Weekly News in Cannabis - March 22nd, 2019Israel, Greece, Canada, and the US all make headlines in a growing global industry.
Canadian Companies Invest In Future Of Cannabis Industry
Ever since Canada legalized recreational cannabis in 2018, the Great White North has become the epicenter of cultivation innovation. Many Canadian cannabis companies are investing heavily in research & development to maintain their competitive advantage in the global cannabis industry.
For example, Vancouver-based Aurora Cannabis recently unveiled its striking Aurora Sky growing space. Engineers designed the Aurora Sky to have a slightly higher pressure than average; that way it minimizes the risk of harmful chemicals flowing into the facility. The Aurora Sky also uses autonomous robots to collect cannabis plants once they are ready for harvest.
In addition to technological breakthroughs like Aurora Sky, Canadian enterprises are trying to help the nation’s smaller companies compete with financial incentives. For instance, CROP Infrastructure Corp offers tenant-farmers capital to grow and manufacture their cannabis products for a cut in the profit.
After a tenant farmer accepts the investment, CROP receives 60 percent of the farmer’s profits until the initial investment is repaid. Afterward, CROP still maintains a 30 percent stake in the farmer’s product sales.
With all of these innovations in the financial and technological fields, it’s safe to say Canada will be a significant force in the global cannabis industry for years to come.
Floridians Can Now Legally Smoke Medical cannabis
On March 18, 2019, Florida Governor Ron DeSantis legalized the sale and use of smokeable medical cannabis. Thanks to this new law, Florida’s major cannabis growers expect to see a dramatic increase in sales figures.
Although Floridians legalized medical cannabis in 2016, former Governor Rick Scott placed a ban on smoking the plant. According to the new law, MMJ patients in Florida can now legally obtain 2.5 ounces of cannabis within 35 days from one of the state’s 107 dispensaries.
Although this new law is now effective in the state, lawmakers expect it will take about two months for the state’s health department to create official regulations for smokable cannabis. For this reason, most of Florida’s cannabis growers say they will send out flowers by the end of the spring.
On numerous occasions, Gov. DeSantis said he supports legalizing recreational cannabis and relaxing the state’s licensing rules for cannabis businesses. Some lawmakers expect Floridians will vote on recreational cannabis in the 2020 election.
Currently, just over 193,000 Floridians qualify for medical cannabis.
Mile High Labs Shows Off Revolutionary CBD Extractor Plant
Hemp manufacturer Mile High Labs International claims to have created the world’s most efficient CBD extraction plant. Executives at the Colorado-based company say their new “Mile High Monster” can extract CBD from about 50 acres of hemp every day.
Although this extraction technology is still patent-pending, Mile High Labs recently opened its first Mile High Monster in the eastern portion of the Centennial State. The company is also putting the finishing touches on its second Mile High Monster, which it hopes to open in southern Colorado in late March.
Thanks to the Mile High Monster, Mile High Labs expects to increase its CBD production by 500 percent. Cannabis business analysts predict these new facilities will help meet the skyrocketing demand for CBD products.
This announcement comes shortly after Mile High Labs secured $35 million in Series A funding from numerous donors. With all of this capital and at least two Mile High Monster facilities, most cannabis industry leaders expect this company to play a leading role in the global CBD industry.
Acreage Holdings And HEXO Corp Post Impressive Revenues In Mid-March
New Cannabis Ventures currently operates one of the most accurate trackers for cannabis-related stocks. The Public Cannabis Company Revenue Tracker now follows 44 American and Canadian cannabis leaders, all of which have posted at least USD$2.5 million in sales per quarter.
American company Acreage Holdings was one of the top performers on this tracker’s latest report. According to its March 2019 filing, Acreage Holdings’ sales grew to USD$10.5 million, which is 90 percent higher than the previous quarter.
On the Canadian side, HEXO Corp posted a strong CAN$13.4 million profit for its second quarter. Although this wasn’t as high as Wall Street expected, these sales were still over 130 percent higher than the previous quarter.
In April of 2019, companies will need to report at least USD$5 million in quarterly sales to be listed on the Public Cannabis Company Revenue Tracker. All companies listed on this tracker must also file with SEDAR or the SEC.
As more cannabis companies file their earnings, investors can follow the Public Cannabis Company Revenue Tracker on this website.
Israeli Cannabis Company Set To Open Facility Near Corinth, Greece
Israel’s largest cannabis producer will soon set up a new growing facility in Greece. The Greek government just gave Tikun Olam Ltd. permission to set up its new cultivation and processing facility in the town of Examilia, just a short drive south of Corinth.
According to the latest reports, this new Tikun Olam facility will measure just over 4 hectares and cost the company €9 million. The company currently has a 5-year license to operate in Greece.
Executives at Tikun Olam say they are excited to expand their business operations into Greece. They also said they expect to start cultivating cannabis once they receive a production and distribution license from the National Organization of Medicines.
In addition to cultivation, Tikun Olam has research and care divisions throughout Israel, the USA, the UK, and Canada.