AGORACOM Small-cap Investor Relations Blog

SPONSOR:

Why Empower Clinics

• A leading owner/operator of physician staffed health and pain management clinics.
• Patient database of over 165,000 patients 
• Platform generating $1.4M USD (9 months ending Sept. 30, 2019)
• Proprietary technology platforms including Electronic Health Records portal and e-Commerce for CBD product distribution
• Recently launched CBD extraction facility
• First extraction system capacity = 6,000 Kg per year.
• CBD based products are poised to be a $20B global industry by 2022
• Medical cannabis is poised to be a $100B global industry by 2025

CBD 2020 Outlook: How the Cannabidiol Forecast Looks in the New Decade

• The 2020 outlook for CBD forecasts a beautiful and bright upside with a slight chance of raining on the cannabis oil craze parade
• As 2019 made cannabidiol a household name, what will the new decade bring in terms of new cannabinoids CBG, CBN and THC-V discoveries, science and regulatory advancements

by: Alexia Akbay

Cannabidiol, or CBD, won the supplement ingredient of the year by surpassing all other herbal extracts and products in the world in terms of popularity, demand and sales. The impressive rise of CBD cannabis oil extract has been quite an adventure in the past few years and seems to only have more upside in 2020 and beyond.

It was only a year ago now, where the 2018 Farm Bill was passed that legalized hemp-derived cannabidiol and essentially opened the floodgates to all kinds of oils, edible gummies and skincare to name a few. And now, many are projecting the CBD use to continue to grow in demand, projecting it to be a $22 billion dollar industry by 2022/2023.

The 2020 CBD forecast calls for a bright, sunny and green landscape as the next few years are set to be highly lucrative and innovative for the coveted cannabis oil substance. However, let’s focus on the smaller scope of its industry and talk about the 2020 CBD outlook before we attempt to paint a ten year prediction.

First, a recap of what happened in 2019, where the CBD craze in America and the world really picked up momentum, and then a peak around the corner as to what can happen in 2020 as science, commercial and consumer interest intensifies across the globe as legal barriers come down and studies reveal results.

Let’s paint a picture of where CBD is today and what the first year of a new decade can bring to the emerging cannabis (hemp and marijuana) markets.

Year 2019 – Strides in CBD

This year came with a lot of major changes for the CBD industry as it rose to the top of the charts for being the most popular and sold herbal ingredient. It was the first full year that hemp-based CBD was legalized after the 2018 Farm Bill, which introduced a wild world of controversies and other issues, though there have been many supporters to make big changes. For instance, the legalization of CBD alone has spurred substantial cannabis reform efforts.

In 2019, cannabis reform legislation was brought forth by 27 states for either recreation or medical use. Arizona was one of the most major states to push for these changes and will see legal recreational use on next year’s ballot. Florida joins Arizona in the efforts, though Mississippi is amongst the few states that have still yet to legalize medical marijuana, which could change with this year’s proposal. Other states included in this list are Nebraska, Idaho, New Jersey, Pennsylvania, and more.

Politically, many Democratic presidential hopefuls have discussed legalization, but Bernie Sanders released a comprehensive plan that would effectively legalize state and federal marijuana use, while pushing for the expungement of marijuana-related convictions. The plan, released in October, would take place within 100 days of taking the presidential office, if Sanders were to be elected.

Lowell Farms was part of the substantial progress of 2019, launching the first cannabis cafe to ever reach the US market. Located in California, the new restaurant has been created to offer a safe public place to cannabis users, while still offering an area for non-users of the substance. While partaking, patrons can snack on a variety of infused dishes, including everything from the grilled peach salad to a cold beer.

Experts from Brightfield believe that this year will reach $5 billion in the CBD industry for sales alone, increasing by over 2,500% since 2015. The growth that happened this year has been almost unbelievable and, while 2019 may have come with a few bumps, there have been major milestones reached by the new industry. But what’s next?

Year 2020 – What’s Coming for CBD?

The cannabis industry already saw a surge in the number of states seeking legalization, so what might happen to them next? Since 1996, medical use of cannabis has already been approved by 33 states, and a third of those states pushed forward even further by legalizing recreational use. Many huge votes will take place in 2020, and experts at CBD Origin predict that several states will end up legalizing recreational cannabis as a result of CBD’s influence – New York, New Mexico, New Jersey, Arizona, Idaho, and Arkansas.

While Florida is still gathering signatures for the Florida Marijuana Legalization Initiative, it appears as though the efforts will fall short, meaning that the proposal probably won’t even be on the ballot. Missouri could end up on the ballot with enough signatures by May 3rd, the support from local voters has not been strong enough to provide a clear idea of which side they will choose. South Dakota, while it pushed to add cannabis legalization to the ballot, fell short, as did Ohio.

The Effects of Regulation on Quality

Right now, there’s a substantial missing piece in the CBD industry – regulation. Without regulation, many consumers are fearful of even getting involved, since there are many companies that are publicly dishonest with their business practices. As a result, there are only a few brands that can even prove their product’s potency. Based on the predictions of CBD Origin, it is likely that the public will aim to learn more about CBD with its legalization, seeking out higher standards and greater transparency from companies.

