Thanks to a trending new use as a tobacco substitute cannabidiol (CBD) sales are exploding across Europe. According to research firm Brightfield Group, European CBD sales will surge by more than five times to reach nearly US$1.7 billion in 2023, further boosting interest in CBD-producing companies, including MYM Nutraceuticals Inc. (CSE:MYM) (OTC:MYMMF), CV Sciences Inc. (OTC:CVSI), Curaleaf Holdings, Inc. (CSE:CURA) (OTC:CURLF), Tilray, Inc. (NASDAQ:TLRY), and Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF).
Globally, Brightfield Group has also projected CBD sales to hit US$22 billion by 2022. This potential gave rise to North American companies looking for global opportunities, such as MYM Nutraceuticals Inc. (CSE:MYM) (OTC:MYMMF) who announced three new international CBD-rich projects over the last 6 weeks.
Starting in late March, MYM increased its stake in Colombia Organica to 80%. The project includes 3 licenses, which involve the production of cannabis derivatives, and cultivation of both psychoactive (THC) and non-psychoactive (CBD) cannabis.
MYM followed up with another Latin American project, announcing the incorporation of MYM Nutraceuticals Mexico S.A. de C.V., in anticipation of future Mexican legislation to regulate the cannabis industry. The plan is to become a first-mover in the industry in Mexico, with a plan for focusing on the importation and distribution of hemp-derived CBD products.
Even with the United States, new major projects are being approved, especially in the wake of the 2018 US Farm Bill, which in effect legalized CBD-rich hemp cultivation on a federal level.
MYM Nutraceuticals Inc. (CSE:MYM) (OTC:MYMMF) and its partners Aqueous Sciences of Nevada have launched a new 3,000-acre CBD-rich hemp operation. Located near the four corners area of Arizona, Colorado, New Mexico, and Utah, on Navajo Nation land in Nevada, the project will be operated by a newly incorporated company for the purpose of cultivating, extracting, and distributing hemp.
HEMP-BASED CBD POTENTIAL ON THE RISE
MYM Nutraceuticals Inc. (CSE:MYM) (OTC:MYMMF) and Aqueous are set to work on an exclusive basis, with each owning 50% of a new company. MYM and Aqueous plan to extend their activities to include extracting, manufacturing and distribution of hemp based products that will comply with Navajo Nation, USDA, FDA and FTC regulations and requirements.
"With the recent passing of the Farm Bill in the US, CBD-rich hemp was removed from the classified drug list, opening the door for farmers to legally grow hemp," said Howard Steinberg, CEO of MYM. "Our partnership with Aqueous is in keeping with our new strategic plan to become a global leader in the cultivation, extraction and distribution of hemp and CBD in bulk and for use in our own unique branded products."
As per the terms of the partnership, Aqueous will provide all labour, site management, and other resources as necessary to operate the business. MYM will provide expertise and support in growing procedure, import/export facilitation, access to its research and development team, and distribution.
The Navajo project runs in line with MYM’s updated 2019 strategic plan, which expands the company’s reach into hemp, complimenting its plans to build some of the world’s largest cannabis cultivation green houses in Quebec and Australia.
With the rise of CBD’s potential, MYM is positioning itself to become a global leader in cannabis, hemp, and seed cultivation through a variety of global partnerships in agricultural friendly zones around the world. Now known as veterans in the cannabis sector, MYM brings to each partnership its expertise in cultivation (indoor, outdoor & greenhouse), and extraction combined with global distribution and unique brands to leverage its knowledge worldwide.
As of early April, the company announced it’s in the midst of negotiating a number of agreements for cannabis and hemp production and distribution in North America, South America and the South Pacific.
FURTHER INTERNATIONAL CBD DEVELOPMENTS
CV Sciences Inc. (OTC:CVSI)
Hemp-CBD company CV Sciences saw its 2018 sales grow by 133% from $20.7 million in 2017 to $48.2 million. Much of the growth in sales has come from increased brand awareness and CBD consumer demand for the company’s PlusCBD products. Since just prior to the passing of the 2018 Farm Bill in December, the company has risen 56% from its November low of $3.55 to the current price of $5.54. CV Sciences recently announced a further expansion of its industry-dominating brand, PlusCBD Oil, now available in 3,308 retail stores, up 48% from 2,238 retail stores as of the end of 2018.
Curaleaf Holdings, Inc. (CSE:CURA) (OTC:CURLF)
Major pharmacy and wellness retail chain CVS Health Corp. recently announced it would begin selling products infused with CBD at more than 800 of stores as part of a distribution deal with cannabis company Curaleaf Holdings. Since announcing the agreement on a conference call on March 20th, Curaleaf’s stock has risen 46% from $6.86 to $10.02 by April 17th. During the last few months, the multi-billion-dollar company has gone on an acquisition spree, amassing a variety of assets, including multiple CBD-laden projects.
Tilray, Inc. (NASDAQ:TLRY)
Earlier this year, Tilray announced the signing of a $100 million deal with Authentic Brands (Juicy Couture, Nine West, Jones New York and more) to develop and distribute CBD products in multiple retail locations around the country. Later, Tilray also announced the purchase of North America’s largest hemp foods company, Manitoba Harvest, for the price of $318 million. With that acquisition, Tilray plans to expand the brand to include CBD products.
Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF)
Through its CBD-infused line of wellness products, Seventh Sense, Green Growth Brands is launching a presence in malls and other retail spaces across North America. Having signed an agreement with commercial real estate moguls, Simon Property Group, Green Growth Brands’ Seventh Sense kiosks and stores will be rolled out eventually into over a hundred mall locations in the US. As well, Green Growth Brands has signed a deal with DSW to sell branded CBD products in select locations in both the USA and Canada.
USA News Group
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