FinancialBuzz.com News Commentary
According to a report by Ameri Research Inc., the global legal cannabis market was valued at $14.3 billion in 2016 and is forecast to grow at a CAGR of 21.1% between 2017 to 2024 and culminating to $63.5 billion by 2024. The market is going through a period of strong growth thanks to increasing legalization and decriminalization of cannabis products across North America and Europe. The report indicates that because of the complex regulatory structure at state and federal level, the full potential of the market is not yet realized. Pivot Pharmaceuticals Inc. (OTC: PVOTF), United Cannabis Corporation (OTC: CNAB), AXIM Biotechnologies, Inc. (OTC: AXIM), Lexaria Bioscience Corp. (OTC: LXRP), Kush Bottles, Inc. (OTC: KSHB)
There have been healthy signs of demand in states where sales of cannabis products are legal and where the industry was allowed to mature. According to a Marijuana Business Daily survey of business owners in the industry, “business owners intending to expand, the vast majority have identified opportunities in both the medical and recreational markets. With sales continuing to grow rapidly in mature recreational cannabis industries like Colorado and Washington state – and promising new medical markets such as Maryland, Ohio and Pennsylvania set to come online in the near future – it’s perhaps not surprising that many entrepreneurs are looking to expand into both medical and adult-use markets.”
Pivot Pharmaceuticals Inc. (OTCQB: PVOTF) also just listed this week on the Canadian Stock Exchange under the Ticker ‘PVOT’. Just declared breaking news that, “its wholly-owned medical cannabis products division, Pivot Green Stream Health Solutions Inc. (“PGS” or “Pivot Green Stream”), are happy to declare that Pivot has signed a binding letter of intent to establish a California-based entity (“PGS-California”) in order to accelerate the monetization of the Ready To Infuse Cannabis (“RTIC”) technology as formerly declared on December 20, 2017. Pivot plans to build manufacturing facilities in legal cannabis markets throughout North America and Europe, obtain the necessary licensures, and launch products using RTIC technology which transforms cannabis oil into powder for infusion. The letter of intent is subject to customary conditions counting regulatory approval, the negotiation of a definitive agreement and satisfactory completion of due diligence.
Pivot seeks to gain market share in the food and beverage segment of the cannabis industry in legal markets in the near term through in-house brand development and by providing co-packing services for other edible brands through planned partnerships. Co-packing services are an underserved, high-demand segment of the cannabis industry on the B2B side and will assist further the awareness and visibility of the “Made with Instant THC” & “Made with Instant CBD” brands.
Pivot will appoint Ross Franklin and Patrick Rolfes to executive leadership roles within PGS-California to assist execute its business strategy of conducting research, development and commercialization of cannabinoid-based products. Mr. Rolfes states that “Pat and I look forward to working with Pivot to monetize the RTIC patents. Our facilities will be able to produce various food and beverage products such as capsules, K-Cups, stick packs, baked mixes, liquid shots, protein shakes, topicals, lotions, and bottle beverages.”
Dr. Patrick Frankham, CEO of Pivot Pharmaceuticals stated that “Pivot continues to execute on its business strategy to upscale cannabis oils into premium healthcare and nutritional products. The California cannabis market is estimated to be worth $7B annually making it an attractive territory for Pivot’s pipeline of products and technologies. We are also delighted to declare that Ross Franklin will join our Scientific Advisory Board. His extensive cannabis product development and commercial expertise will be a great asset to Pivot as we enter the US market.”
Following the passing of Adult Use of Marijuana Act (Prop. 64), cannabis will be legal in California starting January 1, 2018. California’s main regulatory agencies are the Bureau of Cannabis Control (BCC), Department of Food and Agriculture, Department of Public Health and Cannabis Regulatory Authority (CRA). PGS-California will apply for all necessary licenses with the appropriate agencies.
United Cannabis Corporation (OTCQB: CNAB) is a biotechnology company dedicated to the development of phyto-therapeutic based products supported by patented technologies for the pharmaceutical, medical, and industrial markets. On December 14, 2017, the company declared that Jamaica’s Ministry of Health has approved its patent-protected Prana Medicinal Sublinguals and Prana Medicinal Transdermals for use by registered medicinal cannabis patients. The Prana Collection is the foundation of the Company’s cannabis-centric formulations, which patients have found effective in providing relief from the symptoms of arthritis, neuropathy, acute pain, joint aches, muscle tension, muscle spasms, muscle recovery, migraines, and various skin conditions. The products will be manufactured and distributed by the Company’s Jamaican partner, Cannabinoid Research & Development Limited (”CRD”). CRD is presently making preparations to produce the complete line of Prana products in Jamaica in anticipation of receiving a license from the Cannabis Licensing Authority.
AXIM Biotechnologies, Inc. (OTCQB: AXIM) focuses on the research, development and production of cannabis-based pharmaceutical, nutraceutical and cosmetic products. On November 21, 2017, the company declared clinical trial results from its first phase II pilot trial for the treatment of irritable bowel syndrome (IBS) with the company’s CanChew +® CBD (cannabidiol) functional, controlled release chewing gum. Study results indicate that CanChew+® was well tolerated by the IBS patients and no noteworthyadverse side effects were observed by any participants of the trial. All patients who take partd in the study practiced decrease in their levels of pain score. On top of the overall reduction, the trend curve suggests 50% higher pain reduction when patients were on CanChew+® contrast to the active placebo, which suggests that CBD content did lend to a decrease in pain score.