(MENAFN - Baystreet.ca) Spending on cannabis could reach $57 billion over the next 10 years, according to Arcview Market Research and BDS Analytics. Analysts at Cowen say the market could reach $16 billion by 2025. Even Jefferies' analysts say the industry could reach $130 billion by 2029.
"This assumes full U.S. federal legalization, full recreational and medical legalization across Europe, full medical and recreational legalization across Lat Am, and marijuana disruption of a number of other industries," noted the Jefferies analysts, quoted by Yahoo Finance.
While estimates may vary, one thing is for certain. There's plenty of support, and demand for cannabis. For one, cannabis legalization is seeing big support in the U.S. In fact, a Pew Research Center survey found that 67% of us support cannabis legalization. That's up from 62% year. A Gallup survey found that 66% of Americans are in favor of legalization. That's up from just 60% in 2016. Two, corporate America is just beginning to sit up and take notice, as retailers try to keep their shelves well stocked with product, including Neiman Marcus, Sephora, Vitamin Shoppe, Kroger, Barney's DSW, Sephora, CVS, American Eagle, and Walgreen's.
Such demand is creating sizable opportunity for companies such as CleanSpark, Inc. (NASDAQ:CLSK), Canopy Growth Corporation (TSX:WEED)(NYSE:CGC), OrganiGram Holdings Inc. (TSXV:OGI)(NASDAQ:OGI), Cree Inc. (NASDAQ:CREE), and NextEra Energy Inc. (NYSE:NEE).
CleanSpark, Inc. (NASDAQ:CLSK) BREAKING NEWS : CleanSpark, Inc ., a diversified software and services company, announced the successful commissioning and deployment of its mPulse software on a comprehensive off-grid installation system located in California City, California. CleanSpark provided software and controls as well as the battery energy storage solution (BESS) for the system. Good Energy Solar, a Santa Barbara, CA based company, is the lead project developer who provided the photovoltaic (PV) solar system and installation services. The system integrates 43-kw of solar PV with 60-kw BESS and a 45-kw baseload generator with 150-kw generator planned for future business growth.
Engaged by Good Energy Solar, CleanSpark deployed its team of energy professionals to produce a project feasibility analysis of the system utilizing CleanSpark's microgrid Value Stream Optimizer (mVSO) platform; a SaaS-based software and industry-leading solution for energy project analysis and modeling. Energy resiliency and savings were the primary vectors in mVSO's modeling exercise for the end-user, a controlled-distribution agricultural facility. Based on this and a variety of factors, mVSO provided a 20-year economic model outlining the cash flows of the system and detailed cost-avoidance benefits. In the end, mVSO was able to analyze and provide the end-user with a plan to deploy a full, off-grid system sized to meet its needs, which included recommendations for complete project specifications and implementation plans for the solution, in an efficient, cost effective manner.
Zach Bradford, CEO and President of CleanSpark, stated, "Given the remote location of the end-user's operation, local utility companies were unable to provide electrical grid service to the facility in a timeframe that supported their business plans. By going completely off-grid, CleanSpark and Good Energy Solar have allowed the customer to create and independently own their energy system to meet their current and future power requirements. Our controls are designed to minimize fuel consumption to provide the lowest possible levelized cost of energy. The system is designed to be fully expandable as the business grows. CleanSpark's mPulse software and controls solution is uniquely capable of scaling as the system size and load increases and can easily integrate utility grid power if and when the utility provides electricity to the site."
Mr. Bradford continued, "As our mPulse software deployments increase, we expect to see revenues and margins improve. Deployments like these also create additional opportunities for CleanSpark to continue to add long-term SaaS revenues. Our team is excited about this opportunity to again demonstrate the value of our controls software for a customer that would otherwise be subjected to high energy operating costs due to public utility constraints. The company will continue to update all stakeholders as to current deployments and contracts as they develop. We have made significant progress on our stated objective to rapidly scale both our business and the associated revenues. Our year to date revenues through mid-June are approximately $7.7 million and we expect to exceed $8.0 million in year-to-date revenue by the end of this fiscal quarter. Our sales pipeline continues to grow, and we are optimistic about the increased demand we are seeing across all lines of our business."
