A snapshot Into Global CBD Insights Trends and Market Size
The global Cannabidiol (CBD) market is projected to grow at a compound annual growth rate of 125% from 2019 to 2026. The robust growth stems from growing awareness of CBD health benefits as well as the opening up of the market around the world. An increase in the number of countries that have legalized the use of CBD for its health claims has helped foster further growth, making CBD a buzzing market phenomenon.
CBD Insights
CBD is a compound extracted from hemp and marijuana for its medicinal and therapeutic properties. The compound has emerged as a remedy for addressing various medical conditions such as inflammation, pain as well as sleep disorders. CBD infused products such as cannabis oil, beauty and skincare products, gummies, and dog treats have since cropped up as manufactures continue to explore ways of leveraging CBD properties. In recent years, there has been a spike in demand for cannabidiol in pharmaceutical formulations, by virtue of the compound’s comforting properties. Likewise, hemp production has continued to edge higher as growers and producers look to take advantage of the growing market appeal. Strong demand for CBD skincare products made up of moisturizers creams, cleaners, oils and sun creams continued to trigger strong demand for CBD. The use of CBD in beauty products has gathered momentum in recent years owing to the compound’s anti-inflammatory and antioxidant properties.
Distribution Channels
Considering the fact that cannabidiol is still a controlled substance in many jurisdictions around the world, wholesalers and retailers must have a license from relevant authorities to distribute it. In countries where CBD is legal for medicinal purposes, hospitals and pharmacies have a leeway to prescribe CBD products without too many restrictions. Likewise, hospitals and pharmacies account for the biggest share when it comes to CBD distribution around the world. Retail Pharmacies come a distant second specializing mainly in offering CBD infused personal care products, food items, and medicines. Online stores such as Pure CBD Vapors, CBD Outlet Online, and Discover CBD offer multiple CBD-infused branded products and edibles as well as wax forms. CBD Regional Insights The U.S and Canada continue to lead the way, given the size of their CBD market. North America stands out in part because of friendly regulatory frameworks. A number of states in the U.S have already legalized the recreational and medicinal use of cannabis; Canada having legalized cannabis at the federal level. The Americas accounted for 78% of the global CBD market in 2018 at $2.4 billion, with Europe coming a distant second with a market value of $358 million. The beverage segment of the CBD market remains the biggest accounting for 51% of the total market valued at about $1.6 billion. This segment is projected to soar 127% by 2026.
While cannabis has remained a banned substance in most countries, some country’s attitudes are slowly changing. Asia for instance, presents an enormous untapped market opportunity. The country is considered an attractive region for laboratory proficiency owning to the territories’ large base of manufacturers as well as research laboratories.
Growing CBD Investments
Sensing a window of opportunity, a number of companies have jumped on the CBD bandwagon, creating a vast assortment of products around Cannabidiol and its byproducts. Veritas Farms, Inc. (OTCQB: VFRM), a vertically integrated agribusiness, has invested vast sums of money on the production of a full-spectrum of CBD products. The company has recently unveiled a line of natural hemp oil products that contain CBD and intend to continue to add to their assortment in the near future. Dubbed as the leader in hemp extraction products, Charlotte’s Web Holdings, Inc. (TSX: CWEB) (OTCQX: CWBHF) has expanded its research initiative with The Center for Discovery in New York as it seeks to develop hemp genetics. The company’s breeding program is spearheading the development of superior CBD varieties to support the efforts of local farmers. Medical cannabis firm EXMceuticals Inc. (CNSX: EXM) is another company that has set sights on the CBD landscape focusing on North America as well as Europe. The company has already secured a cannabis research and development license from the Portuguese National Authority of Medicines and Health products to lead the way in European CBD circulation and, ultimately, worldwide distribution.
Bottom line
Increased hemp production fueling the rising demand for cannabidiol rich hemp biomass should continue to bolster CBD market growth. Likewise, increased adoption of refined CBD products coupled with the legalization of medical marijuana should drive demand for CBD products worldwide. Furthermore, companies are beginning to adopt new strategies and plunging into strategic mergers and acquisitions to strengthen their CBD production capacities. As progressive CBD companies move to expand their presence in the industry, the global CBD market size should continue to clock new heights globally.
Ruchi Gupta is financial journalist, specializing in small-cap companies mainly in the cannabis space. Disclosure: Ruchi Gupta works for Momentum PR, which represents EXMceuticals on the public relations front.
EXMCeuticals Inc. provides Corporate Update
Momentum Public Relations
Press Release: September 10, 2019
EXMceuticals Inc. (CSE: EXM) (FSE: A2PAW2) (the “Company” or “EXM”), a cultivator and producer of cannabis extractions and refined ingredients for the pharmaceutical, nutraceutical, therapeutical and cosmetic industries is very pleased to provide a corporate update following a series of announcements in the last few months.
