Ecofibre Acquires TexInnovate To Accelerate Commercialization Of Hemp Black

AUSTRALIA:  Ecofibre Limited has completed the acquisition of TexInnovate, a portfolio of five businesses with deep technical expertise across a broad range of high-performance textile disciplines for a total consideration of $21 million comprising 50% in cash and 50% in shares , a news release said.

Ecofibre Chairman Barry Lambert said, “I congratulate our CEO Eric Wang and his team for completing the acquisition of such an important asset that will underpin the future growth and success of Hemp Black.”

“On  behalf  of  the  Board,  I  would  like  to  welcome  Jeff Bruner  and  his  highly  skilled  team and look forward to their continued success as part of the Ecofibre family.”

Ecofibre  CEO  Eric  Wang  stated, “Hemp  Black’s  vision  is to improve  our  global  environment  by embedding its  sustainable  technology in  a wide  range  of  industries, including high-performance apparel, personal protection, military, healthcare and travel.”

“This is a bold vision, but we have strong conviction that Hemp Black’s value proposition resonates across industries and geographies. Our initial focus will be on specific segments to ensure we deliver on shareholder commitments and grow responsibly.”

The  combined  business  is  well  positioned  to  be  a  reliable,  high quality  supply  chain  partner  for customers who place a high value on corporate responsibility and environmental sustainability.

Ecofibre is a provider of hemp products in the United States and Australia. In  the  United  States,  the Ananda  Health  is  the  #1  provider  of  hemp-derived  CBD  for  retail pharmacies.    The  Company produces   nutraceutical   products   for   human   and   pet   consumption,   as   well   as   topical   creams   and   salves.

The  Company  also  supplies  its  leading  Ananda  Hemp  CBD products to Australians via the SAS B program. In Australia, the Company produces 100% Australian grown and processed hemp food products including protein powders, de-hulled hemp seed and hemp oil.

The Company is also developing innovative hemp-based products in textiles and composite materials in the United States.

CBD And Legal Cannabis Market On The Rise

NEW YORK: A recent report by Arcview Market Research indicates that consumer spending on legal cannabis in North America is outpacing previous estimates. The report projects that retail cannabis sales will grow 33% from 2016, to about $10 billion this year. The data published projects that by 2021 the legal cannabis market will reach a value of $24.5 billion and at a 28% compound annual growth rate (CAGR).

A Major segment of the legal cannabis industry is the hemp-derived cannabidiol (CBD) market. According to a report by Forbes, Brightfield Group estimates that CBD sales have already hit $170 million in 2016 and at a 55% compound annual growth rate over the next five years the market will cross the billion-dollar mark.

In a report by Forbes, Director of Research at Brightfield Group, Bethany Gomez, explained, “One of the most surprising things we found during this research was how many companies are currently operating in the space, and how few of them are generating significant revenue. Essentially everyone is trying to do hemp, but only a handful is doing it well. It’s seen as easy because it can be sold online but, with restrictions on traditional marketing, it is very difficult to connect with your core consumer and even communicate why they need your product.”

The Growth Of The Hemp CBD Markets

NEW YORK: According to a research conducted by Hemp Business Journal and Vote Hemp, the Hemp CBD is a market with $130 million in sales with growth at a 53% AGR (Adjusted Growth Revenue). This as a result contributed to the $688 million in total Hemp sales in 2016.

The Hemp CBD category was led by channel sales in natural and specialty products such as smoke shops and online verticals. As well in 2016, SPINS, the leading market research firm for natural products, has listed that $2,470,000 worth of products has used CBD as a primary ingredient. Currently CBD-based pet care products are a ‘growth category to watch’ in 2017.

Eric Steenstra, President of Vote Hemp has referenced, “To date, 31 states have passed legislation that allows hemp farming per provisions set forth in the 2014 Farm Bill, and the U.S. remains the largest consumer market for hemp products worldwide. We need Congress to pass federal legislation to allow commercial hemp farming nationally, to let our farmers and American businesses take advantage of the robust economic opportunity hemp provides.”