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The Arcview Group Launches First Member-Based Fund

Cannabis-Focused Investor Network Announces The Arcview Collective Fund; Members to Participate in Investment Decisions

CALIFORNIA:  The Arcview Group, the leading cannabis investment and market research network, announces the launch of its first member-based fund: the Arcview Collective Fund. Arcview members will have exclusive access to the fund led by Arcview Ventures Chief Investment Officer, Jeanne M. Sullivan and its CEO, Jeffrey Finkle. Their deep experience in the cannabis sector, professional investing and venture capital uniquely position them to lead Arcview Ventures and this first member-based fund.

The Arcview Collective Fund will uniquely and effectively allow Arcview cannabis investors to collaborate on investment decisions, providing exposure to a portfolio of diverse companies in this exciting space.

“Starting a member-based fund is a natural, logical step for us,” remarked CIO Jeanne Sullivan. “For years, Arcview has been introducing its members to viable investment opportunities in the cannabis space. In that time, members have asked for a way to combine their individual resources into something more substantial – a fund which enables them to be both diversified and dedicated to the cannabis sector.”

“This is the cannabis fund best positioned to source and evaluate early stage deals because every member is highly motivated to find the best. I’m so pleased that Arcview members have already responded so positively to this opportunity,” said Troy Dayton, Founder and Chief Strategy Officer of The Arcview Group.

“This new fund gives investors the benefit of an experienced team guiding a member-led investment process,” commented CEO Jeffrey Finkle. “I have been involved with this structure for a few years now and have seen how successful it can be. The Arcview Collective Fund is a great way for cannabis investors to put money to work in this emerging industry.”

Please reach out to info@arcviewventures.com for more information.

Global Cannabis Market to Hit $42.7 Billion By 2024, According To Updated Report From Arcview Group, BDS Analytics

COLORADO: Legal cannabis sales grew 45.7% to $14.9 billion in 2019, led primarily by adult-use markets in Canada, California and Massachusetts, and supplemented by the unique approach to medical markets in Florida and Oklahoma, according to the “2020 Update to The State of Legal Cannabis Markets” (SOLCM) report released today from Arcview Market Research (“Arcview Group”) and BDS Analytics.

This worldwide growth estimate is on par with the forecast in the original SOLCM, released in June 2019, and reflects the highest annual growth rate to date. This new data is in stark contrast with the mere 17% growth seen in 2018, due in large part to the shrinkage in California following the launch of adult-use sales on January 1, 2018. As a result of expected growth in key adult-use markets in the U.S. and Canada, Arcview Group has updated their 2024 forecast to $42.7 billion in worldwide legal cannabis sales.

“The legal cannabis market grew by 46% in 2019 despite challenges caused by overregulation and overtaxing in the two biggest markets; California and Canada,” said Troy Dayton, Founder and Chief Strategy Officer of The Arcview Group. “That is a true testament to just how popular cannabis is among consumers and the ongoing impact of new markets coming online and maturing. The possibilities are boundless as political progress opens up more markets across the world, and struggling markets sort out their regulatory framework.”

“By loosening product restrictions and adopting a more free-market approach to licensing, Florida, for example, has started to realize the potential of medical cannabis sales in a populous state,” said Tom Adams, managing director and principal analyst at BDS Analytics. “However, what we’re seeing in Oklahoma is a light regulatory touch and low tax rates, which allows citizens to access the health benefits of cannabis, out-perform the illicit market, and create a healthy tax revenue stream directly to the state’s government.”

Other key trends analyzed in the 2020 Update to The State of Legal Cannabis Markets include:

  • Bustling activity in states such as Illinois, Maryland, and Oklahoma helped boost overall spending growth nationwide, which came out to $12.2 billion across the United States and an anticipated compound annual growth rate (CAGR) of 22.7%.
  • New licensed retailer openings in Ontario and other populous provinces have smoothed out supply chain kinks, creating a better product flow and ultimately improved sales in 2019. “Cannabis 2.0” also expanded product offerings beyond flower and oil in mid-December 2019, with limited impact on sales in 2019, but projected sales acceleration in 2020.
  • Legal medical cannabis spending beyond the U.S. and Canada more than doubled in 2019, from $367 million to $840 million, driven by Germany and Mexico’s markets.

The 55-plus page report is available free to all buyers of the $497 The State of Legal Cannabis Markets, 7th Edition, or as part of the Cannabis Intelligence Briefing Series subscription service from Arcview Market Research and BDS Analytics for $1,975.

