CannabisNewsWire
Editorial Coverage: The explosive growth recently seen in the
cannabis industry presents a rare chance for savvy companies to
profit in a virtually untapped market.
- Legal marijuana market projected to reach $146.4 billion.
- United States and Canada current epicenter of cannabis
growth.
- Brand recognition and retail reach imperative for market
share.
The cannabis bonanza has created a rare window of opportunity
for companies that are able to capture market share and create
long-term success. Brand recognition and retail reach look to be
key to obtaining these lucrative rewards. Shortly after posting its
tenth consecutive quarter of increased revenues, Wildflower
Brands Inc. (OTCQB: WLDFF) (CSE: SUN) (WLDFF
Profile) announced intentions to further expand its
footprint with the acquisition of premier licensed cannabis
retailer, City Cannabis Corp. A finalized accretive acquisition
will add significant revenues to Wildflower, providing access to
several valuable cannabis licenses in lucrative premium locations.
Other companies in the sector are also looking to grow in the
market through a variety of promising ways. Aurora Cannabis
Inc. (NYSE: ACB) (TSX: ACB) announced it has entered into
a binding letter agreement with Hempco Food and Fiber Inc. to
acquire all of the issued and outstanding common shares of Hempco
not already owned by Aurora. Green Thumb Industries Inc.
(OTCQX: GTBIF) (CSE: GTII) has closed on the acquisition
of Los Angeles-based For Success Holding Company, the creator of
Beboe branded cannabis products. Acreage Holdings Inc.
(OTCQX: ACRGF) (CSE: ACRG) announced that it has entered
into a definitive arrangement agreement that grants Canopy Growth
the right to acquire 100% of its shares. And as part of its
strategy to become a multistate operator, Choom Holdings
Inc. (OTCQB: CHOOF) (CSE: CHOO) (CHOOF
Profile) has signed a letter of intent to purchase a
95% equity interest in a Florida-based vertically integrated
cannabis applicant.
To view an infographic of this editorial, click here.
Extraordinary Market Development
The extraordinary development of the cannabis industry can be
tied at least in part to a wave of public support that has turned
into overwhelming acceptance. Fifteen years ago, only a third of
Americans were in favor of federal legalization of marijuana.
Today, an estimated two-thirds of Americans support legalization, up from only 54% two years ago.
Among adults under age 35, a whopping 85% favor federal
legalization. Public acceptance gained so much momentum so fast
that the cannabis industry is struggling to meet the demand. As the
cannabis industry and markets mature, acquisition and consolidation
announcements have become almost daily occurrences.
The global legal marijuana market, valued at $9.3 billion in
2016, is expected to reach $146.4 billion
by the end of 2025, an incredible 16-fold increase over nine years.
Legal cannabis markets are still relatively new, and the market is
nowhere near its total sales potential. An estimated 272 million
global consumers use cannabis, equivalent to only about 4% of the
world’s population. Staggering increases in those numbers appear to
be all but certain. Perhaps nowhere is this hyper-growth more
spectacular than North America. Wall Street's top cannabis analyst forecasts the U.S. market to grow to
$80 billion by 2030 assuming national availability.
Center for Growth
Cannabis demand is even greater north of the border. The
industry has been facing cannabis supply shortages ever since
recreational cannabis was legalized across Canada. For example, the
cannabis market in country’s westernmost province, British
Columbia, registered slightly over CA$19 million in legal cannabis sales in 2018, but that number is projected
expected to explode to CA$722 million in annual sales in the next
five years by — a mind-boggling 37-fold increase over six
years.
Pegged to soar nearly
3,700% by 2024, British Columbia is an ideal center for
cannabis growth. Headquartered in the heart of this upsurge,
Wildflower
Brands Inc. (OTCQB: WLDFF) (CSE: SUN) has already
staked out an enviable market position and is further expanding its
retail footprint and product distribution in the province. The
company announced that it intends to acquire City Cannabis Corp. in
an all-stock deal.
Holding two of the three City of Vancouver licenses to sell
cannabis, City Cannabis is a premier cannabis retailer and the only
company with multiple licenses in British Columbia. The Letter of Intent looks to solidify Wildflower’s
position as a high-profile retail outlet of premium brands
generating millions in revenues right in the heart of the B.C.
cannabis boom.
“City Cannabis and Wildflower are the perfect combination of
premier products and a premier consumer retail experience,” said
Wildflower CEO William MacLean. “City Cannabis’ retail consumer
data and insight will help shape development of Wildflower’s
product line-up while the retail expertise of City Cannabis will
aid Wildflower in its retail expansion. The combination of
Wildflower and City Cannabis will form a truly global cannabis
company.”
First established in British Columbia in 2012, Wildflower now
has a retail reach that extends from Vancouver to New York.
Wildflower Brands is constantly expanding development, design,
marketing and retail distribution of its branded products in the
cannabis sector. The company launched into Washington State in 2016
and has seen consistent growth ever since.
Creating a Global Brand
Today Wildflower markets its distinctive CBD+ products to more
than 300 retailers in the health and wellness sector and operates
in regulated cannabis markets throughout North America in
accordance with jurisdictional regulations for THC and CBD+
products. Wildflower’s unique and holistic products are developed
and manufactured at the company’s U.S.-based GMP facilities, tested
by a third-party lab and backed by a 100%-satisfaction
guarantee.
Each Wildflower product is synergistically
formulated to create a unified global wellness brand. For example,
Wildflower’s highly recognized Wildflower Wellness brand offers a
broad array of hemp-based, full-spectrum, CBD-infused products from
vaporizers and capsules to tinctures, soaps and topicals.
