Cannabis
TransCanna Closes USD$15.8 Million Debt Financing from Pelorus Equity Group and an Additional up to $9.5 Million Convertible Debenture Financing from Alpha Blue Ocean, Settles $1.8 Million in Debt and Provides an Update on the Repricing of Its Convertible Debentures
Vancouver, British Columbia–(Newsfile Corp. – August 2, 2022) – TransCanna Holdings Inc. (CSE: TCAN) (FSE: TH8) (“TransCanna” or the “Company“) is pleased to announce that on July 29, 2022 the Company entered into a definitive loan agreement with Pelorus Equity Group, a cannabis-focused real estate investment trust (the “Lender“), for a secured loan of up to USD $15,808,000.00 (the “Loan“) for a term of forty-eight (48) months. The Loan is secured against substantially all of the assets of the Company and certain subsidiaries. Proceeds of the Loan will be advanced upon the satisfaction of certain conditions precedent.
The Company is also pleased to announce that Alpha Blue Ocean (“ABO“) is supporting the Company’s growth with an up to $9,500,000 financing arrangement (the “ABO Commitment“), pursuant to which the Company has entered into an issuance agreement dated July 29, 2022 (the “Issuance Agreement“) with Global Tech Opportunities 2, an investment fund managed by ABO (the “Investor“), that provides for the issuance of senior unsecured convertible debentures (the “Convertible Debentures“) in the aggregate principal amount of up to $9,500,000 (the “Convertible Debenture Financing“), each at a subscription price of 95% of the aggregate principal amount thereof.
Pursuant to the Convertible Debenture Financing, the Company drew down the first Tranche (as defined below) of the ABO Commitment and issued a Convertible Debenture in an aggregate principal amount of $780,000 for gross proceeds of $741,000 and issued Convertible Debentures to the Investor in an aggregate principal amount of $500,000 as a commitment fee (the “Commitment Fee Debentures“).
The net proceeds of the Loan and Convertible Debenture Financing will be used primarily for the purposes of refinancing and developing the Company’s property, construction costs, and paying interest on existing debt.
“Pelorus is excited to close this Loan with the TransCanna team to help fund the firm’s growth and build on the award-winning products they produce,” said Travis Goad, Managing Partner Pelorus Equity Group. “We’re excited about the sales trajectory of the firm in a challenging market and looking forward to the future success of the firm. Pelorus continues to deploy capital in attractive opportunities in today’s market and is excited to be the go-to real estate lender in the cannabis sector.”
“ABO is excited to close this transaction with TransCanna to help fund the firm’s promising growth trajectory,” said Amine Nedjai, CEO of Alpha Blue Ocean. “We’re looking forward to supporting TransCanna’s team and participating in what will be a recapitalized company with strong management and capital partners behind it. Despite the current macro and industry headwinds, ABO continues to support listed small and mid-market companies by providing flexible and innovative financing solutions.”
“The success of the business has always been intrinsically tied to the Company’s ability to increase it’s production capacity,” stated TransCanna CEO, Bob Blink. “The USD $4M budget which this financing unlocks for construction of the Company’s Phase 2 build-out moves us towards accomplishing this goal. When the Company is on a solid cash-flow positive footing post-construction we’ll have achieved the initial stability we have been driving towards and be very well positioned for the next stage of growth with our new financial partners.”
Pursuant to a business services agreement for capital markets advisory services dated January 13, 2022 between the Company and Luminous Capital Inc. (“Luminous“), the Company will issue 16,386,778 common share purchase warrants (the “Luminous Warrants“) at a price of $0.12 per share. Common shares issuable upon exercise of the Luminous Warrants will be subject to resale restrictions of four months and a day.
The Company is also pleased to announce that the holders of an aggregate of $1,842,706 of debt, of which $398,182 is held by insiders of the Company, have agreed to settle such debt through the issuance of an aggregate of 18,427,061 units (each, a “Unit“) of the Company (the “Debt Settlement“) at a price of $0.10 per Unit. Each Unit is comprised of one (1) common share in the capital of the Company (each, a “Common Share“) and one (1) Common Share purchase warrant (each, a “Debt Settlement Warrant“). Each Debt Settlement Warrant will entitle the holder thereof to purchase one (1) additional Common Share (a “Warrant Share“) at a price of $0.15 for a period of two years.
The Common Shares comprising the Units and issuable upon exercise of Debt Settlement Warrants are subject to a hold period of four months and one day.
