Cannabis Comes to the Fore as Tobacco and Alcohol Use Slide
By Stoned Writers
The widespread growth of the cannabis industry has caught the interest of numerous public and private sectors. Currently, the cannabis industry is an emerging global marketplace which has witnessed immense growth throughout recent years. The exponential growth of the industry is largely due to the ongoing global legalization efforts which make it hard for companies to ignore the plant.
Particularly, companies involved in the tobacco and beverage industry have taken a keen interest as the two sectors have poured investments into cannabis-based companies or even launched their own cannabis operations.
The biggest factor as to why the tobacco and beverage industries are investing in cannabis is that many are witnessing their primary revenue drivers decline. For instance, the Centers for Disease Control and Prevention reported that cigarette smoking among U.S. adults declined from 20.9% in 2005 to just 15.5% in 2016.
Moreover, The Wall Street Journal's industry tracker, IWSR, highlighted that U.S. alcohol volume dropped by 0.8% in the past year, a slight increase on the 0.7% decline in 2017. Conversely, the cannabis industry is witnessing its user base and support increase each year and public opinion has consistently proven that most Americans support the legalization of cannabis. According to a survey by Gallup, approximately 60% of Americans support the legalization, which is significantly up from just 44% in 2014. While cannabis is still illegal in most countries, its growing adoption highlights the profound shift the industry is currently undergoing.
According to data compiled by BCC Research, the North American legal cannabis market was valued at USD 10.7 Billion in 2018. By 2023, the market is expected to reach USD 25.5 Billion while exhibiting a CAGR of 18.9% during the forecast period from 2018 to 2023. Canopy Rivers Inc. (OTC: CNPOF) (TSX-V: RIV), Canopy Growth Corporation (NYSE: CGC) (TSX: WEED), Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON), Aphria Inc. (NYSE: APHA) (TSX: APHA), OrganiGram Holdings Inc. (NASDAQ: OGI) (TSX-V: OGI)
The expansion of the cannabis market has led many companies to publicly list their shares onto major stock exchanges around the world. Predominantly, cannabis companies are headquartered in Canada, however, many have moved to establish operations across borders and in regions like the U.S. and Europe. Notably, a handful of multi-billion dollar cannabis corporations have moved to list their shares on the two largest exchanges in the world: The New York Stock Exchange and the Nasdaq Stock Exchange. However, skepticism remains among some investors because of the federal legality issue revolving around cannabis. In particular, the U.S. has not federally legalized cannabis, yet the country still accounts for the largest market share globally. Despite the regulations imposed on companies within the U.S. and Canada, many have experienced substantial growth in terms of revenue, with some companies seeing their revenue grow by five-fold in just one year. Furthermore, if cannabis does eventually become legal around the world or particularly within the U.S., it would open a wide array of investment opportunities for the public. "It's an exciting time for investors in the new marijuana industry who are now able to purchase shares in companies producing cannabis products for the consumer and medical markets for the first time ever. It has also been somewhat frustrating however, because those investment choices are currently limited by an inconsistent patchwork of laws," said David Borun, Stock Strategist at Zacks. "If marijuana becomes broadly legal at the federal level in the US, there is likely to be a deluge of investment opportunities as a new crop of surprisingly sophisticated new companies seek to raise capital on major exchanges."
Canopy Rivers Inc. (OTC: CNPOF) (TSX-V: RIV) is also listed on the TSX Venture Exchange under the ticker (TSX-V: RIV). Yesterday, the Company announced that, "it will host an analyst and investor day on Tuesday, May 28 from 1:00 p.m. to 5:00 p.m. ET.
Bruce Linton, Chairman of the Board, will share his perspective on Canopy Rivers' unique value proposition. This will be followed by a presentation from senior executives addressing Canopy Rivers' priorities in support of its mission to accelerate success in the global cannabis economy. The event will also feature panel discussions highlighting select Canopy Rivers portfolio companies.
Due to limited capacity, attendance is by invitation only. The event will have a live webcast and all interested parties are invited to join. Webcast details will be available on Canopy Rivers' website immediately prior to the event at www.canopyrivers.com/investors/events.
For further information about Canopy Rivers' analyst and investor day event, please contact firstname.lastname@example.org.
About Canopy Rivers: Canopy Rivers is a unique investment and operating platform structured to pursue investment opportunities in the emerging global cannabis sector. Canopy Rivers works collaboratively with Canopy Growth Corporation (TSX: WEED,NYSE: CGC) to identify strategic counterparties seeking financial and/or operating support. Canopy Rivers has developed an investment ecosystem of complementary cannabis operating companies that represent various segments of the value chain across the emerging cannabis sector. As the portfolio continues to develop, constituents will be provided with opportunities to work with Canopy Growth and collaborate among themselves, which Canopy Rivers believes will maximize value for its shareholders and foster an environment of innovation, synergy and value creation for the entire ecosystem."
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