Venture-capital investors spent USD 355 Million on marijuana-industry deals
Written By: Jen Neville
July 5, 2018
According to data compiled by Oristep Consulting, the global medical cannabis market was worth USD 12.67 Billion in 2016 and will reach USD 33.41 Billion by 2022 at a CAGR of 17.53% over the forecast period. The two main cannabinoids from the cannabis plant are THC and CBD, and both are commonly used as medication for increasing appetite, reducing nausea, decreasing pain, inflammation, as well as dealing with muscle-control problems. The report specifies that North America leads the market, having held nearly half of the market share in 2016.
As a result of the strong sales figures across the industry, investments in cannabis are piling up. A report by Business Insider indicates that Venture-capital investors from around the world spent USD 355 Million on 100 marijuana-industry deals in 2017, and 2018 is on pace to break last year's record. By the end of February, there were 19 venture-backed deals in the industry worth USD 176 Million alone, and that doesn't factor in the money investors have poured into hedge funds set up to take advantage of the budding industry.
WeedMD Inc. Earlier last week, the Company announced, "that the first batch of cannabis plants have been transplanted to its modern greenhouse located in Strathroy, Ontario and are scheduled for harvest by September 2018. Our initial crop of plants successfully entered our recently licensed Strathroy greenhouse last week and our first 10,000 sq. ft. grow room is now fully operational,' noted Keith Merker, Chief Financial Officer of WeedMD.
'With this hybrid, large-scale, modern greenhouse, we will be able to produce quality cannabis with maximum efficiency. This facility will be the prominent source of supply for our medical cannabis patients and for future adult-use consumers across Canada and emerging international markets. I want to acknowledge and thank our incredibly dedicated, passionate and experienced best-in-class cultivation team"
Strathroy Greenhouse Facility Updates:
– Secured Health Canada cultivation license for the first four grow rooms at its Strathroy facility on June 11th, 2018.
– Initial harvest expected by September 2018.
– Phase I, 220,000 sq. ft. retrofit is scheduled for completion this fall, with plans to progressively bring a total of 20 grow rooms online expanding annual production to more than 21,000 kg.
– Phase II fully-funded expansion is underway with an incremental 175,000 sq. ft. conversion, representing additional potential annual yield of more than 12,000 kg, bringing the total to more than 33,000 kg by this year-end.
– Phase III involves retrofitting the remaining 215,000 sq. ft., bringing the total square footage to 610,000 sq. ft, and total annual production capacity to more than 50,000 kg.