Addition of cannabis industry leader Tripp Keber
Recently, EXM announced that cannabis industry leader and former Dixie Brands’ CEO Tripp Keber is joining the Company as Strategic Advisor to the Board. Mr. Keber now works closely with the Board of Directors and existing executive management team to assist with the future development of the Company, bringing his significant professional experience and connectivity totalling more than a decade within the industrial cannabis, cannabinoid ingredients and hemp industries.
Significant progress in Portuguese Operations with R&D facility, new project and pilot-scale refinery
The initial operations are now fully installed, staffed and functional. Progress includes new Research and Development (R&D) facility working on new CBD and terpene protocols and research opportunities for various industries. Research projects are already underway as part of the Portugal 2020 grant initiatives.
New strategic initiative with Haywood Securities Inc.
Also, the Company announced it has appointed Haywood Securities Inc. as its Canadian adviser. Haywood is a full-service investment bank that seeks to work with young companies and offers an impressive team of investment banking professionals. EXM has subsequently signed an agreement with Momentum PR who will represent the Company, convey our plans, and engage proactively with investors in Canada.
EXM in Uganda
EXM has commenced the initial test cultivating of cannabis in Uganda and is further developing its nursery operations and farming infrastructure. Nursery activities are currently focused on establishing high CBD content strains that will then grow well in the local environment. Total available cultivatable land is in excess of 2,000 hectares. EXM has already built and installed a fully operational extraction plant which has been tested with harvested cannabis.
“This is a very exciting time for EXM and I’m truly happy with the way things are going,” said Jonathan Summers, Chairman of EXM. “The best part about all these announcements is that this is only the beginning in reaching our short-term milestones,” he added.
Upcoming updates: Portugal activities, GFR & Malawi Cannabis
In addition, EXM’s Portugal team is excited about significant progress that has been achieved in reaching the Company’s technical and scientific objectives in regard to its activities in Portugal. The team is expecting to receive the initial license in September which would allow the Company to import, research and refine cannabinoids within Europe, utilizing the pilot facility that has already been built and staffed. EXM intends to submit the application for a commercial production license shortly. With regard to EXM’s R&D activities we are on the verge of signing a partnership with a leading UK university, in addition to the partnership already in place with Nova University, Lisbon.
EXM is in the process of finalising its planned joint venture with GFR Pharmaceutical. GFR is Canada’s biggest white-label nutraceutical company and the soon-to-be-named joint venture will establish and operate a state-of-the-art production facility to distribute full spectrum hemp oil products across North America. EXM will supply full spectrum hemp oil ingredients to the joint venture on a cost-plus basis and will own 50% of the entity and the products that are created.
With regard to Malawi, the Company will complete in a near future the signing of formal agreements for the acquisition of the entirety of the prize farming and processing asset in the country. This asset is arguably being acquired on very attractive terms for EXM shareholders and has been fully funded by the seller through to the end of Q1 2020 as part of the transaction terms. This 2000-hectare farm and the factory is fully staffed and operational, already generates revenues, and is actively growing and distributing mangos to Europe and India. Perhaps most importantly “We hope and expect our Malawi operations to receive a Cannabis cultivation and export license before the middle of October,” said Summers.
Loan Agreement
The Company announces that it has entered into two agreements with Jonathan Summers, President of the Company providing for a loan of $600,000 and a loan facility of up to $1,400,000. Amounts funded under the loans are unsecured, repayable in December 2019 and January 2021, respectively, and bear interest at a 10% and 12% per annum respectively. The company issued bonus special warrants to the lender which entitle the lender to acquire bonus shares at a price of $1.35 per share for 20% of the principal amount actually funded under the loans. The special warrants convert into shares only if the lender subscribes to a future Company financing in the amount equal to outstanding loan amount prior to the maturity date. The Company may elect to repay principal and interest drawn under the $1.4 million loan facility in cash or shares, provided that shares will be priced at the time of repayment. Proceeds from the Loan will be allocated to ongoing business initiatives and general working capital purposes.
The $1.4 million loan facility agreement also provides for the grant of performance-based warrants, entitling the lender to acquire between 10% and 50% of the principal amount funded under the loan facility in shares at a price of $1.35 per share. The percentage will be determined based on the Company’s share price at the time the loan is repaid, with a sliding scale starting from $1.35 to above $6.00.
Pursuant to Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”) the Company advises that the loan agreements are related party transactions under MI 61-101 and is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to section 5.5(a) and section 5.7(1)(a) of the instrument.
