(MENAFN- Baystreet.ca) Today is the one-year anniversary of Canada cementing itselfin history as the first G20 country to legalize recreational marijuana. Thefirst year has been a learning experience for all involved, with some companiesfalling by the wayside and others, like The Yield Growth Corp. (CSE:BOSS)(OTCQB: BOSQF) thriving, growing its brands while aligning for Cannabis2.0 and 3.0.
Round 1 of cannabis legalization was all about the industrygetting its legs under it, allowing sales of dried cannabis flower, oil and sprays.Cannabis 2.0, which starts today, is the sobriquet for the legalization of morecannabis products, including edibles, beverages and topicals. Looking ahead, investorsare already planning for another batch of legal products, namely psychedelics.
For Yield Growth, perfect timing is a matter ofunderstanding where the market is going.
Unrivaled Leadership
Owing to a bevy of medicinal benefits of cannabis, thelegalization of marijuana put in motion the confluence of the$4.2 trillionglobal wellness and$11billionlegal cannabis markets. Continued relaxation of legislation andincreased consumer uptake will result in the legal cannabis market surging from$11 billion in 2018 to $153.7 billion in 2027, according to analysts atResearch and Markets.
In order to capitalize on the trend, Yield Growth hasassembled ateamof venerable expertsin diversified fields spanning consumer packaged goods, pharmaceuticals,blockchain, finance, branding, legal, capital markets and more. In a cleardemonstration that cannabis is transitioned from dark alleys to Wall Street,BOSS leadership is chock full of C-suite and senior management with experienceat companies like Johnson & Johnson (NYSE: JNJ), Best Buy (NYSE: BBY),Skechers (NYSE: SKX), Aritzia, Hanwei Energy Services corporation (TSX: HE) andM·A·C Cosmetics (acquired by Estee Lauder (NYSE: EL)). The ability to attractthis sort of talent speaks volumes to the market opportunity and the quality ofYield Growth's vision and execution.
This group has not just spotted the trend, they have gottenfirmly in front of it as evidenced by building a diversified, integratedcompany and the growing success of theportfolioof brands . The portfolio includes Urban Juve, Wright & Well, Jack nJane, Flourish Mushroom Labs and UJ Beverages. The aggregate of the whollyowned subsidiary companies operating these brands gives the parent companyexposure to cannabis markets in the U.S., Canada and Europe.
In fact, after premium exposure in British Vogue and ElleCanada publications, theUrban JuveSkinAwakening Anti-aging Serum is featured in the current issue of Vanity Fair UK.The company plans to launch more than 50 skincare and wellness products infusedwith cannabis sativa hemp root and hemp seed oil under the Urban Juve moniker.
Done Walking, Time to Run
The adage goes that you have to walk before you run. Thataxiom was exemplified by Canadian regulators moving slowly and vigilantlyduring the first year of legal marijuana operations. Cannabis 2.0 is expectedto see the markets move to a slow jog and by 3.0, the markets will be runningat a brisk pace.
There are plenty of tailwinds to help the acceleration. Tobegin with, the negative stigma attached to marijuana is fading as people get abetter understanding of cannabis and hemp compounds like CBD (cannabidiol) andTHC (tetrahydrocannabinol). Furthermore, consumer adoption is underpinned bypeople realizing the therapeutic merits of cannabis to treat everything fromdry skin to anxiety to epileptic seizures. The informed public will only grow biggergoing forward with Canada allowing more products to hit the market.
Yield Growth already has a growing footprint in the wellnessspace and is making prescient moves to solidify its future. Concurrent with thenew laws in Canada, the company is aligning with Apothecary Botanicals, aCanadian licensed cannabis producer and subsidiary of Geyser Brands Inc.(TSX-V: GYSR). Per the LOI announced today, the two will work together on theproduction and launch of Yield Growth's Canadian cannabis brand Jack n Jane, aline of cannabis-infused products including tinctures, topicals and capsules.
The race is on and the companies aren't wasting any time,setting a goal to have the first products - which will include three tincturescontaining THC and CBD - on the market by the end of the year.
Savvy investors will take note that one of Yield Growth'sunits is UJ Beverages, which aligns perfectly with the new Canadian laws aswell. The global cannabis beverage market is expected to nearly triple to risefrom $1.6 billion in 2018 to$4.5billionby 2025.
The New Age of Psychedelics
As the negative stigma of marijuana goes up in smoke, thenext culture shock will be in medicinal usage of psychedelics like psilocybin(better known as the drug in "magic mushrooms") and MDMA (better known as ecstasy).There is a growing movement and emergent research supporting the quality ofthese drugs to potentially provide options for people with hard to treatdiseases and conditions.
For example, researchers atJohnsHopkinsshowed that MDMA may be effective in treating post-traumatic stressdisorder (PTSD).Otherresearchdemonstrated the ability of psilocybin to help people sufferingfrom clinical depression when other treatments have failed. Moreover, studiesindicate that medicinal mushrooms can boost exercise performance, improvememory, cognitive performance and sex drive, slow tumor growth and improveheart health.
BOSS CEO Penny White and her team are in good company inanticipating robust psychedelic-therapy market.BruceLinton , the man responsible for building Canopy Growth (NYSE: CGC)(TSX: WEED) into the first billion-dollar (and world's biggest) cannabis company, ismaking strategic investments into the space and has taken a director's seat atToronto-based Mind Medicine. Mind Medicine is developing new treatments usingpsychedelics for mental illness.
To this point, Yield Growth's subsidiary, Flourish MushroomLabs, recently completed the acquisition of a catalogue of mushroom formulas toestablish the foundation of a mushroom edibles business. The strategy is to usethe formulations and know-how to create ready-to-eat packaged food products andother packaged goods that can be mixed with mushroom varietals. Potentialproducts include soups, teas, hot cocoa, elixirs and truffles, with plans forsoups and coffees to be developed first.
The decision to enter the edible mushroom business dovetailsperfectly with the culture of Yield Growth to use bring ancient medicines tomodern times for hard-to-treat maladies and overall wellness. It doesn't hurtthat that global edible mushroom market is growing nearly 8% annually and willreach $62 billion by 2023, according to Research and Markets, which squarelyfits with BOSS management identifying lucrative markets ripe for new solutions.
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