Cannabis Delivery Services Are Becoming One of the Hottest Revenue Streams in Cannabis Market

Rhea-AI Summary

The cannabis industry is projected to reach $40.6 billion in global licensed dispensary sales by 2024, with the US contributing approximately $30 billion. Recreational cannabis sales are expected to hit $26.7 billion and medical cannabis $13.9 billion. A focus on cannabis delivery services is emerging as a key growth area. NxGen Brands has acquired an exclusive license for tracking technologies to enhance its cannabis delivery app. Additionally, Sundial Growers launched new premium cannabis derivatives, while HEXO Corp's joint venture Truss CBD USA introduced a sparkling CBD beverage line in Colorado.

Positive

• NxGen Brands acquired an exclusive license for various tracking technologies, enhancing its digital supply chain and cannabis delivery services.
• Sundial Growers launched high-quality cannabis derivatives, responding to rising consumer demand and expanding market share.
• HEXO Corp's joint venture Truss CBD USA launched a new line of sparkling CBD beverages in Colorado, indicating market expansion.

Negative

• None.

PALM BEACH, Fla., Jan. 22, 2021 /PRNewswire/ -- Revenue projections for the recreational and medical marijuana markets keep rising, each one larger than the previous studies. According to a recent report by ArcView Market Research and BDS Analytics, the global licensed dispensary sales of cannabis will reach $40.6 billion by 2024, registering a CAGR of 24.5%. The US will account for about $30 billion or 73% of the global cannabis dispensing market in 2024. It is also projected that by 2024 the retail dispensing sales of legal recreational cannabis will reach $26.7 billion whereas the revenue generated from the sales of medical cannabis will reach $13.9 billion… but the most, according to an article in High There says that the delivery sub-market will be the highest , fastest  growing stream in the market.  They said: "The cannabis industry continues to skyrocket as it's legalized across the country and other parts of the world.  As the industry surges forward, new laws help change how cannabis businesses provide for their customers.  Cannabis delivery, for example, is heating up across California for the canna-businesses that took the next big step early and got a delivery license… After California legalized statewide cannabis delivery, it removed the previous regulations that prevented the legal access to cannabis delivery across the state."   Active Cannabis companies in the markets this week include NxGen Brands Inc. (OTCPK: NXGB), Sundial Growers Inc. (NASDAQ: SNDL), HEXO Corp (NYSE: HEXO)  (TSX: HEXO), Canopy Growth Corporation (NASDAQ: CGC) (TSX: WEED), KushCo Holdings, Inc. (OTCQX: KSHB).

The High There article continued: "States that have already legalized cannabis, like California, are seeing a spike in business thanks to the overwhelming convenience of cannabis delivery… being the next wave in cannabis commerce.  What many are considering the next trend for cannabis business, delivery services can help surge revenue for the retailers that jump in to take advantage. The cannabis industry is already a recording  (all-time highs) and (continues) climbing...  A particularly explosive section of this industry is almost exclusively the new cannabis delivery sector. In fact, (in 2016), according to industry reports , 44% of medical marijuana users across the U.S. regularly used a cannabis delivery service to buy their bud.  With legalization only having ramped up since then, it's likely the numbers have only continued to increase, making the market ripe for cannabis delivery."

NxGen Brands Inc. (OTCPK: NXGB) BREAKING NEWS:  NxGen Brands, Inc. Acquires Exclusive License To Utilize & Market Various High Demand Technologies - NxGen Brands announced this week that it has acquired an exclusive worldwide license for various tracking and observation technologies and their related products and services. The Company can utilize these technologies to further augment their newly announced digital supply chain & blockchain cannabis dispensary delivery services market app.  It also utilizes these ready-to-market solutions as independent apps and services, bringing more potential revenues to the Company.

The Licensed Technology from MyIAD includes:

a) PTYpass --  A contactless biometric human tracking for travel COVID  

b) MyIAD GPS Solutions. --  A GPS Tracking & Monitoring Solution

c) MyIAD SOS. --  A satellite Observation System.

c) MyIAD Law Solutions --  A House Arrest & Domestic Violence Solution.

d) MyIAD IP Solutions --  A Analytic Security & Monitoring Solution.

e) MyIAD Solar Solutions --  A Solar & Green Based IP Solutions.

f) MonitorINMATES  --  A Real Time Offender Management & Tracking System.

g) MonitoREOS --  A Real Time Offender Management & Tracking System.  (Latino Markets); and

h) Heart Watch --  Real Time Management & Tracking System for Heart. (Watch approved hardware)

The ten (10) year licenses were acquired from MyIAD Corporation, a Wyoming Corporation (Licensor) in return for stock and a five percent (5%) royalty. The full agreement can be viewed on the OTC Markets website. https://www.otcmarkets.com/stock/NXGB/disclosure