ON BEHALF OF THE BOARD OF DIRECTORS OF EXMCEUTICALS INC.
Michel Passebon, Chief Executive Officer and Director
For further information contact:
Investor Relations
Email: investors@exmceuticals.com
Media Enquiries:
Email: media@exmceuticals.com
Europe – Jane Glover+44 (0) 203 757 4990
North America – Mélanie Guillemette: +1 819 668 2734
- Published in Cannabis, CBD, EXMceuticals, Marijuana, News Home
EXMceuticals Inc. appoints cannabis industry leader Tripp Keber as Strategic Advisor to the Board
Momentum Public Relations
Press Release: August 20, 2019
EXMceuticals Inc. (CSE: EXM) (FSE: A2PAW2) (the “Company” or “EXM”), a cultivator and producer of high-grade cannabis extracted ingredients, for the pharmaceutical, nutraceutical, therapeutical and cosmetic industries, is proud to announce it has appointed Tripp Keber to the new role of Strategic Advisor to the Board, effective immediately.
Mr. Keber will work closely with the Board of Directors and existing executive management team to assist with the future development of the company, bringing his significant professional experience and connectivity totalling more than a decade within the industrial cannabis, cannabinoid ingredients and hemp industries.
Prior to joining EXM, he was the co-founder and former CEO of Dixie Brands, Inc., a premium cannabis infused product company. Dixie is known worldwide for its namesake cannabis-infused beverages, Dixie Elixirs, Aceso and Therabis, Dixie’s human and pet CBD wellness brand platforms respectively, as well as hundreds of other cannabis products.
Mr. Keber has also served as a Director for several cannabis industry organizations, including the National Cannabis Industry Association, the Marijuana Policy Project, and the National Association of Cannabis Businesses. He has also held many senior and C-level positions in realty, communications and other industries.
“Tripp is widely considered one of the most prominent and well-known business leaders in the cannabis industry and is recognized as an established branding expert in the medical cannabis spaces. We are thrilled to announce he will be joining the EXM team,” said Jonathan Summers, Chairman of EXM and adds: “In his role as Strategic Advisor to the Board, Tripp will assist with the development of EXM’s overall strategy, help to grow our strong R&D activities, contribute to cultivate relationships to enhance our market footprint, the development of EXM’s products, as well as coordinate our go to market strategy. Tripp already has a strong track record of actually delivering results and should set EXM apart from the significant number of CPG companies that are trying to build CBD businesses and wellness brands; whereas.”
Tripp Keber added, “I have spent the past two years evaluating companies across the globe that have a unique and compelling business plan as well as strong management team to back it up. EXM represents a ‘best of breed’ player in the industrial cannabinoid ingredients and hemp space and I am incredibly honoured to have the privilege of advising the Board.”
“Cultivators, processors and product manufacturers will only survive in what is becoming a highly competitive global market if they can scale operations significantly as well as innovate. Cost efficiency and strong R&D initiatives will be key. In my opinion EXM will not only survive but could be a dominant player in the market,” he went on to say.
ON BEHALF OF THE BOARD OF DIRECTORS OF EXMCEUTICALS INC.
Michel Passebon, Chief Executive Officer and Director
FOR FURTHER INFORMATION CONTACT
Investor Relations
Email: investors@exmceuticals.com
Media Enquiries:
Email: media@exmceuticals.com
Europe – Jane Glover: +44 (0) 203 757 4990
North America – Mélanie Guillemette: +1 819 668 2734
FOR MORE UPDATES ON THE COMPANY
Follow us on Twitter: https://twitter.com/EXMceuticalsFollow us on LinkedIn: https://www.linkedin.com/company/exmceuticals/
ABOUT EXMCEUTICALS
EXM’s activities are focused on the sustainable cultivation of cannabis and hemp, and the production of high-grade ingredients for the pharmaceutical, therapeutical, nutraceutical and cosmetic industries. The Company proposes to sell the produced ingredients to international markets.
Through its subsidiary, Prime Ranchers Limited, EXM is able to cultivate and process cannabis in Uganda at an industrial scale. The Uganda processing facilities are installed and will produce and export pharmaceutical, therapeutical, nutraceutical and cosmetic grade cannabis ingredients.
EXM owns a provisional license in Malawi enabling the cultivation of 50Ha of Cannabis and is in the process of obtaining a full license, in partnership with a large local agro producer. Please see previous press releases for more detailed information on EXM Malawi activities.
EXM, through its subsidiary and in-country partner, holds the rights to a cannabis license in the Kuba Kingdom, Mweka, Kasai Province, Democratic Republic of Congo, and the rights to a land concession for the cultivation of cannabis and hemp, and processing and export of high-grade cannabis extracted ingredients.
