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CBD's Popularity Continues to Bolster the Overall Cannabis Industry

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The CBD or cannabidiol segment is one of the fastest-growing within the cannabis industry. Overall, the CBD market has accelerated at a tremendous pace as various studies have debunked the common misconception swirling around the compound. To note, CBD does derive from cannabis, however, it is part of the hemp plant, which is within the cannabis family. However, unlike its counterpart, marijuana, hemp does not cause psychoactive effects on consumers. Nevertheless, due to the lack of research, federal regulators had still classified CBD as a Schedule 1 drug because of its association with marijuana. But over the past several years, the cannabis industry has massively transformed. Notably, researchers uncovered that both THC and CBD offer consumers therapeutic benefits to alleviate medical conditions. But because of the psychoactive nature of THC, medical institutions are more keen to use CBD, which can be used to treat a wide array of medical conditions such as chronic pain, cancer, multiple sclerosis, Alzheimer's, and Parkinson's. While the medical sector of the CBD market is much more prevalent, there is now a growing recreational user base as well. Predominantly, recreational consumers use CBD to simply relax without the consequences of getting "high". And with the growth of the market, innovative entrepreneurs have introduced a plethora of ways to consume CBD. For instance, concentrates and extracts have become widely popular throughout the broad cannabis marketplace, while emerging products like edibles, beverages, topicals, and tinctures are also becoming increasingly popular. Now, as legislative efforts continue to propel the CBD industry forward, the overall cannabis industry is also expected to benefit. And according to data compiled by Ameri Research, the global legal marijuana market was valued at USD 14.3 Billion in 2016. By 2024, legal marijuana global sales are projected to reach USD 63.5 Billion while exhibiting a CAGR of 21.1% from 2017 to 2024. Newleaf Brands Inc., The Supreme Cannabis Company, Inc., Auxly Cannabis Group Inc., Terra Tech Corp. , Marijuana Company of America, Inc.

The global CBD industry is primarily driven by the U.S. marketplace. Notably, the U.S. passed the Farm Bill in late 2018, which federally legalized the commercialization and transportation of CBD. Shortly after, brick-and-mortar retailers and e-commerce platforms began to distribute CBD products, with most retailers marketing their goods as health and wellness products to intrigue consumers. Specifically, full-spectrum CBD products have gained a reputation among health-conscious consumers, as full-spectrum CBD oils provide consumers with protein, fiber, and essential fatty acids, according to Dixie Botanicals. Moreover, the oil can also be added to other products such as beverages. Overall, full-spectrum oil also contains all 20 amino acids, including the nine essential amino acids that the human body processes on its own. Additionally, full-spectrum CBD oil is also considered an ideal source of Omega 3 and Omega 6. Omega 3 plays a vital role in creating hormones that regulate inflammation as well as contractions and relaxation of arteries. They also lower your triglyceride levels in the blood to reduce the chances of suffering from heart disease and stroke. Additionally, the oil is also known to contain vitamins such as A, C, E, and B complex, which can help with the growth and development of vital organs and boost the body's immune system. "The research is emerging to support the use of CBD for numerous conditions, as well as looking closely at safety, side effects, and long-term effects. There are some valid concerns about long-term use that must be tested before CBD can be recommended for other diseases. As one approach to pain management, it is seen as an alternative option to the addicting narcotics. The use of CBD oil might complement a medical approach to treating physical and mental diseases," said Debra Rose Wilson, PhD, MSN, RN, IBCLC, AHN-BC, CHT.

Newleaf Brands Inc. is also listed on the Canadian Securities Exchange under the ticker. Today, the Company announced breaking news that, "it has entered into a Retail Implementation Agreement dated August 30, 2019 (the "Agreement") with New Implementation Program, LLC ("NIP"). Pursuant to the terms of the Agreement, NIP will provide to the Company distribution services and sale of the Company's CBD branded products to NIP's vast community of operators, partners, retailers and distributors in the United States of America. NIP will present and contract its retail locations for the purpose of selling up to three SKUs of the Company's product offerings at each NIP location. The Company and NIP are currently selecting the best regions to roll out the initial one thousand locations launching through the 2019 holiday season and expanding up to ten thousand locations over the next coming months.

NIP is an entity of the Association Partners Organization ("AP") and Asian American Trade Association Council ("AATC"). The AP and AATC are national trade associations representing a network of retailers, buying groups, regional sub-chapters, primary and affiliate groups, distributors and other trade organizations, with aggregate reach of up to 90,000+ retail locations across the United States of America.

Joshua Bartch, CEO of NewLeaf, commented, 'We couldn't be more ecstatic about striking this deal with the C-Store powerhouse of AP who reaches groups like the AATAC. This Agreement propels Newleaf to join the ranks as a premier level cannabis and hemp company and significantly expands Newleaf's existing footprint in the marketplace. Looking at the select roster of companies that AP has agreed to work with, we are truly grateful and honored to be one of them. We have spent the past twelve months perfecting and market testing our current product offerings to make sure we were ready for rapid growth. Over the past months, the company has seen rapid sales growth and this furthers our expansion. We are working hard in preparation and scale to ensure that we hit the ground running for this holiday season roll out.'