The Company is also pleased to provide an update following its previous announcement on June 30, 2022, that effective July 19, 2022, the Company has repriced (the “Repricing“) its outstanding convertible debentures in an aggregate principal amount of $1,156,000, previously issued pursuant to a private placement completed on September 15, 2021 (the “Existing Debentures“). The Existing Debentures are now convertible into Units at a price of $0.10 per Unit (previously $0.85) and the common share purchase warrants comprising such Units are now exercisable at a price $0.15 per share (previously $1.00). All other terms of the Existing Debentures remain the same.
The Loan
The Loan accrues interest at a rate of 14% per annum, provided that after eighteen (18) months, given that certain requirements are met, the interest rate will be reduced to 12% per annum. Upon an event of default, the interest rate interest increases to 19% per annum.
The Loan is subject to interest reserves, certain guarantees and defaults, a pledge agreement, a security agreement, subordination agreements, and guarantee of completion.
In connection with the Loan, the Company issued, to an affiliate of the Lender, warrants to purchase up to 51,208,682 Common Shares of the Company (the “Loan Warrants“). Each Loan Warrant entitles the Lender to purchase a Common Share at a price of $0.12 (the “Exercise Price“), representing the closing price of the Company’s Common Shares on the Canadian Securities Exchange (the “Exchange”) on July 28, 2022, for a period of five years. No Common Shares may be issued on exercise of the Loan Warrants if the issue of such shares would cause the holder (and any person acting jointly and in concert with the holder) from holding beneficial ownership or having control or direction over greater than 9.9% of the outstanding Common Shares.
The Loan Warrants provides the holder thereof with downward price protection such that, subject to the approval of the Exchange, the Exercise Price will be reduced to the issue price of any Common Shares, or securities convertible into Common Shares, issued after the date hereof. The Loan Warrants also grant the holder thereof piggy back registration rights in the event the Company determines to register any Common Shares under the United States Securities Act or qualify any Common Shares for distribution pursuant to a prospectus prepared and filed in accordance with Canadian securities laws.
Finally, the Loan Warrants contain a put and call option pursuant to which (i) upon prepayment or maturity of the Loan, the Company has the option (the “Call Option“) to purchase the Loan Warrants at a purchase price equal to the aggregate exercise price of the remaining Loan Warrants plus a 30% premium thereto (the “Call Price“); and (ii) if the Company does not exercise the Call Option, the holder has the option upon prepayment or maturity to require the Company to purchase the Loan Warrants at a purchase price equal to the aggregate exercise price of the remaining Loan Warrants less a 30% premium thereto. Upon a default of the Loan which results in an acceleration of the Loan, the Call Option shall be deemed to have been exercised and the Call Price shall be immediately due and payable by the Company to the Lender.
The Loan Warrants and any Common Shares issuable upon exercise thereof are subject to a hold period of four months and one day.
The Convertible Debenture Financing
The Investor has committed to fund the Company up to $9,500,000 pursuant to the Issuance Agreement by subscribing for $10,500,000 aggregate principal amount of Convertible Debentures (inclusive of the Commitment Fee Debentures), to be issued in thirty-eight (38) tranches (each a, “Tranche“), from time to time, during the 48 month period (the “Commitment Period“), subject to the right of the Investor to require the Company to draw down up to ten Tranches during the Commitment Period and further provided that the Investor may delay any subscription requested by the Company, if the Investor’s holdings of Common Shares of the Company (on an as-if-converted, undiluted basis and after giving effect to the subsequent Tranche) would exceed 5% of then issued and outstanding Common Shares of the Company (undiluted).
The obligations of the Investor to subscribe for Convertible Debentures upon receipt of a draw down notice is subject to the satisfaction of the conditions precedent set forth in the Issuance Agreement.
Concurrently with execution of the Issuance Agreement, the Company (i) drew down the first Tranche and issued to the Investor $780,000 aggregate principal amount of Convertible Debentures for gross subscription proceeds to the Company of $721,000; (ii) made a one-time grant to the Investor of 13,194,414 Common Share purchase warrants of the Company having an exercise price of $0.136 per share, subject to adjustment in accordance with their terms, for a period of five years (the “ABO Warrants“); and (iii) issued the Commitment Fee Debentures, in payment of a commitment fee of $500,000.
Each Convertible Debenture matures 12 months from the date of issue (the “Maturity Date“). Each Convertible Debenture is convertible upon notice from the Investor delivered at any time prior to the Maturity Date and automatically on the Maturity Date, in each case, at the lowest daily volume-weighted average price observed over a period of fifteen (15) trading days immediately preceding the date of the relevant conversion notice (or, where no conversion notice is given, the relevant maturity date of the Convertible Debentures) (the “Conversion Price“).
