CBD / Hemp Snapshot: Growing Demand is Game Changer for Sector – Driving Revenues and Acquisitions
Point Roberts, WA and Delta, BC – July 9, 2019 (Investorideas.com Newswire) Investorideas.com, a leading investor news resource covering hemp and cannabis stocks releases a snapshot reporting on the continued movement surrounding CBD/hemp business acquisitions based on continued growth in consumer and industrial demand in both the US and internationally.
Fior Markets said in its recent report, 'the global industrial hemp market is expected to grow from USD 4.41 Billion in 2018 to USD 14.67 Billion by 2026′.
Strategically positioning for this sector, Simlatus Corporation (OTC: SIML), a holding company focused on opportunities in the cannabis space, with Proscere Bioscience as the company’s division focused on the CBD industry just commented on the cannabis industry and their acquisitions.
Richard Hylen, Chairman and CEO stated „Our shareholders and management team have been on an impressive run ever since the company expanded its footprint into the cannabis sector with our most recent acquisition of Proscere Bioscience. With this acquisition, the company gained access to a cold-water CBD extraction technology that presents an exciting opportunity in revenue generation. With the acquisition, the company has gained access to a valuable asset capable of strengthening its revenue base, with a current $2.8M in its first purchase order and commitments of $275M over the next 5 years. The company has already set sights on Canada, USA, and Europe as it embarks on an aggressive commercialization drive for the cold-water CBD extraction systems.”
He went on to say, „Legal marijuana is worth an estimated $50 billion for the U.S. today, and experts have projected the U.S. industry to skyrocket to $80 billion by 2030. Simlatus has a firm standing in this industry with the manufacturing of its Cold-Water Extraction Systems required to fulfill the industry needs for THC, CBD and Hemp extraction. Cannabis legalization has swept across North America with 10 states plus Washington, D.C. that provide legalized recreational marijuana; and full legalization having arrived in Canada in October 2018. Our subsidiary, Proscere Bioscience, is fulfilling its first order of $2.8M and 5 year commitments from its global distribution of $275M. This is definitely a game changer for our company and our shareholders.”
The company continues to be technology and service driven in the growing industries of cannabis, audio/video and high-speed internet products; while its new management team uses its own cash reserves to drive down debt and dilution and focus on moving the company to NASDAQ.
SinglePoint Inc. (OTC: SING), another company who has made acquisitions in the cannabis/hemp industry recently announced that it has signed a $109,465,000 contract with Elite Foundation LLC of North Carolina to supply more than 275,000 pounds of premium hemp flower over a period of 15 months. The client has approved and taken receipt of the second batch of product and Elite has approved approximately 5000 pounds of varietal strain hemp flower which has been reserved for their next 4 to 6 shipments, expected every other week.
„We are grateful for the opportunity to work with SinglePoint in continuing to establish ourselves as the Southeast’s preferred hemp provider, trusted to satisfy our clientele’s growing demands by ensuring quality, consistency and variety for the downline. This alliance potentiates a cascade of mutual benefits across many sectors within the burgeoning hemp industry, and we look very much forward to generating these positive energies together!” states Max Alexander, Chairman and CFO of Elite Foundation.
According to SinglePoint President, Wil Ralston, „There is very little high-quality hemp flower in the United states so we’re pleased that our client can take advantage of our supply before it’s available to other supermarket clients. After visiting with our suppliers yesterday it is clear that the market is drying up quickly and we have access to supply the best flower available to the market with additional greenhouse quality flower coming to market as well. This has been a great development for SinglePoint and our VP of Sales, Don Smith, has done a wonderful job of closing this contract. He is currently working with additional clients in need of hemp flower as well as many other raw materials such as biomass. We look forward to the closure of these deals among others in our pipeline including private labeled finished goods for retail distribution. We see a large opportunity to put end user product throughout retail distribution in the coming months. Industrial derived hemp has created a wave of new products and opportunities in which SinglePoint has been able to drive additional revenue and profit.”