EXM has also submitted applications and undertaken negotiations with local governments and partners in Ethiopia, Zambia, Eswatini and Burundi, in order to obtain licences to permit the cultivation of cannabis and hemp, as well as the processing, transformation and export of psychotropic and non-psychotropic cannabinoid ingredients. In Ethiopia, EXM is in its final stage of negotiation with the government for an agro-industrial park, of 4,000 hectares (9,880 acres) encompassing a free trade zone, for which EXM has already obtain land rights over 2,000 hectares (4,940 acres) in the Amhara region.
- Published in Cannabis, CBD, EXMceuticals, Marijuana, News Home
North Bud Farms Completes Construction of its Phase One Cultivation Facility and Establishes U.S. Based Subsidiary, Bonfire Brands USA
Momentum Public Relations
Press Release: August 14, 2019
North Bud Farms Inc.(CSE: NBUD) (OTCQB: NOBDF) (“NORTHBUD” or the “Company”) is pleased to announce the completion of its 24,500 square foot phase one indoor cannabis cultivation facility located on 135 acres of land in Low, Quebec, Canada. This week consultants are finalizing the facility’s Evidence of Readiness Package for submission to Health Canada.
“This is an important milestone for NORTHBUD, as we transition from the construction phase to pre-operational phase,” said Ryan Brown, CEO of NORTHBUD. “We believe that we have built an extremely cost-effective facility that will allow us to be competitive in all aspects of the Canadian market. With the addition of over 500,000 square feet of outdoor production later this year, we anticipate production of over 10 million grams of Cannabis in calendar 2020.”
Creation of New U.S. Subsidiary
NORTHBUD wishes to inform shareholders that they have established a wholly owned U.S. based subsidiary. Bonfire Brands USA Inc. has been established to own and operate NORTHBUD’s proposed acquisitions in the U.S. markets.
NORTHBUD is pleased to announce that it has appointed Justin Braune as President of Bonfire Brands USA. Mr. Braune currently serves as the CEO of EUREKA Vapor and will lead all of the NORTHBUD’s U.S. operations.
Mr. Braune brings over 10 years of industry experience to the NORTHBUD team. A graduate of the United States Naval Academy, he served in the U.S. Navy for ten years where he helped manage nuclear reactor systems aboard the USS Ronald Reagan. He holds an MBA from the University of Southern California’s Marshall School of Business.
Prior to joining EUREKA Vapor, Mr. Braune served as President at Made By Science, a startup science and delivery technology company which was recently acquired by Acreage Holdings. Mr. Braune has served as CEO and President for multiple startup private and public companies over his 10-year career in the cannabis industry.
“I look forward to working with Justin as we move into the operational phase of our U.S. expansion plan,” said Ryan Brown, CEO of NORTHBUD. “Justin has extensive contacts in the U.S. cannabis industry which will be very valuable as we continue to expand and enter into new partnerships.”
About North Bud Farms Inc.
North Bud Farms Inc., through its wholly owned subsidiary GrowPros MMP Inc., is pursuing a licence under The Cannabis Act. The Company has built a state-of-the-art purpose-built cannabis production facility located on 95 acres of Agricultural Land in Low, Quebec, Canada. North Bud Farms Inc. has entered into agreements to acquire assets in California, Colorado and Nevada.
For more information visit: www.northbud.com
Neither the Canadian Securities Exchange (the “CSE”) nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
Forward-looking statements
Certain statements and information included in this press release that, to the extent they are not historical fact, constitute forward-looking information or statements (collectively, “forward-looking statements”) within the meaning of applicable securities legislation. Forward-looking statements, including those identified by the expressions “anticipate”, “believe”, “plan”, “estimate”, “expect”, “intend”, “may”, “should” and similar expressions to the extent they relate to the Company or its management. Forward-looking statements are based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the risk factors included in the Company’s final long form prospectus dated August 21, 2018, which is available under the Company’s SEDAR profile at www.sedar.com. Accordingly, readers should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made. New factors emerge from time to time, and it is not possible for the Company’s management to predict all of such factors and to assess in advance the impact of each such factor on the Company’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. The Company does not undertake any obligation to update any forward-looking statements to reflect information, events, results, circumstances or otherwise after the date hereof or to reflect the occurrence of unanticipated events, except as required by law including securities laws. This news release does not constitute an offer to sell or a solicitation of any offer to buy any securities of the Company.
FOR ADDITIONAL INFORMATION, PLEASE CONTACT:
North Bud Farms Inc.
