As cannabidiol (CBD) just begins its cultural renaissance, the market could balloon to $22 billion by 2022, notes The Brightfield Group.
Fueling part of that potential momentum, the Canadian government has proposed legislative changes to make Cannabis topicals fully legal for sale in Canada no later than October 17, 2019.
The $4.2 trillion wellness industry could one of many to benefit.
The very healing properties of marijuana are why spa, wellness and skincare industries are introducing a range of products with cannabis as a key ingredient.
According to Forbes, “Hemp-derived CBD has been touted in several medical studies as having a myriad of health benefits ranging from treating psoriasis, atopic dermatitis and eczema to minimizing seizures, stress, and insomnia.”
With sizable growth in store, some companies are already experiencing incredible growth, including The Yield Growth Corporation (CSE:BOSS) (OTCQB:BOSQF), HEXO Corporation (TSX:HEXO) (OTC:HYYDF), Green Organic Dutchman Holdings Ltd. (OTC:TGODF) (TSX:TGOD), Charlotte’s Web Holdings Inc. (CSE:CWEB) (OTC:CWBHF), and Cronos Group Inc. (NASDAQ:CRON).
The Yield Growth Corporation’s (BOSS) (BOSQF) subsidiary Urban Juve just registered three new Urban Juve Skin Exfoliants as cosmetics with Health Canada, bringing the total number of Health Canada Urban Juve registered products to 29. Yield Growth subsidiary UJ Topicals has rights to infuse the three exfoliants with THC and is currently aligning with licensed cannabis manufacturers so that it can prepared to be go to market in Canada in late 2019 when the cannabis topicals law is expected to be become law.
At the moment, The Yield Growth subsidiaries are developing and manufacturing a wide range of other personal care products containing hemp root oil and various cannabinoids. In addition, The Yield Growth is currently seeking to obtain necessary licenses to process cannabis and manufacture cannabis products in multiple jurisdictions where such products can be sold.
For More Information on The Yield Growth Corporation (BOSS.CN), Click Here
Another likely beneficiary is HEXO Corporation (HEXO), which has been rallying since announcing it applied for listing on the NYSE. Upon approval, HEXO Corporation will trade on the NYSE American under ticker symbol “HEXO”, the same symbol the Company’s common shares on the Canadian exchange. HEXO shares will also continue to trade on the OTC PINK.
In addition, the company reached a construction and licensing milestone for the first phase of its one million sq. ft. greenhouse expansion. The milestone will help HEXO increase its annual production capacity to 108,000 kg of dried cannabis.
According to CEO and and Co-founder Sébastien St. Louis, “Receiving initial licensing on our 1,000,000 sq. ft. facility is a huge accomplishment for the entire HEXO team. We are proud that the construction project is hitting all its milestones while respecting aggressive timelines and staying on budget. The new production facility allows us to continue to scale-up which, once fully operational, will give customers across Canada access to HEXO products. Our team has been hard at work for the past couple of months nurturing new mother plants and preparing cuttings. We will start moving plants into the new facility with the pre-prepared mother plants and cuttings in alignment with our continuous harvest methodology.”
For More Information on HEXO Corporation, Click Here
Another likely beneficiary is The Green Organic Dutchman Holdings Ltd. (TSX:TGOD) (OTC:TGODF), which is developing a distribution hug for large-scale beverage and edible products that can be introduced in Canada and abroad.
“We believe that the beverage and edible market will be the largest single segment of the cannabis market. Cannabis, as the base ingredient, makes these products possible. The medicinal and recreational market for CBD and THC will only increase over time and starting with an organic input is the most important aspect to developing these higher margin products,” notes TGOD President Csaba Reider.
For More Information on The Green Organic Dutchman Holdings Ltd., Click Here
Cronos Group Inc. (NASDAQ:CRON) has been attracting a good amount of interest as well.
Cronos has been running after announcing a supply agreement with the Ontario Cannabis Store — the sole online retail outlet for recreational marijuana in Ontario. In addition, according to Forbes, “While annualized capacity stood at just about 6,650 kilograms as of Q3, the company is in the process of adding about 110,000 kilograms of capacity in the near term.”
Also, analysts at CIBC just initiated coverage on Cronos with an outperform rating and a $22 price target. “Our view is that the strategies deployed by these companies combined with their strong balance sheets make these companies the most likely to attain the status of industry titan,” noted the analysts.
For More Information on Cronos Group Inc., Click Here
Charlottes Web Holdings Inc. (CSE:CWEB) just reported that its 2018 harvested hemp results produced 10 times growth in harvested hemp compared to 2017.
"Charlottes Web is one of only a few hemp CBD producers capable of supplying large volumes of high-quality hemp extract from its own supply chain that can meet significantly increasing market demand. As the category and brand leader, our goal is to increase our market share and with this bountiful harvest we are able to satisfy our customer demands for 2019 and beyond" noted Hess Moallem, President and CEO.
"This incredible harvest ensures we can continue to produce our high-quality human nutrition products without being subject to constantly fluctuating market prices as is common with third-party sourced raw material. This allows us to have better control and predictability over our cost of goods sold and thereby our gross margins. In addition, these harvest levels will allow us to explore opportunities to supply future partners with our proprietary hemp extracts."
For More Information on Charlotte’s Web Holdings Inc., Click Here
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