Arcview Co-Hosts Hong Kong’s First Ever Cannabis Investor Symposium

CHINA: Hong Kong’s first-ever Cannabis Investor Symposium will take place on November 1, 2018 at the W Hotel. The one-day gathering is hosted by The Arcview Group, CannaTech and URI Capital Management.

The Cannabis industry is the fastest growing market in the world and the legal cannabis business is expected to generate $57 billion globally by 2027 as countries throughout the world continue to legalize its use and demand continues to grow exponentially.

The Hong Kong Symposium will focus on the global investment opportunity but is specially curated toward the Asian market.

The most powerful cannabis business leaders and investment experts from around the world will gather to discuss the burgeoning industry.

Keynote and panel discussions will cover Cannabis and China, The Cannabis Value Chain, Market Insights: Australasia, Public and Private Investment Opportunities, Risks and Regulations, World Cannabis Policy and more.

The event is designed for those looking to gain insight into investment opportunities in the global cannabis market, family offices, money managers, venture capital firms, private equity funds, and institutional investors.

Troy Dayton, CEO of The Arcview Group adds: “The worldwide cannabis market is exploding, and Asian investors are increasingly paying attention. Up until now, pioneering Asian investors have only been able to simply read about this fascinating industry. Not anymore. We are bringing the cannabis industry to them.”

Saul Kaye, CEO of CannaTech and iCAN said of the symposium, “The time has come for serious Asian investors to enter the market. The Hong Kong event will take place days after CannaTech Sydney, Australia’s first Medical Cannabis Summit. The region’s attitude is evolving quickly, particularly with respect to Medical Cannabis and the industry needs to learn more. Currently dominated by American and Canadian investors, the time is right for the Asian investment community to join this industry. We are thrilled to partner with Arcview and URI Fund on this important event.”

Uri Capital Management added: “Cannabis usage as a medicinal plant dates back in Chinese history for thousands of years. Medicinal cannabis research is rapidly progressing, and we need to redefine our attitude towards cannabis and hemp. Asia, more specifically China, is poised to leverage its unique advantages in Hemp and agriculture to become a dominant global leader. URI is proud to become the first Chinese financial conglomerate to focus on the Asian cannabis industry and will leverage the firm’s world class research and investment resources to lead the way.”

For more information about the Hong Kong Cannabis Symposium, click here.

 

 

 

 

Latest Arcview/BDS Data: Cannabis Consumer Spending Outpaces Industry Estimates

NEW YORK: Arcview Market Research reports that consumer spending on legal cannabis in North America is outpacing previous estimates. The report indicates that retail cannabis sales will grow 33% from 2016 to nearly $10 billion this year.

By 2021 the legal market is expected to reach $24.5 billion, at a 28% compound annual growth rate (CAGR). Arcview also reported that according to BDS Analytics’ GreenEdge point-of-sale tracking service, the medical market in California is already as big as the total markets in ColoradoWashington, and Oregon combined.

Tom Adams, Editor-in-Chief at Arcview Market Research and Principal Analyst at BDS Analytics explained, “Our data shows positive indicators across the board for the legal cannabis industry, in North America and around the globe… The passage of the 2016 ballot initiatives and continued maturation of the existing Adult-Use markets are the primary drivers of the growth this year.  That’s nothing compared to what we can expect in 2018 and beyond from Nevada’s tourism, and California and Canada planning to launch Adult-Use sales in 2018.”

Taking The Lead On High In Times Square: Billboard Ad Spotlights Women In Cannabis

Women in the cannabis industry are pioneering their messages further into the mainstream than ever before. Last year Honeysuckle Magazine, an award-winning, women-owned internationally distributed media company spearheaded an historic initiative that empowered cannabis brands to run on Times Square billboard for the first time in history. Among their landmark partners was luxury accessories company My Bud Vase™, another female-run business in the space and a global leader in custom-made bongs (but of course, the word “bong” was unusable in the ad).

For 2020, Honeysuckle and My Bud Vase™ have made history again, this time by partnering with brands on an innovative Times Square billboard montage featuring the first NASDAQ-esque cannabis news ticker and “The Bong Song,” a music video collaboration from My Bud Vase™ and the female-focused video agency High Herstory. Additional partners spotlighted in the campaign at 1500 Broadway have included NoCo Hemp ExpoCongregateAsheville HempTurnStyle NYCTonic CBDU.S. Hemp BrokerageHamptons Medi Spa, and acclaimed filmmaker Samuel Clemens Long.

