Booming Legal Cannabis Market to Continue Rising in 2022 and Beyond

 

The global cannabis market is continuing to grow rapidly thanks to increasing legalization and social adoption across the globe. According to a report by Vantage Market Research, revenue came in at US$12.8 billion in 2021 and is estimated to hit US$48.3 billion by 2028 at a CAGR of 24.80%. Factors influencing the growth of the market include the rising acceptance of cannabis for the treatment of chronic pain, increasing government support and more research and development and technological innovations. North America is dominating the market for a number of reasons, including the presence of major players in the legal cannabis market such as Flora Growth Corp. (NASDAQ:FLGC), Aurora Cannabis Inc. (TSX:ACB) (NASDAQ:ACB), Curaleaf Holdings, Inc. (CSE:CURA) (OTCQX:CURLF), Sundial Growers Inc. (NASDAQ:SNDL) and Tilray Brands, Inc (TSX:TLRY) (NASDAQ:TLRY).

Flora Growth Corp. (NASDAQ:FLGC) is a leading all-outdoor cultivator, manufacturer and distributor of global cannabis products and brands that operates one of the largest outdoor cannabis cultivation facilities.

Flora Growth just announced that its subsidiary JustCBD will launch its line of Novel Foods-approved CBD products on Amazon.co.uk. This decision comes shortly after JustCBD obtained UK Novel Food clearance. Flora and JustCBD intend to continue working with Amazon to expand into other countries and markets over time.

“The demand for hemp-derived CBD continues to draw attention in the United Kingdom. JustCBD’s existing presence in the UK alongside the new partnership with Amazon UK has truly solidified our presence in this growing market,” said Flora Growth CEO Luis Merchan.”We are excited to continue expanding our operations and clinical research programs in the United Kingdom and deliver top-quality CBD products to customers aiming to improve their health and quality of life.”

Flora Growth also recently announced JustCBD has signed an agreement with airport distribution juggernaut OTG Management to sell its CBD products at airports. As part of the agreement, JustCBD will begin selling its premium CBD products at US airports through distribution company OTG Management, which is a leading operator of airport restaurants and retail storefronts. According to Grand View Research, the CBD gummy market is the fastest-growing segment of the CBD industry, with a projected CAGR of 30.7% from 2021 to 2028, representing a $13.28 billion market opportunity.

JustCBD now has offices in the UK as well as 78 products which have cleared the UK Novel Foods authorization. 

Earlier this month, Flora Growth announced the launch of Vessel brand, a leader in premium cannabis accessories, in Canada following an approved listing in the Ontario Cannabis Store (OCS). The company also announced the launch of its Canadian direct-to-consumer online store, www.vesselbrand.ca to service customers directly across the country.

“We’re elated about our partnership with the OCS and are looking forward to bringing the full Vessel experience to our loyal customers across Canada,” says James Choe, Flora Growth’s Chief Strategy Officer. “Our internal estimates show the Canadian cannabis market will be around CAD 5.9 billion this year, with the ancillary category making up about $350 - $475 million. That market potential, coupled with our expectations around meaningful retail door penetration across the country, signals promising growth in this market.”

Flora Growth is also advancing its Flora Pharma division. On May 23, the company announced that it has signed a deal with leading cell biologist, Dr. Annabelle Manalo-Morgan, Ph.D., to acquire her Masaya brand, as well as her patent-pending CBD formulations. Flora intends to distribute the brand and its formulations worldwide.

Masaya will become a Flora-owned brand sold in the US and will be Flora Life Sciences' first offering. In addition, the original patent-pending formulation, Masaya Pure, is expected to be used in Flora's current clinical trials with the University of Manchester in the UK. The formulation is also being registered with the Colombian regulatory agency, INVIMA, as one of the first steps for distribution beyond the US.

For more information about Flora Growth Corp. (NASDAQ:FLGC), click here

Cannabis Companies Are Expanding And Making Acquisitions

On May 5, Aurora Cannabis Inc. (TSX:ACB) (NASDAQ:ACB) announced that it has completed the acquisition of TerraFarma Inc., the parent company of Thrive Cannabis for $38 million paid in cash and shares, and up to $30 million in potential earnout amounts, provided that Thrive achieves certain revenue targets within two years of closing the transaction. The transaction is expected to strategically strengthen Aurora's position in the Canadian market by placing the Thrive team in charge of Aurora's Canadian recreational portfolio and advancing the shift to innovative premium products including dried flowers, pre-rolls, vaping products and concentrates.

On May 6, Curaleaf Holdings, Inc. (CSE:CURA) (OTCQX:CURLF) announced plans to open three new dispensaries in Florida in the coming weeks. Curaleaf's latest expansion will increase the company's business footprint to 50 dispensaries in Florida and 133 locations nationwide. With a population of 21 and older expected to exceed 16 million by 2025 and the potential for an expansive adult market, Florida presents continued growth opportunities for Curaleaf. The company's growth strategy in Florida has seen its statewide market share increase to 15% and laid the foundation for future developments..

Sundial Growers Inc. (NASDAQ:SNDL) announced it has completed the acquisition of all of the issued and outstanding common shares of Alcanna Inc for approximately $320 million consisting of cash and common shares of Sundial. With locations in Alberta and British Columbia, Alcanna is one of the largest private sector alcohol retailers in North America and the largest in Canada by number of stores. Alcanna's majority-owned subsidiary, Nova Cannabis Inc., also owns or operates a total of 78 cannabis retail stores in Alberta, Saskatchewan and Ontario.

