Cannabis extracts have gained wide recognition in recent years and are expected to provide impetus to cannabis market growth. Based on product type, cannabis extracts are classified into oils and tinctures. The oils segment is expected to dominate the market in 2019 with a revenue of USD 4.8 billion and is anticipated to witness the fastest CAGR of 17.5%, over the forecast period. Cannabis is usually derived from Indian hemp plants, such as Cannabis sativa and Cannabis indica. The main active chemical in cannabis is THC. The extracts derived from cannabis concentrates are known as Cannabis Extract. Cannabis concentrates come in many forms, including oils, phoenix tears, shatter, wax, hash and even in vaporizers. They contain very high concentration of cannabinoids and terpenes. Cannabis has a wide range of application in healthcare and pharmaceutical sectors as an antidepressant agent. Cannabis extract is obtained using grain or isopropyl alcohol as a solvent. A report from Grand View Research said that the global cannabis extract market size is expected to be valued at $28.5 billion by 2027. It also is projected to expand at a CAGR of 16.6% over the forecast period. Growing legalization of cannabis in various countries, preference for cannabis oil and tinctures, and adoption of medical marijuana for treating chronic diseases like arthritis, anxiety, and Alzheimer’s are the major factors propelling the growth. Active Cannabis companies in the markets this week include Christina Lake Cannabis Corp. (OTCPK: CLCFF) (CSE: CLC), Cresco Labs (OTCQX:CRLBF) (CSE:CL), Curaleaf Holdings, Inc. (OTCQX: CURLF) (CSE: CURA), Harvest Health & Recreation Inc (CSE: HARV), (OTCQX: HRVSF), Truelieve Cannabis Corp. (OTCQX: TCNNF) (CSE: TRUL).
On the other hand, depression is also a common mental disorder. Globally, more than 300 million people of all ages suffer from depression. Depression is the leading cause of disability worldwide and is a major contributor to the overall global burden of disease. At its worst, depression can lead to suicide. Close to 800 000 people commit suicide every year. Suicide is the second leading cause of deaths in 15 to 29-year-olds. Cannabis extract is famously used in the treatment of HIV/AIDS and posttraumatic stress disorder. Hence, its use for the treatment of HIV/AIDS and stress disorder will help drive the demand for cannabis extracts in the global market. “Based on extract type, the market is segmented into full spectrum cannabis extracts and cannabis isolates. The full spectrum cannabis extracts dominated the market in 2019, with a revenue of USD 4.3 billion, owing to the added advantage of the entourage effect. Various manufacturers prefer full spectrum cannabis products owing to their advantages over the isolates. Thus, the segment is expected to remain dominant over the forecast period.”
Christina Lake Cannabis Corp. (OTCPK: CLCFF) (CSE: CLC.CNQ) BREAKING NEWS: CLC Receives CAD $129,000 Purchase Order for Distillate Oil from a Licensed Producer with Distribution in Multiple Canadian Provinces – Christina Lake Cannabis Corp. (the “Company” or “CLC” or “Christina Lake Cannabis”), is pleased to announce that it has received its first purchase order for a commercial quantity of distillate oil valued at CAD $129,000 from a Canadian licensed producer whose products are distributed in several provinces (the “Purchaser”). Under the terms of the purchase order, the identity of the Purchaser cannot be publicized for competitive reasons. The distillate oils are to be used for the production of vape formulation, a category in which the Purchaser is an established player. The quantity ordered from CLC by the Purchaser is approximately one third of their monthly purchase volume of distillate oils. As the Company has now consistently maintained potency levels in the 90% range for the distillate oils it produces, CLC’s management is confident that it could continue supplying to the Purchaser on an ongoing basis, with the opportunity to provide greater quantities as needed.
In the 2020 growing season, Christina Lake Cannabis’ inaugural crop grown naturally under sunlight amounted to nearly double its initial forecasts, with 32,500 kg / 71,650 lb of dried cannabis ultimately harvested. In a press release dated January 13, 2021, the Company announced it was beginning to produce its first ultra-high potency distillate oils, which typically contain tetrahydrocannabinol (“THC”) concentrations of 90% or greater and are used as ingredients in a product formulation as opposed to being used as a standalone cannabis product. In a March 31, 2021 press release, the Company also announced it had nearly tripled its capacity for extraction with the cannabis industry’s first installation of the Vitalis Cosolvent Injection System. This enhancement enables the Company to consistently process more than 250 kg / 551 lb of biomass per day, which is an important consideration in light of CLC’s pivot towards fully integrated production from cultivation to extraction.