BDS Analytics and Arcview Market Research project that the collective market for CBD sales in the US will surpass $20 billion by 2024 while New York-based investment bank Cowen & Co, estimates that the market could pull in $15 billion by 2025. The smokable hemp market currently represents approximately 2% of the overall CBD market, but with a 250% growth from 2017 to 2018, Brightfield Group, a Chicago-based cannabis market research firm, identifies dried and smokable hemp flowers as one of the fastest-growing segments of the CBD market. SinglePoint’s bold entry into the hemp flower market positions the company as one of the leading hemp flower wholesalers in the country.
CBD Unlimited, Inc. (OTC: EDXC), formerly known as Endexx Corporation, a provider of innovative phytonutrient-based nutritional and wellness products recently commented on the CBD/hemp industry and their role within it in several interviews with Proactive Investors.
Mr. Dustin Sullivan, COO of CBD Unlimited, commented on the recent spike in demand for CBD in retail stores as more CBD moves into brick-and-mortar retail across America. Because of this, CBD Unlimited is expecting CBD to eventually become the new mainstream.
Months prior, Mr. Todd Davis, CEO & Chairman of CBD Unlimited, spoke with Proactive Investors commenting on the Company’s plan to scale the Company significantly. Since then, the Company broke sales and store count records and looks to update the public on these numbers after the quarter ends.
CBD Unlimited, Inc. develops and distributes all-natural Hemp-Derived CBD, containing less than 0.3% THC in compliance with USDA regulations. The company’s products are built upon three key fundamentals: targeted-delivery, controlled-dosing and dual-therapy applications. Its products range from oils, capsules and topicals, to proprietary pet products, all with the shared purpose of supporting the therapeutic relief of pain and inflammation for humans and pets. Phyto-Bites are CBD soft chews for animal use that are formulated to promote health and support the reduction of separation anxiety, pain and inflammation.
PotNetwork Holding, Inc. (OTC: POTN), through its wholly-owned subsidiary Diamond CBD, has also successfully launched several new lines of CBD oil products for the consumer and wholesale markets, including Full Spectrum CBD MCT Oils, CBD Oil with Hemp Seed Oil, CBD Oil Honey Tinctures, and CBD Oil with Olive Oil. The new products are being launched at a time when consumer interest and preference for CBD products continues to peak.
Diamond CBD’s new CBD oil products have been a hit with consumers as well as in the wholesale market, helping merchants and retailers to boost sales and bring larger numbers of customers through their doors. Available in several of the Company’s more popular brands, including Relax, Meds Biotech, and its own consumer-favorite eponymous brand, these new CBD oil products brought in over $1.1 million in sales in May alone.
According to a new Gallup poll, most Americans are aware of CBD oil and many feel it is beneficial in some way. As the market for products continues to grow, Diamond CBD continues to introduce new and exciting products to meet the wants and needs of consumers.
„Our new lineup of CBD oil products gives consumers and those in the wholesale marketplace an expanded choice,” said Kevin Hagen, CEO of Diamond CBD parent company, PotNetwork Holdings, Inc. „What this new poll from Gallup tells us is that not only do more consumers want easy access to CBD oil, but that the market continues to expand and that consumers want that expansion. We at Diamond CBD are poised to satisfy that expansion.”
While CBD continues to have its day in the sun, we can expect to see more acquisitions and partnerships in this space which in turn is expected to have a massive impact on the price point of hemp/CBD products in the near future, similar to what was seen in early adopter cannabis states. This is expected to drive consumer demand even further but will force companies to strategically position themselves with the right business plan if they want to stand out in an overcrowded CBD market.
For investors following cannabis stocks, Investor Ideas has created a stock directory of publicly traded CSE, TSX, TSXV, OTC, NASDAQ, NYSE, ASX Marijuana/Hemp Stocks
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