The exponential growth of the cannabis industry has put it on track to once again report record spending on lobbying in the U.S. capital. As of mid-year 2019, expenses on persuading members of Congress have already reached USD 1.6 Million compared to 2018’s full-year expense of USD 2.7 Million, according to MarketWatch. The lobbying efforts come after Congress released a series of bills that would affect already enacted legislation, such as the STATES Act. The movement by cannabis advocates is aimed towards protecting states that have already legalized the use of either medical or recreational cannabis. However, in the light of the growing industry, lawmakers have become worried that the industry is beginning to compete against, or even merge with, other large industries such as big tobacco, alcohol or the pharmaceutical markets. In particular, cannabis has already tapped into the pharmaceutical industry because many medical institutions and health officials believe that cannabis can be effectively used as a medicinal treatment to a variety of conditions. For instance, numerous clinical trials have concluded that cannabis can be effectively used to treat symptoms associated with cancer, arthritis, multiple sclerosis, and epilepsy. Moreover, multiple large pharmaceutical companies have even added cannabis-based operations to further propel the growth of the medical cannabis market. Nevertheless, the industry is currently hindered by the lack of political support. Many national governments are hesitant about entering into the cannabis industry because of the stereotypes revolving around the plant such as its psychoactive properties. Nonetheless, a handful of countries have already taken the step forward and legalized the use of medical cannabis. Now, as more countries continue to legalize the plant, the sweeping movement is thought to have the potential to influence additional countries to explore opportunities within the industry. According to data compiled by Verified Market Research, the global marijuana market was valued at USD 42.20 Billion in 2016. By 2025, the market is expected to reach USD 466.81 Billion while registering a CAGR of 35.3% from 2018 to 2025. Pasha Brands Ltd. (OTC: CRFTF) (CSE: CRFT), Innovative Industrial Properties, Inc. (NYSE: IIPR), Curaleaf Holdings, Inc. (OTC: CURLF) (CSE: CURA), Acreage Holdings Inc. (OTC: ACRGF) (CSE: ACRG.U), MariMed Inc. (OTC: MRMD)

Medical cannabis has been prevalent in several regions for nearly decades now. Notably, the U.S. was one of the earlier adopters of medical cannabis, dating back as early as the 1990s when California became the first state to legalize the medical use of cannabis. Now, more than half of U.S. states, including the District of Columbia, have legalized its medical use. Furthermore, countries around the globe such as Australia, Chile, Colombia, France, Germany, Italy, Spain, and Thailand have all implemented either a full or partial medical program. Specifically, most regions are adopting cannabis-based oils for patients because of their potency and immediate delivery. However, in order to create potent oils, high-quality dried flower is required. For most large-scale licensed producers, it is challenging to produce premium cannabis because they are often more focused on volume. On the other hand, smaller cultivators produce significantly less in terms of output but are able to tend to each plant to ensure superior quality. The rigorous process of nurturing each plant is commonly known as cultivating “craft cannabis,” which is an artisan profession similar to craft beer or craft coffee brewing. Similarly, craft cannabis cultivators aim to produce high-quality cannabis using the most organic and natural methods. Generally, craft cultivators avoid the use of artificial products such as pesticides to appeal to health-conscious consumers. Moreover, cultivators carefully hand-trim each and every single plant to maintain the cannabinoids within the buds, insuring a potent strain. While large corporations dominate the industry, small cultivators are able to compete because of their premium strains. Industry experts believe that the two marketplaces can coexist because large producers are geared towards providing mass volume and inexpensive cannabis, while smaller producers supply premium cannabis for passionate enthusiasts. “Craft cannabis growers operating with micro-cultivation and micro-processing licenses will ensure a better quality product and will be more likely to experiment with different strains. Not only will this benefit adult users, it could potentially benefit medical cannabis users as well, encouraging [sic] development of targeted and/or more effective symptom relief,” according to Licensed Producers Canada, a centralized database of Canada’s producers. “In short, despite the limitations in terms of marketing and direct-to-consumer sales, craft cannabis operators do have an opportunity to produce a quality product at a price point consumers will accept.”

Pasha Brands Ltd. (OTC: CRFTF) (CSE: CRFT) is also listed on the Canadian Securities Exchange under the ticker (CSE: CRFT). Yesterday, the Company announced that, “its wholly owned subsidiary, BC Craft Supply Co. Ltd (“BC Craft”), has signed a supply agreement with Canada’s first licensed micro-cultivator applicant, Hearst Organic Cannabis (“Hearst“).

Founded by Joël Lacelle in Hearst, Ontario, Hearst Organic Cannabis received its micro-cultivation licence from Health Canada on July 12, 2019. Under the new agreement, Hearst will supply BC Craft with its ongoing production to be sold as dried flower. BC Craft has agreed to process and package this flower before it is destined for licensed retailers.

‘Joël and his team started with a shovel and navigated the licensing process in just over nine months,’ said Jason Longden, CEO Pasha Brands. ‘They represent the first truly craft producer to be licensed as a micro-cultivator in Canada, the first of many BC Craft intends to bring to market, so this agreement is historic.’

With Canada’s current licensed cannabis producers only able to supply an estimated 15 per cent of what Canadians are consuming, Pasha is optimistic that this new supply agreement will help correct the cannabis supply imbalance. Each micro cultivator in Canada will be able to produce approximately 500 kg of cannabis per year. Canada has tens of thousands of craft producers operating in the illicit cannabis market and BC Craft is focused on helping as many small farmers transition into the regulated market as possible.

‘Building Hearst and receiving my Health Canada licence has been a challenge, but I’m encouraged by the high demand for craft products,’ said Joël Lacelle, Founder of Hearst Organic Cannabis. “I’m proud to partner with the team at Pasha and BC Craft as they have clearly demonstrated their passion for supporting all craft cannabis producers in Canada.’

Hearst Organic Cannabis will plant its first legal crop in August 2019 and harvest later in the fall.

SOURCE FinancialBuzz.com