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The Proliferation of CBD Applications is Growing the Global Cannabis Market

According to data compiled by Mordor Intelligence, the global cannabis market was valued at USD 7.7 Billion in 2016. Furthermore, the market is projected to reach USD 65 Billion by 2023 and grow at a CAGR of 37% during the forecast period. The market’s growth is partly attributable to various countries beginning to legalize cannabis for medical use, while several U.S. states are in the process of legalizing recreational cannabis as well. Specifically, within the cannabis market, the cannabinoid or CBD-based products market is rapidly expanding. CBD products are widely used in both medical and recreational applications, creating a large and versatile market. CBD products are being used to treat medical conditions such as chronic pain and migraines, but they are also being used in the recreational market in applications for items such as CBD beverages. According to Cannabis Business Times, citing Brightfield Group, the market is expected to hit USD 591 Million in 2018, but it is projected to grow by nearly 40 times, to USD 22 Billion by 2022, if the 2018 Farm Bill passes. Koios Beverage Corp. (OTC: KBEVF), The Supreme Cannabis Company, Inc. (OTC: SPRWF), Terra Tech Corp. (OTC: TRTC), Auxly Cannabis Group (OTC: CBWTF), Invictus MD Strategies Corp. (OTC: IVITF)

In the CBD market, offerings such as topicals and capsule-based products are gaining popularity. Although the market remains relatively small as opposed to the broad global cannabis market, many cannabis startups and even large established companies are already investing into the CBD industry. Brightfield projects that the rapid growth could have chain retailers entering the segment as soon as 2019. “On one hand, yes, it’s really surprising to see this young industry be at such huge numbers so quickly-and still kind of pulling itself together-and on the other side, I don’t think it’s a surprise at all, because it’s about time,” Lex Pelger, Science Director at Bluebird Botanicals, said in an interview with Cannabis Dispensary. “With such a long human history of cannabis being an important plant, it makes sense that this is just exploding back onto the public consciousness like it does every couple decades.”

Koios Beverage Corp. (OTC: KBEVF) is also listed on the Canadian Securities Exchange under the ticker (CSE: KBEV). Earlier today the company reported, “a corporate overview of the Company’s activities in its first six months of operations, since retail sales began in May, 2018.

Koios Founder and CEO Chris Miller says the Company has enjoyed a rapid pace of growth since launching its first line of functional nootropic beverages early this year.

“Our focus in this first year has been to develop and refine our line of functional beverages, but also to build out our distribution network as quickly as possible,” Miller said. “I think we have met or exceeded the benchmarks we set for the Company on both those goals, and in addition we have zeroed in on building out our e-commerce, direct to consumer and distribution platforms as efficiently and quickly as possible.”

On the production side, Koios signed a critical agreement expanding its production capacity by partnering with Rocky Mountain Soda, a well known producer of high-end organic beverages. The partnership has allowed Koios to test small runs of new products while at the same time lowering costs for increased production.

In a similar manner, Koios signed a cooperation agreement with cannabis beverage producer Keef Brands, which accelerated development of cannabis beverages under its wholly owned subsidiary Cannavated Beverage Co.

“As a result of this flexibility Koios has been able to accelerate product development,” said Miller. “Through our wholly owned subsidiary Cannavated, we formulated the first nootropic beverage infused with CBD (cannabidiol), and we are preparing to launch beverages containing a mix of CBD and THC for the rapidly growing cannabis beverage market.

Koios is best known for the benefits of its proprietary nootropic stack of mind enhancing ingredients that improve mental acuity, memory and alertness. Miller says the agreements with like-minded companies has allowed Koios to produce other product lines quickly. These include nootropic powders that provide a higher dosage of ingredients.

The Company also announced in early September that Koios Beverage Corp. will begin production of a new line of functional beverages under the brand Fit Soda, beginning in the first quarter of 2019. The Fit Soda line of beverages are as much about taste as they are about the benefits of health supplements. “The idea was to create a beverage that gives you all the taste you expect from a quality soda product, but with none of the guilt,” Miller says. “It’s a ‘soda with benefits’.”