The company’s King Recharge is on the cutting edge of cannabis
technology and delivery systems with its King Extracts, a sleek,
rechargeable vaporizer offering five popular CBD strains and a
unique pocket-sized charging and storage case.
Closely associated with select hospital oncology departments,
Exclusive is Wildflower’s Los Angeles-based dispensary of premium
cannabis products. Wildflower already owns 14 cannabis licenses in
California for recreational and medical cannabis cultivation,
manufacturing, distribution, retail and delivery. Activating all
these licenses could be a jackpot for the company, driving revenues
while minimizing risk.
Expansion into Canada with the acquisition of City Cannabis is
the next step in Wildflower’s global strategy. The thriving retail
outlet, with licenses for several more locations, provides
Wildflower with a high-profile presence in what may be one of the
greatest growth markets in the world. Wildflower plans to market
its enormously successful products through the outlet and launch
into the over-the-counter market with its CBD formulations and
accessories.
An Expanding Footprint
Wildflower’s U.S. presence now encompasses more than 200
retailers in Washington state and more than 20 retailers in New
York City. The company partnered with Retail Worx to establish
shop-in-shop retail locations in the nucleus of New York and open
its first Wildflower by Bridges General store.
A clear next move for Wildflower in this partnership is a
rollout into other Bridges General’s stores in New York City and
San Francisco. Retail distribution in other major U.S. markets
includes over 80 wellness and healthcare practitioners and an army
of retail stores nationwide numbering in the hundreds. Wildflower
is aggressively expanding both brand recognition and retail
reach.
Wildflower continues to capture increasing market share with
innovation, retail expansion and a growing family of popular
brands. The company’s strategic partnerships, acquisitions and
organic growth are all strengthened by the company’s focus on
creating loyal consumers.
Grabbing national and celebrity attention, Wildflower used
ingenious product placement during the 2019 Oscars by including its
CBD+ Healing Stick in each of the gift bags of the stars, and
Hollywood is embracing the product.
But Wildflower didn’t just aim for the stars. Wildflower
launched an infomercial campaign in Phoenix promoting the company’s
Wellness’ Cool Stick. And across the country, the company has
employed an innovative pop-up store technique in SoHo, New York, to
introduce its Wildflower Wellness products. To make this happen,
Wildflower identified a compatible high-profile retail venue and
struck a deal with the outlet, then marketed its products with
fanfare in the upscale establishment for a limited time period,
raising market uptake and visibility.
Clearly Wildflower seems to be on a mission to create a global
cannabis enterprise. With such rapid expansion of brand recognition
and retail distribution, Wildflower is firmly establishing its hold
on the cannabis bonanza.
Buying Up Cannabis
And Wildflower isn’t alone in focusing on the booming cannabis
business. Several market leaders have announced recent moves
designed to strengthen their positions in the sector.
With its acquisition of the remaining common shares of Hempco,
Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB)
gains low-cost, high-volume access to hemp for
the extraction of CBD, a component that has been recognized for its
therapeutic benefits across a wide range of medical indications and
wellness applications. Aurora recognized this potential early,
investing in Hempco as early as 2017. The company subsequently
expanded its hemp-based infrastructure through the acquisitions of
Agropro, Borela and ICC Labs.
By acquiring the Beboe product line, Green Thumb
Industries Inc. (OTCQX: GTBIF) (CSE: GTII) reinforces its
commitment to provide nationwide access to safe and effective
cannabis. “The meticulously crafted suite of Beboe products
supports the premium segment within GTI’s brand portfolio and is
firmly aligned with our long-term growth strategy,” said GTI founder and CEO Ben Kovler. “Beboe has an
extremely talented team, a robust innovation pipeline, an aligned
vision on the future of cannabis and a ground-breaking partnership
with Barneys New York. We are thrilled to have the visionary Beboe
team officially on board with GTI.”
Acreage Holdings Inc.’s (OTCQX: ACRGF) CSE:
ACRG) agreement with Canopy Growth gives CGC the right to
acquire 100% of the shares of Acreage, with a requirement to do so
when cannabis production and sale becomes federally legal in the
United States. "From the first day we created our company,
providing exceptional customer care and delivering shareholder
value have been our top priorities,” said Acreage
Holdings chairman, CEO and president Kevin Murphy. “This
transaction will help accomplish both. When the right is exercised,
having access to Canopy Growth's deep resources will enable us to
innovate, develop and distribute quality cannabis brands across the
U.S. and continue expanding our U.S. footprint. At the same time, a
confluence of factors is making it much more difficult for a
multi-state operator to achieve its full potential, including the
enormous amount of cash required to scale. Our Board of Directors,
management team and I are pleased to deliver significantly
increased liquidity to our shareholders and put ourselves in an
even stronger position to deliver continued and significant
upside."
An emerging adult and medical use cannabis company that has
secured one of the largest national retail networks in Canada,
Choom Holdings Inc. (OTCQB: CHOOF) (CSE: CHOO) is
looking to expand into Florida. The cannabis
applicant at the heart of the company’s equity interest
agreement is progressing on its master license application to
operate up to 25 retail locations as well as a microprocessing and
cultivation facility for medical purposes. Upon completion of the
transaction, Choom will use its medical brand, Clarity Medical
Centres, to create a network of branded medical marijuana treatment
centers.
Some have called what is happening now in the cannabis sector a
once-in-a-generation opportunity and predict that this is the start
of a decade-long cannabis bull market. All indications point to
those predictions being correct.
For more information on Wildflower Brands, visit Wildflower
Brands Inc. (CSE: SUN) (OTCQB: WLDFF)
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