Along with the demand for lab tests to come with higher standards, consumers will likely give more attention to terpenes and cannabinoids. This information allows consumers to learn more about the products that they choose, and a common theme throughout the CBD industry will likely be the desire for quality products and honesty.

New Options and Less Vaping

As CBD blends become more diverse, and as the industry progresses, the innovations in the market will likely lead to new options for consuming CBD. Brands will be pushed to offer more value and benefits to remain competitive, and additional markets will likely be developed to push for this grown.

With these new options, especially as consumers seek to be excited about these opportunities, prominent media outlets are predicting that the strains available to consumers will likely see an extended “dessert craze,” as products like Gushers and Runtz become more appealing flowers than the savory flavors, like GMO Cookies. However, with this opportunity, there’s a chance that CBD will be seen as more of a potent medicine and wellness product, rather than a recreational option. Basically, consumers will start to understand what is offered to them more effectively.

Vaping became a big concern in 2019, and many industry experts and authoritative publications don’t believe the heat is wearing off any time soon. Multiple states have already implemented bans, regardless of the use of cannabis or tobacco vaping products, which will probably push users to choose edibles and natural options instead. The idea of a clean and tamper-proof product will be in higher demand. While the FDA is expected to impose on the industry with new vaping regulations, it may still survive at a minuscule level.

Ethical Practices

The CBD market is still filled with a lot of “unknown” factors, regarding what is actually in the products that consumers use. After all, this industry is still very new, and the creation of proper guidelines was rather difficult as the industry started to expand. There were many brands that manage to have integrity in their work with ethical business practices, but there are even more brands that directly went the opposite direction.

Mark Case, the founder and CEO of the International Hemp Auction and Market in Knoxville, Tennessee, makes a good point about the way that the market has changed, warning,

“2020 is not a year for gamblers. Rather, it will be successful only for those who are wise and prudent, fully integrated and who work with a good business plan to go the long haul.”

Unethical business practices will likely be more heavily criticized and regulated through the next year, as consumers start to expect more reliable lab testing and authentic lab reports with new regulations. Consumers have educated themselves, and it will become harder to fool that average CBD user.

CEO of Validcare, Patrick McCarthy, pointed out,

“The U.S. consumer is going to wake up to the fact that certification and dosing matters. They’re going to get particular, where they’ve been trying things in the past. They’re going to start really paying attention to, what is the product I’m taking? How do I know that it’s safe? How do I know how much that I should take, and who says it’s safe?”

Since the market is projected to be more effectively regulated, it wouldn’t be a stretch to say that major brands and retailers will be prepared to get involved. The market alone is set to reach over $25 billion by 2025, and companies like Walmart, Amazon, and Whole Foods will likely want a piece of the action.

Move Over CBD, Make Room for CBG, CBN and THC-V Cannabinoids

CBD became the cannabis industry’s global leader in recognition, sales and popularity – but what about any of the 100 plus cannabinoids found in marijuana and hemp plants? The new decade may lead with CBD as the prized cannabis compound, but there are a few cousin cannabinoids like CBN, CGB and THC-V which may follow CBD’s growth path.

As mentioned, with the passing of the Farm Bill last year and the constant mention of cannabis in politics, pretty much everyone has already heard of CBD by now. The non-intoxicating substance comes from both hemp and cannabis, and it is touted as a solution to wellness, pain, and a million other purposes. Even when its popularity and niche-ness wears off, CBD will likely remain a staple of this industry, just like THC. However, THC and CBD are two of over 100 cannabinoids that presently exist in the cannabis plant, and others could easily line up to offer benefits to the public, according to the latest science and research.

CBG, or cannabigerol, is considered to be the “mother cannabinoid,” earning the nickname because nearly all other cannabinoids that are presently known start with CBG as their preceding letters. Ultraviolet (UV) light transforms a part of CBGA that then becomes CBCa, CBDA, or THCA.

The creators of the various cannabinoids and cannabis strains haven’t been very interested in maximizing this compound since its presence inherently means that there is less THC. While cannabinoids largely have the same properties, CBG seems to offer an elevated antibacterial, antispasmodic, and vasodilation effect, which is why it is the first one on this list to watch out for. While there’s a possibility that CBG could take CBD’s place, it is equally likely that the two will be able to coexist for their various purposes.

CBG has a unique ability to become something much different than its natural state, according to some growers. Though THC is restricted by the percentage it offers in a cannabis plant, CBG is not governed by the same rules, and breeding a genotype with high CBG levels is relatively easy, as is harvesting it. With the right synthase, making CBG into multiple other cannabinoids is simple for producers.

CBN, or cannabinol, is another cannabinoid getting a lot of attention. CBN comes from the degradation of THC-A, which happens as a result of air and UV light exposure. Part of the reason that attention has been on this cannabinoid has been for its ability to push users into sleep, which is why old cannabis tends to make users tired. A dose of 5 mg of CBN was found to be as effective as a 10 mg dose of Diazepam in making consumers fall asleep. Sleep concerns are among the most common reasons for non-users to take up cannabis.

