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.

 

 

 

 

CanopyBoulder Invests $180,000 In Cannabis Startups, Raises $2 Million For 2018 Fund

Marijuana business accelerator and venture fund launches ninth cohort of ancillary cannabis companies

 COLORADO: CanopyBoulder, Canopy’s seed-stage investment fund and business accelerator for companies developing ancillary products and services for the legal cannabis industry, is pleased to announce the launch of the Spring 2018 class. Six startups are enrolled in Canopy’s 16-week accelerator program.  These businesses include a brand and influencer marketplace, a connector of cannabis industry software apps, and a blockchain technology addressing “looping” at dispensaries, among others.

In addition to the launch of its ninth cohort, Canopy oversubscribed its $2 million 2018 accelerator fund. This capital will be used to provide seed capital and follow-on funding to the companies that join the CanopyBoulder accelerator.

The CanopyBoulder program is designed to accelerate business development, refine strategy, and prepare companies to raise capital. Over 200 mentors, cannabis-focused venture firms, and key figures in the cannabis industry support the teams throughout the program.  After weeks of pitch practice, business model refinement and miles logged meeting cannabis businesses, the cohort “graduates” and travels to present their businesses to an audience of investors, cannabis business professionals, media, and local community.

The six companies included in the spring 2018 cohort include:

  • Realm 72 – Founded by Christine Penny and Seth Shimkonis
  • Andia – Founded by Angel Diaz and Alberto Garcia
  • Catalyst Business Partners, LLC – Founded by Kirsten Knutson
  • Best in Grow – Founded by Andrew Duffy and Jacob Levin
  • KNXIT – Founded by Tom Quigley and Kevin Dugan
  • TreatmentX – Founded by Kevin Staunton and Susan Trapp

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.”

Sales of Medical Cannabis Products Are Expected To Grow

NEW YORK: According to a report by Grand View Research, the global medical cannabis market is projected to reach a value of USD 55.8 billion by 2025. After the elections in 2016, Washington D.C., along with 28 states have legalized cannabis for medical use. The growing number of states and countries receiving approval for use in therapeutic applications are one of the crucial factors driving the demand over the next few years. Grand View Research indicates that several regulatory frameworks such as the Medical Marijuana Regulation and Safety Act, will require individuals or companies to obtain permission and also an annual state license from 2018. Companies such as growers, retail operators, and makers of processed pot products will be focused on, and an increasing number of issued licenses are also among factors helping to drive the market.

In the shorter term, a report by Arcview Market Research indicates that legal cannabis will grow at 22% CAGR in 2017, as eight states that voted to open or expand their cannabis markets on Election Day in November 2016, work to implement the new programs. According to the report the industry accelerated at a remarkable pace in 2016. North American consumers spent $6.7 billion on legal cannabis products, or up 34% from 2015. The 34% compound annual growth rate (CAGR) from 2014 to 2016 was driven primarily by Colorado and Washington initiating adult-use sales.

Arcview Market Research forecasts that growth in the legal cannabis industry will reaccelerate beginning 2018, as recreational sales ramp up in CanadaCalifornia, and Massachusetts along with medical sales in Florida. These developments will grow the $6.7 billion market of 2016 at a robust 27% CAGR to $22.6 billion in 2021. Arcview includes 30 states plus Canada with active legal markets by 2021 in its model.

Overview Of The Marijuana-infused Food Regulations

By Ian Lebowski

Colorado State was the first to be declared cannabis-friendly after legalizing medical marijuana in 2000. During that time, only a few regulations governed distribution and use of the drug. However, certain concerns have led to new rules and guidelines for cultivation, distribution, acquisition and use of marijuana, either for medical or recreational purposes.

This far, edibles have proven to be broadly appealing. Many people do not want to smoke or inhale cannabis. This has seen an upsurge in the number of marijuana-infused edibles found on the shelves in different states today. The drug is also versatile and people have noticed they can add it to the recipes of almost any food.

