canada.

“In addition to consistency and reproducibility, synthetic cannabis can be a much more cost-effective process than plant-based extraction or chemical synthesis, the only options that companies have today,” said Dr. Tucker in a phone interview with CFN Media. “Based on our estimates, biosynthetic production is about 90% faster and cheaper than plant-based extraction. We are of the opinion that synthetic processes will ultimately re-shape how cannabinoids are produced and open new gateways to advanced pharmaceutical opportunities to help people in medical need.”

Willow’s scientific progress is complemented by a team of experts in other areas of business, including CEO Trevor Peters. Peters has co-founded four startups in the last 15 years and been involved in corporate exits totaling more than $4 billion. He was most recently CFO at Caracal Energy, a London listed energy company which Glencore (OTCQX: GLNCY) bought in 2014 for $1.4 billion.

“We’ve got a great, well-rounded team at Willow Biosciences that can execute on our initiatives,” said Dr. Tucker. “There is a growing library of evidence to the effectiveness of cannabinoids.  This will provide tailwinds for drug companies to push hard to utilize cannabinoids in new therapeutics, which should have us well positioned to fill future demand.”

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How Massive is Massive?

Clinically speaking, there are more than 300 cannabidiol (CBD) and other cannabinoid-based treatment options currently in human trials for indications such as PTSD, epilepsy, Parkinson’s disease, chronic pain, schizophrenia and others. The APIs are being sourced from traditional methods, which keeps research on promising rarer cannabinoids out of reach.  In order to tap into this market, an economically viable production method, like synthesis, is necessary.

Historic sales of cannabis-related drugs have been splotchy at best. The market for Marinol (dronabinol), a synthetic pill based on tetrahydrocannabinol (THC) and approved in 1998 for treating nausea and vomiting in cancer patients and anorexia in AIDS patients, was about $150 million in 2016.

On the other hand, analysts are higher on new drugs.  Evaluate Pharma forecasts that Epidiolex, the novel CBD drug of GW Pharma (NASDAQ: GWPH) approved last year by the FDA for treating two rare forms of childhood epilepsy, will reach blockbuster status with sales topping $1 billion in 2021.

More broadly, the U.S. cannabinoid-based pharmaceuticals market size is projected to grow to $50 billion annually by 2029, according to Ackrell Capital’s 2018 Cannabis Investment Report.  Analysts at Cowen predict that U.S. retail sales of CBD will reach $16 billion by 2025.

Willow Biosciences plan is to be a leading player catering to both markets.  In order to achieve this goal, Willow last month partnered with Noramco, the largest supplier of controlled substance APIs in the U.S. and biggest producer of pharmaceutical APIs in the world. Specifically, the two will work collaboratively to develop a yeast-based biosynthesis platform for the production and distribution of CBD.

Noramco is stepping up to tap into this burgeoning market. Per the accord, Willow will take care of expenses related to optimizing the yeast strains and Noramco will take it from there.  Noramco will cover the costs for scale-up, regulatory submission, marketing and distribution through its extensive global network.

The beauty of the deal for a small company like Willow Biosciences is that both partners will share equally in the profits.

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Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.