Edward Miller
VP, IR & Communications
Office: (855) 628-3420 ext. 3
investors@northbud.com
- Published in Cannabis, CBD, Medical Marijuana, News Home, NorthBud
Crop’s California and Washington Farms See USD $125,374 in Completed Orders for August
Momentum Public Relations
Press Release: August 8th, 2019
CROP INFRASTRUCTURE CORP. (CSE: CROP) (OTC: CRXPF) (Frankfurt: 2FR) announced today that its tenanted California farm received and executed its first order from its 2018 harvest totaling $41,625 in whole flower. CROP’s tenanted Washington facility sold $83,749 in newly harvested flower, both in the first week of August.
The revenue from the Washington sales was used to pay the ongoing operating expenses at the Washington farm with the $41,625 in California being realized by CROP’s 49% owned Humboldt Holdings.
CROP CEO, Michael Yorke, stated: “Our Washington and California farms are continuing 2019 harvests, continuing towards covering ongoing expenses and finally, we are seeing cash flow from our California farm’s 2018 harvests.”
About CROP
CROP is a publicly listed company trading under symbol CROP.CSE. The company is focused on cannabis branding and real estate assets. CROP’s portfolio of projects includes cultivation properties in California, two in Washington State, a 1,000-acre Nevada cannabis farm, 2,115 acres of Hemp CBD farms, and a growing portfolio of common share equity in upcoming listings within the cannabis space.
CROP has developed a portfolio of assets including Canna Drink, a cannabis infused functional beverage line and 16 Cannabis brands.
- Published in Cannabis, CBD, CROP Infrastructure, Marijuana, News Home
Grown Rogue Terminates Agreement with Blue Zebra Focus on Muskegon, MI Assets
Momentum Public Relations
Press Release: August 2nd, 2019
Grown Rogue International Inc. (CSE:GRIN | OTC:GRUSF) (“Grown Rogue” or the “Company“), a vertically-integrated, multi-state cannabis company with licenses and assets in Oregon, California, and now entering Michigan, announced today the termination of its agreement with Blue Zebra Community LLC (“Blue Zebra“), previously announced on February 25, 2019, relating to the acquisition of certain cannabis assets. The Company elected to terminate the agreement in order to proceed with an alternative operator which will be materially less resource intensive as the Company initially enters the new Michiganmarket.
Grown Rogue will focus energy and resources relating to expansion into Michigan on the recently announced proposed acquisition of Inferno Gardens, Inc. (“Inferno Gardens“), a cannabis operator in Muskegon, Michigan, announced on July 2, 2019. The proposed acquisition of Inferno Gardens will provide Grown Rogue with an expedient and cost effective entry into the Michigancannabis market.
“After careful consideration of the very exciting Michiganmarket, we chose a direction that gives us the opportunity to produce our first harvest in late 2019 and be fully vertically Integrated by 2nd quarter 2020,” said Obie Strickler, CEO and Co-Founder of Grown Rogue.
“We understand the value and timing of the Michiganmarket. Our management team has the experience to expeditiously enter the market with the Muskegon assets and the timing made all the difference in electing to not exercise options with Blue Zebra and instead focus on the Inferno Gardens partnership,” added Mr. Strickler.
In connection with the termination agreement signed with Blue Zebra (the “Termination Agreement“), Grown Rogue has issued to Blue Zebra 2,148,117 common share purchase warrants with an exercise price of $0.44 per share (the “Warrants“). The Warrants expire on June 28, 2023. Grown Rogue will have the right to accelerate the expiry date of 25% of the Warrants during the term if the shares of Grown Rogue close at or above $1.00 per share for a period of twenty (20) consecutive days. An additional 25% of the Warrants will accelerate if the shares of Grown Rogue close at or above $1.50 per share for a period of twenty (20) consecutive days, and the remainder of the Warrants will accelerate if the shares of the Grown Rogue close at or above $2.00 per share for a period of twenty (20) consecutive days. Further, Grown Rogue has granted to Blue Zebra a pre-emptive right to maintain ownership of up to 5% of Grown Rogue’s common shares. The Warrants vest 40% on the issuance date with the remaining Warrants vesting upon certain events relating to the activities of Helios Holdings, LLC in the Michigan cannabis industry.
About Grown Rogue
Grown Rogue International (CSE: GRIN | OTC: GRUSF) is a vertically-integrated, multi-state Cannabis family of brands on a mission to inspire consumers to “enhance experiences” through cannabis. We have combined an expert management team, award winning grow team, state of the art indoor and outdoor manufacturing facilities, and consumer insight based product categorization, to create innovative products thoughtfully curated from “seed to experience.” The Grown Rogue family of products include sungrown, light dep and indoor premium flower, live rosin jars and terp diamonds, infused, indoor and sungrown pre-rolls, live resin and rosin carts, along with chocolate edibles created in partnership with a world-renowned Chocolatier.
