CannabisNewsWire
Editorial Coverage: Canada became the first country in the G8
to legalize recreational cannabis. With all the buzz surrounding
Canada’s cannabis boom, savvy investors have begun to assess the
U.S. market, focusing on companies such as Chemistree
Technology, Inc. (CSE: CHM) (OTCQB: CHMJF) (CHMJF
Profile), which in July 2018 purchased a suite of
physical assets, currently under lease to Sugarleaf Farm LLC, a
I-502 Tier 3 licensee located in Sedro Woolley, Washington. This
moved was fueled by movement north in Canada, including large
Canadian cannabis companies such as Origin House (CSE: OH)
(OTCQX: ORHOF) and Namaste Technologies (TSX.V: N)
(OTCQB: NXTTF), which are already seeing major success as
their products continue to sell well across the country. While
newer entrants in the cannabis industry such as CannTrust
Holdings (TSX: TRST) (OTC: CNTTF) and iAnthus
Capital (CSE: IAN) (OTCQX: ITHUF) are creating their own
product lines and playing catch up with major brands that consumers
are already familiar with.
To view an infographic of this editorial, click here.
Establishing Brands Early
Large-scale cannabis legislation has never existed to the extent
that it now does in Canada. With major Canadian companies creating
brands that resonate with cannabis consumers.
The legal U.S cannabis market is worth an estimated $8.5 billion, claiming 90 percent of
the entire $9.5 billion global market. Of that, sales of legal
marijuana in Washington State have climbed up to $1.3 billion in the fiscal year 2017, up from
$786 million in fiscal 2016, and $259 million the year before. The
Canadian market was worth only 6 percent of that $9.5 billion total
in 2017. In Canada, competition is heating up as the larger
cannabis companies battle for their share of the market. They are
relying on their brands and name recognition to help them achieve
success.
However, the U.S. cannabis market is shaping up differently. Due
to cannabis being federally illegal in the United States, cannabis
companies are unable to ship their products across state lines. The
unique state-by-state approach to legalization has provided
Chemistree
Technology, Inc. (CSE: CHM) (OTCQB: CHMJF) with an
ideal environment to build its brands through the production and
sale of premium cannabis in California and Washington. It has also
shielded American companies from an influx of foreign product.
Chemistree is another company that is focused
on establishing quality brands. The company originally acquired
Sugarleaf’s assets in Washington in order to augment its product
line with a desirable premium brand. Sugarleaf is already featured
in over 50 dispensaries within the state, with estimates suggesting
that it will penetrate over 100 stores by 2018 and as many as 200
stores by 2019.
Sugarleaf’s signature White 99 strain has a THC level that
registers between 28–32 percent. This is incredibly high even when
compared to some of the premium cannabis strains that are being
grown in Canada. Sugarleaf’s master grower, Jason Flynn, is one of
the many reasons Chemistree chose to acquire the brand. Flynn and
his team have won two consecutive cannabis cup competitions for
their strains, including the 2014 People’s Choice (Presidential
Kush) and 2015 People’s Choice (White 99).
Chemistree also managed to purchase property in the middle of
California’s cannabis-friendly Desert Hot Springs for a reasonable
$1.23 million. The site is large enough to support up to 205,000
square feet of greenhouses spread out across three facilities. Once
fully operational, the company could produce nearly 50,000 pounds
of cannabis per year. Desert Hot Springs is a popular cannabis
region where there are 3.78 dispensaries
for every one thousand people, which is the second highest pot
shop density in the state.
Premium Cannabis Is the Real Asset
The demand for premium products exists as cannabis enthusiasts
desire THC-rich strains in order to achieve a vivid sensory
experience. Growing high-quality cannabis at scale is a challenge
that many large producers struggle with as it costs more to
produce, and the margin of error is higher.
Health Canada predicts that nearly 2.2 million pounds of cannabis will be consumed
within Canada in 2018 alone. The majority of that cannabis will be
low- and mid-grade quality, which wholesales for a lot less.
Premium cannabis, while more difficult to grow, does provide
companies that can grow it with higher profit margins. According to
Deloitte, high-quality cannabis could sell for up to 12 percent more than lower quality flower.
The majority of the provinces have supply agreements in place
with various licensed producers in the industry. These supply
agreements were established in order to provide additional premium
cannabis to those provinces.
Demand Will Only Increase
The U.S. cannabis sector is currently in its formative stages.
Established companies within the industry that are preemptively
laying the framework before the federal government legalizes
recreational cannabis should have the ability to build brand
recognition and scale them as the floodgates open.
Grand View Research predicts that the global cannabis market
could be worth $146.4 billion by 2025. Companies such as Chemistree
may be ideally positioned to take advantage of a larger global
market because of its focus on building long-term brands that
appeal to cannabis users.
Major Players in North American Cannabis
Origin House (CSE: OH) (OTCQX: ORHOF) is
focused on creating global brands. It currently holds more than 50
brands including Bhang, Soul Sugar Soul Kitchen and Green Rock
Botanicals, among others. The company has a distribution network of
4500plus dispensaries across the United States. With a suite of
established brands across key markets in North America, Origin is
actively developing infrastructure to support the proliferation of
its brands internationally, initially through its acquisition of
Canadian retailer 180 Smoke.
