The global legal marijuana market is forecast to reach USD $146.4 billion by 2025, according to a report by Grand View Research. This growth can be contributed to the rising adoption of marijuana in several medical applications as well as the increased legalization seen around the world. The industry continues to show strength while the sentiment surrounding the stocks of the sector remains positive.
The North American legal marijuana market alone hit $12 billion last year, and analysts forecast that the market will reach $25.5 billion by 2021, according to a report by Cannabis Business Plan. As the marijuana sector continues to generate growth, investors continue to place their bets on marijuana stocks.
Next Green Wave Holdings (NXGWF) (NGW.CN) announced that it, together with its US subsidiary Crossgate Capital US Holdings Corp. have signed a definitive agreement to acquire 100% of California-based SDC Ventures, LLC. The total value of this transaction is $20.6 million in cash, shares and performance shares to be earned over the next three years. SDC a premium cannabis consumer products goods, manufacturing and extraction leader, with 8 leading cannabis brands, 45 CBD and THC products and a large network of retail and online sales channels including 700 Zumiez stores which compliments Next Green Wave’s current distribution opportunities.
“The SDC team shares our vision and provides expertise that is synergistic to that of Next Green Wave – to be the number 1 cannabis consumer products goods company in California,” stated Leigh Hughes, CEO. “Not only does this acquisition give us an array of premium brands associated with key world-renowned influencers to penetrate global markets, it also gives us increased distribution with revenues from sales, along with direct to consumer reach, relationships and specialty extraction methods. Having the opportunity to market through strategic brand partners to millions of validated and loyal followers is a big deal when marketing consumer products.”
This news followed the announcement of being granted Conditional Use Permits for nursery and both non-volatile and volatile extraction operations for its 3,240 ft² indoor facility by the City of Coalinga, CA as well as approval for the facility site design allowing for construction preparations to begin. This will enable Next Green Wave to accelerate its seed and seedling production program for its own yield and sales to licensed commercial growers and resellers. Furthermore, the facility will help advance innovative tissue culture research and the development of new high-quality cannabis strains using Intrexon’s (XON) Botticelli™ platform, allowing Next Green Wave to produce and sell seeds or clones that have standardized plant attributes and are pathogen and pesticide free.
Aurora Cannabis Inc (ACB) announced that it has appointed Nelson Peltz as a Strategic Advisor. Mr. Peltz and Aurora will work collaboratively and strategically to explore potential partnerships that would be the optimal strategic fit for successful entry into each of Aurora’s contemplated market segments and advise on the company’s global expansion strategy.
“Nelson is a globally recognized business visionary with a strong track record of constructive engagement to generate accelerated, profitable growth and shareholder value across many industry verticals that are of great interest to us,” said Terry Booth. “Like us, Nelson also takes a long-term view of value creation to benefit all stakeholders. We look forward to working with Nelson to further extend our global cannabis industry leadership by aligning Aurora with each of the major market segments cannabis is set to impact.”
Earlier this week, Aurora announced that it has commenced sales of cannabis oils to German pharmacies following receipt of all necessary approvals from the Canadian and German regulatory authorities. Pedanios 5/1 drops have become the first extract derived oil product compliant with the German monograph for in-pharmacy preparation. Neil Belot, Aurora’s Chief Global Business Development Officer, commented, “having established early mover advantage in selling cannabis oils in Germany, we are exceptionally positioned to extend our market leadership and accelerate the growth of our European operations”
Choom™ (CHOO.CN) (CHOOF) announced that it is entering the United States market, starting with the state of New Jersey, through its wholly owned US subsidiary, Choom Holdings USA Inc., has signed a letter of intent to purchase an equity interest in a New Jersey based medical retail dispensary applicant in New Jersey’s upcoming Request of Applications that also intends to enter into recreational cannabis retail upon legalization, which is anticipated in 2020.
“This is our first step into the United States, and we are very excited for our partnership with this experienced group to have the Choom Brands in New Jersey.” states Chris Bogart, President & CEO. “New Jersey is home to over 9 million people currently being served by only 12 cannabis operators in its medical program. New Jersey is an exceptional market to expand the Choom Brands. We are very impressed with the progress they have achieved to date, and with our expertise in cannabis retail, we are confident we can help them successfully operate in the New Jersey market.”
Choom recently provided an update on its retail development strategy as an emerging consumer cannabis company that has secured one of the largest retail networks in Canada, as well as a $27 million-dollar investment from Aurora Cannabis (ACB). Choom has completed the buildouts of 17 retail locations across Western Canada and has 8 additional retail locations currently under construction.
HEXO Corp (HEXO) and Newstrike Brands Ltd. (TSX-V: HIP) annouced that they have entered into a definitive arrangement agreement under which HEXO will acquire all of Newstrike’s issued and outstanding common shares in an all-share transaction valued at approximately C$263 million.
Under the terms of the Arrangement Agreement, Newstrike shareholders will receive 0.06332 of a HEXO common share in exchange for each Newstrike common share held. The transaction has been unanimously approved by the board of directors of each of HEXO and Newstrike, and Newstrike’s board of directors recommends that its shareholders vote in favor of the Transaction.
“We’re thrilled to welcome the Newstrike team into the HEXO family. Jay Wilgar (CEO of Newstrike) and his team have built incredible relationships, including teaming up with The Tragically Hip, and they share HEXO’s vision of bringing exceptional branded cannabis experiences to adults everywhere,” said Sebastien St-Louis, CEO and co-founder of HEXO. “With Newstrike, we’re adding talented employees and infrastructure to take HEXO to the next level on our journey to become one of the largest cannabis companies in the world. We’re extremely proud of our record of execution, and today are committing to achieving over $400 million in net revenue in 2020.”
This blog is an affiliate of Midam Ventures, LLC. Pursuant to an agreement between Midam and Next Green Wave (NGW), Midam has been paid $150,000 from Next Green Wave (NGW) for a period from October 1, 2018 to November 8, 2018. Midam has been compensated an additional $100,000 and has extended its period of coverage to December 8, 2018. Midam has been compensated an additional $75,000 and has extended its period of coverage to January 8, 2019. Midam has been compensated an additional $50,000 and has extended its period of coverage to February 8, 2019. Midam has been compensated an additional $100,000 and has extended its period of coverage to April 12, 2019. Midam may buy or sell additional shares of (NGW) in the open market at any time, including before, during or after the Website and Information, to provide public dissemination of favorable Information about Next Green Wave. Click here For Full Disclaimer.