PALM BEACH, Fla., Aug. 17, 2021 /PRNewswire/ -- FinancialNewsMedia.com News Commentary - Hemp derived products have taken off in the last few years and are expected to continue to rise in the years to come. Products in the market provide users the health benefit of cannabidiol without intoxication. Hence, they are gaining traction within a short time. Moreover, competition in the global market is high because companies are focused on increasing their product offerings, entering new markets, and gaining new consumers. Due to its healing properties, the demand for cannabidiol (CBD) for health and wellness purposes is high, which is the major factor driving the market growth. In addition, the rising acceptance and use of products due to government approvals is a major factor expected to boost production for CBD-infused products. Out of all cannabinoids, cannabidiol is most widely used for therapeutic reasons due to the lack of psychoactive effects. In many medical applications, cannabidiol oil is used, such as anxiety and depression treatment, stress relief, diabetes prevention, pain relief, cancer symptom relief, and inflammation. Due to the increasing adoption of CBD-based products to treat ailments, the global cannabidiol market is anticipated to grow at a lucrative rate over the forecast period. A report from Grand View Research said that the global cannabidiol market size was valued at USD 2.8 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 21.2% from 2021 to 2028. "The hemp segment dominated the market and accounted for the largest revenue share of 59.6% in 2020. The increasing acceptance of refined CBD products combined with the increasing legalization of marijuana and marijuana-derived products for various medical applications is driving the growth of this segment. In addition, the high effectiveness of cannabidiol extracted from marijuana is a key factor for the large share of the market." Active companies in the markets this week include:CAN B CORP. (OTCQB: CANB), Tilray Inc. (NASDAQ: TLRY), Sundial Growers Inc. (NASDAQ: SNDL), Agrify Corporation (NASDAQ: AGFY), MariMed, Inc. (OTCQX: MRMD).
Grand View Research continued, "Cannabidiol derived from hemp is anticipated to witness rapid growth owing to increasing demand from the pharmaceutical sector and rising awareness among consumers regarding health. Increasing consumer disposable income along with the legalization of medicinal cannabis is anticipated to have a positive impact on the demand for cannabidiol in the pharmaceutical sector. Oils, tinctures, concentrate, capsules, topical solutions such as slaves, lip balms, lotions, and edibles such as baked goods, coffee, chocolates, gums, and candies are some of the CBD products which are in high demand. Furthermore, the use of hemp-derived CBD is increasing rapidly owing to its anti-inflammatory, anti-aging, and antioxidant properties. Various industries such as pharmaceuticals, personal care and cosmetics, nutraceuticals, and food and beverages are developing CBD-derived products for health and wellness purposes. Therefore, the above-mentioned factors would be responsible for this segment's fastest growth rate over the forecast period."
CAN B CORP. (OTCQB: CANB) BREAKING NEWS:Can B Corp. Closes Acquisition of Assets from TWS Pharma in CO to Significantly Expand Capabilities in Converting Hemp Biomass to Isolate Used in our CBD and Isomer Product Lines - Adds $5 Million in Processing Assets - Can B Corp. ("Can B" or the "Company"), a diversified health and wellness company specializing in the development, production and sale of products containing hemp derived cannabinoids, is pleased to announce its acquisition of assets from TWS Pharma, based in Mead, Colorado.
The transaction is valued at over $5 million for hemp processing and extraction assets located in 3 buildings totaling 50,000 square feet in northeast CO.
Marco Alfonsi, Can B's Chief Executive Officer, commented, "This is a significant move for our Company that we strongly believe will add value for our shareholders. It enables us to process biomass into isolate which is the core ingredient for hemp isomers, such as CBN, CBG, Delta-8 and Delta-10. It is strategic to our existing Lacey, Washington facility and expected to add significantly to revenue from now through the end of 2021. By securing our own processing and extraction facilities we for the first time control our supply chain from biomass through end products for both retail and wholesale customers".
The 15,000 square foot facility located in Mead, Colorado is a state-of-the-art extraction operation which converts hemp biomass and unwinterized crude to winterized crude and high-quality CBD crude oil. The 18,000 square foot operation in Fort Morgan, Colorado, a former Budweiser facility, will be used to convert winterized crude to CBD distillate. The ICS facility located in a 30,000 sq. ft. building also located in Fort Morgan CO and will be used to convert distillate to isolate. The Company has yet to execute the leases for these facilities but has negotiated and agreed on the terms with each landlord. This processing of hemp biomass to CBD consumer products gives us supply chain control and chain-of custody for purity, analysis, and certification of our products. The startup costs to have all the equipment fully functional and in full operation will require approximately $250,000 and 30 days.
All of these newly acquired assets will feed the Company's Nutraceutical lab in Lacey, Washington facility and the two isomer (Delta-8- CBD- CBG) operations in Miami Florida and Mcminville Tennessee. No Delta-8 will be produced in CO where it is illegal to do so.
In regard to biomass, the Company is in final negotiations to acquire several million pounds of biomass that is already harvested, bagged and partially dried. Historically, a million pounds of biomass converts to approximately 16,000 kilos of isolate that when fully processed to an isomer, converts into approximately 15,000 liters of Delta-8 or other isomers. At today's isomer market price this equates to a $10 million top line revenue per million pounds of biomass. At start-up production levels the existing CO operation is targeting an annual throughput of 1.5 million pounds of biomass processed.