CannTrust Holdings (TSX: TRST) (OTC: CNTTF) is
a relatively new Canadian cannabis company specializing in medical
cannabis products including CBD- and THC-infused capsules and oils.
CannTrust recently partnered with Breakthru Beverage Group’s
subsidiary company Kindred to secure distribution through the
Canadian adult consumer market.
Namaste Technologies (TSX.V: N) (OTCQB: NXTTF)
operates the largest global cannabis e-commerce platform with more
than 30 websites in 20 countries under various brands. The company
product offering through its subsidiaries — such as CannMart Inc.,
VapeBR, VaporSeller, etc. — includes vaporizers, glassware,
accessories, CBD (cannabidiol) products and medical cannabis in the
Canadian market.
iAnthus Capital (CSE: IAN) (OTCQX: ITHUF) is a
U.S.-based licensed producer and cannabis retail company. iAnthus
currently owns a 200,000-square-foot facility in Lake Wales,
Florida, and a 4,500-square-foot dispensary in Palm Beach County,
Florida. It is also planning to scale to more than 30 locations
throughout the state in the coming years.
For more information on Chemistree, visit Chemistree
Technology, Inc. (CSE: CHM) (OTCQB: CHMJF)
Please also read and review the article 'With Cannabis
Now Legal in Canada, Investors Are Turning South to the Largest
Emerging Cannabis Market in the World'
About CannabisNewsWire
CannabisNewsWire (CNW) is an information service that provides
(1) access to our news aggregation and syndication servers, (2)
CannabisNewsBreaks that summarize
corporate news and information, (3) enhanced press release
services, (4) social media distribution and optimization services,
and (5) a full array of corporate communication solutions. As a
multifaceted financial news and content distribution company with
an extensive team of contributing journalists and writers, CNW is
uniquely positioned to best serve private and public companies that
desire to reach a wide audience of investors, consumers,
journalists and the general public. CNW has an ever-growing
distribution network of more than 5,000 key syndication outlets
across the country. By cutting through the overload of information
in today’s market, CNW brings its clients unparalleled visibility,
recognition and brand awareness. CNW is where news, content and
information converge.
Receive Text Alerts
from CannabisNewsWire: Text "Cannabis" to
21000
For more information please visit https://www.CannabisNewsWire.com and
or https://CannabisNewsWire.News
Please see full terms of use and disclaimers on the
CannabisNewsWire website applicable to all content provided by CNW,
wherever published or re-published: http://CNW.fm/Disclaimer
CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.net
DISCLAIMER: CannabisNewsWire (CNW) is the source of the Article
and content set forth above. References to any issuer other than
the profiled issuer are intended solely to identify industry
participants and do not constitute an endorsement of any issuer and
do not constitute a comparison to the profiled issuer. The
commentary, views and opinions expressed in this release by CNW are
solely those of CNW. Readers of this Article and content agree that
they cannot and will not seek to hold liable CNW for any investment
decisions by their readers or subscribers. CNW is a news
dissemination and financial marketing solutions provider and is NOT
registered broker-dealers/analysts/investment advisers, hold no
investment licenses and may NOT sell, offer to sell or offer to buy
any security.
The Article and content related to the profiled company
represent the personal and subjective views of the Author, and are
subject to change at any time without notice. The information
provided in the Article and the content has been obtained from
sources which the Author believes to be reliable. However, the
Author has not independently verified or otherwise investigated all
such information. None of the Author, CNW, or any of their
respective affiliates, guarantee the accuracy or completeness of
any such information. This Article and content are not, and should
not be regarded as investment advice or as a recommendation
regarding any particular security or course of action; readers are
strongly urged to speak with their own investment advisor and
review all of the profiled issuer’s filings made with the
Securities and Exchange Commission before making any investment
decisions and should understand the risks associated with an
investment in the profiled issuer’s securities, including, but not
limited to, the complete loss of your investment.
CNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E the Securities Exchange Act of 1934, as amended and
such forward-looking statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. “Forward-looking statements” describe future expectations,
plans, results, or strategies and are generally preceded by words
such as “may”, “future”, “plan” or “planned”, “will” or “should”,
“expected,” “anticipates”, “draft”, “eventually” or “projected”.
You are cautioned that such statements are subject to a multitude
of risks and uncertainties that could cause future circumstances,
events, or results to differ materially from those projected in the
forward-looking statements, including the risks that actual results
may differ materially from those projected in the forward-looking
statements as a result of various factors, and other risks
identified in a company’s annual report on Form 10-K or 10-KSB and
other filings made by such company with the Securities and Exchange
Commission. You should consider these factors in evaluating the
forward-looking statements included herein, and not place undue
reliance on such statements. The forward-looking statements in this
release are made as of the date hereof and CNW undertakes no
obligation to update such statements.
Source:
CannabisNewsWire
Contact:
CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.net
Chemistree Technology (CSE:CHM)
Historical Stock Chart
From Nov 2024 to Dec 2024
Chemistree Technology (CSE:CHM)
Historical Stock Chart
From Dec 2023 to Dec 2024