Other related developments from around the markets include:
Canopy Growth Corporation (TSX:WEED)(NYSE:CGC) announced its financial results for the fourth quarter and full twelve-month fiscal year ended March 31, 2020. The Company is also sharing details of its new strategic plan aimed at winning in priority markets and categories and executing a path to profitability. All financial information in this press release is reported in millions of Canadian dollars, unless otherwise indicated. The fourth quarter and full twelve-month fiscal year 2020 financial results presented in this press release have been prepared in accordance with U.S. GAAP. "Through the COVID-19 pandemic we have worked hard to ensure the health and well-being of our teams and customers and the continuity of our business. During this time, our team has rolled out our exciting new cannabis-infused beverages and vape products in Canada and a portfolio of CBD products in the US," shared CEO David Klein. "True to key priorities that I have outlined for Canopy, we have taken steps to align our capacity with the current market demand and focus our resources against the core markets with the largest and most tangible near-term profit opportunity."
OrganiGram Holdings Inc. (TSXV:OGI)(NASDAQ:OGI) announced that it has entered into a multi-year agreement for supply of dried flower to one of Israel's largest and most established medical cannabis producers, Canndoc Ltd., a subsidiary of InterCure Ltd. Canndoc has been a pioneer in pharmaceutical-grade cannabis for more than 12 years. Its GMP-approved medical cannabis products are sold in pharmacies in Israel, and it holds international cultivation and distribution agreements in the European Union and Canada. Under the terms of Organigram's supply agreement with Canndoc, the Company will provide a guaranteed 3,000 kg of high quality, indoor-grown dried flower product to Canndoc by December 31, 2021 for processing and distribution into the Israeli medical market, and may provide an additional 3,000 kg during the same time period at Canndoc's option, subject to certain conditions. The agreement provides for a tiered pricing scheme and the exact value will vary depending on factors such as potency and product mix. The Agreement also contemplates, among other things, an opportunity for Organigram to launch branded medical products with Canndoc in the Israeli and EU markets, and grants exclusivity and related rights to Canndoc within the Israel market for a period of approximately 7.5 years. Activities under the Agreement are subject to compliance with all applicable laws, including receipt of all requisite approvals from Health Canada, the Israeli Ministry of Health, and any other applicable regulatory authorities.
Cree Inc. (NASDAQ:CREE) and StarPower Corporation announce that Zhengzhou Yutong Group Co., Ltd. (Yutong Group), a large-scale industrial Chinese manufacturer of commercial vehicles that specializes in electric buses, is using Cree 1200V silicon carbide devices in a Starpower power module for its new, industry-leading, high-efficiency powertrain system for electric buses. The use of silicon carbide-based power solutions enable faster, smaller, lighter and more powerful electronic systems for commercial electric vehicles. The parties are working together to accelerate the commercial adoption of silicon carbide-based inverters in electric bus applications. Upon rollout, Yutong Group will deliver their first electric bus in China to use silicon carbide in its powertrain, representing a significant advancement in providing an even more efficient e-bus to the market.
NextEra Energy Inc. (NYSE:NEE) and NextEra Energy Partners, LP announced that members of the senior management team will participate in various investor meetings throughout June. They plan to discuss, among other things, long-term growth rate expectations for NextEra Energy and NextEra Energy Partners. Investors and other interested parties can access a copy of the presentation materials at www.NextEraEnergy.com/investors
Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. CleanSpark, Inc. has paid three thousand five hundred dollars for advertising and marketing services to be distributed by Winning Media. Winning Media is only compensated for its services in the form of cash-based compensation. Winning Media owns ZERO shares of CleanSpark, Inc. Please click here for full disclaimer.
Legal Disclaimer: MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.