In the event that the higher of the last closing price of the Common Shares on the Exchange prior to delivery of the relevant conversion notice by the Investor to the Company and the minimum price permitted under the policies of the Exchange (the “Adjusted Conversion Price“) is greater than the Conversion Price, the Company will be required to pay the Investor a make-whole amount to compensate the Investor, in cash and calculated in accordance with the formula provided for in the Issuance Agreement, for the value of the Common Shares that would have been issuable upon conversion, but for the difference between the Conversion Price and the Adjusted Conversion Price (each, a “Make-Whole Amount“).
Subject to the terms thereof, each of the Convertible Debentures and the ABO Warrants provides that the number of Common Shares that the Investor may acquire upon conversion of the Convertible Debentures or exercise of the ABO Warrants shall be limited to ensure that (i) the Investor (and any person acting jointly and in concert with the Investor) will not hold beneficial ownership or having control or direction over greater than 9.9% of the outstanding Common Shares after giving effect to the conversion or exercise or issuance, as applicable, without the insiders of the Investor having filed and cleared personal information forms with the Exchange; or (ii) the Investor (and any person acting jointly and in concert with the Investor) will not hold beneficial ownership or having control or direction over greater than 19.9% of the outstanding Common Shares, after giving effect to the conversion, exercise or issuance, as applicable.
Upon the occurrence of an event of default or a change of control, the Investor is entitled to require that the Company redeem all then outstanding Convertible Debentures, in cash, at a redemption price equal to 120% of the outstanding principal.
The Common Shares issuable upon conversion of the Convertible Debentures and the Common Shares issuable upon exercise of the ABO Warrants shall be subject to a hold period of four months and one day from the date of issuance; however, such securities shall immediately be exchanged for freely tradeable securities delivered by way of a securities lending arrangement among the Investor and shareholders of the Company.
Repricing of Convertible Debentures
Effective July 22, 2022, each Existing Debenture is now convertible into units at a price of $0.10 per unit, with each unit being comprised of one common share and one common share purchase warrant (each “Repriced Warrant“). Each Repriced Warrant entitles the holder to purchase one Common Share at a price of $0.15 per share for a period of two years, expiring September 30, 202, however, in accordance with the policies of the Exchange, if, at any time after July 22, 2022, the closing price of the Company’s Common Shares, as quoted by the Exchange, is equal to or greater than CAD$0.19 for ten consecutive trading days, the expiration date of the Warrants will automatically be accelerated to the date that is 30 calendar days after the date of such ten consecutive trading day period.
All but 7 of the holders of the Existing Debentures has delivered written consents to the Repricing. Those remaining holders of Existing Debentures may deliver a consent to the Repricing any time prior to the maturity date of the Existing Debentures and convert his or her Existing Debentures at the reduced price or hold the Existing Debentures to maturity for repayment in accordance with the terms thereof.
As of today, holders of an aggregate of $879,135 principal amount of Existing Debentures have converted Existing Debentures for the issuance of an aggerate of 8,791,352 Common Shares and 8,791,352 Repriced Warrants.
Insider Participation
Each of the Investor, the Lender and Luminous are arm’s length to the Company and to each other.
Related parties of the Company, however, will acquire 3,981,820 Units on conversion of $398,182 of indebtedness pursuant to the Debt Settlement and $115,600 aggregate principal amount of Repriced Existing Debentures are held by Insiders. As result, each of the Debt Settlement and Repricing is considered a “related party transaction” as such term in defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101“). The Company is relying on exemptions from the formal valuation and minority shareholder approval requirements provided under MI 61-101 on the basis that the value of the indebtedness held by related parties to be settled in Units and the aggregate principal amount of Repriced Existing Debentures held by related parties do not exceed 25% of the fair market value of the Company’s market capitalization.
The Company did not file a material change report more than 21 days before the expected closing of the Debt Settlement and effective date of the Repricing as required by MI 61-101 because the announcement and closing or effective date, respectively less than 21 days apart.
National Instrument 62-103 – The Early Warning System and Related Take-over Bid and Insider Reporting Issues
Pursuant to closing of the first Tranche, the Investor (P.O. Box 2775, 67 Fort Street, Artemis House, Grand Cayman, KY1-1111, Cayman Islands) acquired an aggregate principal amount of $1,330,0000 Convertible Debentures (inclusive of the Commitment Fee Debentures) and 13,194,414 ABO Warrants. Each ABO Warrant is exercisable at an exercise price of $0.136 per underlying Common Share, subject to adjustment in accordance with the terms of the certificate representing the ABO Warrants.