THC-V, or tetrahydrocannabivarin, may be currently popular, but it was originally recognized in 1970 as “skinny weed,” since it helps to reduce the user’s appetite. It suppresses the CB1 receptor, while THC and CBG tend to stimulate the appetite. When used with the proper timing, it can balance the effects of THC and improve insulin resistance.

Unlike CBD, THC-V offers a clear and focused high with the right dose, albeit short-lived. There’s very little research on the cannabinoid, but the information available suggests that the dosage seems to be the key to actually getting all of the effects that this compound can offer. With a dose of 3 mg to each kilogram of body weight in mice, insulin resistance improved, and weight loss was stimulated. For the average adult, that would mean a 200-mg dose is necessary, which seems rather difficult to reach in the market today. However, if the market shifts to the need for this cannabinoid, access to this much THC-V may become a reality.

For consumers that prefer the lack of intoxication that they get from CBD, the use of THC-A may hit the spot. This variation of THC is in the acid form, which basically means that it is structured the same way as THC before being heated. Research shows that this variation is highly effective in reducing inflammation, and it offers both neuroprotective and anti-cancer effects. Plus, the user can take high doses without the risk of feeling intoxicated.

THC-A has earned a lot of accolades from medical circles, which source the compound from juicing either fresh or frozen cannabis fan leaves. Many people believe it is easiest to source THC-A from this state, comparing it to other foods with broader nutritional profiles that preserve their nutrients by avoiding heat and creating cold-pressed juices.

Even the biggest fans of CBD and THC could end up finding a new favorite as the industry progresses. The stigma surrounding cannabis is slowly dying down, and the broad legalization happening throughout the country will likely pave the way for researchers to learn and develop more options for the public to try.

Get Ready 2020, CBD Is Coming!

It is clear CBD made its mark in 2019, becoming a household name and topping the charts in terms of most herbal supplement sales. As the election year begins the new decade, the 2020 CBD outlook has many catalysts that could kickstart the new calendar year off in a big way.

From new CBD product research and develop innovations (applications/product types), to accumulating scientific studies and supportive medical literature, to regulatory clarity and beneficial policy updates, to advancing third-party lab testing verification and certification of analysis proof standardization, cannabidiol is bound to have an incredible 2020 year as the cannabis green rush powers onward into the new decade.

Source: https://www.healthmj.com/cbd/cannabidiol-2020-outlook/

SPONSOR:

Why Empower Clinics

• A leading owner/operator of physician staffed health and pain management clinics.
• Patient database of over 165,000 patients 
• Platform generating $1.4M USD (9 months ending Sept. 30, 2019)
• Proprietary technology platforms including Electronic Health Records portal and e-Commerce for CBD product distribution
• Recently launched CBD extraction facility
• First extraction system capacity = 6,000 Kg per year.
• CBD based products are poised to be a $20B global industry by 2022
• Medical cannabis is poised to be a $100B global industry by 2025

Marijuana On The 2020 Ballot: These States Could Vote

By:Tom Angell

Ever since Colorado and Washington became the first two states to approve marijuana legalization initiatives in 2012, additional states have joined them in each biennial election that has followed. And 2020 could be a banner year for cannabis on the ballot.

There are at least 16 states where advocates believe marijuana measures could go before voters next year—some considering full-scale recreational legalization while others would focus on medical cannabis.

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Some of these would be citizen-led voter initiatives where activists collect signatures to qualify a measure for the ballot, while others would be referendums that lawmakers place before voters.

“Since the first adult-use legalization ballot initiative victory in 2012, the marijuana reform movement has successfully maintained its momentum,” Matthew Schweich, deputy director of the Marijuana Policy Project, said. “For four elections in a row there has been a legalization victory at the ballot box, and the upcoming election could deliver more victories in one day than ever before.”

Of course, not every initiated effort will end up securing enough funding, or formulating solid enough campaign plans, to collect sufficient signatures to qualify their measures for voters’ consideration on Election Day—but these are all states where activists or lawmakers have talked seriously about putting cannabis questions on ballots.

It’s not feasible to list every measure that activists took the modest trouble to initially file, and this overview looks primarily at efforts that seem most poised to advance. This post also doesn’t include the long list of states that might legalize marijuana through actions by lawmakers, as opposed to citizens via the ballot—which will be the focus of a separate piece.

In alphabetical order, here’s a comprehensive overview of the states where marijuana could be on the ballot in 2020.

Arizona

Voters in Arizona narrowly rejected a marijuana legalization measure in 2016, thanks in part to sizable campaign contributions from the pharmaceutical industry. In 2020, though, the state’s medical cannabis companies will be working to pass an initiative making marijuana legal for adults.

The effort, known as Smart & Safe Arizona, would allow people 21 and older to possess, consume, cultivate and purchase cannabis from licensed retailers. It would also create a pathway for individuals with prior convictions to have their records expunged, and it proposes using some tax revenue from legal sales to invest in communities disproportionately impacted by prohibition.

