PALM BEACH, Florida, Aug. 8, 2019 /PRNewswire/ -- The rise of the cannabis market is being driven by consumer acceptance and demand. Consumers are not just eating cannabis up, but they are also drinking, vaping, dabbing, smoking — and the list goes on. It's been said that consumers are calling the shots and creating the direction that the markets will go in the future. Consumers are becoming more educated and are seeking retail cannabis products with a wide variety of products and of high quality. Increasing social consumer acceptance of cannabis products is driving up the value of cannabis derived/infused products. According to a recent industry report there are four major submarkets: Flower; Edibles; Concentrates; and Other. In 2017 Flower revenues were $4.2 Billion and were 50% of the market. By 2022 it is estimated to be a $10.5 Billion while shrinking to only 36% of the market. In 2017 Edibles revenues were $1 Billion and were 12% of the market. By 2022 it is estimated to be a $4.1 Billion while growing to a 14% market share. In 2017 Concentrates revenues were $1.9 Billion and were 23% of the market. By 2022 it is estimated to be a $10.5 Billion market while growing to a 36% market share. Lastly, in 2017 Others revenues were $1.3 Billion and were 15% of the market. By 2022 it is estimated to be a $4.1 Billion while reducing to a 14% market share. Active companies in the industry making moves to ready that include: Choom™ Holdings Inc. (OTCQB: CHOOF) (CSE: CHOO), Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB), Fire & Flower Holdings Corp. (OTCPK: FFLWF) (TSX-V: FAF), Green Growth Brands Inc. (CSE: GGB) (OTCQB: GGBXF), Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF).
The Report gave an overview of the market: "While seasoned consumers prefer smoking cannabis, other consumers are actually drawn to alternative forms that the plant comes in. Proprietary research from New Frontier reveals the products that most appeal to potential U.S. cannabis consumers: 69% solid edibles; 54% liquid edibles; 44% topicals; 36% joints or blunts; 32% vaporizers (vapes); 29% tinctures; 21% concentrates; and 19% pipes / water pipes. The rising popularity in retail cannabis-derived products is being directed by consumers – and they're using products for everything from relaxation to pain management."
Choom™ Holdings Inc. (CSE: CHOO) (OTCQB: CHOOF) BREAKING NEWS: Choom™, an emerging adult use cannabis company that has secured one of the largest national retail networks in Canada, is pleased to announce that an Alberta provincially approved cannabis retail licensee ("Licensee") is opening a cannabis retail store in Medicine Hat, Alberta operating under the Choom brand.
"We're thrilled to see another Choom-branded store to open in Alberta. We look forward to welcoming the Medicine Hat community as we share our unique retail experience." said Chris Bogart, President and CEO of Choom. "We are very pleased with the progress made in Alberta and look forward to our rapid expansion schedule for more Choom-branded cannabis retail stores to open throughout the province."
The Choom-branded store is set to open on Saturday, August 10th. The new store is located at 643 3 Street SE, Medicine Hat, Alberta. Opening hours are 10am – 10pm (Monday to Saturday), and 11am – 6pm (Sunday). For more information, visit choom.ca.
In addition to a licensing agreement with the Licensee, Choom has entered in a purchase agreement with the Licensee, pursuant to which, subject to receipt of approval from Alberta's regulatory bodies, Choom will acquire the Medicine Hat store. Read this and more news for Choom™ at: https://www.financialnewsmedia.com/news-choo/
Additional industry related developments from around the markets:
Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB) the Canadian company defining the future of cannabis worldwide, recently provided a corporate update on selected financial metrics for the fourth quarter of the Company's Fiscal 2019 ("Q4 2019") period ended June 30, 2019. This reiteration of guidance and clarification of operations is intended to update our investors as Aurora continues to demonstrate leadership in transparency and disclosure as the industry navigates throughs periods of volatility. Full results will be published prior to September 15, 2019, details for which will be provided in advance.
Based on a preliminary (unaudited) review, the Company anticipates net revenues for the quarter ended June 30, 2019 of between $100 million and $107 million (net of excise taxes), compared to $19.1 million in the period ended June 30, 2018, and compared to $65.1 million for the previous quarter ended March 31, 2019. Fiscal Q4 2019 net cannabis revenue is expected to be between $90 million and $95 million, with growth anticipated across all key business segments including medical, both Canadian and international, and consumer markets. The Company anticipates total net revenues for the fiscal year ended June 30, 2019 to be between $249 million - $256 million. The Company expects to report that production available for sale for Q4 2019 will be at the upper end of the range between 25,000 kg and 30,000 kg, ahead of previous guidance of 25,000 kgs.
Fire & Flower Holdings Corp. (TSX-V: FAF.V) (OTCPK: FFLWF) recently confirmed the closing of their transaction previously announced on July 24, 2019 (the "Transaction"). In addition, the common shares in the capital of Fire & Flower (the "Common Shares") commenced trading on the Toronto Stock Exchange as of August 7, 2019.
The Transaction includes the issuance today by Fire & Flower of an 8.0% unsecured convertible debenture to an indirect wholly-owned subsidiary of Couche-Tard (the "Investor") in the aggregate principal amount of approximately $26.0M, which principal amount of debenture is convertible by the Investor into 24,289,706 Common Shares (if converted in full) at a price of $1.07 per Common Share, representing a 9.9% ownership interest in Fire & Flower on a pro forma fully-diluted basis. The Investor has also been issued Common Share purchase warrants that, if exercised in full in accordance with the terms thereof, will subsequently increase the Investor's ownership interest to 50.1% of Fire & Flower on a pro forma fully-diluted basis.
Green Growth Brands Inc. (CSE: GGB.CN) (OTCQB: GGBXF) announced that it expects to open its 100th Seventh Sense Botanical Therapy ("Seventh Sense") mall-based shop on Thursday, August 8th. The first Seventh Sense shop opened in early February.
"This is a huge milestone for Green Growth Brands and Seventh Sense," said Peter Horvath, CEO of Green Growth Brands. "We believe we have created the largest and most valuable network of brick and mortar CBD shops in the country."
Trulieve Cannabis Corp. (CSE: TRUL.CN) (OTCQX: TCNNF) recently announced that the Company will begin trading on August 6, 2019 on the OTCQX® Best Market under the symbol "TCNNF", having graduated from the Pink® market.
"We are thrilled to begin trading on the OTCQX Market just ahead of our one-year anniversary as a public company," commented Kim Rivers , CEO of Trulieve Cannabis Corp. "This has been an exciting first year as we execute on our brand strategy and expansion plans to remain the dominant market leader in the fast-growing Florida market, gain momentum in California, Massachusetts and Connecticut, and enter into two new states by the end of 2019. This latest milestone should provide additional visibility within the investment community in order to build awareness of Trulieve more broadly and drive shareholder value."
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