Without proper regulation of edibles, consumers have suffered accidental health consequences. There have been cases of intoxication resulting from consuming high levels of THC in marijuana-infused foods. Some people, especially children, have mistaken such edibles for normal snacks, thus ending up in hospitals.

A 2016 report by The JAMA Network showed a 5-fold increase in cases of children less than 10 years exposed to marijuana handled in Colorado hospitals between 2009 and 2015. 48% of these cases were as a result of marijuana edibles.

In 2016, a Canadian government task force on marijuana legalization and regulation looked at the public health concerns on edibles, among other things. The task force came up with recommendations on cannabis regulations touching on 4 major aspects of cannabis-infused foods. These include packaging, portion sizes, labeling, and maximum THC content.

Current Regulations on Marijuana-infused foods

1. Marijuana edibles should come in a standard size of serving that contains not more than 10 mg of THC

Standardized serving makes it easier for consumers to estimate how much THC they are ingesting into their bodies no matter the product they buy or consume. Some states that enacted this policy include Colorado, Washington, and California etc.

  1. There should be clear indication of THC amount per serving on packages

Several states, including Colorado, Alaska, Massachusetts, and California have enacted this regulation. Some states, such as Colorado, Massachusetts, and Hawaii, have gone further to describe the kind of lettering acceptable on such containers. This enhances the visibility of the information about the content of the product.

  1. All marijuana edibles should be sold in opaque, re-sealable, and child-proof packaging

Until recently, marijuana was distributed in small plastic bags that could go for $10 or $25 per package. Marijuana edibles could be displayed in shelves like any other food. Some packages looked like normal snacks.

To ensure children’s safety, many states embraced this policy which was originally enacted in Colorado and Washington. Besides Colorado and Washington, this regulation is now live in Arizona, California, Illinois, Alaska, and Hawaii, among others.

So far, Colorado and Washington have the most comprehensive regulations about legal marijuana and marijuana-infused edibles. The above requirements were first carried out in Colorado. However, they have become the basic references for other regulations enacted in every other US state that has legalized marijuana.

In October 2016, Colorado went further to enhance the safety of marijuana edibles by ruling out that all packaging should have the standardized servings imprinted on the packaging, followed by a sign that contains the letters “THC”. The new rule prohibited packaging that may appeal to children as well.

Conclusion

So far, consumers, marijuana edibles manufacturers, cannabis testing labs, and regulators have embraced marijuana regulation. The public feels that their voices have been heard, and any reasonable manufacturer doesn’t want any person to die after consuming their product as a result of food poisoning.  Arcview Market Research reports that the legal marijuana market has grown immensely after legalization. It’s a growth that is largely attributed to the presence of smoking alternatives such as edibles in the legal market.


VolcanoVape founder and vape enthusiast, Ian Lebowski has been involved in marijuana industry for close to a decade now. Originally working in quality control and testing, he has reviewed hundreds of vape products over the years.

Legal Cannabis Market Gaining Traction

NEW YORK: The global medical marijuana market is expected to reach a value of USD 55.8 billion by 2025, according to a new report by Grand View Research, the report indicates that together with Washington D.C. 28 states have legalized marijuana for medical uses.

In 2016, states such as ArkansasFloridaNorth DakotaOhio, and Pennsylvania were approved to use the drug in medical applications such as chemotherapies and pain management. The growing number of states and countries getting approval for using it in therapeutic applications is one of the crucial factors driving the demand over the coming few years. In addition, successful legalization for recreational use in states like California.

Florida by itself is projected to become a major market after voters overwhelmingly chose to legalize medical marijuana with more than 70% of the vote. According to Arcview Market Research, the potential growth of the medical market in Florida is strong. The market is projected to reach $1.6 billion by 2020, growing at a compound annual growth rate of 140%.

“The opportunity for good jobs, tax money and wealth creation created by Amendment 2 passing cannot be understated. Savvy entrepreneurs and pioneering investors are rightfully exuberant about the Florida market. And, thankfully, seriously ill patients will no longer need to go to high school parking lots or drug dealers to get their medicine,” said Troy Dayton, CEO of the Arcview Group.