Dispensary chains MedMen, Harvest Health and Recreation and Curaleaf Holdings are helping to fund the campaign. Advocates must collect 237,645 valid signatures from voters by July 2 in order to put the measure on the ballot.

Arkansas

In 2016, Arkansas voters approved a constitutional amendment allowing patients to have legal access to medical cannabis. Now, activists are floating separate measures to more broadly end marijuana prohibition and expunge past records.

In order to place the measures on the ballot, Arkansans for Cannabis Reform must gather 89,151 signatures by July 3, including required minimums in at least 15 counties.

Under the legalization proposal, adults over 21 would be allowed to to possess up to four ounces of marijuana, two ounces of cannabis concentrate and edible products containing cannabis with THC content of 200 mg or less. They could also cultivate up to six cannabis seedlings and six cannabis flowering plants for personal use.

A system of legal and regulated sales would be created, with tax revenue funding the program’s implementation, public pre-kindergarten and after school programs as well as the University of Arkansas for Medical Sciences.

Under the separate expungements measure, people with certain prior marijuana convictions would be able to petition courts for relief, including release from incarceration, reduction of remaining sentences and restoration of voting rights.

Connecticut

Despite the advancement of marijuana legalization legislation through several General Assembly committees this year, lawmakers weren’t able to form the consensus needed to get a bill to the desk of supportive Gov. Ned Lamont (D).

But while Connecticut doesn’t have the initiative process where activists can collect signatures to place a question on the ballot, some elected officials have floated the idea of advancing a referendum that would let voters weigh in on ending prohibition.

Most activists would prefer that lawmakers go ahead and just pass a legalization bill—because running a public education campaign to ensure a ballot measure passes would be expensive at a time when resources are needed in other states. A general referendum question would also require subsequent implementation legislation, and even putting it on the ballot in time for 2020 would take a supermajority of 75 percent of legislators.

Florida

Florida voters approved a constitutional amendment to legalize medical cannabis in 2016. Now, a group called Make It Legal Florida is working to place a full-scale marijuana legalization measure on the key swing state’s 2020 presidential ballot.

The proposed amendment to the state constitution would allow adults 21 and over to possess up to 2.5 ounces of cannabis. Existing medical marijuana dispensaries would be permitted to sell marijuana to adults. While the measure doesn’t mention a licensing system to establish separate recreational shops, lawmakers will likely enact detailed regulations should it pass, as they did with the prior medical cannabis measure.

The campaign is being backed by cannabis companies such as MedMen and Parallel (formerly known as Surterra Wellness).

A separate group, Regulate Florida, recently acknowledged that its lesser-funded effort wouldn’t be be able to successfully collect enough signatures to qualify for the ballot.

Idaho

Idaho is one of only a handful of states in the U.S. that doesn’t even allow patients to access CBD medications with low-THC content. That could change, however, under a proposed medical marijuana ballot measure for which activists are currently collecting signatures.

The Idaho Cannabis Coalition’s proposal would let approved patients and their caregivers possess up to four ounces of marijuana. A system of licensed and regulated growers, processors, testers and retail dispensaries would be established.

Patients would not be allowed to grow their own medicine unless they qualify for a hardship exemption for those who have have a physical, financial or distance difficulty in acquiring marijuana at a dispensary. Those patients could grow up to six plants.

Organizers need to collect 55,057 valid signatures from voters in order to qualify the measure for the ballot.

Mississippi

In September, activists filed what they believe are more than enough signatures to qualify a medical cannabis measure for Mississippi’s 2020 ballot.

If the initiative is approved, patients with any of 22 conditions—including cancer, chronic pain and post-traumatic stress disorder—be allowed to possess up to 2.5 ounces of cannabis per 14-day period.

The secretary of state is expected to announce whether organizers collected a sufficient number of signatures for ballot access early in 2020.

Missouri

Voters in the Show Me State approved a medical cannabis measure in 2018.

Now, activists are looking to expand on that with a broader marijuana legalization. Several different proposed measures to end cannabis prohibition have been filed with the secretary of state, but the campaigns at this point seem to be operating largely under the radar, so it remains to be seen whether any group will have the funding needed to mount a successful signature gathering drive.

Last year three separate medical cannabis measures ended up qualifying for the ballot, but two were rejected by voters.

Montana

Montana already has a medical cannabis program, and activists are looking to expand that to include legal adult use of marijuana in 2020.

The group New Approach Montana is currently in the process of drafting two separate legalization measures—one constitutional and one statutory.

The details of the proposals aren’t yet publicly available, but the statutory proposal will need roughly 25,500 valid voters signatures to qualify for ballot access, while the constitutional amendment would require nearly 51,000 signatures.

The national groups Marijuana Policy Project and New Approach PAC are backing the effort.

A separate group, MontanaCan, has already filed its own legalization proposal.

