Global Cannabis-Infused Edible Products Expected To Grow +25% CAGR 2018-2022

IRELAND: Analysts forecast the Global Cannabis-Infused Edible Products Market to grow at a CAGR of 25.01% during the period 2018-2022, according to the recently published “Global Cannabis-infused Edible Products Market 2018-2022” report.

Cannabis-infused edible products comprise of liquid edible or a drinkable. It is a cannabis product that comprises cannabinoid compounds such as cannabidiol (CBD) and tetrahydrocannabinol (THC).

The report covers the present scenario and the growth prospects of the cannabis-infused edible products market. To calculate the market size, the report considers the revenue generated from the sales of cannabis-infused edible products.

The increasing number of countries decriminalizing cannabis will be a key trend driving the market growth. Several nations have decriminalized the use of marijuana both for recreational and medical purposes. In 2016, Canada legalized the use of marijuana for both recreational and medical purposes..

The growing social acceptance of cannabis will drive the market growth. The growing demand and growth of the cannabis market influences the sales and revenues of major corporations. Also, the increasing social acceptance of recreational marijuana and cannabis-infused edible products globally offers high growth opportunities to the vendors.

The report states that the lack of funds and investments in cannabis sector will impact the market growth. Numerous investment organizations decline to provide investment and loans to vendors in the legal cannabis industry. Vendors struggle to increase their profit margins due to lack of support from government organizations and high-interest rates of the private sector.

Companies Mentioned

  • Bhang Corporation
  • Cannabis Energy Drink
  • KIVA CONFECTIONS
  • Mentor Capital
  • VCC BRANDS

INDIVA and Bhang Corporation Create Canadian and International Joint Venture

CANADA: INDIVA Limited has announced a 50/50 joint venture with, and a USD $1 million investment into, Bhang Corporation, an award-winning licensor of cannabis and CBD edibles and concentrates. The joint venture, which is managed by INDIVA, has exclusive rights to manufacture and sell Bhang products in Canada and the right to export those products internationally.

Bhang is an intellectual property company which licenses rights to a full range of cannabis and CBD products, including chocolates, gums and oral sprays, isolates, vapes and vape cartridges and accessories. Through the JV, INDIVA becomes the exclusive licensed manufacturer and distributor of a full array of award winning products in Canada and the exclusive licensed exporter of such products internationally.

The JV will be operated through an Ontario corporation owned 50/50 by INDIVA and Bhang.  INDIVA is the manager of the JV and has committed to investing USD $5 million in building cannabis processing infrastructure and, in addition to being able to use such infrastructure to produce INDIVA branded products, making that infrastructure available to the JV. Bhang is contributing its know-how and intellectual property, including its trademarks and patents, to the JV and will collaborate with INDIVA on sales and marketing. Each of the parties has committed to contribute equally to the working capital of the JV.

It is expected that the cannabis and CBD products produced by the joint venture will be sold in Canada primarily in the adult-use cannabis market (sometimes referred to as “the recreational market”), which is expected to launch in the summer or fall of 2018. Subject to compliance with applicable laws and regulations, it is expected that Bhang branding will be most prominent on the packaging but all packages will also visibly display INDIVA branding i.e. “Powered by INDIVA”.

“The joint venture allows us to leap frog over the years and millions of dollars of research and development that other Canadian licensed producers will need to spend to successfully produce high quality cannabis and CBD products,” explained Koby Smutylo, Chief Operating Officer and General Counsel, INDIVA. “We will also benefit from the large consumer following Bhang products enjoy in Canada and worldwide,” he continued.

“Our stated strategy is to build a strong and experienced team” commented Niel Marotta, Chief Executive Officer, INDIVA. “This joint venture and other strategic relationships we are building in Canada, and internationally are the further manifestation of this strategy.”

Mentor Capital Awarded $1.5 Million from Bhang Corporation

The Agreement with Bhang Rescinded by Arbitration Panel Due to Bhang’s Breach

CALIFORNIA: Mentor Capital, announced that it has been awarded $1,500,000 plus approximately $375,000 in interest from Bhang Corporation. The Arbitration Panel concluded in the award that, “Bhang breached the Agreement by failing to deliver the shares” required from Bhang under the contract. Mentor’s requested contract rescission for the return of its $1,500,000 investment, made in 2014, was affirmed, and Bhang’s request for damages was entirely denied.

The Panel also clarified and found that, “Mentor Stock was freely traded,” and “Bhang was not fraudulently induced to enter into the Agreement.” Scott Van Rixell and Richard Sellers must return the 117,000 shares they purchased before they may be paid back the purchase price of those shares as part of putting the parties back “in the position they were before the execution of the Agreement.”

Mentor Capital, Inc. CEO, Chet Billingsley, is pleased that this regrettable chapter in the cannabis sector is being brought to a close. “We didn’t ask for damages and I am pleased our funds seemed to have boosted Bhang’s growth. We put up our funding over sixty-days and, hopefully, the repayment by Bhang will also go smoothly. Mentor plans to redeploy those repaid funds with other established cannabis companies that are interested in moving forward with Mentor.”

Mentor Capital clarifies that other than for the payment of the award to Mentor, neither Bhang nor Mentor will have any affiliation with the other in any way nor own any part of each other. Mentor will immediately remove its previous press releases, accompanying logos and similar older references to Bhang as part of the rescission order to ensure there is no suggestion of any continuing interest by Mentor.