Leading cannabis e-commerce tech company CannaOne Technologies (CSE:CNNA) (OTC:CNONF) made an exciting announcement Wednesday that will further expand its online sales reach and give it access to a new key demographic. The company revealed that it has signed a Memorandum of Understanding (MOU) with LevelOut UK to establish a joint venture partnership and launch a CBD marketplace for the UK market.
As per the MOU, CannaOne will provide exclusivity to its proprietary software for the UK market, its wealth of industry knowledge and digital marketing expertise, and access to its existing US CBD brand supply chain.
Meanwhile, LevelOut UK will act as the majority equity partner in the JV and will provide between $184,000 USD to $247,000 USD (£150,000 to £200,000) in initial start-up capital.
“LevelOut UK has a strong sense of the direction and trend of the CBD Market in the UK," said CannaOne Technologies CEO Soloman Riby-Williams. "The progression towards the consummation and launch of this JV could not be timelier, as UK and European consumers are ever keeners to source and utilize CBD Products."
He said the company intends to open up the breadth of its US BWell marketplace supply chain to the UK market and introduce popular US products on the other side of the pond.
"This soon-to-be-realized JV is a testament to our goal to be omnipresent in markets all over the world. This is one more pin on the map for us, as we continue in discussions and negotiations with other groups for the establishment of CBD marketplaces in additional lawful domestic and international geographic locales,” he added.
Riby-Williams also referenced Shopify's (NYSE:SHOP) recent announcement that it will be offering US merchants tools to sell CBD on its platform, which he believes provided the market validation CannaOne has been expecting and waiting for.
"We believe that this rising tide will drive the global cannabis commerce space and continue to support our business thesis playing out. We see the majority of these emerging countries coming online with proper regulation, and the markets will evolve to the notion of the 80-20 philosophy where a handful of players will have the lion’s share of the sales volume," he added.
CannaOne: Becoming the "Amazon" of Cannabis
Although the launch date of this new UK-based CBD marketplace has yet to be determined if the launch of its US-based CBD marketplace is any indication, investors can expect this new platform to be available sooner than later.
CannaOne's BWell CBD online marketplace officially launched in June, two months ahead of schedule. What's more, the company implemented reward programs throughout the pre-launch campaign to encourage loyalty, customer retention, and community building that resulted in an impressive 10,000 member signups before the site even went live.
Membership of TheBWellMarket.com has since surpassed 11,000 and offers nearly 100 individual CBD products, including CBD topicals, pre-rolls, vapes, oils, pills, edibles, and concentrates and continues to expand its product offering. Apart from its wide variety of products, the BWell Marketplace features infrastructure that helps build consumer engagement and includes an AI capacity to recommend products and fulfill orders.
Following the launch, the company went on to sign a letter of intent (LOI) to acquire 100% ownership of its partner Real Life Sciences Inc. and the BWell CBD Marketplace.
The company is also planning to launch and operate a go-to CBD online marketplace in Mexico called 'Casa CBD' with Manna Health Services SA in the next six to twelve months.
In short, the team at CannaOne Technologies knows how to bring products to market the right way. If the launch of the UK CBD marketplace goes as smooth as its US counterpart, the company's dream of becoming the Amazon of cannabis could soon become a reality.
The Growing Global CBD Market
The CBD industry is exploding across the globe, with the compound showing up in chocolate, skincare products, tinctures, supplements, beverages, and pet products. Even major retailers like Target, Walgreens, and Walmart are stocking their shelves with CBD products.
The CBD market is growing so quickly in the US that Brightfield Group expects sales to grow from $5 billion in 2018 to a whopping $23.7 billion by 2023, representing a CAGR of 107%. Meanwhile, the UK CBD market is expected to be worth $1.2 billion USD per annum by 2025, which is equivalent in size to the UK's entire herbal supplement market.
Thanks to its all-in-one innovative online marketplace, CannaOne is in the perfect position to dominate this lucrative and largely untapped market.
Investors interested in cannabis e-commerce will no doubt be keeping a close eye on CannaOne and the launch of its UK CBD marketplace.
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