Subscribe to Grown Rogue investor news alerts.
- Published in Cannabis, CBD, Grown Rogue, Marijuana, News Home
CROP Announces Signing of Commercial Real Estate Purchase Agreement by Elite Ventures for Tonopah, Nevada Property for Gross USD $24.0 Million
Momentum Public Relations
Press Release: August 1st, 2019
CROP Infrastructure Corp. (CSE: CROP)(OTC: CRXPF) (Frankfurt: 2FR) (“CROP” or the “Company”), announces that Elite Ventures Group LLC (“Elite”), a limited liability company organized and existing under the laws of the State of Nevada in which the Company holds a 49% membership interest, has entered into two commercial real estate purchase agreements (the “PropertyPurchase Agreement”) with Trinity Global Investments LLC (“Trinity Global”) dated July 15, 2019, pursuant to which Trinity Global has agreed to purchase certain real property located in Tonopah, Nevada (together, the “Nevada Property”) owned by Elite.
The Nevada Property will be sold together with all buildings, improvements, and fixtures constructed or located on the property, in addition to 50 acre-feet of ground water rights, the assignment of a certain Nevada energy agreement along with any costs associated therewith, and the right to use the Licenses (as defined below) on the Nevada Property (together with the Nevada Property, the “EliteAssets”) for a gross aggregate purchase price of USD$6,200,000 (the “Property Purchase Price”).
In connection with the sale of the Nevada Assets, The Hempire Company L.L.C. (“Hempire”), a limited liability company organized and existing under the laws of the State of Nevada, has agreed to sell four active, authenticated, usable, uninhibited and transferable Nevada Marijuana Certificates (the “Licenses” and, together with the Elite Assets, the “Nevada Assets”) owned by Hempire to Trinity Global pursuant to the terms of an asset purchase agreement (the “Asset Purchase Agreement”) dated July 15, 2019 in consideration for USD$17,800,000 (the “License Purchase Price”). Pursuant to the terms of a Nevada cannabis license option agreement dated April 17, 2019 between Hempire and Elite, Hempire granted Elite with an option to acquire 100% of the Licenses, at any time prior to April 17, 2050, for USD$10,000.
In consideration for the purchase of the Nevada Assets, Trinity Global has agreed to pay an aggregate cash sum of USD$24,000,000 (which amount represents the aggregated sum of the Property Purchase Price and the License Purchase Price) as follows:
- an aggregate of USD$50,000 payable on or before July 26, 2019 (the “PropertyDeposit”), which Property Deposit shall entitle Trinity Global to a due diligence period ending August 6th (the “Due Diligence Period”);
- USD$950,000 payable on or before July 26, 2019 (the “LicenseDeposit”), which License Deposit shall become non-refundable and applied to the License Purchase Price at the expiration of the Due Diligence Period; and
- USD$23,000,000 payable upon the closing of the Property Purchase Agreement and the Asset Purchase Agreement (the “Closing”), which Closing is expected to occur on or before August 9th, 2019, provided there are no unforeseen delays.
In connection with the sale of the Nevada Assets, Elite and Hempire have entered into a separate disbursement agreement dated July 15, 2019, pursuant to which CROP will benefit from a combined USD$16,163,464.60 (CAD$21,251,723) directly from the sale of the Nevada Assets and indirectly through the repayment of certain debts accrued in connection therewith. Accordingly, USD$8,301,352.27 (CAD10,914,617) will be sent directly to CROP’s account as reimbursement for certain upgrades to the Nevada Property paid for by CROP, for interest payments made to date by CROP to service the initial loan used to purchase the Nevada Property and for its 49% share of the net profits. Furthermore, USD$7,862,112.34 (CAD$10,337,105) will be directly paid to certain creditors to the Nevada Property including an aggregate of CAD$5,250,000 to the certain holders of convertible debentures of the Company as well as USD$3,399,344.49 to the holder of a 20 year note issued in connection with the Nevada Property and with. The balance of the proceeds from the sale of the Nevada Assets will be paid to remaining members of Elite in amounts proportional to each member’s equity stake. All exchange rates based on the Bank of Canada exchange rate dated July 31, 2019.
Closing is subject to a number of conditions, including but not limited to, completion of satisfactory due diligence by Trinity Global, receipt of the requisite state and local governing authority approvals, and other customary closing conditions normal for a transaction of this nature.
