Investment Options in the Multi-Billion Dollar Med
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NetworkNewsWire Editorial Coverage: Mounting research from around the world suggests marijuana’s potential to treat multiple medical conditions ranging from chronic pain to cancer, epilepsy, HIV/AIDS, anxiety and more. Predicted to reach $55.8 billion by 20251, the global medical marijuana industry presents to investors a wide array of investment opportunities, driven by increasing demand for therapeutic applications of the drug. In turn, funds raised through the public market give marijuana companies the chance to raise capital to build stronger portfolios, increase their market reach and revenue, and offer cannabis-based alternatives to traditional medicine. Companies such as ChineseInvestors.com, Inc. (CIIX) (Profile: CIIX), Medical Marijuana, Inc. (MJNA), CV Sciences, Inc. (CVSI), Terra Tech Corp. (TRTC), and Marijuana Company of America, Inc. (MCOA) are operating in the medical marijuana scene and are steadily building a strong reputation as leading providers of cannabis-based health and wellness products and services.
Created as a premier source of financial information for Chinese-speaking investors, ChineseInvestors.com (CIIX) is carving for itself a hefty portion of the cannabis market through diversified entry points. Adding to its current operations, CIIX earlier this week announced (http://nnw.fm/3nlZM) its entry into China’s skincare industry though the impending launch of a new line of cannabidiol-based skincare products.
“Although ancient Chinese recognized the medicinal properties of the cannabis plant, CBD extract appears to be largely unrecognized in China today for its benefits, including but not limited to, its potential benefits to the largest visible human organ, the skin. The effects of increased air pollution on the human body are a growing concern for many in China. With regard to our skin, toxins in air pollution promote the production of free radicals, causing premature aging including coarse wrinkles and dark spots. However, some dermatologists believe that the anti-oxidants and anti-inflammatory agents in CBD can potentially have anti-aging effects on the skin,” the company stated in the press release.
The opportunity here is significant, as you look at the broader market. China is currently the second largest consumer of skincare products, generating annual retail sales of more than $29.6 billion2. Research from ReportLinker estimates that Chinese skincare product retail sales will reach $36.3 billion this year.
The CBD Magic Hemp Series, to be launched by early September by CIIX’s wholly-owned CBD Biotechnology Co. Ltd. subsidiary (http://nnw.fm/VC7oZ), will position CIIX as a first mover in this previously untapped sector of the Chinese skincare industry. CIIX has filed a record of the product line with the Chinese Food and Drug Administration, and the company anticipates capturing “100% of China’s market share in this novel skin care products category,” since, to its knowledge, other manufacturers have not yet entered the cannabis skincare product market in China.
Again targeting an untapped niche of the marijuana market, CIIX operates the first Chinese-language online store selling cannabidiol (CBD) products. In December 2016, CIIX launched www.ChineseCBDoil.com in Shanghai, catering to a growing audience of Chinese people interested in the benefits of CBD-based products for the treatment of various medical conditions such as stress, anxiety, Alzheimer’s disease, and others. In conjunction with the launch of the website, CIIX introduced the first Yelp-style social media app in Chinese. The app, approved by the Apple store, is a platform for reviews and discussions about cannabis products and provides a comprehensive database of dispensaries and marijuana strains, all in the Chinese language.
CIIX is also getting ready to open its first retail store, primarily targeting the Chinese community in San Gabriel, California. The store will sell the company’s new OptHemp product line, launched by subsidiary ChineseHempOil.com, Inc., to treat pain and inflammation. In July, CIIX announced (http://nnw.fm/6ThNn) that www.ChineseHempOil.com will accept bitcoin payments for its health products, food and beverages.
Another recognizable marijuana company focused on market firsts is Medical Marijuana, Inc. (MJNA). MJNA was the first publicly-traded marijuana company in the United States; the first to make cannabidiol available domestically and abroad; and the first to establish a global CBD pipeline that made beneficial cannabinoid products available to people all over the world. In addition to establishing an international CBD pipeline, providing support services to the cannabis industry and working to develop new markets, MJNA is focusing on the development and distribution of CBD hemp oil health products such as HempMeds® and Kannaway®, in addition to developing cannabis medication via subsidiaries AXIM Biotechnologies, Kannalife™ Sciences, and HempMeds®. The companies are looking into different delivery methods for marijuana-based therapies and are targeting a wide range of conditions including Alzheimer’s, Parkinson’s, epilepsy, multiple sclerosis, cancer, chronic pain and more.
Medical marijuana player CV Sciences (CVSI) operates its corner of the market via two different business segments: pharmaceuticals and consumer products. Its pharmaceutical division is developing synthetic CBD-based medicines for various medical conditions, with approval of the U.S. Food and Drug Administration. Its pipeline currently includes a CBD-based product designed to support cessation of tobacco addiction. The consumer products division manufactures and distributes plant-based CBD products designed to enhance quality of life. CVSI’s flagship consumer products, PlusCBD Oil and Purified Liquids vaping blends, are already distributed nationwide via health care providers, health food stores and online.
Terra Tech (TRTC) is a vertically-integrated cannabis agriculture company that owns multiple subsidiaries in the medical marijuana space. One of these subsidiaries is Blüm™, a retail medical cannabis company that provides medical cannabis as an alternative treatment for patients with chronic conditions. Also offering cannabis to the adult-use market in Nevada, where the sale of marijuana for recreational purposes is legal, Blüm offers recreational and medicinal consumer products such as flowers and concentrates produced according to the highest standards of potency and purity. Terra Tech is committed to cultivating only high-quality medical marijuana and providing it to qualified and registered medical marijuana establishments throughout the United States. At the same time, the company is continuing research to cultivate and cross-breed medical marijuana strains for the treatment of many different medical conditions.
As demand for medical marijuana grows, so too does the need for grow space. Marijuana Company of America (MCOA) is primarily focused on the marketing and distribution of hemp via a diverse portfolio of companies, brands, joint ventures and investments such as hempSMART, Club Harmoneous, GateC Research, Bougainville and MoneyTrac Technology. The company earlier this month said it has received financing that it will use to develop a state-of-the-art 30,000-square-foot greenhouse grow facility in Oroville, Washington, with joint-venture partner Bougainville Ventures, Inc. At full capacity, the facility is expected to accommodate cannabis production and processing of its tenant, a Tier 3, I-502 licensed grower. MCOA said it plans to replicate this business model to build its real estate portfolio and increase revenues.
These public companies, expanding their market reach and brand recognition in their respective niches of the medical marijuana market, provide ample opportunities for investors looking for an entrance into the booming medical marijuana market. Proponents of marijuana for medical purposes point to a growing number of studies that confirm the health benefits of cannabis, setting the industry on track to continue its strong performance and become a key industry and engine of economic growth.
NNW Editorial Sources:
1. Grand View Research, Inc. (http://nnw.fm/dYk5q)
2. ReportLinker (http://nnw.fm/C9Hw9
For more information on ChineseInvestors.com, please visit: ChineseInvestors.com (CIIX)
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