CBD growth shows no signs of slowing. Retailers like Sephora, CVS, Kroger, Wegman’s, and Vitamin Shoppe are stocking shelves with it. U.S. approval ratings are increasing. In fact, a Gallup poll shows support at a new high of 68% from 66% year over year.
“The latest data are from a Sept. 30-Oct. 15 poll, conducted before the election that saw marijuana legalization proposals on the ballot in several states. Voters in all of these states - Arizona, Montana, New Jersey, and South Dakota -- authorized the legal use of recreational marijuana in the Nov. 3 election. They join 11 other states and the District of Columbia in legalizing pot for recreational purposes.”
Over the next five years, analysts at Nielsen say CBD products could generate $6.9 billion over the next five years. Globally, Global Insights analysts say the market could generate $89 billion over that time. However, that’s just a small part of the story. With a new Administration heading to the White House, coupled with Democrats in control of Congress, there’s a higher likelihood of broad cannabis legalization.
Substantial Catalyst for Cannabis Companies
Take a look at Pure Extracts Technologies Corp.(CSE:PULL)(OTC:PRXTF), for example, which just announced that it has entered into its first substantial biomass purchase agreements in order to scale-up its production of both THC and CBD extracts.
The Company has recently agreed to purchase 220 kgs of high potency THC cannabis dried flower from a large, Canadian Licensed Producer and it has also agreed to purchase 1,000 kgs of high potency CBD biomass from a top, Western Canada, cultivator. With biomass prices touching new lows, the Company believes that the timing was right for its first strategic purchases, which will drive revenue growth in Q1 2021.
The cannabis will be used to produce full spectrum (FSO) THC oil with a minimum purity of 67% and distillate with a minimum purity of 86%. The hemp will be used to produce full spectrum (FSO) CBD oil with a minimum purity of 66% and distillate with a minimum purity of 85%. From these 2 biomass purchases alone the Company will be able to produce approximately 70 kgs of CBD distillate and 25 kgs of THC distillate. At current wholesale prices of $6,000/kg and $6,800/kg respectively, this biomass could lead to $590,000 in near term sales revenue.
Pure Extracts CEO, Ben Nikolaevsky, remarked, “Having a stockpile of biomass makes sense for us now as Pure Extracts starts to build its name in the elite category of extractors. We are looking forward to showcasing our world class products and consistently ramping-up revenue this year.”
Or, look at Canopy Growth (TSX:WEED)(NASDAQ:CGC).
The company was just granted the right to display the Quality Seal from the National Animal Supplement Council (NASC) for their CBD products for dogs, which are expected to be launched in the coming weeks. The NASC is a non-profit group dedicated to protecting and enhancing the health of companion animals throughout the United States. To earn the NASC approval, Canopy Animal Health passed rigorous standards in proving the quality and safety of its products. “Canopy Animal Health has conducted a great deal of critical research over the last four years in the development of science-based CBD products that improve the lives of pets,” said Robert Menardi, Director of Veterinary Educational and Technical Services at Canopy Animal Health. “The NASC Quality Seal affirms our dedication to providing safe and high-quality CBD products for companion animals.”
Organigram Holdings (NASDAQ:OGI)(TSX:OGI) just announced its results for the first quarter ended November 30, 2020. “We are pleased with our double-digit sales growth in the Canadian adult-use recreational market this past quarter as it reflects the success of many of our new product launches, particularly in the dried flower value segment,” said Greg Engel, CEO. “Now we look forward to our new higher margin Edison dried flower offerings contributing substantially to overall revenue with even more new products to come in the next few quarters. We believe our product portfolio revitalization combined with additional resources to ramp up production and achieve greater economies of scale as well as our relentless focus on increased automation and cost efficiency opportunities position us well to generate further top-line growth and significantly improve gross margins.”
Charlotte's Web Holdings, Inc. (TSX: CWEB)(OTCQX: CWBHF), the market leader in hemp CBD wellness products, announces that Charlotte's Web, Inc., a wholly-owned subsidiary, has been granted U.S. Utility Patents for its hemp genetics by the United States Patent and Trademark Office. The newly issued patents cover two of the Company's new feminized seed hybrid hemp varieties developed under the Company's breeding program; 'Kirsche' (US Patent No. 10,888,060) and 'Lindorea' (US Patent No. 10,888,059). 'Lindorea' and 'Kirsche' are the world's first two allowed U.S. Utility Patents reading on feminized hybrid hemp plants.
CV Sciences Inc. (OTC:CVSI), a preeminent leader in hemp derived cannabidiol (CBD) products, announced the launch of ProCBD™, a full product line of clinical strength CBD products available exclusively through health practitioners. Clinical strength ProCBD™ products were created with the CV Sciences Medical Advisory Board specifically to meet patient needs and to fit seamlessly with existing care plans. ProCBD™ is the only CBD supported by published investigations, randomized controlled trial, and post marketing safety review.
Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Winning Media is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for Pure Extracts Technologies Corp. by a third party. We own ZERO shares of Pure Extracts Technologies Corp. Please click here for full disclaimer.
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