Michael Yorke, CEO stated “The sale of the Esmerelda THC property will be bittersweet for the Company. We used a combination of long-term mortgages and convertible debt to finance the project making this an attractive return on investment for CROP and its stakeholders. The sale of the Nevada project will clean up our balance sheet as well as provide capital to vertically integrate, hire additional personnel, and focus on the four states the Company remains present.”
About CROP
CROP is a publicly listed company trading on the CSE under the symbol CROP. The Company is focused on owning a portfolio of cannabis branding, CBD and real estate assets through its wholly and partially-owned subsidiaries. CROP’s portfolio of projects includes cultivation properties in California, two in Washington State, a 1,000-acre Nevada cannabis farm, 2,115 acres of Hemp CBD farms, and a growing portfolio of share equity in various companies within the cannabis space.
CROP has developed a portfolio of assets including Canna Drink, a cannabis infused functional beverage line and 16 cannabis brands.
- Published in Cannabis, CBD, CROP Infrastructure, Marijuana, News Home
Significant progress in EXMceuticals Portuguese Operations with R&D facility, New Project and Pilot-Scale Refinery
Momentum Public Relations
Press Release: July 31, 2019
EXMceuticals Inc. (CSE: EXM) (FSE: A2PAW2) (the “Company” or “EXM”), a cultivator and producer of high-grade cannabis extracted ingredients for the pharmaceutical, therapeutic, nutraceutical, and cosmetic industries, is pleased to provide an update on its Portuguese activities.
Significant progress has been achieved in reaching EXM’s technical and scientific objectives as regards its activities in Portugal.
- New R&D facility: Construction of new Research & Development (R&D) facility, located inside the Tec Labs Innovation Centre, the incubator of the Faculty of Sciences of University of Lisbon, Portugal, by EXMceuticals Portugal is complete and the new R&D facility is operational.
- New CBD and terpene research opportunities for various industries: The new R&D facility will enable research into CBD and terpene formulations for the nutraceutical, cosmetics and wellness industries. In the medium term the R&D activities will also target pharmaceutical grade formulations.
- New research project: EXMceuticals Portugal has commenced a new research project under the Portugal 2020 program, which is being executed in the new R&D facility. Portugal 2020 is a Framework Program between Portugal and the European Commission that brings together the five European Structural and Investment Funds.
- Importation, research and development licensing: EXMceuticals Portugal is in the process of obtaining, from INFARMED, the Portuguese National Authority of Medicines and Health Products, research and development authorizations allowing EXM to import cannabis-based ingredients. This will also permit EXM to refine, manufacture and export cannabis-based medicinal products from the pilot-scale refining facility built as part of the new R&D lab. The pilot-scale refinery and manufacturing activities are included in the submitted Portugal 2020 R&D project.
- New R&D analytical procedures: Initial R&D activities regarding CBD extraction, purification and associated analytical procedures have been ongoing for several months, in collaboration with local universities, and have already identified several innovative methods of streamlining and improving the various processes.
- Jobs creation: In the next 12 months, EXM plans to create over 80 highly qualified technical & scientific research jobs in Portugal as we move from our current R&D pilot-scale production towards industrial-scale production and we increase the number and scope of the projects undertaken in our R&D facilities.
Jonathan Summers, Chairman of EXM, added, “Our dedicated R&D activities are now fully functional, and these offer huge scope to create original and unique formulations that will benefit the emerging CBD industry as well as consumers. Our pilot refining and manufacturing capabilities will be fully operational within a few weeks once fully licenced. EXM continues to work very closely with the relevant Portuguese authorities, especially INFARMED, regarding our Portuguese activities. The Portuguese regulators and relevant governmental agencies continue to be very supportive and engaged.”
This is the first step towards creating EXM’s European base for R&D and distribution. The company plans to create an environment for advanced research innovation, training and collaboration with the industry. ”Molecules from cannabis are extraordinary and the scientific community around the world is starting to understand the enormous potential of the plant,” said EXM Chief Innovation Officer Susana Santos. “Our R&D facility includes state of the art equipment and is aimed ensuring the highest standards of quality assurance that will guarantee that our client’s customers are always protected and their expectations fully satisfied.”
ON BEHALF OF THE BOARD OF DIRECTORS OF EXMCEUTICALS INC.
Michel Passebon, Chief Executive Officer and Director
For further information contact:
Investor Relations
Email: investors@exmceuticals.com
Media Enquiries:
Email: media@exmceuticals.com
Europe – Jane Glover: +44 (0) 203 757 4990
North America – Mélanie Guillemette: +1 819 668 2734
- Published in Cannabis, CBD, EXMceuticals, Marijuana, News Home
Crop’s First California Extracts Pass Pesticide and Heavy Metal Testing
Momentum Public Relations
Press Release: July 24, 2019
CROP INFRASTRUCTURE CORP. (CSE: CROP) (OTC: CRXPF) (Frankfurt: 2FR) announced today that its first batch of THC distillate cartridges derived from the 2018 harvest have passed heavy metal and pesticide testing consistent with the excellent initial test results after the 2018 harvest.
