The global pandemic was expected to negatively impact the global economy… and it did, but there were some markets that exceeded expectations… and grew during the crisis. Industry insider BDSA (formerly BDS Analytics) said in a recent report that: “The cannabis industry faced numerous challenges in the past few years, none so potentially disruptive as the coronavirus pandemic in 2020,” said Micah Tapman, Chief Executive Officer, BDSA. “Our previous forecast was conservative based on the expected economic fallout from the pandemic, but the industry not only survived, it thrived and legal cannabis gained considerable ground, exceeding our expectations in several markets.” The report projected that: “Global cannabis sales reached nearly $21.3 billion in 2020, an increase of 48% over 2019 sales of $14.4 billion. BDSA forecasts global cannabis sales will grow from $21.3 billion in 2020 to $55.9 billion in 2026, a compound annual growth rate (CAGR) of more than 17%.” Active Cannabis companies in the markets this week include Ikänik Farms, Inc. (CSE: IKNK.U), HEXO Corp (NYSE: HEXO) (TSX: HEXO), Aphria Inc. (NASDAQ: APHA) (TSX: APHA), Tilray, Inc. (NASDAQ: TLRY), Sundial Growers Inc. (NASDAQ: SNDL).
The BDSA report continued: “Many mature markets in the United States saw accelerated growth in 2020 – Colorado grew by 26%, double its 13% rise in 2019, and Oregon expanded by 39%, versus 21% in 2019. Canada, the largest national market, grew by 61% in 2020 to more than $2.6 billion, boosted by the late-2019 introduction of a host of new product options under the government’s new “Cannabis 2.0” rules, which authorized sales of derivative products such as edibles. Even so, new markets are key to future growth. Medical and adult-use markets that launched in 2019 and 2020 contributed $1.6 billion in spending in 2020, $422 million in medical and nearly $1.2 billion in adult-use. Five new U.S. markets legalized medical or adult-use cannabis during the 2020 elections: Arizona, Mississippi, New Jersey, Montana and South Dakota. BDSA expects four new medical and five new adult-use markets to commence sales in 2021.”
Ikänik Farms, Inc. (CSE: IKNK.U.CNQ) BREAKING NEWS: Ikänik Farms Triggers $30 Million Self-Directed, Non-Brokered Private Placement with European Private Equity Group – Ikänik Farms, Inc. (“Ikänik Farms” or the “Company) is pleased to announce that it has set has set USD$1.021 as the exercise price (the “Issue Price”) for the issuance of 29,394,474 subordinate voting shares of the Company (the “Shares”) for gross proceeds of USD$30,000,000 pursuant to the terms of the subscription agreement dated March 8, 2021 (the “Subscription Agreement”), entered into between Global Garden Private Equity I, S.A.R.L. (“Global Garden”) and a predecessor of the Company prior to completion of its reverse take-over transaction completed on March 30, 2021. The Issue Price was determined pursuant to the Subscription Agreement, being 90% of the volume weighted average price per Share of the Company’s Shares trading on the Canadian Securities Exchange during the most recent (10) consecutive trading days. The Company anticipates the issuance of the Shares will be completed on or about May 10, 2021.
“We are very excited to welcome Global Garden to the Ikänik family and look forward to a strong working relationship as a strategic capital partner” said Brian Baca, CEO of Ikänik Farms.
The use of proceeds from the issuance of Shares will be used to carry out the business plan of the issuer to complete its international projects across California and Colombia, while also expanding its footprint across Latin America.
The California projects will help facilitate the Company’s U.S. vertical integration initiative, with a Palm Springs dispensary and lounge targeted to open in June 2021 and will also help expand the Company’s operating San Bernardino distribution by adding a dispensary and delivery service, with a targeted open date of August 2021.
Additionally, the Company anticipates it will complete its cultivations across California, with a vertical cultivation in Sacramento, expected to commence operations in May 2021 with an annual estimated production capacity of 2,400 pounds. The Company will also look to complete its Adelanto “Base Camp” location, which is a stand-alone vertical operation, including 28,000 square feet of vertically stacked, indoor cultivation, 33,000 square feet of mixed light greenhouse, distribution, volatile and non-volatile manufacturing. The Base Camp will produce an estimated 12,000 pounds of cannabis annually. To round out the geographic expansion in California, the Company is working to add a distribution and packaging facility in Benicia, to better service its retail network and service the increasing demand in 3rd party co-packing services from its Northern California clients.