Dave Stock, TWS Pharma majority owner, stated, "After weeks of detailed due diligence and planning, I believe Can B has a solid plan to utilize and monetize these assets. Coupled with their existing facility in Lacey, Washington gives them a feedstock to supplier to processor model that will allow them to compete at substantial volume of quality product at competitive pricing. Additionally, this transaction will award the local communities by welcoming back up to 30 returning local employees."Read this full release for CANB at:https://www.financialnewsmedia.com/news-canb/
Other cannabis-related developments from around the markets include:
Agrify Corporation (NASDAQ: AGFY), a developer of highly advanced and proprietary precision hardware and software grow solutions for the indoor agriculture marketplace, recently announced it has signed a definitive agreement (the "Agreement") with its second Agrify Total Turn-Key Solution ("Agrify TTK Solution") customer, True House Cannabis LLC ("THC"). THC is a minority-owned cannabis venture and an economic empowerment applicant that has recently applied to become a fully integrated tier-two licensed cultivator in Haverhill, MA, which is located approximately 30 minutes outside the city of Boston. Upon regulatory approval, THC plans to open two retail locations in Haverhill, MA and Methuen, MA.
Under the terms of the Agreement, Agrify will work with THC on the build-out of its 22,000 square foot facility (the "Facility"), including the installation of 159 of Agrify's Vertical Farming Units ("VFUs") along with integrated catwalks, integrated grow racks, and pest mitigation solutions. Agrify will also provide senior financing of up to $7 million to fund the construction of the Facility, which is expected to be repaid within 30 months following the commencement of the first commercial production at the Facility. In addition, Agrify will receive fixed SaaS revenue derived from THC's use of the Agrify Insights cultivation software, as well as additional production-based fees and brand licensing fees. The deal is expected to generate up to $45.3 million in revenue over the 10-year contract period.
Tilray, Inc. (NASDAQ: TLRY) (TSX: TLRY), a global pioneer in medical cannabis research, cultivation, and production, recently announced the launch of medical cannabis edibles in THC and CBD-rich varieties of chocolates and soft chew gummies. The new Tilray-branded medical cannabis edibles are now available for patients across Canada and add to the brand's comprehensive offering of cannabis medicines, including whole flower, oils, vapes, and pre-rolls developed with patient health and wellbeing in mind.
Irwin D. Simon, Tilray's Chairman and Chief Executive Officer, said, "Whether it's pain management, anxiety treatment, or everything in between, patients are asking for more choices in the medical cannabis category, and Tilray remains committed to the innovations that improve patient wellbeing. As cannabis regulations evolve around the world, we look forward to offering our global patient community the highest-quality medicines they depend on for health, wellness and wellbeing."
Tilray's new medical cannabis edibles include two formulations of 16-gram medical cannabis-infused chocolate bars in THC Milk Chocolate containing 10mg of THC and <1mg of CBD per package and CBD Dark Chocolate containing 1mg of THC and 20mg of CBD per package, as well as two formulations of medical cannabis soft chews available in Watermelon containing 10mg of THC and Pineapple-Mango containing 10mg of THC and 10mg of CBD.
Sundial Growers Inc. (NASDAQ: SNDL) recently reported its financial and operational results for the second quarter ended June 30, 2021. All financial information in this press release is reported in millions of Canadian dollars and represents results from continuing operations, unless otherwise indicated.
"Following Sundial's restructuring in 2020, we have been able to rapidly reshape the business model to focus on a two-pillar strategy that we believe will position our shareholders for future success," said Zach George, Chief Executive Officer of Sundial. "The first pillar is comprised of our core cannabis operations which are now vertically integrated with the acquisition of the Spiritleaf retail network. Our upstream cultivation results within our indoor modular facility continue to improve amidst the intentional reduction of activity and we are excited about targeted innovation that we plan to introduce later this year. We are focused not only on the challenging and dysfunctional Canadian industry landscape today but are mapping the characteristics of a dominant and stable business model in a healthier environment that we expect within three years, following necessary regulatory reform and industry consolidation. The second pillar is our investment operations where most of our capital exposure is committed to our joint venture, SunStream Bancorp. The SunStream Bancorp team is focused on deploying capital within the cannabis sector on an attractive risk-adjusted basis and is exploring broader opportunities within financial services. Sundial will benefit from a growing, predictable interest income stream as this capital is deployed and the resulting cash flow has materially buffered our pre-profit core cannabis operations to date. We have also made a small number of select equity investments in businesses that we believe can enhance our upstream and downstream capabilities.
MariMed, Inc. (OTCQX: MRMD) a leading multi-state cannabis operator focused on health and wellness and improving lives every day, recently announced its financial and operating results for the quarter ended June 30, 2021.
Q2 2021 Financial Highlights Were: Reported revenue of $32.6 million, an increase of 239% versus the second quarter of 2020, and an increase of 32% versus the first quarter of 2021; Reported gross profit on revenue of $19.4 million, an increase of 215% versus the second quarter of 2020, and an increase of 47% versus the first quarter of 2021; Reported EBITDA of $12.3 million, the 6thsequential quarter of positive EBITDA growth. Reported EBITDA increased 440% versus the second quarter of 2020, and an increase of 61% versus the first quarter of 2021; Reported Adjusted EBITDA of $13.9 million, a 391% increase in the second quarter of 2020 versus an increase of 73% in the first quarter of 2021; Reported net income of $7.6 million in the second quarter of 2021 versus a net loss of $1.1 million in the second quarter of 2020, and net income of $4.3 million versus the first quarter of 2021; Increased working capital as of the end of the second quarter of 2021 to $24.3 million, an increase of $26.5 million versus the end of the fourth quarter of 2020, and an increase of $7.2 million versus the end of the first quarter of 2021; Reported $10.8 million in positive cash flow from operations in the second quarter of 2021, an increase of $9.9 million versus the second quarter of 2020, and an increase of $4.0 million versus the first quarter of 2021, continuing to show the Company's ability to convert EBITDA to free cash flow; and The Company increased its 2021 guidance for revenue from $100 million to $118 million and EBITDA from $30 million to $32 million. The Company is also including guidance for the first time of Adjusted EBITDA of $42 million.
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