New Jersey

While legislative leaders in the Garden State, along with Gov. Phil Murphy (D), had hoped to simply pass a bill legalizing marijuana this year, the votes didn’t materialize. Instead, lawmakers decided to put the question of ending cannabis prohibition directly before voters.

Under the referendum adopted by the Senate and Assembly, the November 2020 ballot will contain a question that reads, “Do you approve amending the Constitution to legalize a controlled form of marijuana called cannabis?”

If the proposed constitutional amendment is approved, lawmakers would then get to work adopting regulations for the legal cannabis industry.

New York

Gov. Andrew Cuomo (D) put marijuana legalization language in his budget submission earlier this year but, despite support for the idea from leading lawmakers, disagreement over particulars such as how to spend tax revenue meant that the proposal didn’t get over the finish line.

Indications are that Cuomo and lawmakers will try the legislative route again in 2020, but the governor has floated the idea of referring the question to voters at the ballot box.

“The opposition Senate position is there is no state that has passed it without a referendum. It’s never been done just by the legislature,” he said in a radio interview this year. “I believe Jersey may be moving to a referendum also, but Massachusetts, et cetera, the legislature acted after a referendum. So that’s what the senators who oppose it say—they think it’s an overreach by the legislature.”

If lawmakers can’t agree on the details of legalization again this year, Cuomo may call skittish legislators’ bluff and seek to advance a cannabis referendum to fulfill what he has said is one of his top agenda items.

North Dakota

North Dakota voters approved a medical cannabis ballot measure in 2016 and two years later swiftly defeated a proposal to more broadly legalize marijuana.

But advocates may have another chance in 2020. While the unsuccessful 2018 measure contained no limits on the amount of cannabis people could possess or grow, the new initiative, written by the same group of activists, has robust regulations—including a ban on home cultivation.

Legalization supporters hope more voters will agree to the narrower proposal this time around.

There is also another proposed legalization measure vying to collect the 13,452 valid signatures needed for ballot access.

Ohio

In 2015, Ohio voters overwhelmingly rejected a marijuana legalization measure that even many longtime activists opposed due its proposed regulatory structure that would have granted control over cannabis cultivation to the very same group of wealthy individuals who paid to put it on the ballot.

Advocates have cited the Buckeye State as a potential target for another try in 2020, though no proposals have yet been filed.

Voters in number of communities throughout the state have in recent years approved measures to decriminalize marijuana possession on a local basis, indicating that there is public support for cannabis reform if placed on the state ballot again next year.

That said, Ohio is a large state, and qualifying initiatives there is very expensive, so any successful effort will likely need to have industry support.

Oklahoma

Voters in Oklahoma shocked national observers by approving a medical cannabis ballot measure last year during a midterm primary election by a solid margin, even though demographics thought to be most supportive of marijuana reform tend to turn out in bigger numbers during general elections in presidential voting years.

Since then, people have flocked to the program, with nearly 5 percent of the state’s population registered as approved patients.

Now, seeing potential for expansion, activists are looking to follow up next year with a broader marijuana legalization initiative.

Backed by the national New Approach PAC, the new effort will have to collect 178,000 valid signatures from registered voters to qualify for ballot access.

Under the measure as initially filed, adults 21 and older would be allowed to possess, cultivate and purchase cannabis from licensed retailers. There would be a 15 percent excise tax on marijuana sales, revenue from which would cover implementation costs and fund schools, drug treatment programs and other public service programs.

Personal possession would be capped at one ounce and individuals could grow up to six plants. The proposal would also provide expungements for those with prior marijuana convictions.

Backers recently withdrew the initial measure, but plan to redraft it with feedback from the medical cannabis community, with a new version expected to be filed soon.

Rhode Island

Lawmakers in Rhode Island have filed marijuana legalization bills for the last several sessions but they have never been brought to a vote. In 2019, Gov. Gina Raimondo (D) went so far as to put legalization language in her budget proposal, but it was removed by legislative leaders.

The governor has indicated she will make another attempt in 2020, but if that doesn’t pan out, lawmakers may consider putting the question to voters via a referendum.

In 2016, Raimondo said she is “open to” giving voters a chance to decide on legalization via a ballot question. And House Speaker Nicholas Mattiello (D), said that he was “considering the possibility of placing a non-binding referendum question on the ballot regarding the use of recreational marijuana.”

A bill for a marijuana referendum that was filed in 2018 never received a vote, but it’s an avenue the legislature might consider pursuing next year as legalization comes online in more nearby states.

Nebraska

Lawmakers in Nebraska have repeatedly rejected medical cannabis legislation. Frustrated with their colleagues’ unwillingness to change the law to let patient legally medicate, two senators in the state’s unicameral legislature are partnering with local and national advocacy groups to put the question directly to voters through a ballot initiative.

Under the proposed constitutional amendment, physicians or nurse practitioners would be able to issue recommendations to patients, who would then be allowed to “use, possess, access, and safely and discreetly produce an adequate supply of cannabis, cannabis preparations, products and materials, and cannabis-related equipment to alleviate diagnosed serious medical conditions without facing arrest, prosecution, or civil or criminal penalties.”