In Colombia, the Company will continue to complete its 80,000 square foot, vertically integrated facility (“Casa Flores”), providing a vertically stacked cultivation delivering an estimated production capacity of approximately 15,000 pounds of cannabis flower annually. Casa Flores has an onsite laboratory for manufacturing cannabis derivatives, sold as finished ingredient and used in “formula magistral” throughout Latin America, or optionally sold into the European medical marketplace.
The Company remains focused on its pursuit of quality, validated through best-in-class standards and certifications, including GACP, GMP-Pharma, GTPCP, ISO-9001. The Company is finalizing its EUGMP certifications across its cultivation and laboratory facilities, with a target completion date of June 2021. Read More Details about Ikänik Farms by visiting: https://www.ikanikfarms.com/ and https://mugglehead.com/ikanik-farms-establishes-colombia-mexico-thc-export-will-list-to-cse/
Other recent developments in the cannabis industry include:
HEXO Corp (NYSE: HEXO) (TSX: HEXO) recently announced that its flagship Masson-Angers cultivation campus has received its Control Union Medical Cannabis Standard GACP (“CUMCS-GACP”) certification, the leading certification standard for medical cannabis cultivation.
“Receiving the CUMCS-GACP certification is a testament to the team’s attention to detail and commitment to producing high-quality, consistent cannabis products to serve the global cannabis industry,” said Sebastien St-Louis, HEXO CEO and co-founder. “As we continue to go after additional market share in Canada, and to penetrate new markets around the world, this certification demonstrates that we continue to offer high-quality output our current and future CPG partners can count on.”
Tilray, Inc. (NASDAQ: TLRY), a global pioneer in cannabis research, cultivation, production, and distribution, recently announced that the company has been included in the inaugural list of TIME’s 100 Most Influential Companies. The new list — an expansion of the annual TIME100 franchise — highlights 100 businesses making an extraordinary impact around the world.
Brendan Kennedy, Tilray’s Chief Executive Officer, said, “On behalf of every Tilray employee, we feel extremely honored by TIME’s recognition as it provides validation for the myriad accomplishments and milestones that have marked Tilray’s status as a pioneer in the global cannabis industry. Now, as we finalize our merger with Aphria, the ‘new’ Tilray will leverage our combined strengths in geographic scale, product range, and brand expertise to meet our consumers’ and patients’ needs with attendant benefits for all of our stakeholders over the long term. We feel proud of all we’ve accomplished, grateful to our employees for their indispensable contributions, and passionate in our belief that the best is yet to come.”
Aphria Inc. (NASDAQ: APHA) (TSX: APHA), a leading global cannabis-lifestyle consumer packaged goods company, recently announced that Broken Coast Cannabis Inc. is entering the concentrates category with the addition of Wax to its premium product lineup.
Broken Coast Wax is made from its premium B.C. flower and joins its award-winning roster of cultivars in Canada. As the latest innovation for the brand, Broken Coast’s high THC (70%+) wax offers a clear expression of each cultivar’s profile. Broken Coast uses Hydrocarbon Extraction to extract desired cannabinoids and terpenes from the flower, bringing out rich and complex aromas in the wax product. “We’re really excited to see our cannabis made into a wax. The quality and unique terpene profile of each strain really shines through! I think people are going to really enjoy experiencing their favorite strains in a concentrated form,” said Kevin Anderson, Broken Coast’s Head Grower. “It is thrilling to provide our consumers a variety of consumption options that are in line with Broken Coast’s quality.”
Sundial Growers Inc. (NASDAQ: SNDL) recently announced that it has increased its commitment to SunStream Bancorp Inc. (“SunStream”) to $188 million from its previously announced commitment of $100 million. SunStream is a joint venture between Sundial and the SAF Group that will leverage a strategic financial and operational partnership to target asymmetrically enhanced risk-return opportunities in the cannabis industry to provide exposure to a portfolio of attractive debt, equity and hybrid investments. Initially, SunStream expects to form a special opportunities fund with capital from the Company and the SAF Group, in addition to commitments from third-party limited partners. Sundial expects to provide an update on third-party capital commitments within the next 60 days.
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