2017 Legal Cannabis Market Developments

NEW YORK: The future of the legal cannabis market depends on a variety of factors. Politically, some have expressed concerns regarding the incoming elected administration, others feel more optimistic after nine states have voted this election cycle. The results overwhelmingly came in favor of legalization of cannabis for medical and recreational use. Economically, the industry has shown tremendous growth year to year. According to a research published on January 3rd 2017 by ArcView Group, the legal cannabis sales in the U.S. last year reached $6.7 billion, a growth of 30 percent from 2015. Sales are projected to increase to $20.2 billion by the year 2021 representing a 25 percent compound annual growth rate.

In an interview to Forbes, Arcview‘s editor-in-chief Tom Adams said that, “the only consumer industry categories I’ve seen reach $5 billion in annual spending and then post anything like 25% compound annual growth in the next five years are cable television (19%) in the 1990’s and the broadband internet (29%) in the 2000’s.” ArcView Chief Executive Officer Troy Dayton added, “One of the biggest stories was the alternative forms of ingestion… Concentrates and edibles are becoming customer favorites versus traditional smoking.”

Washington Marijuana Sales Expected to Double, Grow To Over $2 Billion By 2020

WASHINGTON:  Arcview Market Research, in partnership with New Frontier Data, has released its Washington Legal Cannabis Market State Profile, which explores the recent significant changes to the state’s cannabis industry. The elimination of the medical system that was operating in parallel to the adult use market will lead to a significant contraction of the state’s medical market, making the adult use market the primary driver of the official Arcview Market Research projection of $2.4 billion in cannabis sales projected by 2020.

“The Washington market is maturing, but it has a long way to go to reach saturation. It will practically double by 2020. People really like cannabis and the regulated market is beating the underground market, as predicted,” said Troy Dayton, CEO of The Arcview Group.

“Over the past 18 months, Washington has undergone some of the most dramatic changes to any regulated cannabis program in the country, from lowering the tax rates to consolidating the medical and adult use markets into a single channel. These changes are intended to streamline the market and eliminate structural inefficiencies. However, it will be at least another year before we understand their full impact on product supply and consumer behavior,” said New Frontier Data Founder & CEO, Giadha Aguirre DeCarcer.

Washington’s combined medical and adult use sales are projected to grow from $1.2 billion in 2016 to $2.04 billion in 2020, a compound annual growth rate of 23%. After more than two years in operation, sales in Washington’s adult use market have continued to exceed expectations. In 2014, average monthly sales were $10.8 million. By 2015 average monthly sales increased five-fold to $51.2 million. This then doubled in 2016 to more than $111.6 million, with strong demand expected to continue in 2017.

The state has folded medical sales into existing retail cannabis stores, eliminating all stand-alone medical dispensaries. Additionally, the state increased the number of retail licenses that will be made available from 334 to 556, and under the new harmonized medical program, patients will be required to pay the 37% excise tax on cannabis, thereby eliminating a key benefit of being a medical cannabis patient relative to being an adult use consumer.

Some other critical issues related to Washington’s market explored in the report include:

  • Adult Use Sales Continuing to Outperform Expectations
  • Washington exemplifies the value of making cannabis industry data publicly available
  • The growth of concentrates as the dominant non-flower product segment
  • The state’s goal to expand the random testing program for pesticides

If you would like more information on Washington’s legal cannabis markets, you can download the 2016 Washington Legal Cannabis Market State Profile at www.ArcviewMarketResearch.com and the report can be ordered for $249.

Massachusetts Marijuana Sales To Top $1 Billion By 2020

MASSACHUSETTS: Arcview Market Research, in partnership with New Frontier Data, has released its Massachusetts Legal Cannabis Market State Profile, which shows the potential growth of the legal marijuana market after Massachusetts voters legalized adult-use on Election Night 2016. The official Arcview Market Research projection for the Massachusetts market is that it will grow to over $1 billion by 2020 at a compound annual growth rate of 113%.