The measure would also provide for a system of legal and regulated cannabis distribution through dispensaries.

Organizers must collect valid signatures from roughly 122,000 voters in order to make the ballot.

South Dakota

The South Dakota secretary of state’s office certified this month that activists collected more than enough signatures to qualify a medical cannabis measure for the November 2020 ballot.

If approved, patients suffering from debilitating medical conditions would be allowed to possess and purchase up to three ounces of marijuana from a licensed dispensary with approval from their doctors. They could also grow at least three plants, or more if authorized by a physician.

A separate campaign led by a former federal prosecutor is currently collecting signatures in support of a proposed constitutional amendment to legalize marijuana for adult use.

That measure would allow adults 21 and older to possess and distribute up to one ounce of marijuana and cultivate up to three cannabis plants. The state Department of Revenue would issue licenses for manufacturers, testing facilities and retailers.

South Dakota voters rejected medical cannabis ballot measures in 2006 and 2010, but advocates hope that the changing national and regional climate on marijuana reform means that voters will be more supportive this time around.

Non-Marijuana Initiatives On State Ballots

Activists in a few states are taking steps to bring broader drug policy reform questions to voters’ ballots in 2020.

A group called Decriminalize California is preparing to soon begin collecting signatures in support of a measure to legalize psilocybin mushrooms.

In Oregon, organizers are already collecting signatures to qualify separate initiatives to legalize the psychedelic fungus for therapeutic uses and to decriminalize all drugs while expanding funding for substance misuse treatment programs.

2020 Will Be A Big Year For Marijuana

While 2019 was a huge year for marijuana, 2020 is poised to be even more impactful.

Separate from the huge number of states where cannabis and drug policy reform questions could appear before voters on ballots, lawmakers in many states are expected to consider bills to legalize marijuana.

Meanwhile, advocates will push to expand on cannabis reform momentum in Congress, where this year a marijuana banking bill was approved by the full House of Representatives and legislation to federally legalize cannabis and fund programs to begin repairing the harms of the war on drugs advanced at the committee level.

And with presidential candidates increasingly embracing cannabis legalization and other far-reaching reforms, 2020 is poised to be the biggest year for marijuana yet.

“In 2020, hundreds of thousands of Americans will turn out to vote not for the top of the ticket, but for the rights of cannabis consumers in upwards of a dozen states,” said NORML Political Director Justin Strekal. “As we have seen in previous elections, marijuana initiatives increase voter turnout in nearly every demographic. With public support growing by the day, 2020 will be the biggest year yet for expanding the freedoms and liberties of cannabis consumers.”

Source: https://www.forbes.com/sites/tomangell/2019/12/26/marijuana-on-the-2020-ballot-these-states-could-vote/#66043c2679df

SPONSOR:

Why Empower Clinics

• A leading owner/operator of physician staffed health and pain management clinics.
• Patient database of over 165,000 patients 
• Platform generating $1.4M USD (9 months ending Sept. 30, 2019)
• Proprietary technology platforms including Electronic Health Records portal and e-Commerce for CBD product distribution
• Recently launched CBD extraction facility
• First extraction system capacity = 6,000 Kg per year.
• CBD based products are poised to be a $20B global industry by 2022
• Medical cannabis is poised to be a $100B global industry by 2025

As Smoke Clears From 2019, The US Cannabis Market Focuses On 2020

• The U.S. legal cannabis market is forecast to grow to $30 billion by 2025, as state markets quickly cannibalize demand from the illicit market, thereby achieving a key objective of legalization in undercutting the unregulated activities
• Through the robust growth in currently legal markets, cannabis will likewise continue to be a significant generator of new jobs (from 258,437 in 2019, to a projected 743,196 in 2025 – an increase of 188%), and of tax revenues for the federal and state goverments ($1.41 billion in 2019, projecting to $4.06 billion in 2025)

By: New Frontier Data

While 2019 was a year marked by turbulence and reconsidered expectations in the legal cannabis industry, significant opportunities for growth and prosperity nevertheless await in 2020.

Despite strong consumer demand, challenges in operationalizing key markets – including Canada and California – coupled with slow progress toward U.S. federal legalization (among other reasons) have resulted in a slowdown in cannabis investments and dramatic contraction in value of the largest companies.Though the mysterious vaping crisis of EVALI (i.e., “e-cigarette or vaping, product use associated lung injuries”) threw a virtual wrench into a segment which had been projected to account for 29% of U.S. legal cannabis sales and $4.9 billion in 2019, other categories have seen strong sustained growth amid strong consumer demand.

The U.S. legal cannabis market is forecast to grow to $30 billion by 2025, as state markets quickly cannibalize demand from the illicit market, thereby achieving a key objective of legalization in undercutting the unregulated activities. Through the robust growth in currently legal markets, cannabis will likewise continue to be a significant generator of new jobs (from 258,437 in 2019, to a projected 743,196 in 2025 – an increase of 188%), and of tax revenues for the federal and state goverments ($1.41 billion in 2019, projecting to $4.06 billion in 2025).