One of the company’s main goals over the first two quarters of operations was to increase distribution. On this front Koios has developed relationships with several major retailers and distribution networks representing thousands of outlets, including Europa Sports, Sportlife Distribution, KeHe, Wishing-UWell, Alfalfa’s Market, Western Functional Beverages, and FC Food Co-Op.

“Increasing distribution is key to any company’s success, and we continue to push hard to get our products on more shelves,” said Miller. “Even now, we are working to sign up more major distributors to carry our brand across the US and Canada.”

About the Company’s Business: The Company, through its wholly-owned subsidiary Koios, Inc., is an emerging functional beverage company which has a large and growing distribution network of retail locations across the United States in which to sell its products. Koios has relationships with some of the largest and most reputable distributors in the United States, including Europa Sports, SportLife Distribution, KeHE, and Wishing-U-Well. Together these distributors represent more than 80,000 brick-and-mortar locations across the United States – from sports nutrition stores to large natural grocery chains including Whole Foods and Sunflower markets. Through its partnership with Wishing-U-Well, Koios also enjoys a large presence online, including being an Amazon choice product.

The Company, through its wholly-owned subsidiary Koios, Inc., is an emerging functional beverage company which has a large and growing distribution network of retail locations across the United States in which to sell its products. Koios has relationships with some of the largest and most reputable distributors in the United States, including Europa Sports, SportLife Distribution, KeHE, and Wishing-U-Well. Together these distributors represent more than 80,000 brick-and-mortar locations across the United States – from sports nutrition stores to large natural grocery chains including Whole Foods and Sunflower markets. Through its partnership with Wishing-U-Well, Koios also enjoys a large presence online, including being an Amazon choice product.

Koios uses a proprietary blend of nootropics and natural organic compounds to enhance human productivity without using harmful chemicals or stimulants. Koios products can enhance focus, concentration, mental capacity, memory retention, cognitive function, alertness, brain capacity and create all day mental clarity. Its ingredients are specifically designed to target brain function by increasing blood flow, oxygen levels and neural connections in the brain.

Koios recently launched a wholly owned subsidiary, Cannavated Beverages Co. to develop a line of cannabis infused, brain-healthy drinks for the legal marijuana market.

Koios is one of the only drinks in the world to infuse its products with MCT oil. MCT oil is derived from coconuts and has been shown to help the body burn fat more effectively, create lasting energy from a natural food source, produce ketones in the brain, allowing for greater brain function and clarity, support healthy hormone production and improve immunity. For more information, please visit our website: https://www.mentaltitan.com

The Supreme Cannabis Company, Inc. (OTCQX: SPRWF) is a Canadian publicly traded company committed to providing premium brands and products that proudly reflect its consumers, people and uniquely innovative culture. The Supreme Cannabis Company, Inc. recently announced that the Company has entered into a three-year agreement with MediPharm Labs Inc., a wholly owned subsidiary of MediPharm Labs Corp., to facilitate the launch of the Company’s cannabis oil products line. MediPharm holds a processing license and is a leader in the cannabis industry focused exclusively on cannabis extraction and producing pharmaceutical-grade cannabis oil. “We expected market segmentation as the Canadian cannabis industry evolved and the emergence of dedicated experts focused on downstream activities. Partnering with product experts, such as MediPharm, allows Supreme Cannabis to launch oil products quickly,” said Navdeep Dhaliwal, Chief Executive Officer of Supreme Cannabis. “We are excited to be working with MediPharm and look forward to Canadian adult-use consumers being able to experience High End Cannabis™ oil products derived from what we believe is the best flower being produced at scale.”