'It is evident that CBD related products are here to stay and will quickly eclipse energy and vapes as the most successful new category in retail history,' said Paul Rock, AP's Chairman and AATAC Board of Directors Trustee. 'Our approved programs will fill voids in product format and consumer demand that currently exist and will provide NewLeaf the opportunity to take full advantage of the retail scope offered by our retailer groups who are the front lines of the impending CBD product explosion.'

In consideration for NIP's services, the Company has agreed to pay NIP's program costs of $USD528,000, in two phases: (i) $USD284,000 due upon signing of the Agreement and for the first 500 NIP locations; and (ii) $USD244,000 due upon the 500 NIP location activation and completion of the Company's review period.

The Supreme Cannabis Company, Inc., is a global diversified portfolio of distinct cannabis companies, products and brands. The Supreme Cannabis Company, Inc. recently announced the launch of Supreme Heights, an investment platform based in London, U.K. focused on opportunities in the U.K. and Europe's CBD health and wellness space. Supreme Heights intends to make strategic investments in and provide support services to differentiated high-growth health and wellness businesses with focused brands and premium CBD offerings. Supreme Cannabis has launched Supreme Heights as a separate entity that will solely address opportunities in the U.K. and Europe's CBD health and wellness market. Supreme Heights will benefit from Supreme Cannabis' regulatory, product commercialization, supply chain, marketing and capital markets expertise and corporate support services. Supreme Cannabis' management team has immense experience supporting health and wellness companies operating in Canada and international markets. Supreme Heights will draw on the Company's experience launching premium brands. "The rapidly evolving CBD markets in the UK and Europe present compelling investment opportunities given the promising environments for new health and wellness companies to establish differentiated brands and capture meaningful market share. Supreme Heights is positioned to quickly act on attractive opportunities and establish an early mover advantage in the space," said Navdeep Dhaliwal, Chief Executive Officer of Supreme Cannabis. "Supreme Heights will benefit from our experience launching some of the most premium cannabis brands in Canada and from the strong leadership and the deep industry connections of our UK partners. We look forward to driving value for Supreme Cannabis shareholders through this investment platform."

Auxly Cannabis Group Inc. is an international cannabis company dedicated to bringing innovative, effective, and high-quality cannabis products to the medical, wellness and adult-use markets. Auxly Cannabis Group Inc. recently announced that it had entered into a hemp cultivation and purchase agreement pursuant to which the Company has agreed to act as the financial sponsor for the development of a hemp farming co-operative consisting of six individual hemp licence holders pursuant to the Cannabis Act, located in Prince Edward Island. "We are very excited to partner with experienced farmers in the province of PEI," said Hugo Alves, President of Auxly. "I'm proud of our Dosecann team for finding this opportunity and being able to demonstrate our continued support for Atlantic Canada. This project ensures our ability to meet the growing market demand for wellness and adult-use cannabidiol (CBD)-based products, and enhances our commitment to bringing innovative, branded derivative cannabis products to Canadian consumers."

Terra Tech Corp. operates through multiple subsidiary businesses including: Blm, IVXX Inc., Edible Garden, and MediFarm LLC. Terra Tech Corp. recently announced that it had broken ground at 620 East Dyer Road, Santa Ana, CA, following receipt of the necessary permits from the City of Santa Ana which allow construction to commence. The Company is developing a large scale, one-of-a-kind cannabis complex on East Dyer Road, which is adjacent to the 55 Freeway and acts as an entry point into the Southern California marketplace, allowing the Company to benefit from the areas high population density and traffic. Chief Executive Officer, Derek Peterson, said, I would like to extend our thanks to the City of Santa Ana for its ongoing support as we advance our plans to build out a Blm-branded retail dispensary at our East Dyer location. We are also developing a cannabis event center, which is anticipated to make us a highly sought-after destination in one of the country's most important cannabis markets. The Dyer Road facility is in a densely populated area, with approximately 4,100,000 residents living within 20 miles of the location. It also benefits from a high level of tourism due to its proximity to Disneyland, another major Southern California attraction. This is a very exciting project for us and we expect construction to be completed in the fourth quarter of 2019.

Marijuana Company of America, Inc. is a corporation that participates in product research and development of legal hemp-based consumer products under the brand name "hempSMART™" that targets general health and well-being and an affiliate marketing program to promote and sell its legal hemp-based consumer products containing CBD. Marijuana Company of America, Inc. recently announced the official launch of its premium cannabis delivery service, VivaBuds, in the San Fernando Valley, California. "We are extremely pleased to have officially launched our delivery service throughout the San Fernando Valley, where demand for cannabis continues to increase unabatedly," said Chief Executive Officer of MCOA Mr. Donald Steinberg. "We believe that by providing delivery and our high-quality premium products to our consumers, we will increase revenues, expand margins, and improve our overall brand recognition. I am confident that this new endeavor dovetails perfectly with our commitment to become a global leader in the legal production, processing, and distribution of cannabis products. Going forward, management will continue to leverage strategic operations and decisions that enhance value for all our shareholders."

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