Angel Burgos, the Company CEO said: "I founded and personally developed the above products and services between 2010 thru 2017, before becoming NxGen's CEO, and envisioned that when the time was right to expand the Company's development and next generation products and services, I would grant the Company an exclusive license. The recent announcement of our entry into the digital supply chain & blockchain cannabis dispensary delivery services market through our partnership with our partner, Bengala Technologies, LLC a nationally recognized developer in this field, made this the right time. The Company believes that this asset in conjunction with my past experience in tracking electronic monitored citizens in house arrest and currently the program running in Tocumen International in Panama as the center application for contact tracing for all arrivals which average 486K citizens being monitored should help shorten the time it will take us to launch the dispensary MJ platform, and can generate revenues for the Company along the way with the entry into additional fields."  To read this and more news for NxGen Brands, please visit  https://www.financialnewsmedia.com/news-nxgb/

Other recent developments in the markets include:

Sundial Growers Inc. (NASDAQ: SNDL) has recently launched high-quality cannabis derivative products under the Top Leaf brand in response to rising consumer demands for solventless cannabis extracts. This most recent launch is consistent with Sundial's focus on premium inhalables, following branded retail offerings of flower, pre-roll and vape cartridges.

"We made a strategic decision to produce these premium products based on demand for solventless, flavorful, pure, and potent cannabis concentrates from a growing group of consumers," said Andrew Stordeur, President and Chief Operating Officer of Sundial. "Our control of the entire manufacturing process from cultivation to extraction enables us to deliver premium quality products on a consistent basis. Adding bubble hash and other advanced concentrates to our product portfolio will expand Sundial's share of this rapidly expanding market segment."

Truss CBD USA, a joint venture between HEXO Corp (NYSE: HEXO) (TSX: HEXO) and Molson Coors Beverage Company ("Molson Coors") (NYSE: TAP), recently announced the U.S. launch of Veryvell^TM, a new line of non-alcoholic, sparkling CBD beverages, exclusively available in Colorado.

Veryvell^TM is a hemp-derived, adaptogenic, sparkling CBD water now available to Colorado-based consumers in three flavours: Focus (Grapefruit Tarragon), Mind & Body (Strawberry Hibiscus) and Unwind (Blueberry Lavender). Veryvell^TM is Powered by HEXO^TM, the recognized quality and innovation behind award-winning products.

"We are excited to launch Veryvell^TM in Colorado through Truss CBD USA, in collaboration with our partner, Molson Coors. Our joint venture with Molson Coors Canada saw Truss Beverage Brands become the number one choice for consumers in Canada and we are expecting similarly great results in the US." said HEXO CEO and co-founder Sebastien St-Louis. "We have near-term plans to invest additional capital in the USA to support Truss CBD USA and to further execute on our Powered by HEXO^TM strategy with other potential CPG partners, outside of beverages, with whom we are currently in ongoing negotiations."

Canopy Growth Corporation (NASDAQ: CGC) (TSX: WEED) recently announced that it has entered into an arrangement agreement (the "Arrangement Agreement") with its wholly-owned subsidiary The Tweed Tree Lot Inc. ("Tweed NB"), Canopy Rivers Inc. ("Canopy Rivers") (TSX: RIV) and its wholly-owned subsidiary Canopy Rivers Corporation ("CRC") pursuant to which Canopy Growth will acquire certain assets from CRC, as set out below, in exchange for cash, common shares in the capital of Canopy Growth (the "Canopy Growth Shares") and the surrender of all shares in the capital of Canopy Rivers held by Canopy Growth by way of a plan of arrangement under the Business Corporations Act (Ontario) (the "Arrangement").

"Canopy Rivers was established in 2017 as a strategic investment vehicle for Canopy Growth, helping us pursue key business opportunities including development of the Vert Mirabel greenhouse which today is a very important component of our Canadian cannabis operations," said David Klein, CEO, Canopy Growth. "With our new strategy in place, it is appropriate for us to divest our interest in Canopy Rivers to increase our focus as a company."

KushCo Holdings, Inc. (OTCQX: KSHB) a premier provider of ancillary products and services to the legal cannabis and CBD industries, recently reported financial results for its fiscal first quarter ended November 30, 2020.

Nick Kovacevich, KushCo's Co-founder, Chairman and Chief Executive Officer, commented: "Fiscal Q1 2021 built on the strong momentum we achieved in the previous quarter with modest revenue growth and positive adjusted EBITDA for the second quarter in a row. We were expecting more significant growth during the quarter, but like many other importers of goods, we were faced with temporary, yet unexpected and uncontrollable, shipping delays due to record-breaking shipments to U.S. ports around the holiday season, which were exacerbated by new COVID-19 restrictions. As a result, some of the revenue that we were expecting to realize in Q1 was pushed into Q2, especially in the month of December where we had one of our strongest months in company history with $14.7 million in revenue.

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SOURCE Financialnewsmedia.com

FAQ

What is the projected market size of the cannabis industry by 2024?

The global cannabis market is projected to reach $40.6 billion by 2024.

How much of the cannabis market is expected to come from the US?

The US is expected to account for approximately $30 billion, which is about 73% of the global cannabis market.

What new products has Sundial Growers launched?

Sundial Growers has launched high-quality cannabis derivative products under the Top Leaf brand.

What innovative technologies has NxGen Brands acquired?

NxGen Brands acquired an exclusive license for various tracking and observation technologies.

What is HEXO Corp's recent product launch?

HEXO Corp's joint venture Truss CBD USA launched a new line of non-alcoholic, sparkling CBD beverages called Veryvell in Colorado.