London and New York --
December 27, 2018 -- InvestorsHub NewsWire -- Trafalgar Research
Group initiates coverage on the growing cannabis and CBD sector,
that is experiencing a massive global growth phenomenon. According
to Arcview Market
Research and its research partner BDS Analytics,
over the next 10 years, the legal cannabis industry will see much
progress around the globe. Spending on
legal cannabis worldwide is expected to hit $57 billion by
2027. The adult-use (recreational) market will cover 67%
of the spending; medical marijuana will take up the remaining
33%.
The largest group of
cannabis buyers will be in North America, going from
$9.2 billion in 2017 to $47.3 billion a decade later.
The largest growth spread, however, is predicted within the
rest-of-world markets, from $52 million spent in 2017 to a
projected $2.5 billion in 2027.
The worldwide adult recreational cannabis market remains hampered
by the United Nations and its 1961 Single Convention on
Narcotic Drugs. The Arcview and BDS report believes
nothing will be done to change the U.N. attitude until U.S. federal
laws legalize marijuana — something Arcview’s CEO, Troy Dayton,
believes will happen after the 2020 presidential election.
Still, the main difference between the U.S. and
European cannabis markets is that in the U.S., recreational
use will dominate sales. With a budget of $1.3 trillion
in health care spending, European government-subsidized health care
systems will bring the medical cannabis market
to dominate Europe and become the largest medical
marijuana market in the world.
For years, experts have predicted that if the cannabis industry
expands at its current rate, the American market will reach $20
billion by 2020. But it turns out that one market is spinning off
into a mega-industry of its own: according to a new estimate from
cannabis industry analysts the Brightfield Group,
the hemp-CBD market alone could hit $22 billion by 2022.
CBD, a non-psychoactive cannabinoid found in cannabis, has had a
surge in popularity over the past couple of years. Unlike THC, the
chemical compound that gives weed its signature effect, CBD has
been shown to help with everything from PTSD and anxiety to MS and
epilepsy — without getting you high.
Previously, CBD products have been available mostly in head shops,
with a few doctors recommending it for various maladies. But in
2017 and 2018, the products spread to natural food stores, beauty
aisles, cafés and doctors offices. So far the industry is on track
to hit $591 million in 2018, and thanks to a number of factors
— including, surprisingly, Senate Majority Leader Mitch
McConnell — that could increase 40 times in the next four
years.
Trafalgar Research has added MSPC along with the following
companies for coverage:
Metrospaces, Inc. (OTC: MSPC) yesterday announced that it has entered
into a Joint Venture LOI with DLBCC Group to acquire an ongoing
profitable cannabis facility and will operate
such.
Mr. Oscar Brito, President stated: “On or around
May of 2018, management decided to focus its resources towards the
legalized cannabis industry. Our business plan is to leverage
our extensive experience in real estate financing and development
while establishing JV partnerships to acquire and operate
facility’s or real estate-based cannabis operations. We don’t
have the industry expertise to operate a cannabis facility, but we
do have extensive experience in construction, acquisition
development, financing and repositioning of real estate
assets.”
“We are very excited with this Joint Venture LOI
agreement with DLBCC Group to acquire, operate and grow this
facility. DLBCC Group has executed a Property Purchase
Agreement with the seller and is set to close in approximately 90
days.”
A final JV agreement and Purchase Agreement is
contingent on transfer of license and senior acquisition funding.
Metrospaces would provide the equity portion of the acquisition,
agreed at $20 million. Metrospaces would retain 75% of the
business initially, LBCC Group can obtain an additional 10% equity
stake based on achievement of certain financial
goals."
The facility is located in the city of Adelanto,
California and consists of a 12,000 ft. two canopy facility
licensed for cultivation, manufacture and distribution of
approximately 300 lbs monthly production. The production
currently generates approximately $7.2 million in annual revenue
with an operating profit of approximately $4.5 million per
year. Additionally, the site is set on a 6.5 acres which
would allow for another (already licensed) 8,000 ft 2
canopy. The acquisition also includes a non-operating retail
location.
Medical Marijuana Inc.
(OTCBB: MJNA) is
the first publicly held company vested in the cannabis and
industrial hemp space in America. Through its subsidiaries and
investment holdings the Company focuses on the development, sale
and distribution of hemp oil that contains naturally occurring
cannabinoids, including cannabidiol ("CBD") and other products
containing CBD-rich hemp oil ("Legal Hemp"). Company products are
formulated for the pharmaceutical, nutraceutical and cosmeceutical
industries, including dietary supplements, prescription-based hemp
oil for sale in countries that have legalized our hemp oil for the
treatment of various illnesses and conditions (such as Brazil and
Mexico) and skin care products. The Company is not in the business
of selling or dispensing either recreational or medical marijuana,
directly or indirectly, so long as marijuana remains a federally
controlled substance, however, we are poised and consider ourselves
well-positioned for eventual cannabis legalization (the Company's
products contain only those substances that are derived from the
part of the cannabis plant that is excluded from the definition of
marijuana under the Controlled Substances Act and are both
federally legal and outside of the purview of the Drug Enforcement
Administration).
Marijuana Company of America, Inc. (OTCBB:MCOA) is
a corporation which participates in: (1) product research and
development of hemp-based consumer products under the brand name
"hempSMART", containing CBD derived from Industrial Hemp targeting
general health and well-being; (2) an affiliate marketing program
to promote and sell its "hempSMART" consumer products; (3) leasing
of real property to separate business entities engaged in the
growth and sale of cannabis and/or Industrial Hemp in those states
and jurisdictions where cannabis has been legalized and properly
regulated for medicinal and recreations use; and, (4) the expansion
of its business into ancillary areas of the legalized cannabis and
hemp industry, as the legalized markets and opportunities in these
segments mature and develop.
Puration, Inc. (OTCBB:PURA) has
been a water purification company that designs, develops,
engineers, produces, markets, and distributes personal and group
systems that filter, purify, clean, extract or otherwise improve
the quality of water on a cost effective, affordable basis, with a
minimum of environmental impact. Resulting from our own design and
engineering, our water purification systems include personal water
filter bottles, collapsible water pouches, replacement filters, and
travel filters. While the Company carries a current inventory of
personal water filter bottles and collapsible water pouches and
that inventory is availed for sale at select retail locations, the
Company has in the last year begun to explore and develop new
business opportunities focusing on the emerging Cannabis
Extractions Sector. In July 2015, the Company entered into an
agreement to acquire certain health & wellness joint ventures
from North American Cannabis Holdings, Inc. (USMJ).
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