Showing No Signs of Slowing Down, U.S. Retail Cannabis Sales
PALM BEACH, Fla., Aug. 12, 2020 /PRNewswire/ -- The North American cannabis market, which has been steadily growing over the past few years, is projected to continue and even accelerate in the years to come. Retail sales of medical and recreational cannabis in the United States are on pace to eclipse $15 billion by the end of 2020, an increase of approximately 40% over 2019 sales figures, according to exclusive projections from the 2020 edition of the Marijuana Business Facebook as quoted in the Marijuana Business Daily. Total U.S. sales could rise as high as $37 billion by 2024, according to projections. The coronavirus pandemic, however, has thrown a huge curveball at projections. To date, spending on adult-use cannabis in markets that aren't tourist-driven has increased, as have sales in nearly every domestic MMJ market. Active companies in the Cannabis market this week include Cannabis Strategic Ventures, Inc. (OTCQB: NUGS), MariMed Inc. (OTCQX: MRMD, Aphria Inc. (NASDAQ: APHA) (TSX: APHA), Sundial Growers (NASDAQ: SNDL), Medical Marijuana, Inc. (OTCPK: MJNA).
The article said: "However, this increased level of spending comes as unemployed workers continue to receive an additional $600 per week in unemployment benefits. This additional assistance, however, is set to expire at the end of July. It remains an open question how cannabis sales will fare if no – or limited – additional financial stimulus is provided to the tens of millions of unemployed U.S. residents. Despite short-term uncertainty, the long-term potential of the cannabis industry remains intact. Sharp sales increases in recently launched medical marijuana programs – as well as continued gains in adult-use markets – are expected to fuel much of the industry's growth over the coming years."
Cannabis Strategic Ventures, Inc. (OTCQB:NUGS) BREAKING NEWS: Cannabis Strategic Ventures Reports Record $2.3M in July Cannabis Sales on Rapidly Accelerating Growth - Cannabis Strategic Ventures, an emerging leader in the U.S. cannabis marketplace, is excited to announce July monthly performance data, which featured a breakout record sales performance for the Company that far exceeded in-house forecasts and the prior rate of growth underway during the first half of the year.
The Company booked over $2.3 million in total sales from cannabis products during July. That compares to $1.3 million in cannabis sales in June. This represents a sequential monthly growth rate of approximately 77%, nearly doubling the 40% sequential growth witnessed in June, which was also a new Company record for topline performance.
"It would be easy to lose perspective at this point because we exceeded our own expectations by such a wide margin in July," commented Simon Yu, CEO of Cannabis Strategic Ventures. "That said, we believe we understand what's driving this accelerating growth: a combination of better products, better distribution relationships, and better pricing coming together in a favorable environment. And we have a strategy in place to continue to drive progress in all of these areas going forward."
The Company continues to prioritize expansion and refinement. Management believes that the Company's rapid pace of growth has been fueled, in part, through its improved positioning in the California cannabis market among partners and distributors, which has happened as a consequence of expanded production capacity and product quality improvements.
Cannabis Strategic Ventures will continue to focus on maximizing these factors in the months ahead, with direct plans for a further expansion in production capacity as well as the Company's continued efforts to streamline and refine its cultivated strains. As announced in the Company's June 11 release (http://cnw.fm/s3jdC), the NUGS grow team has been working on a comparative evaluation that may be completed by the end of August to determine which strains consistently produce the most optimal results at its cultivation facility. The evaluation is focused on identifying results in terms of year-round harvest productivity, pricing standards, and integrated biological fitness given the precise ecology contextualizing NUGS Farm.
Yu added, "July was great. But we have our sights set on far bigger numbers in the months ahead. We are on the right track, but we still see plenty of opportunities for additional growth, and we look forward to continued expansion in market positioning during the second half of the year." Read this and more NUGS news at: https://www.financialnewsmedia.com/news-nugs/
Other recent developments and major influences in the cannabis industry include: MariMed Inc. (OTCQX: MRMD), a leading multi-state cannabis and hemp operator focused on health and wellness, recently reported financial and operating results for the three and six months ended June 30, 2020.
Second Quarter 2020 and YTD Financial Highlights include:
Core cannabis Revenues of $9.6 million in Q2, a 163% increase compared with $3.7 million in Q2 2019. YTD to June 30, 2020, Revenues totaled $17.1 million, a 138% increase compared to $7.2 million for the first six months of 2019; and Gross profit from the core cannabis business of $6.2 million for the quarter, a 133% increase from the $2.6 million for the comparative period in 2019. YTD to June 30, 2020, Gross profit totaled $11.0, a 125% increase from $4.9 million for the first six months of 2019.
Bob Fireman, CEO of MariMed, commented, "Our renewed focus on our core cannabis business and the consolidation of our managed assets are the key drivers of MariMed's positive Q2 results. In Massachusetts, we have now ramped up our New Bedford manufacturing facility to produce over 1,000 pounds of cannabis flower per month. Our Nature's Heritage Flower brand and our Betty's Eddie's natural chews infused brands are leading sellers in their respective categories in both Massachusetts and Maryland. Our two dispensaries in Illinois are thriving in the new adult-use program. We intend to open our third dispensary in Illinois in September and a projected fourth by the new year. I am confident that this momentum will continue for the balance of 2020 and into 2021 as we continue to implement our consolidation strategy and enhance stockholder value".
Aphria Inc. (NASDAQ: APHA) (TSX: APHA), a leading global cannabis company, recently announced it has entered into a Strategic Supply Agreement (the "Agreement") with Canndoc Ltd. ("Canndoc"), a subsidiary of InterCure Ltd., one of Israel's largest and most established medical cannabis producers.
Under the terms of the Agreement, Aphria will supply Canndoc with dried bulk flower over a two-year period, with the option to extend for two additional terms of two years each, and an option for an additional year after that if the parties agree to terms. During the first two-year term and each additional term, if applicable, the Company will provide Canndoc with 3,000 kgs. of bulk dried flower, which will be processed into finished product, co-branded under the Aphria and Canndoc brand names, and sold exclusively within the Israeli market.
Sundial Growers (NASDAQ: SNDL) recently announced that it will release its second quarter financial results ended June 30, 2020 after market close on August 13, 2020. Following the release of its second quarter financial results, Sundial will host a conference call and webcast at 10:30 a.m. EDT (8:30 a.m. MDT) on August 14, 2020.
Sundial is a licensed producer that crafts cannabis using state-of-the-art indoor facilities. Our 'craft-at-scale' modular growing approach, award-winning genetics and experienced master growers set us apart.
Medical Marijuana, Inc. (OTCPK: MJNA), the first-ever publicly traded cannabis company in the United States that launched the world's first-ever cannabis-derived nutraceutical products, brands and supply chain, recently announced that it has welcomed NHL and network marketing veteran Mike Hartman to its subsidiary Kannaway®'s Sports Team. Hartman will help spread awareness on the benefits of cannabidiol (CBD) for athletes and those who are just looking to lead a healthy, active lifestyle.
"Mike Hartman has demonstrated the ability to generate successful results within multiple business and career paths, leveraging both athletic ability and business acumen," said Kannaway® CEO Blake Schroeder. "It's extremely impressive and I have no doubt he will reach even greater heights in Kannaway."
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