Given the growth seen in Colorado’s successful program, a prosperous market is achievable if deftly managed, and critical growing pains are avoided. However, it takes years for the market’s economics to stabilize, a period during which efficiency, scale, and competition all increase dramatically. Even as Colorado’s legal market nears saturation, wholesale prices (which have already fallen by half) in the Rocky Mountain State are expected to continue to fall, driving further consolidation as less efficient and undifferentiated producers are displaced by high-performing operators.

Meantime, markets are opening in Illinois and Michigan, and Florida seems headed for an adult-use referendum in the nation’s third-most populous state, which approved medical use with 71% in favor in 2016. Almost all Americans now live in a market which has expanded to include access to either CBD, medical, or full adult-use purchases. And with more than a dozen other states likely to further expand legal cannabis access within the next two or three years, the delays in federal regulatory reform appear to be doing little to slow the public’s rising enthusiasm for legalization.

Innovation is driving development of new products. A far-flung range of cannabis-related technologies are emerging to attract new demographic groups and new opportunities through everything from Big Data business analytics to compliance testing, new extraction technologies, and the rise of smart consumption devices.

U.S. hemp saw a 459% increase in cultivation acreage from 2018 to 2019. Passage of the 2018 U.S. Farm Bill catalyzed the dramatic growth, though lack of the industry’s processing capacity coupled with supply-chain challenges to leave some early producers struggling to get harvests and products to market.

Here too, innovation and commercialization will play a transformative role, activating new applications that are in development, from bioplastics to construction materials. As the U.S. hemp industry matures, it will transition from being a seed, textile, and industrial product importer to a global exporter. Though the U.S. had lagged behind countries like Canada and France with hemp legislation, the 2018 Farm Bill cleared the way for the U.S. industry to accelerate and establish itself as a global exporting powerhouse led by hemp-derived CBD.

While the U.S. federal government through the Food and Drug Administration (FDA) and the U.S. Agriculture Department (USDA) offers more confusion than clarity about the legality of CBD products and use, domestic and international demand keeps expanding apace.

While the FDA promises guidance to be forthcoming, it is likelier that confusion will confound consumers for the foreseeable future, throughout 2020 and beyond until the long-term research studies which federal prohibition prevented for decades can finally be performed.

Heading into the new year, the convergent forces which characterized 2019’s turbulence are not yet resolved. However, as the irrational exuberance that has fueled much of the speculative investments in cannabis has been displaced by a more clear-eyed, long-term strategic approach, the companies that weather the storm will be keenly positioned to capitalize on the significant growth opportunities which legal cannabis will present globally in 2020.

Click Here to see 10 intriguing cannabis statistics from 2019

Source: https://www.benzinga.com/node/14993046

• Announced that its wholly-owned subsidiary, Empower Healthcare Assets Inc., has issued a convertible promissory note in the principal amount of CAD$250,000 to Heritage
• Under the terms of the LOI, Empower and Heritage will each hold a 50% ownership interest in the JV entity.
• Heritage, via its wholly owned subsidiary, Purefarma Solutions Inc. will install extraction units and related downstream extraction equipment inside Empower’s existing 5,000 sq. ft. licenced hemp processing facility in Sandy, OR.

HERITAGE CANNABIS HOLDINGS CORP. (CSE:CANN) (“Heritage”) provides $250,000 of funding to support the development of the previously announced Empower – Heritage Extraction Center Joint Venture (the “JV”) in Sandy, OR.

VANCOUVER, BC / December 13, 2019 / EMPOWER CLINICS INC. (CSE:CBDT)(OTC:EPWCF)(Frankfurt:8EC) (“Empower” or the “Company“), a vertically integrated and growth-oriented CBD life sciences company, is pleased to announce that its wholly-owned subsidiary, Empower Healthcare Assets Inc., has issued a convertible promissory note (the “Note“) in the principal amount of CAD$250,000 to Heritage, pursuant to an initial first funding under the letter of intent (the “LOI“) previously announced by the Company on September 17, 2019.

Under the terms of the LOI, Empower and Heritage will each hold a 50% ownership interest in the JV entity (“NewCo“). Heritage, via its wholly owned subsidiary, Purefarma Solutions Inc. (“Purefarma“), will install extraction units and related downstream extraction equipment inside Empower’s existing 5,000 sq. ft. licenced hemp processing facility in Sandy, OR. In addition, Purefarma will train and supervise staff on the proprietary methods of extraction and oil production that it utilizes in Canada. The JV will be equally funded by both companies, with Heritage investing an initial $500,000 for start-up funds, as the build-out completes and the JV secures high quality hemp supply from local growers.

“Securing the initial advance from Heritage demonstrates the confidence both companies have in being able to finalize a definitive agreement for the formation of the JV and commence full operations at the Sandy, OR facility,” said Steven McAuley, Empower’s Chairman and CEO. “Receiving the advance allows us to place purchase orders for equipment and complete 2020 state licensing requirements to begin product production, which is expected to be followed soon after by the set up of the hemp-derived CBD extraction equipment.”