The packaging team has now resumed filling cartridges in preparation of the launch of Evolution Cannabis and Hempire brands in California.
Furthermore, the first two greenhouses at the Humboldt organic farm have been harvested and are awaiting trimming, testing and packaging.
This will allow the company to launch its premium distillate line and organic fresh flower SKUs into the California market through internal sales and the partially owned Flip Distro, giving sales teams a full suite of products to offer retailers.
CROP CEO, Michael Yorke, stated: “This is a solid step forward rolling out our cartridge, flower and pre-rolled lines into the California market, further benefiting from the recent, partial acquisition of Flip Distro with its experienced sales staff.”
About CROP
CROP is publicly listed company trading under symbol CROP.CSE. The company is focused on cannabis branding and real estate assets. CROP’s portfolio of projects includes cultivation properties in California, two in Washington State, a 1,000-acre Nevada cannabis farm, 2,115 acres of Hemp CBD farms, and a growing portfolio of common share equity in upcoming listings within the cannabis space.
CROP has developed a portfolio of assets including Canna Drink, a cannabis infused functional beverage line and 16 Cannabis brands.
Company Contact
Michael Yorke – CEO and Director
E-mail: info@cropcorp.com
Website: www.cropcorp.com
Phone: (604) 484-4206
- Published in Cannabis, CBD, CROP Infrastructure, Marijuana, News Home
Grown Rogue Issued Patent for Nitrogen Sealed Pre-Rolls
Momentum Public Relations
Press Release: July 22, 2019
Grown Rogue International Inc. (CSE:GRIN | OTC:GRUSF) (“Grown Rogue” or the “Company“), a vertically-integrated, multi-state cannabis company with licenses and assets in Oregon, California, and now entering Michigan, announced today the US Patent and Trademark Office awarded Grown Rogue full patent for its innovative “Certified Fresh” Nitrogen Sealed Pre-rolls. The Nitrogen Sealing Process eliminates oxygen through nitrogen injection which preserves the freshness of the flower. The process also vacuum seals the product to lock in freshness.
“There are dozens of premium pre-rolls in the cannabis market, but there is only one innovation that seals with nitrogen and ensures freshness,” said Obie Strickler, CEO and Co-Founder of Grown Rogue.
Several cannabis companies have used nitrogen to seal cannabis in various applications but Grown Rogue is the first to develop a solution to seal a glass tube with nitrogen. “Customers can see the quality of product through the glass and with the nitrogen infusion will know that they can enjoy a truly fresh cannabis experience,” added Mr. Strickler.
Grown Rogue first introduced the “Certified Fresh” Nitrogen Sealed Pre-rolls in January 2018 which drove sales and brand awareness in the Oregon market. Since then, the Nitrogen Sealed Pre-Rolls have become a symbol of the companies’ commitment to Innovation in a competitive marketplace. The company has developed nitrogen sealed 3.5 gram glass flower jars which is also an industry first, but is not currently seeking a patent for that innovation. The detailed overview along with a video showcasing the patented “woosh” sound is available online.
“Customers have a lot of choices when it comes to pre-rolls and cannabis products in general and our innovative “Certified Fresh” Nitrogen Sealed products speak to our unique differentiation in product development and our commitment to empowering consumers to enhance life experiences through cannabis,” added Rob Rigg, EVP Marketing at Grown Rogue.
Several companies have approached Grown Rogue to license the Nitrogen Pre-Rolls in other markets across the United States. “Our plan is to license the technology and process to partners in areas where we do not have near term expansion plans,” said Mr. Strickler. “Like Tesla or Apple, we want to launch technologies across the world that positively impact the consumer experience,” added Mr. Strickler.
About Grown Rogue
Grown Rogue International (CSE: GRIN | OTC: GRUSF) is a vertically-integrated, multi-state Cannabis family of brands on a mission to inspire consumers to “enhance experiences” through cannabis. We have combined an expert management team, award winning grow team, state of the art indoor and outdoor manufacturing facilities, and consumer insight based product categorization, to create innovative products thoughtfully curated from “seed to experience.” The Grown Rogue family of products include sungrown, light dep and indoor premium flower, live rosin jars and terp diamonds, infused, indoor and sungrown pre-rolls, live resin and rosin carts, along with chocolate edibles created in partnership with a world-renowned Chocolatier.
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- Published in Cannabis, CBD, Grown Rogue, Marijuana, News Home