“Unlike other places where cannabis is legal, Boston is within driving distance of many of the most populous places in America. This will make Boston the cannabis capital of the world in short order. This cannabis tourism will drive significant revenue, tax dollars, and job growth which will make legalization very attractive to neighboring states,” said Troy Dayton, CEO of The Arcview Group.

“As one of only two states on the East Coast to legalize cannabis for adult use, Massachusetts represents a significant opportunity for business owners and entrepreneurs in the space. The law does not limit product forms nor does it cap retail dispensary licenses, which are both factors that will positively contribute toward the billion dollars in sales projected by 2020,” said New Frontier Data Founder & CEO, Giadha Aguirre DeCarcer.

Over the next four years, the legal cannabis market in Massachusetts is forecast to grow from $52.0 million in 2016 solely from medical use sales, to an estimated $1.07 billion in 2020 with medical and adult use sales combined. The full regulatory structure and key program details of the adult use market remain to be determined, and the market could take a few different directions depending on the actions of the Massachusetts Cannabis Control Commission and local municipalities across the state. However, the broad parameters of the law create an opportunity for an open and expansive market.

Key trends that will be critical in shaping the growth and evolution of Massachusetts’ market covered in the report are:

  • Interplay between the medical and adult use markets
  • Competition from bordering states with legal medical and adult use programs
  • Regional, national, and international tourism demand
  • Physician participation and its impact on medical program growth

If you would like more information on Massachusetts’ legal cannabis markets, you can download the 2016 Massachusetts Legal Cannabis Market State Profile at www.ArcviewMarketResearch.com and the report can be ordered for $249.

 

2016 Cannabis Investment Study: 68% Of Investors Open to Businesses That Touch Marijuana

DISTRICT OF COLUMBIA: New Frontier Data, in partnership with Arcview Market Research and The Arcview Investor Network has released its 2016 Cannabis Investment Study. The study unveils insights from Arcview’s members and shows that despite the differences in regulations affecting businesses that touch cannabis and ancillary businesses that do not touch cannabis, the majority of investors (68%) are now interested in opportunities on both sides of the market.

“It is notable to see investors’ appetite is now broadening beyond just ancillary services where there has been less stigma and risk attached in the past. With the cannabis industry forecasted to grow at a compounded annual rate of 29% over the next four years, making it one of the fastest growing industries in the U.S., investors are now open to exploring any opportunity in the sector whether it touches the plant or not,” said New Frontier Data CEO and Founder Giadha DeCarcer.

“The Arcview Investor Network is, by far, the largest single source of deal flow in the fastest growing industry in America and the largest single group of investors placing capital in the sector. We were honored to be the focus of the first ever deep-dive study on actual investor’s attitudes and actions so far. There are many interesting insights in this report that could have far reaching impacts for entrepreneurs raising capital and other investors considering placing bets in this sector,” said Arcview Group CEO Troy Dayton.

When looking at the industry’s specific verticals, the highest proportion of investors were interested in ancillary commercial products (62%). Nearly half the investors (46%) were interested in non-flower products, reflecting the very strong growth in consumer demand for edibles and concentrates over the past few years. Cultivation facilities, which are the third most popular investor focus (38%), are especially attractive in markets that tightly limit the number of grower licenses. Other areas, including industrial equipment, hemp and consulting services, were of interest to a smaller group of investors, reflecting the more limited opportunities and the specialized business expertise required for those sectors.

Other key insights in this report include:

  • 65% of investors made their first investment in 2014 or later, and 71% expect to invest more in 2016 than they did in 2015.
  • Nine in ten investors are interested in medical and adult use markets, but only 36% are interested in CBD-only markets.
  • At the state level, the two markets investors are most interested in are California (57%) and Colorado (37%).
  • However, looking globally, 64% of investors expressed interest in the Canadian market, (a higher level of interest than was seen in any individual U.S. state market).
  • Preferred stock is the favored deal structure for 76% of the investors, followed by convertible debt at 73%. Public stocks were the least preferred investment approach.

The report is downloadable at https://frontierfinancials.com/investor2016 and www.ArcViewMarketResearch.com and can be ordered for $349.