The Honeysuckle billboard montage also features an ad for the company’s new cannabis-exclusive publication, Honey Pot. Readers will see more from Doreen Sullivan, founder of My Bud Vase™, in the upcoming Honey Pot print edition Under the Female Influence, releasing mid-March 2020 for Women’s History Month. This issue will profile women in leadership across all aspects of the cannabis industry, with femme-identified key players such as Emmy-winning television icon Ricki Lake (producer of Weed the People); Jeanne M. Sullivan, General Partner of The Arcview Group; Jamie Pearson, CEO of Bhang Corporation; Tahira Rehmatullah, President of T3 Ventures; Dr. June Chin, internationally-renowned medical cannabis expert and founder of MedLeaf RX; and RuPaul’s Drag Race alum Laganja Estranja.

View the Times Square campaign now through Friday, February 7th at 1500 Broadway (the intersection of 43rd Street and Broadway), a premium spot directly across from the NASDAQ. For more information, follow @honeysucklemagazine and @hshoneypot on Instagram.

Global Cannabis Sales Grow 48% To $15 Billion In 2019

COLORADO: Global cannabis sales rose 48% to $15 billion in 2019, driven by growth in sales in Canada and seven U.S. states that saw sales more than double.

Continued consumer adoption in maturing markets such as Colorado and new adult-use markets including Massachusetts contributed to 45% growth in adult-use sales to $8.9 billion. However, medical-only states and countries actually grew faster – up 54% growth to $6.2 billion. The United States saw 81% of spending in 2019, although superior growth in the rest of the world will continue balancing the market across the US, Canada, and Europe through 2024.

“These stunning growth numbers prove the negative stigma of cannabis is coming to an end in the US. What’s incredible is the realization that so much potential growth remains both domestically and globally,” said Troy Dayton, Founder and Chief Strategy Officer of The Arcview Group. “With sales jumping nearly 50% in an industry with only a handful of markets online, this report quantifies why there’s so much anticipation from producers and shrewd investors waiting for national and international markets to open up or mature. The fallout in public market valuations is not trending with the tremendous growth curve of this exploding market. That discrepancy represents a unique and time-bound opportunity for investors.”

Despite strong growth, regulatory challenges created headwinds that artificially hampered business activity in California, Canada, and numerous other markets.

“The disconnect between investor sentiment and the facts on the ground is as dramatic as anything I’ve seen since the dot.com stock crash of 2000, which happened just as the internet caught fire with consumers,” said Tom Adams, Editor-in-Chief of Arcview Market Research and Managing Director of BDS Analytics Industry Intelligence. “Five billion additional dollars were spent on legal cannabis in 2019. That’s bigger than the entire legal cannabis market was in 2015.”

Among the key points in the forecasts:

  • Sales in 2020 are forecast to increase by 38% driven by growth in established markets and continued geographic expansion, including Illinois’ recreational market opening;
  • Despite medical spending outgrowing adult-use spending in 2019, adult-use markets will be the primary drivers of global market growth through 2024;
  • More than $400 million in Massachusetts adult use sales in the first year of an adult use East Coast market;
  • Florida continues to perform strongly with over $650 million in sales despite being a medical-only market;
  • New consumers continue to enter the market at a rapid pace with the development of new products and social acceptance

For more information, please visit www.arcviewgroup.com and www.bdsanalytics.com

Cresco Labs Enters Florida – Will Have Access to 65% Of The Total Addressable U.S. Cannabis Market

ILLINOIS: Cresco Labs Inc., one of the largest vertically integrated multi-state cannabis operators in the United States, today announced that it is entering the Florida market through the signing of a letter agreement to acquire the ownership interests or assets of VidaCann Ltd. and/or affiliated entities, one of the largest and most advanced providers of medical cannabis in Florida.

Key Transaction Highlights and Benefits:

  • Vertically Integrated Florida License – Provides Cresco Labs a Medical Marijuana Treatment Center license to grow, process, manufacture, distribute and dispense the Company’s house of branded products in up to, currently, 30 retail medical dispensaries in the state of Florida.
  • Retail Dispensary Footprint & Rollout – VidaCann currently operates seven (7) dispensaries in the cities of Bradenton, Deerfield Beach, Holly Hill, Orlando, Palm Bay, St. Petersburg, and Tampa and expects to have 14 dispensaries open by the end of June 2019.
    • Additional dispensary locations in Tallahassee, Bonita Springs and Port Charlotte are completed and pending operational approval, and locations in Jacksonville, West Palm Beach, Miami and Pensacola are currently under construction and scheduled to open by the end of June 2019.
    • VidaCann is projected to have up to 20 dispensaries by the end of 2019, while Cresco intends to further accelerate the VidaCann retail dispensary rollout. Dispensary locations are strategically located throughout the state to ensure 95% of the population of Florida is within 50 miles of a VidaCann dispensary. Delivery is available statewide to all licensed patients.
  • Operational Cultivation and Processing – A fully-operational, greenhouse cultivation facility with a state-of-the-art cGMP-certified processing and analytical lab, meeting all FDA requirements.
    • Fully operational 70,000 ft2 cultivation and processing facility is scheduled to double in size by the end of 2019 and will allow Cresco Labs to grow and manufacture its full suite of branded products for distribution across the state.
    • The greenhouse maintains more than 30 premium strains and VidaCann is the only Florida cannabis company using custom-made Italian extractors that can process over 400 pounds a day.