After its inaugural growing season, Christina Lake Cannabis has made its first sale for a commercial quantity of distillate oil in the amount of CAD $129,000. The Purchaser is an established industry player in several cannabis categories to include vaping, which is one of many potential applications for distillate oils. CONTINUED… To read this and more news for Christina Lake Cannabis please visit https://www.financialnewsmedia.com/news-clc/
Other recent developments in the markets include:
Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) a leading international provider of consumer products in cannabis, recently celebrated the opening of a new Curaleaf-branded location in South Portland, located at 343 Gorham Road, marking the company’s first adult-use location in Maineand bringing the Company’s total number of retail locations to 106.
Curaleaf has been operating in Maine since 2014, providing access to locally grown products and best-in-class services to the medical market at its three other branded locations. As the first Curaleaf-branded adult-use store in Maine, the South Portland location will bring Curaleaf’s high-quality brands and products, including Select, America’s #1 cannabis oil brand, to the rapidly growing adult-use market. An opening day ceremony featuring a ribbon cutting, gift bags, and donuts for customers, and 10% off the first purchase on April 30 and May 1 will commemorate the opening. Also as part of the opening celebration, Curaleaf Maine is making a contribution to Black Owned Maine (BOM) Family Relief Program, which helps cover the cost of necessities including rent, electricity, food, heat, transportation, and daycare for community members who need support.
Harvest Health & Recreation Inc (CSE: HARV) (OTCQX: HRVSF), a vertically integrated cannabis company and multi-state operator in the U.S., recently reported its financial and operating results for the fourth quarter and year ended 2020. All financial information is provided in U.S. dollars unless otherwise indicated.
Fourth Quarter and Full Year 2020 Financial Results: Total revenue in the fourth quarter was $69.9 million, an increase of 85% from $37.8 million in the fourth quarter of 2019, and up 13% compared to $61.6 million in the third quarter of 2020. Full year revenue increased 98% to $231.5 million in 2020 compared to $116.8 million in 2019; Gross profit in the fourth quarter was $31.3 million, compared to $16.6 millionin the fourth quarter of 2019, and $28.7 million in the third quarter of 2020. Gross profit for the full year was $101.6 million compared to $41.1 million in 2019; Gross profit margin in the fourth quarter was 44.8%, compared to 43.8% in the fourth quarter of 2019, and 46.6% in the third quarter of 2020. Gross profit margin for the full year was 43.9% compared to 35.2% in 2019; Net loss before non-controlling interest was $7.4 million for the fourth quarter, compared to $85.2 million in the fourth quarter of 2019. Net loss before non-controlling interest for the full year was $59.6 million compared to $168.8 millionin 2019; and Adjusted EBITDA in the fourth quarter was $9.1 million, compared to ($8.8) million in the fourth quarter of 2019 and $11.5 million in the third quarter of 2020. Adjusted EBITDA for the full year was $15.3 million compared to ($43.7) million in 2019.
Truelieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF), a leading and top-performing cannabis company in the United States, recently announced it has been named a winner of a Silver Stevie® Award for Achievement in Growth in the 19th Annual American Business Awards®. The awards recognize businesses that have excelled in further developing their operations through various avenues such as mergers and acquisitions and corporate expansion.
“After an unprecedented 2020, we are proud to be recognized for our growth and expansion into new markets,” said Kim Rivers, CEO of Trulieve. “We look forward to building on this momentum as we drive further expansion across North America, including operations in Pennsylvania and the opening of Massachusetts in our northeast hub, bringing our high-quality cannabis products and unmatched customer service to more patients and consumers.”
Cresco Labs (CSE:CL) (OTCQX:CRLBF) a vertically integrated multistate operator and the number one U.S. wholesaler of branded cannabis products, recently announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the “HSR Act”), as amended, in respect to Cresco Labs’ pending acquisition of Cultivate Licensing LLC and BL Real Estate LLC (collectively “Cultivate”)(the “Transaction”). The waiting period expired without the issuance of a so-called “second request” by the United States Department of Justice Antitrust Division (the “DOJ”). The Transaction remains subject to certain closing conditions, including approval from the Commonwealth of Massachusetts which is anticipated to be received in the fourth quarter of 2021.
“We look forward to completing the remaining steps required to close the Transaction and are excited to begin our work with the Cultivate team later this year,” said Charles Bachtell, CEO of Cresco Labs. “Upon closing, Cresco Labs will immediately vault to a top 3 share position in Massachusetts, the third $1B+ market where we’ve achieved this status. Once again, we will execute our playbook and demonstrate the growth and leverage that can be achieved by going deeper in strategic states.”
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