The cannabis industry has gained tremendous momentum throughout the past year due to multiple ongoing legislative efforts to promote legalization. More and more countries are beginning to realize that the common stereotype revolving around cannabis is a misconception. Moreover, people are also understanding that cannabis is much more versatile than they initially believed. Predominantly, cannabis is being used for medicinal purposes, however, certain regions around the world also allow for moderated or completely legal recreational use. For instance, countries such as Colombia and Spain have decriminalized cannabis, meaning consumers can use it in limited and moderated amounts. On the other hand, a handful of U.S. states, Canada and Uruguay have fully legalized cannabis, allowing adults to legally purchase recreational supply from legal channels. The U.S. and Canada dominate the global cannabis scene because of their large and already established consumer bases. In particular, the U.S. is the primary global driver because of its early adoption, as the country began utilizing cannabis for medical use back in the late 1990s and now, more than half the country has authorized the use of cannabis for medical applications. Overall, the U.S. alone generates billions of dollars each year in cannabis sales. However, as the industry continues to mature, it is expected for the U.S. market share to dwindle as other global regions fill the gap, with investors and analysts focusing on the emerging Canadian market. Nonetheless, the U.S. is still expected to be the primary global growth driver and together, the U.S. and Canada are expected to create a flourishing and thriving global cannabis market. According to data compiled by Imarc Group, the North American legal cannabis market is expected to reach USD 35 Billion by 2023 from USD 8 Billion in 2017. Additionally, the market is expected to register a healthy CAGR of 28% throughout the forecast period. Pasha Brands Ltd. (OTC: CRFTF) (CSE: CRFT), Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB), Aphria Inc. (NYSE: APHA) (TSX: APHA), Charlotte’s Web Holdings, Inc. (OTC: CWBHF) (TSX: CWEB), The Green Organic Dutchman Holdings Ltd. (OTC: TGODF) (TSX: TGOD)

Even though Canada legalized cannabis’ recreational use, the country’s industry is still heavily impeded by strict government regulations. And while the government may be attempting to protect its citizens, the regulations have severely impacted business and their financials. In particular, many small businesses, like brick-and-mortar retailers, were impacted the most, causing many to shut their doors. On the other hand, large corporations that were already well established before legalization are continuing to thrive. Specifically, a handful of corporations dominate the overall marketplace because they have launched global operations and control the majority of the market share in certain Canadian provinces. Overall, the combination of the regulations, as well as fierce competition, is causing emerging businesses to struggle. However, “craft cannabis” cultivators have come into the spotlight because of their premium cannabis products. Craft cannabis is the end product of a hard, attentive process of growing high-quality and organic buds. The meticulous process is tedious because it requires cultivators to nurture each individual plant to ensure that it maintains its cannabinoids. Primarily, most small businesses engage in craft cannabis because it is much easier for them to manage. On the other hand, large corporations are mainly focused on harvesting large volume and providing consumers with inexpensive cannabis. While some consumers may prefer cheaper cannabis, enthusiasts often opt for premium cannabis that is generally more expensive. Similar to many other retail industries, consumers have a multitude of options to choose from. As a result, the cannabis marketplaces appeals to two dynamic ends of consumers, creating a larger overall user base. “Craft growers embody the genesis of this industry,” says David Robertson Director of the Craft Cannabis Association. “Craft growers are the fountain from which modern knowledge and cultivars have issued forth to reignite the world’s love of cannabis and we would not have any of these world changes without them.”

Pasha Brands Ltd. (OTC: CRFTF) (CSE: CRFT) is also listed on the Canadian Securities Exchange under the ticker (CSE: CRFT). Earlier last week, the Company announced, “the acquisition of a national brand known as Earth Dragon Organics – a leading pre-legalization manufacturer and purveyor of small batch cannabis-infused topicals, based in British Columbia.

Since its inception in 2012, Earth Dragon Organics has typified the variety of smaller, female-led and patient-focused businesses that flourished during cannabis prohibition. Earth Dragon Organics supplied THC- and CBD-infused topical products to those seeking relief from muscle pain, arthritis, nerve pain, migraines, and multiple sclerosis, among other conditions, combining cannabis with local, organic ingredients including arnica and essential oils to harness the qualities of THC and CBD.

“Becoming part of the Pasha Brands family is a huge milestone for Earth Dragon Organics in that it will allow us to scale up and make these handmade, craft products more available to the entire country,” said Tessa Serra, founder of Earth Dragon Organics and Pasha’s newly hired product manager. “This partnership is a great match and I’m looking forward to the evolution that is about to take place.”

The line of handmade products including balms, creams, body butters, sunscreen, bath salts and more are not currently available as all sales have ceased to prepare their entrance to the regulated framework with product manufacturing located at Pasha’s licenced processing facility on Vancouver Island. Pasha has acquired all of the brand’s trademarks, names and intellectual property and will re-launch the brand in the Canadian regulated market after the appropriate regulations is passed on October 17, 2019. According to the federal Canadian Cannabis Survey 2018, in the last year alone, the number of Canadians using topicals for pain relief has doubled (from seven to 14 percent).

“This is exactly the kind of business legalization has been leaving behind, and Pasha is honoured to help bring Tessa’s passion for creating sustainably made, handcrafted cannabis-infused topicals into the legal market,” said Patrick Brauckmann, Executive Chairman of Pasha Brands. “We’re lucky to have her skillset as a product developer and manufacturer on the Pasha team, and glad we will be able to make her cherished products available again soon.”

Following the passing of regulations that will enable licensed producers to make and sell edibles, extracts, and topicals, Pasha will seek provincial and territorial distribution for the brand. The company has already submitted an Earth Dragon Organics product line in an application to the Ontario Cannabis Store.