- Company’s subsidiaries set sights on recreational use licensing, expansion
- Total marijuana market in Canada forecast to hit $2.8 billion by 2020
- Pet cannabis products for pain expected to form large market opportunity
Liberty Leaf Holdings Ltd. (OTCQB: LIBFF) (CSE: LIB) (FSE: HN3P) announced on January 22 that it had closed a private placement financing effort with $2 million in gross proceeds that will be used to speed completion of facility construction projects for its subsidiaries, North Road Ventures in the greater Vancouver area of Canada’s British Columbia and Just Kush Enterprises, located some 250 miles to the east. Just Kush has a license to cultivate medicinal-use marijuana at its Oliver facility and is applying for a license to produce recreational marijuana in anticipation of national legalization in July. North Road is a distributor of cannabis products to licensed retailers with plans to expand into the recreational market upon legalization.
“Liberty Leaf is pleased to have cornerstone investors from the cannabis industry participate in our equity offering,” Will Rascan, president and CEO of Liberty Leaf, stated in a news release about the closing (http://nnw.fm/lmR2w).
Liberty Leaf created and issued five million units priced at $0.40 each that comprise a common share and half of a transferable share purchase warrant, and buyers were granted the option of purchasing an additional common share of the company at a PPS of $0.60 for each whole warrant they hold during the next 24 months.
The company continues to seek out revenue-generating cannabis-related ventures and general working capital. Liberty Leaf’s focus is on establishing a diverse portfolio within the rapidly growing legal cannabis industry’s supply chain, including value-added marijuana-based pet pain products that could become the company’s largest market opportunity of all. North Road Ventures has stated in its recreational license application to Health Canada that it plans to double its cannabis product lines and increase its vault storage capacity by 500 percent. The increase is part of an effort to ensure supply line adequacy as recreational use legalization approaches, and the company cites difficulties in Nevada as an example of what it wants to avoid — Nevada’s governor issued a statement of emergency when it became clear recreational marijuana supplies were running low shortly after that state’s legalization decision, which put tax dollars on the line and drove the state tax commission to evaluate whether there were enough distributors to supply all of the dispensaries.
Recreational use has clearly been the great revenue driver thus far in locations where marijuana has been legalized. In Colorado, for example, where legalized recreational use is in its fourth year, the sales split is about 70 percent recreational to 30 percent medicinal, according to tax data cited by the company (http://nnw.fm/8MKir), with aggregate cannabis sales totaling $227 million during the first two months of 2017 — a 30 percent increase from the prior year.
Statista projects that, if Canada legalizes recreational use marijuana in July as expected, the combined market for dried and oil/extract marijuana will reach C$2.8 billion within three years (http://nnw.fm/fph1L).
Liberty Leaf also has professional partnerships with Esev Genetics, billed as “the world’s first genomic platform for high value crop,” and Blox Labs, a software solutions company focused on blockchain and other decentralized application technologies, to help ensure additional aspects of the supply chain.
For more information, visit the company’s website at www.LibLeaf.ca
More from NetworkNewsWire
About NetworkNewsWire
NetworkNewsWire (NNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) NetworkNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, NNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. NNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, NNW brings its clients unparalleled visibility, recognition and brand awareness. NNW is where news, content and information converge.
For more information please visit https://www.NetworkNewsWire.com
Please see full terms of use and disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or re-published: http://NNW.fm/Disclaimer
NetworkNewsWire (NNW)
New York, New York
www.NetworkNewsWire.com
212.418.1217 Office
Editor@NetworkNewsWire.com
New York, New York
www.NetworkNewsWire.com
212.418.1217 Office
Editor@NetworkNewsWire.com
No comments:
Post a Comment