The U.S. and China are opponents in many categories today and years to come. In some of these interactions there are no winners or losers, however, the U.S. is the clear winner in the global hemp cultivation market. Hemp has more uses that most people would expect from fabric to medicinal uses, but it is the rise of the CBD market that makes this an important ‘win’. According to industry reports the U.S. and China are #1 and #2 respectively (by acreage). The country in 3rd place is not even half of China’s figures at #2. (Columbia). An article this month in Cannabis Business Times said: “The U.S. hemp-derived CBD market is expected to reach $23.7 billion by 2023, up from the current value of $5 billion, according to Brightfield Group. Thousands of farmers are ramping up production in response to the passage of the 2018 Farm Bill (which legalized hemp at the federal level), the expansion of state industrial hemp programs and the promise of profits. Active cannabis companies in the markets this week include: Sugarmade, Inc. (OTCQB: SGMD), MariMed Inc. (OTCQX: MRMD), Marijuana Company of America, Inc. (OTCQB: MCOA), Kona Gold Solutions, Inc. (OTCPK: KGKG), The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (OTCQX: TGODF).
In the U.S., the profit potential of CBD is driving the growth in hemp cultivation, with about 87% of the 288,000 acres expected to be used for hemp-derived CBD processing in 2019. On a per-acre level, hemp for CBD could potentially generate $45,203 in revenue, compared with $773 for corn.” In yet another bout in the ring, the U.S. again comes out on top…: “… the total cannabinoid market in the U.S. — which includes hemp-derived CBD — will reach $44.8 billion by 2024.” So says an article in Green Entrepreneur reporting on: “Arcview Market Research and BDS Analytics… seventh edition of their “State of Legal Cannabis Markets” report.
Sugarmade, Inc. (OTCQB: SGMD) BREAKING NEWS: Sugarmade, a major supplier to the hydroponic cultivation and hemp sectors, is excited to announce the closing of the Company’s acquisition of BZRTH, LLC (“BZRTH”), a leading ecommerce supplier to the rapidly expanding hydroponic agricultural space. The Company expects the new combined entity to drive EBITDA profitability, net-positive cash flows, and top-line sales of $37 million on a forward basis.
“As of today, Sugarmade is one of the largest publicly traded hydroponics companies in the world,” remarked Jimmy Chan, CEO of Sugarmade. “The most important idea we want to convey to our committed shareholders right now is that this move was not a one-off deal. It’s part of a multi-step roll-up strategy designed to create the dominant force in this market as we look ahead to a world where hydroponics becomes the difference between success and failure for producers in the rapidly growing market for hemp and hemp-related crops in North America.”
Management notes that the integration of BZRTH implies the vertical integration of ecommerce through ZenHydro.com (and several additional hydroponics ecommerce sales portals) with a 55k sq. ft. fulfillment center and a market leading logistics platform. The Company also continues to negotiate with several other entities to continue to drive its aggressive M&A-based expansion strategy.
Mr. Chan continued, “We plan to continue to be very aggressive on the M&A side. This space is extremely ripe for disruption through consolidation of successful entities. And we have strong momentum right now to snowball this process by combining and coordinating undervalued assets into a single dominant market force that benefits from powerful overlapping growth in ecommerce, hemp, and hydroponics.” Read this and more news for Sugarmade at: https://www.financialnewsmedia.com/news-sgmd/
Other recent developments in the cannabis/cbd/hemp industries:
MariMed Inc. (OTCQX: MRMD) a premier cannabis and hemp multi-state operator focused on health and wellness, has signed a definitive agreement to license its market leading brands and products, Betty’s Eddies™ and Kalm Fusion™ to Tropizen of Puerto Rico. Additionally, MariMed will become a licensee to manufacture and distribute Tropizen’s unique tropical products, Pique hot sauce and Real Fruit Gummies in the six states that MariMed serves in the US. The companies are in final review of production requirements to set launch dates for each product by territory.
Tropizen is a leading cultivator, manufacturer, distributor and retailer of cannabis products in Puerto Rico servicing nearly all of the island’s 100 dispensaries with world-class flower, edibles, topicals and concentrate products. Puerto Rico’s medical market is experiencing dynamic growth. The latest data from the territory’s government show that the number of registered medical patients in July exceeded 92,000 or 3% of the island’s population. According to MJBiz Daily, over 15,000 new patients registered between May and July of this year.
Marijuana Company of America, Inc. (OTCQB: MCOA) and MCOA’s wholly owned subsidiary, hempSmart, Inc., jointly announced a hemp extract and CBD product supply agreement where hempSmart will market MCTC’s powdered drink mixes and other CBD edibles online and via hempSMART’s thousands of network marketing partners. The products, branded under the trademarks: Hemp You Can Feel™ and Gummies You Can Feel™, to be supplied by MCTC and will be based on the MCTC’s patent pending cannabinoid infusion technologies that offer super high bioavailability of cannabinoids.
“There are now hundreds of CBD brands in the marketplace, so differentiation is critical,” commented MCTC CEO, Arman Tabatabaei. “Our differentiation is strong by way of our unique super bioavailability infusion of broad spectrum hemp extracts and cannabinoids. We are very excited to be working with Marijuana Company of America and hempSmart as our first customers for our unique hemp extract powdered beverage and edibles products.”
Kona Gold Solutions, Inc. (OTCPK: KGKG) a hemp and CBD lifestyle brand focused on product development in the functional beverage sector, recently announced it has signed a distribution agreement with Ohio based Beverage Distributors Inc. Beverage Distributors brings Kona Gold Hemp Energy Drinks and HighDrate CBD Energy Waters into the state of Ohio. Beverage Distributors will distribute the Company’s popular products across the entire state of Ohio, covering key markets.
Beverage Distributors Inc., is an Ohio corporation started in Cleveland Ohio in 1933. Owned then by Frank Blazy and then by his son, Henry, the Company operated successfully benefiting from quality products, good service, and a reputation for both. The same still stands today, 86 years later. Beverage Distributors is owned and operated by the Conway Family.
The Green Organic Dutchman Holdings Ltd. (TSX: TGOD.TO) (OTCQX: TGODF), a leading producer of premium certified organic cannabis, recently unveiled a new strategic plan, including a series of actions to reduce the Company’s financing requirements while maintaining its path to profitability. These actions will result in increased agility, lower capital requirements and an optimal production capacity to serve the organic segment.
“These actions are logical next steps in TGOD’s road to profitability. While we are committed to – and our strategy continues to leverage – our unparalleled scale as an organic producer as well as our international assets, we have identified areas where our scale would not provide for meaningful returns in the near term given the slower pace of legal market conversion. We will optimize our operating efficiency by deferring excess capacity and expenses, whether they center on production facilities, international expansion projects or technology,” commented Brian Athaide , CEO of TGOD.
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