Companies Vying for a Share of the Fast-Growing Medicinal Cannabinoid Market

NetworkNewsWire Editorial Coverage: With sales projected to achieve a compound annual growth of 25 percent to reach over $20 billion by 2021, the cannabis market is one of the most dynamic and fast-growing in the U.S., attracting a diverse cast of innovators and spawning an entire industry for the manufacture of cannabidiol (CBD)-based products. PotNetwork Holding, Inc. (POTN) (POTN Profile), through its Diamond CBD subsidiary, is one of the leading companies involved in the research, development and marketing of CBD-based products derived from hemp, while Hemp, Inc. (HEMP) grows hemp and produces hemp-based products for the industrial and medical cannabis markets. Large-cap players include Terra Tech Corp. (TRTC), which has a diverse portfolio within this market, including medical cannabis cultivation and hydroponic produce through its subsidiaries Blum, IVXX Inc., MedicFarm LLC, Edible Gardens and GrowOp Technology; Amfil Technologies, Inc. (AMFE), the developer of a green solution for the control of pests and plant bacteria in the growth of medical marijuana; and Surna, Inc. (SRNA), which develops technologies for controlled environment agriculture (CEA), which includes legal cannabis cultivation facilities in North America.

Accounting for up to 40 percent of the cannabis plant extracts, CBD is a valuable component of the broader marijuana industry, driven by its wide range of potential medicinal and therapeutic benefits. According to Hemp Business Journal (http://nnw.fm/EvT2G), the market for CBD products derived from hemp – a non-psychoactive variety of the cannabis plant – is projected to grow at a compound annual growth rate (CAGR) of around 53 percent to the year 2020. While it is illegal to grow hemp at an industrial level in the United States, importation of the plant is permitted.

This is where PotNetwork Holding’s (POTN) Diamond CBD subsidiary is carving its niche in the cannabis industry. Diamond CBD focuses its business efforts on the research and development of CBD hemp extracts sourced from its own hemp farms in Scandinavia, where its non-genetically modified plants are organically grown and dried before being shipped to the U.S. for processing. Diamond CBD has developed technology that employs cold, supercritical CO2 extraction to ensure the highest quality of CBD oils for its extensive range of products.

Legal in every state in the nation, Diamond CBD’s CBD-based products include oils, vapes, edible products, pet food additive and a range of creams. The company also manufactures Crystal Dabs, a range of raw crystallized CBD powder that can be added to food and other products. CBD oil has proven to be effective in the treatment of anxiety, pain and as therapy for diseases like Parkinson’s, Crohn’s and cancer.

As the company pursues its share of the market, PotNetwork is assembling a team of industry pioneers to guide the company’s endeavors to develop targeted formulas designed to deliver results for a diverse spectrum of challenges that studies reveal CBD can help.

On October 10, 2017, PotNetwork appointed to its advisory board Dr. Michael McKenzie, recognized as an expert in the medical cannabis industry and how cannabinoids can potentially be used in the treatment of many illnesses (http://nnw.fm/Kmxh5). As an advisor, PotNetwork believes his contribution will lead to the development of innovative product formulas based on CBD.

Dr. McKenzie’s appointment was followed by news that Diamond CBD achieved record revenues of $1.76 million for August 2017, an increase of more than 20 percent over the previous month, according to a company press release (http://nnw.fm/d7Itj). For these two months combined, Diamond CBD achieved sales of over $3.2 million, which equates to 60 percent of revenues for the first six months of 2017. This places the company on course for record-breaking quarterly results.

PotNetwork continued to report progress for its Diamond CBD subsidiary, and on October 24 reported the launch of Diamond CBD’s new product line: honey packed straws infused with CBD, combining the potential therapeutic attributes of both cannabis and honey (http://nnw.fm/Ga7R9).

“We continue to be excited by our continued escalating revenues month-after-month. We attribute these gains to increasing consumer acceptance of our products, and the expansion of our distribution network and product line. This summer underscores what we believe is a sustainable sales momentum that should further springboard sales in the 4th quarter strengthening an already record year,” Maria Gomez, regional vice president of Sales for Diamond CBD, stated in a press release. “When released, we are confident that our official third quarter and year-to-date operating results will reflect the continual strengthening of our organization and brand, our growing market penetration, and the superior value of our products.”

Based in Las Vegas, Hemp Inc. (HEMP) is focused on products made from industrial hemp, as well as the manufacture of medical cannabis and supplies marijuana to the recreational industry. Hemp Inc. has the stated intention of leading the hemp fiber industry in the U.S., which is estimated to be worth over $500 million. Through its subsidiary, Industrial Hemp Manufacturing Inc., the company owns the largest industrial hemp processing mill in the western hemisphere, based in Spring Hope, North Carolina. Hemp can be used to manufacture over 25,000 different products. CBD is extracted from its leaves and flowers, its oil can be used to make health and beauty products and the plant core can be used for building materials, as bio-fuel or to clean up oil spills. Hemp Inc. is valued at $5 million.

With market capitalization of over $114 million, Terra Tech Corp. (TRTC) operates several subsidiaries involved in the growing and processing of medical cannabis. Via one of its core brands, Blum™, the company produces a range of medical cannabis products which include flowers, concentrates, vapes and edibles. Another brand, IVXX, grows cannabis for the recreational and medical markets, ensuring rigorous testing to produce products of the highest quality. Through these two subsidiaries, and using controlled environment agriculture (CEA) techniques, Terra Tech is committed to growing the highest quality cannabis and conducting research to develop medical cannabis-based products for the treatment of various ailments.

Further demonstrating the diversity of the cannabis industry is Amfil Technologies (AMFE), which through its GRO3 Systems subsidiary has developed ozone-based sanitization technology specifically designed for the marijuana growing industry. When it started out, GRO3 targeted medical marijuana growers exclusively, but with the advent of marijuana use legalization in several states, the company expanded its offering to cannabis growers for the recreational market. Its sanitization system eliminates pests, bacteria and molds from crops grown in a controlled environment. This is a green solution that eliminates the need for pesticides and chemicals, ensuring crops conform to strict FDA food and drug safety standards. The company has installed its systems for companies like Nestle, Pepsi, Sun Pacific and Sysco Foods.

Surna (SRNA) is a team of multi-disciplinary engineers that design, develop, manufacture and install CEA systems. With proficiencies in mechanical engineering, agricultural science and indoor farming, Surna uses its proprietary predictive facility modeling techniques to develop cultivation control systems for growers of cannabis, among other crops. These are complex systems for indoor climate control, irrigation and air sanitation for mold and mildew control.  In August, 2017, Surna introduced a new senior management team to increase revenue and execute its growth plan. The company’s market cap on October 27, 2017 was just over $21 million.

With evident commitment to new product research and development, and a drive to deliver products of the highest quality, these companies are positioned to take advantage of the healthy growth forecast for the hemp and cannabis industries.

For more information on PotNetwork Holding Inc., visit PotNetwork Holding (POTN)

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