Terra Tech Corp. (OTCQX: TRTC) operates through multiple subsidiary businesses including: Blüm, IVXX Inc., Edible Garden, and MediFarm LLC. Terra Tech Corp., a vertically integrated cannabis-focused agriculture company, today announced that on November 2nd, 2018 it signed a non-binding letter of intent to merge with Golden Leaf Holdings Ltd., a cannabis company with cultivation, production and retail operations built around recognized brands. Under the terms of the letter of intent, a wholly owned subsidiary of Terra Tech will amalgamate with Golden Leaf, with the resulting amalgamated corporation being a wholly owned subsidiary of Terra Tech. Consummation of the transaction is subject to a number of conditions, including entering into a mutually agreed definitive arrangement agreement, completion of due diligence, the waiting period for the Hart-Scott-Rodino Act, state and local regulatory approvals, approval by the Ontario courts, Terra Tech board approval, Golden Leafreceiving a positive fairness opinion, Canadian Securities Exchange (the “CSE”) approval and Golden Leaf shareholder and board approval. Derek Peterson, Chief Executive Officer of Terra Tech, commented, “As new participants enter the cannabis industry the market is undergoing rapid consolidation. The companies that are vertically integrated with strong brands and multi-jurisdictional operations are best situated to achieve scale and retain market-leading positions. We are planning to merge with Golden Leaf’s operations because its seed-to-sale business model is complementary to ours, encompassing both the Oregon and Canadian market which represent new markets for us, and touching Nevada where we are focused on gaining market share. Its ‘Chalice Farms’ retail dispensaries are well known and have an excellent reputation in Oregon, and the wholesale side of the business offers diverse, high quality cannabis products for all demographics, which are complementary to our existing wholesale product lines. This transaction, if completed, will create a combined company that will control 41 permits across cultivation, manufacturing, distribution and retail spanning Oregon, California and Nevada, in addition to 21 pending permit applications in multiple jurisdictions throughout the U.S.”

Auxly Cannabis Group (OTCQX: CBWTF) is a collective of entrepreneurs with a passion for the cannabis industry past, present and future. Auxly Cannabis Group Inc. recently announced that the Company has entered into a binding interim agreement with Atlantic Cultivation Inc., an applicant under the Access to Cannabis for Medical Purposes Regulations pursuant to which the parties will collaborate on the development of a 110,000 sq. ft. indoor cultivation facility in St. John’s, Newfoundland and Labrador and on the development of retail locations in the province. Auxly and Atlantic have agreed to enter into a supply agreement for the development and supply of value-added cannabis products using cannabis cultivated at the Facility and developed and manufactured by Dosecann Inc., the Company’s wholly-owned Licensed Dealer in Prince Edward Island. Hugo Alves, President and Director of Auxly commented: “We are excited to have entered into this partnership with Atlantic Cultivation, a company led by an excellent management team with deep roots in Newfoundland and Labrador. This strategic partnership adds significant depth to our operations in Atlantic Canada. This partnership with Atlantic, coupled with our premium craft producer Robinson’s Cannabis in Nova Scotia and our world class innovation and extraction hub at Dosecann in PEI demonstrates Auxly’s commitment to Atlantic Canada where we are building meaningful cannabis businesses that have a positive impact on the region.”

Invictus MD Strategies Corp. (OTCQX: IVITF) is a global cannabis company offering a selection of products under a wide range of brands. Invictus MD Strategies Corp. recently announced that it has entered into a non-binding Letter of Intent with GTEC Holdings Ltd. for the acquisition by Invictus of all of the issued and outstanding shares in the capital of GTEC in an all-share transaction valued at approximately USD 100 Million, forming Western Canada’s largest indoor vertically integrated cannabis companies. The combined entities would provide a robust vertically integrated cannabis company, focused on producing premium flower and complementary product portfolio, cultivated in purpose-built indoor facilities complemented with superior genetics. “We have been pleased with the continued execution of the team and business strategy at GTEC,” said George E. Kveton, Chief Executive Officer of Invictus. “The dedication to producing a premium product medical and adult-use recreational portfolio for the industry has always been our relentless pursuit. This merger allows for both companies to leverage the combined core competencies to further execute our vision to be at the forefront of the Canadian cannabis industry and beyond.”

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