Management Commentary:

“Entering the Florida market is consistent with Cresco Labs strategy of entering markets with outsized demand with strong regulatory structures and is an important milestone for the Company that dramatically impacts our growth trajectory and will be accretive to our earnings in 2019,” said Cresco Labs CEO and Co-founder Charlie Bachtell. “Since relaunching its cannabis program in 2017, Florida has seen tremendous growth in patient registration and is one of the most important markets in the country. VidaCann is the perfect blend of an established operational footprint and infrastructure of professionals that will allow Cresco to execute its disciplined and strategic Florida plan expeditiously.” Bachtell added, “We look forward to welcoming all of the 100 VidaCann employees to the Cresco Labs family.”

“Matching our proven ability to execute operationally with unparalleled speed to the foundation already established by VidaCann, we expect to efficiently scale our Florida operations, immediately impact the market, and get the same high rate of market share that we have achieved in other states in which we operate. We are excited to bring the Cresco Labs’ brand of professional cannabis to the patients of Florida and to all stakeholders involved with this program,” said Cresco Labs President and Co-founder Joe Caltabiano.

Florida Market:

According to Arcview Market Research/BDS Analytics, the medical cannabis market in Florida is projected to increase to $1.7 billion by 2022 primarily based on increasing patient count – there are now currently more than 2,000 qualified ordering physicians and nearly 200,000 registered patients (upon 200,000 patients, VidaCann will have the ability to increase its dispensaries to 35) with total medical patients estimated to reach 550,000 by 2022. With a population of approximately 21 million, the Florida market will increase Cresco Labs’ total addressable consumer base to more than 140 million people.

Cresco Labs Footprint:

Upon the closing of the Transaction, Cresco Labs will have 14 production facilities and 21 retail dispensaries operating with licenses to operate a total of 51 retail dispensaries across 10 states – Illinois, Pennsylvania, Ohio, Nevada, California, Arizona, Florida with New York, Maryland and Massachusetts pending approval. The Company’s products are currently on the shelves of over 250 dispensaries. Cresco Labs is operational in six of the seven most populated states in the country and has more than 140 million potential consumers which is 65% of the estimated total addressable US cannabis market.

Transaction Details:

The purchase consideration is approximately $120 million and will be comprised of a mix of Cresco Labs shares, which will be subject to a 6 to 12-month lock-up agreement following closing, and cash. The final purchase price and proportion of cash and stock to be determined and reflected in the definitive agreement.

Completion of due diligence and execution of a definitive transaction agreement is expected within two weeks. The Transaction is anticipated to close during the second quarter and will be subject to customary closing conditions, including approval from the CSE, the Florida Department of Health and all applicable U.S. regulatory agencies.

VidaCann has been operational since 2018 and their year-end financials have not yet been finalized.

Cresco Labs Receives Approval To Enter The Michigan Market

ILLINOIS:  Cresco Labs Inc., one of the largest vertically integrated multi-state cannabis operators in the United States, today announced that it has completed the most comprehensive portion of Michigan’s application process, being pre-qualified for a cultivation and processing license by the Department of Licensing and Regulatory Affairs Medical Marihuana Licensing Board. The pre-qualification represents the authorization of the entity to move forward with the licensing process for its intended facilities.

“We continue to execute well on our expansion strategy and leverage our professional, proven approach to win access to new markets,” said Cresco Labs CEO and Co-founder Charlie Bachtell. “Entering Michigan will add another large market opportunity to our growing footprint and increase our total addressable consumer base to more than 150 million people. Michigan is one of the largest medical cannabis markets in the country with an estimated patient population of nearly 300,000 patients and is steadily moving towards implementation of an adult-use program. Pre-qualification is the most significant regulatory hurdle in the Michigan licensing process. We expect to replicate the process that has enabled us to quickly and efficiently get operational in other markets and begin making our full suite of brands available to patients wanting to experience the positive medicinal benefits of cannabis.”

