FinancialBuzz.com’s latest Buzz on the Street Show: Featuring Our Corporate News Recap on “AREV International Brands Ltd. Announces Focus and Roll Out in California.”
AREV Brands International Ltd. (CSE: AREV) announced it has entered into a Binding LOI with LB Anaheim Street LLC, a company organized under the laws of California, USA (“Anaheim”) and LBC Integrated Growers LLC, a company organized under the laws of California
AREV Brands International Ltd. produces and delivers functional compounds and ingredients from its world-class extraction systems. AREV is revolutionizing the current delivery method of terpenes, cannabinoids and flavonoids. These premium ingredients and formulations are used in products targeted for sale in the natural health, medical, functional food, nutraceutical, sport nutrition and bioceutical markets. AREV innovates through extraction to produce extracts from specific selected plant and exude from trees that address 5 areas of health including Anxiety, Pain Management, Insomnia, Central Nervous System Disorders & Libido.
Following Canada’s legalization of cannabis, as well as the U.S.’s ongoing efforts, cannabis-based companies have seen their revenues grow substantially over the past few years. Last year, the North American region reached several historic milestones within the cannabis industry. Perhaps most notably, Canada’s legalization of cannabis was a major event that reshaped the marketplace as the country became the first and only G-7 nation to legalize cannabis, however, several of the other G-7 nations have since followed suit and implemented a partial or full medicinal cannabis legislation. The widespread legalization movement is now causing a growing demand around the world for both medical and recreational cannabis applications. Moreover, the demand is prompting cannabis companies to ramp up operations in order to meet this demand. As a result, cannabis companies are seeing tremendous revenue growth as the cannabis marketplace begins to take off. Nevertheless, the market is heavily hindered by the lack of clinical trials evaluating cannabis and its efficacy., even though despite the lack of research, the industry has already made significant progress in recent years. For instance, the U.S. Drug Enforcement Agency delisted CBD from its Schedule 1 listing. Shortly after the DEA’s decision, the U.S. passed the Farm Bill, which legalized hemp. Overall, the U.S. government’s decision to soften its cannabis regulatory laws highlights the major steps the industry has taken. Moreover, as cannabis research continues, more countries are expected to adopt medicinal cannabis legislation. On the other hand, the recreational market is continuing to thrive, largely due to the U.S. and Canadian markets continuously expanding. According to data compiled by MarketsandMarkets research, the global cannabis market is projected to grow from USD 10.3 Billion in 2018 to USD 39.4 Billion by 2023. Additionally, the market is expected to register a CAGR of 30.7% during the forecast period.
Primarily, the majority of the cannabis revenue currently stems from medicinal sales. However, it is projected that the recreational sector will overshadow the medical sector within the next several years. For instance, In the second quarter of 2017, California’s flower sales accounted for 55% of its total cannabis sales. Then,, in 2018, California witnessed its flower sales decline by 3% in the first quarter. Moreover, 67% of Colorado’s cannabis sales were made up of flower when legal sales began back in 2014. Now, flower only accounts for 44% of Colorado’s total sales. During the same period, Colorado’s concentrates sales more than doubled to 31%, according to BDS Analytics. Consumers are beginning to prefer concentrates and extracts over flower because of the health benefits and more potent effects. On an international-scale, a handful of countries have banned smoking cannabis, but allow vaping. Aaron Salz, Founder of the Stoic Advisory consulting firm in Toronto, says a large export opportunity exists because other countries are modeling their programs after Canada, according to Marijuana Business Daily. “Most countries are choosing to first legalize cannabis oil over flower,” he said. “So that’s created an opportunity for exports to countries that are starting with strict medical regimes with limited qualifying conditions.”
For more information, please visit: AREV Brands International Ltd.
For more corporate news on AREV Brands International Ltd., check out the Buzz on the Street
About Buzz on the Street: One of FinancialBuzz.com’s latest corporate and financial news shows, covering the latest trending stock market news. Buzz on the Street looks to become a leader in corporate video news dissemination. Buzz on the Street is 100% original content, brought to you by Financial Buzz Media.