Unsurprisingly Canada and the United States, together, rule the global cannabis industry. An industry which is forecast to reach $146.4 billion by 2025, at a compound annual growth rate of 34.6%, according to a Grand View Research report. Although Canada has the first mover advantage as the first industrialized country in the world to legalize recreational cannabis, the U.S. is making major headway with 10 states, as well as D.C., which have legalized recreational cannabis and 33 states that have legalized medicinal cannabis.
The rapid growth of the industry is strengthened by increased legalization and the use of cannabis in several medical applications. As cannabis continues to produce a more favorable public opinion, investors seeking opportunities may benefit from keeping tabs on several cannabis stocks.
ParcelPal Technology Inc. (PTNYF) (PKG) (FSE: PT0), a technology-driven logistics company purposed with connecting consumers to the goods they love within an hour, announced that the company has achieved a major milestone, the completion of over 2 million deliveries. This milestone not only depicts growth and further confirms that ParcelPal could soon become the most diverse and top on-demand delivery company in Canada. The company plans to complete more join ventures, expand its technology and push its platform on multiple consumer verticals, while quickly expanding its operations across Canada as well as the U.S.
President and CEO Kelly Abbott states, “We are extremely excited to have achieved this major milestone. Our growth in 2018 was tremendous and our team has grown significantly. We are looking forward to a successful rollout in the cannabis industry amongst other verticals in the coming months across Canada with existing and future partnerships.”
ParcelPal is in the final stages of launching medical and recreational cannabis delivery in Canada with Choom Holdings (CHOOF) and recently signed Kiaro,. This on-demand cannabis delivery plan is expected to begin in April 2019, with more details to follow, and is expected to drive additional users to the platform and open fresh markets. “Our objective is to become the Uber of cannabis in Canada and this takes us one step closer to our goal” commented Abbott.
Charlotte’s Web Holdings, Inc. (CWBHF) (CWEB), a market share leader in hemp-derived CBD extract products, reported financial results for Q4 and year ended December 31, 2018. Fourth quarter highlights included: retail doors increased over 80% to 3680 and 57% of revenue came from ecommerce, organic consolidated revenue growth of 71% to $21.5 million, and gross profit increased 63% to $16.3 million, or 76% of consolidated revenue. Highlights of 2018 Full Year Results included: organic revenue growth of 74% to $69.5 million, gross profit increased 75% to $52.3 million, and adjusted EBITDA decreased to 30% from 36% of consolidated revenue.
“During the fourth quarter we concentrated our efforts on completing the 2018 harvest and building product inventory to support growing consumer demand. Our 2018 harvest resulted in 675,000 pounds of raw hemp compared to 63,000 pounds in 2017. This inventory build ensures we are able to meet growing demand and supply the large national retail chains that are beginning to carry our products. In general, broader consumer awareness of the benefits of cannabinoids, namely cannabidiol (CBD) from hemp extract, is driving increased uptake in all product categories in our retail channels and e-commerce platform,” stated Hess Moallem, President and CEO.
Charlotte’s Web has been actively adding additional retail distribution customers and locations and recently surpassed 4,000 locations after national retail chains began carrying its products. Several new products and formats are planned for 2019 in animal nutrition, wellness topicals and human consumables, according to the company.
Curaleaf Holdings, Inc. (CURLF) (CURA), a leading vertically integrated multi-state cannabis operator in the U.S., announced that it completed the acquisition of EC Investment Partners, LLC. Curaleaf now possesses Eureka’s Monterey County, California-based cultivation facility, a Salinas Valley cultivation facility and three dispensaries in development across the state that are expected to open later this year.
“The acquisition of Eureka cements our foundation in California and positions us well in the largest cannabis consumption market in the U.S.,” said Joseph Lusardi, CEO. “The closing of this transaction marks an important milestone for Curaleaf, enabling us to enter the highly attractive California market as a vertically integrated operator with plans to expand across the state.”
Furthermore, on the company’s recent earnings conference, company executives stated that CVS Health Corp (CVS) will start offering its Curaleaf Hemp lotions and transdermal patches in around 800 stores across the U.S.
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