On April 12, Tilray Brands, Inc (TSX:TLRY) (NASDAQ:TLRY) announced that it has signed a definitive commercial and financial partnership agreement with HEXO Corp. As originally announced on March 3, 2022, the partnership will bring together Canada's two major cannabis market leaders, strengthening their respective operations and paving the way for production efficiencies that are expected to drive increased productivity and other efficiencies in a dynamic, highly competitive marketplace

See How Flora Growth Could Disrupt More Than Just The Cannabis Industry! Click Here to Download the Corporate Presentation!

Please See Disclaimer

Featured Image: DepositPhotos @ Fotofabrika 3


Disclosure:

1) The author of the Article, or members of the author’s immediate household or family, do not own any securities of the companies set forth in this Article. The author determined which companies would be included in this article based on research and understanding of the sector.

2) The Article was issued on behalf of and sponsored by, Flora Growth Corp. Market Jar Media Inc. has or expects to receive from Flora Growth Corp’s Digital Marketing Agency of Record (Native Ads Inc.) one hundred ninety one thousand eight hundred USD for 24 days (18 business days).

3) Statements and opinions expressed are the opinions of the author and not Market Jar Media Inc., its directors or officers. The author is wholly responsible for the validity of the statements. The author was not paid by Market Jar Media Inc. for this Article. Market Jar Media Inc. was not paid by the author to publish or syndicate this Article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Market Jar Media Inc. requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Market Jar Media Inc. relies upon the authors to accurately provide this information and Market Jar Media Inc. has no means of verifying its accuracy.

4) The Article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of the information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Market Jar Media Inc.'s terms of use and full legal disclaimer as set forth here. This Article is not a solicitation for investment. Market Jar Media Inc. does not render general or specific investment advice and the information on MicroSmallCap.com should not be considered a recommendation to buy or sell any security. Market Jar Media Inc. does not endorse or recommend the business, products, services or securities of any company mentioned on MicroSmallCap.com.

5) Market Jar Media Inc. and its respective directors, officers and employees hold no shares for any company mentioned in the Article.

6) This document contains forward-looking information and forward-looking statements, within the meaning of applicable Canadian securities legislation, (collectively, “forward-looking statements”), which reflect management's expectations regarding Flora Growth Corp.’s future growth, future business plans and opportunities, expected activities, and other statements about future events, results or performance. Wherever possible, words such as “predicts”, “projects”, “targets”, “plans”, “expects”, “does not expect”, “budget”, “scheduled”, “estimates”, “forecasts”, “anticipate” or “does not anticipate”, “believe”, “intend” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative or grammatical variation thereof or other variations thereof, or comparable terminology have been used to identify forward-looking statements. These forward-looking statements include, among other things, statements relating to: (a) revenue generating potential with respect to Flora Growth Corp.’s industry; (b) market opportunity; (c) Flora Growth Corp.’s business plans and strategies; (d) services that Flora Growth Corp. intends to offer; (e) Flora Growth Corp.’s milestone projections and targets; (f) Flora Growth Corp.’s expectations regarding receipt of approval for regulatory applications; (g) Flora Growth Corp.’s intentions to expand into other jurisdictions including the timeline expectations relating to those expansion plans; and (h) Flora Growth Corp.’s expectations with regarding its ability to deliver shareholder value. Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, as of the date of this document including, without limitation, assumptions about: (a) the ability to raise any necessary additional capital on reasonable terms to execute Flora Growth Corp.’s business plan; (b) that general business and economic conditions will not change in a material adverse manner; (c) Flora Growth Corp.’s ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; (d) Flora Growth Corp.’s ability to enter into contractual arrangements with additional Pharmacies; (e) the accuracy of budgeted costs and expenditures; (f) Flora Growth Corp.’s ability to attract and retain skilled personnel; (g) political and regulatory stability; (h) the receipt of governmental, regulatory and third-party approvals, licenses and permits on favorable terms; (i) changes in applicable legislation; (j) stability in financial and capital markets; and (k) expectations regarding the level of disruption to as a result of CV-19. Such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of Flora Growth Corp. to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking statements. Such risks include, without limitation: (a) Flora Growth Corp.’s operations could be adversely affected by possible future government legislation, policies and controls or by changes in applicable laws and regulations; (b) public health crises such as CV-19 may adversely impact Flora Growth Corp.’s business; (c) the volatility of global capital markets; (d) political instability and changes to the regulations governing Flora Growth Corp.’s business operations (e) Flora Growth Corp. may be unable to implement its growth strategy; and (f) increased competition.

Except as required by law, Flora Growth Corp. undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future event or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. Neither does Flora Growth Corp. nor any of its representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this document. Neither Flora Growth Corp. nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this document by you or any of your representatives or for omissions from the information in this document.

7) Any graphs, tables or other information demonstrating the historical performance or current or historical attributes of Flora Growth Corp. or any other entity contained in this document are intended only to illustrate historical performance or current or historical attributes of Flora Growth Corp. or such entities and are not necessarily indicative of future performance of Flora Growth Corp. or such entities.