FinancialBuzz.com’s latest Buzz on the Street Show: Featuring Our Corporate News Recap on “Canopy Rivers Backs BioLumic – Shines Light on New AgTech for the Medical Cannabis Industry.”
BioLumic Ltd., creators of a sustainable ultraviolet (UV) crop yield enhancement system, and Canopy Rivers Inc. (TSX-V: RIV) (OTC: CNPOF) today announced a strategic investment from Canopy Rivers. BioLumic extended the Finistere Ventures-led Series A financing round to include Canopy Rivers’ strategic investment of US$1.5 million, closing the oversubscribed round at US$6.7 million. The financing was comprised of a tier-one investor roster that also included Rabo Food & Agri Innovation Fund and Radicle Growth acceleration fund.
Canopy Rivers is a unique investment and operating platform structured to pursue investment opportunities in the emerging global cannabis sector. Canopy Rivers works collaboratively with Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) to identify strategic counterparties seeking financial and/or operating support. Canopy Rivers has developed an investment ecosystem of complementary cannabis operating companies that represent various segments of the value chain across the emerging cannabis sector. As the portfolio continues to develop, constituents will be provided with opportunities to work with Canopy Growth and collaborate among themselves, which Canopy Rivers believes will maximize value for its shareholders and foster an environment of innovation, synergy and value creation for the entire ecosystem.
In recent years, the cannabis industry has witnessed immense support from countries across the world. Numerous national governments have their own unique perspective regarding the plant, however, most still have not moved to legalize cannabis because of the stigma surrounding its psychoactive nature. Nonetheless, cannabis has already tapped into several of the largest global markets. For instance, Canada became the first and only G-7 nation to legalize cannabis entirely in late 2018. Meanwhile, among the other G-7 nations, France, Germany, Italy, the United Kingdom and the U.S. have all adopted partial or full medical cannabis legislation. The only G-7 nation to not have adopted any form of cannabis legislation is currently Japan. Overall, many Asian countries enforce stricter regulations, which result in severe consequences if violated. As such, cannabis companies have not had much luck tapping into the Asian markets. However, South Korea and Thailand are two Asian countries that decided to take steps forward and dive into the cannabis industry. South Korea’s medical cannabis program launched in early March and paved the way for select THC and CBD-based medication imports. In particular, Canopy Growth Corporation is among the several Canadian multinational firms looking to enter the South Korean market. Similarly, Thailand has moved to legalize medical cannabis, with many expecting the legislation to be implemented next year after Thailand’smilitary-appointed National Legislative Assembly voted 166 to 0 in favor of legalizing medical cannabis. The profound movement stirring throughout Asia further highlights the impact that cannabis is making on a global scale. Moreover, ongoing international legalization efforts are expected to accelerate and further bolster the market in the near future. According to data compiled by MarketsandMarkets research, the cannabis market was valued at USD 10.3 Billion in 2018. By 2023, the market is expected to reach USD 39.4 Billion while registering a CAGR of 30.7% during the forecast period.
A handful of countries have already either decriminalized or legalized medical cannabis, while others are in the process. Countries such as Mexico and New Zealand are already working on legalizing cannabis entirely while other countries are exploring opportunities within the cannabis market,doing so with caution. Mexico’s elected President is pushing towards legalization in order to end the war on drugs caused by the era of prohibition. On the other hand, New Zealandis moving towards legalization because of the growing support from its denizens. Sandra Murray, Campaign Manager for New Zealand’s #makeitlegal campaign, noted that cannabis law reform is sitting at 60% approval, while 72% of people under the age 45 support legalization. Similarly, the U.S. is also witnessing a large influx of supporters, as in 2018, the amount of Americans who argued that cannabis should be legalized grew to 62%, almost double its support in 2000, according to Pew Research Center. The U.S. accounts for a majority of the global cannabis market, largely due to its early adoption, as some states began to delve into cannabis back in the 1990’s. Now, some markets such as California and Colorado have developed into multi-billion dollar marketplaces. The U.S. government is still split between legalization or maintaining its regulations, however, the support has gradually increased throughout recent years. Nearly 69% of Democrats support the legalization of cannabis, while 45% of Republicans favor legalization. While more Republicans oppose the legalization of cannabis, the share of Republicans overall that approve adoption has increased from 39% in 2015. “There’s been a tremendous evolution — marijuana legalization, if you look back, was really something for fringe candidates,” said John Lapp, a Democratic national campaign strategist.”It’s just not very controversial at all now.”
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