Cresco Labs has applied for a cultivation and processing facility to be located in a former 100,000+ square foot factory in Marshall, Michigan. The Company has been granted conditional local approval to build and operate the facility pending final approval of its state facility license application.

Michigan Market:

Michigan is the 10th largest state in the country with a population of nearly 10 million people and more nearly 300,000 registered patients in the state’s medical cannabis program. According to Arcview Market Research/BDS Analytics, the total cannabis market in Michigan – including both medical spending and future legalized adult-use spending – is projected to increase to nearly $1.4 billion by 2022 from $869 million in 2018.

Cresco Labs Footprint:

Upon the receipt of licensure in Michigan and the closing of the Company’s pending acquisition in Florida, Cresco Labs will have 15 production facilities, 21 operational retail dispensaries and licenses to operate a total of 51 retail dispensaries across 11 states – Illinois, Pennsylvania, Ohio, Nevada, California, Arizona, Florida, and Michigan with New York, Maryland and Massachusetts pending regulatory approval. The Company’s products are currently on the shelves of over 250 dispensaries. Cresco Labs will have operations in seven of the ten most populated states in the country with legalized cannabis programs totaling more than 150 million residents, which is nearly 70% of the estimated total addressable US cannabis market

Acreage Holdings’ Partner, Greenleaf Apothecaries, Opens The Botanist Dispensary In Canton, Ohio

NEW YORK: Acreage Holdings, the United States’ largest vertically integrated, multi-state cannabis operator according to public filings, announced Greenleaf Apothecaries has opened its first “The Botanist” medical cannabis dispensary in Canton, OH.

Acreage maintains a Management Services Agreement with Greenleaf that delivers Acreage’s operational expertise, product development capabilities, and “The Botanist” retail dispensary brand. Greenleaf plans to open additional “The Botanist” dispensaries in Akron, Cleveland, Columbus, and Wickliffe that will serve qualifying patients from Ohio’s nearly 12 million residents and an estimated total addressable cannabis market in 2022 of $290 million, according to Arcview Market Research.

Greenleaf is one of three operators in Ohio that was awarded the maximum allotment of five dispensary operating licenses and was also recently awarded a Level 1 provisional cultivation license by the Ohio Department of Commerce. The new cultivation and processing facility will be located in Middlefield, OH.

New MyJane Study: Majority of Orange County Women Would Consider Cannabis to Treat Stress, Sleep Issues and Pain

CALIFORNIA:  Seventy-nine percent of women surveyed in Orange County, California, agree that their most common health and wellness issues can be addressed with cannabis products, according to a just-released survey conducted by San Diego-based research firm GroupSolver for MyJane in advance of its launch. The survey also revealed the state of Orange County cannabis usage, documenting that up to 40 percent of Orange County respondents who experience stress and anxiety, sleep issues or pain turn to cannabis for relief.

However, approximately 30 percent of recreational or medicinal cannabis users feel uncomfortable purchasing through a dispensary, with 79 percent of respondents expressing interest in trying a curated cannabis subscription service just for women. The survey reached out to 42,000 women in Orange County who met qualification criteria and had a margin of error of less than 5 percent with a confidence level of 90 percent.

These findings reveal a gap in cannabis education and accessibility in Orange County, according to MyJane founder and CEO Kimberly Kovacs, and signal that women want alternatives. She and a founding team of entrepreneurs — Chief Technology Officer Ryan Reid, Chief Scientist Cam Woods and Chief Creative Officer Cara Stewart Raffele — are dedicated to closing this gap and helping women feel better.

“Through MyJane, women will be empowered to take control of their personal wellness, create routines proven to work for them, and reject the idea that one size fits all in health and wellness,” Kovacs said. “Through education, accessibility and community, we will offer women the confidence to make informed health and wellness choices about cannabis.”

Kovacs will be one of the featured investor sharks at the Arcview International Investor Forum in San Francisco, July 19-21, 2018.

Launching in fall 2018, MyJane will offer the first premium cannabis subscription service for women — tailored to meet their individual needs. The software platform is being designed to provide comprehensive research and education to ensure members always are in control of their wellness decisions, helping them create personalized routines just right for them. MyJane’s proprietary algorithm uses artificial intelligence to personalize health and wellness choices. The data collected will drive product choices, improve members’ experiences and add social proof to the void of useful data in the cannabis market.