“We at Heritage continue to be excited and optimistic about our potential with the large U.S. markets. Having a distribution partner like Empower and a licenced facility together are expected to allow us to accelerate our path to new revenue and support the order pipeline we are building,” said Clint Sharples, CEO of Heritage.

The Note bears interest at the rate of 2.0% per annum and will mature no later than December 31, 2021. The Note contains an optional conversion provision for Heritage to surrender the Note in exchange for shares in the capital of Empower. The number of Empower shares to be issued to Heritage will be based on the value of the shares at the close of business the day before this Note is surrendered to the Company, subject to a minimum conversion price of $●, being the closing price of the shares on the Canadian Securities Exchange (the “CSE“) on December ●, 2019.

A further optional conversion provision provides that, on or after the date when a definitive agreement is executed and delivered by the parties in connection with the JV, Heritage may surrender the Note to the Company in exchange for an equity interest in Newco equal to Heritage’s pro-rata cash investment in NewCo made pursuant to the Note, provided however, that the Company shall have 60 days to match Heritage’s contribution to NewCo, such that if the Company or an affiliate invests an amount equal to Heritage’s investment, the equity ownership in NewCo will be held equally by Heritage and the Company. Upon conversion, all amounts advanced under the Note shall be deemed to be an equity advance to NewCo for purposes of the JV.

The proceeds of the Note shall be used solely in connection with the JV and the incorporation of Newco. The proceeds shall not be used to repay the outstanding balance under any existing or future bank or credit facility or similar arrangement, including any scheduled payments of principal and interest.

The Note and any Empower shares issued thereunder will be subject to a statutory hold period of four months and one day from the date of the issuance of the Note under applicable Canadian securities laws, as well as resale restrictions under applicable United States securities laws. The issuance of the Note and any Empower shares are subject to the approval of the CSE. Neither the Note nor any of the Empower shares that may be issuable thereunder will be registered under the United States Securities Act of 1933, as amended, and none may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

ABOUT EMPOWER

Empower is a leading owner/operator of a network of physician-staffed clinics focused on helping patients improve and protect their health through innovative uses of medical cannabis. It is expected that Empower’s proprietary product line “Sollievo” will offer patients a variety of delivery methods of doctor recommended cannabidiol (CBD) based product options in its clinics, online and at major retailers. With over 165,000 patients, an expanding clinic footprint, a focus on new technologies, including tele-medicine, and an expanded product development strategy, Empower is undertaking new growth initiatives to be positioned as a vertically integrated, diverse, market-leading service provider for complex patient requirements in 2019 and beyond.

ABOUT HERITAGE CANNABIS HOLDINGS CORP.

The Company is a vertically integrated cannabis provider that currently has two Health Canada approved licenced producers, through its subsidiaries Voyage Cannabis Corp. and CannaCure Corp. both regulated under the Cannabis Act Regulations. Working under these two licences, Heritage has two additional subsidiaries, Purefarma Solutions, which provides extraction services, and BriteLife Sciences that is focused on cannabis based medical solutions. Heritage as the parent Company, is focused on providing resources for its subsidiaries to advance their products or services to compete both domestically and internationally.

ON BEHALF OF THE BOARD OF DIRECTORS:

Steven McAuley
Chief Executive Officer

CONTACTS:

Investors: Steve Low
Boom Capital Markets
[email protected]
647-620-5101

Investors: Steven McAuley
CEO
[email protected]
604-789-2146

For French inquiries: Remy Scalabrini, Maricom Inc., E: [email protected], T: (888) 585-MARI

DISCLAIMER FOR FORWARD-LOOKING STATEMENTS

This news release contains certain “forward-looking statements” or “forward-looking information” (collectively “forward looking statements”) within the meaning of applicable Canadian securities laws. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Forward-looking statements can frequently be identified by words such as “plans”, “continues”, “expects”, “projects”, “intends”, “believes”, “anticipates”, “estimates”, “may”, “will”, “potential”, “proposed” and other similar words, or information that certain events or conditions “may” or “will” occur. Forward-looking statements in this news release include statements regarding: the proposed JV; the Company’s intention to open a hemp-based CBD extraction facility; the expected use of proceeds of the Note; the expected benefits to the Company and its shareholders as a result of the proposed JV. Such statements are only projections, are based on assumptions known to management at this time, and are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the forward-looking statements, including that: Heritage and Empower may be unable to agree on terms of a definitive agreement with respect to the JV; that the Company may not open a hemp-based CBD extraction facility; that legislative changes may have an adverse effect on the Company’s business and product development; that the Company may not be able to obtain adequate financing to pursue its business plan; general business, economic, competitive, political and social uncertainties; failure to obtain any necessary approvals in connection with the proposed JV or extraction facility; and other factors beyond the Company’s control. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. Readers are cautioned not to place undue reliance on the forward-looking statements in this release, which are qualified in their entirety by these cautionary statements. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements in this release, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities laws.