Prior to closing of the first Tranche, the Investor beneficially owned or controlled no securities of the Company. Prior to closing of the first Tranche, and assuming that there were 105,623,015 Common Shares issued and outstanding, the Investor exercised control and direction over Securities representing nil percent of the issued and outstanding Common Shares on an non-diluted basis and approximately nil percent of the issued and outstanding Common Shares on a partially diluted basis, assuming the conversion of the Convertible Debentures and the ABO Warrants. Immediately following the closing of the first Tranche, the Investor holds 13,194,414 ABO Warrants and Convertible Debentures in the principal amount of $1,330,000.
The Convertible Debentures were acquired, in the ordinary course of business, for investment purposes only and pursuant to the terms of the Issuance Agreement, pursuant to which the Investor is expected to acquire control and direction over additional convertible debentures as further Tranches close and Common Shares upon the conversion thereof.
ABO Infinium Americas Opco Ltd. exercises control or direction over the Convertible Debentures and ABO Warrants in its capacity as investment manager. However, the Investor beneficially owns the securities. This investment will be reviewed on a continuing basis and ABO Infinium Americas Opco Ltd., on behalf of the Investor, may further increase or decrease its ownership, control or direction over securities of the Company depending on market conditions, reformulation of plans and/or other relevant factors.
An alternative monthly report will be filed by ABO Infinium Americas Opco Ltd. in accordance with applicable securities laws and will be available on SEDAR at www.sedar.com or may be obtained directly from the Company upon request at info@transcanna.com.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
About TransCanna Holdings Inc.
TransCanna Holdings Inc. is a California based, Canadian listed company building Cannabis-focused brands for the California lifestyle, through its wholly-owned California subsidiaries.
For further information, please visit the Company’s website at www.transcanna.com or email the Company at info@transcanna.com.
On behalf of the Board of Directors
Bob Blink, CEO
604-207-5548
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Information
This news release contains statements that constitute “forward-looking information” or “forward-looking statements” within the meaning of applicable securities laws. The words “may,” “would,” “could,” “should,” “will,” “intend,” “plan,” “goal,” “anticipate,” “believe,” “estimate,” “expect,” “achieve,” “must,” “next,” “focus,” “potential,” “progress,” “develop,” “continue,” “advance,” “investigate,” “optimize,” “improve,” “opportunity,” “future,” “prospect,” “vision,” “target,” “growth,” “envisage,” “option,” “roadmap,” “pursue,” “near-term,” “de-risking,” “eventual,” “later,” “until,” and similar expressions, as they relate to the Company or its management, are intended to identify such forward-looking information. Forward-looking statements are based on assumptions as of the date of this news release and reflect management’s current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. Forward-looking statements in this news release include, among other things, statements about: the terms of the Loan and Convertible Debenture Financing, including the use of proceeds from the Loan and Convertible Debenture Financing; future issuances of Convertible Debentures; the timing of any future drawdowns of the Loan and Convertible Debenture Financing and the satisfaction of closing conditions, if any, in connection therewith; and statements regarding management’s expectations on the Company’s future performance.
The Company cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by many materials factors, many of which are beyond the Company’s control. Such factors include, among other things: the risk that the conditions precedent to drawdown of the Loan are not satisfied, the risk that the conditions to the issuance of the Convertible Debentures pursuant to the Issuance Agreement will not be satisfied, the risk that the anticipated benefits from the receipt of funds from the Investor and the Lender will not be realized as contemplated, or at all; risks that the Company’s business plans will vary from those stated in this news release and the Company may not be able to carry out its business plans as expected; prevailing market conditions; general business and economic uncertainties; the implementation of the Company’s business model and growth strategies; trends and competition in our industry; our future business development, financial condition and results of operations and our ability to obtain financing cost-effectively; potential changes of government regulations; and other risks and factors detailed from time to time in the filings made by the Company with securities regulators and stock exchanges. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this news release are based upon what management believes to be reasonable assumptions, the Company cannot assure readers that actual results will be consistent with these forward-looking statements.
The Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/132538
Cannabis
Verano Announces the Opening of Zen Leaf Fairless Hills, the Company’s Newest Affiliated Dispensary in Pennsylvania, in Prime New Location
- Zen Leaf Fairless Hills, the Company’s newest affiliated dispensary in Pennsylvania, relocated from its former home in Chester to 203 Lincoln Highway, a busy thoroughfare with daily traffic of over 17,000 vehicles per day1
- As the first medical cannabis dispensary in the city, Zen Leaf Fairless Hills will offer an elevated experience for area patients, including increased convenience and accessibility with numerous point-of-sale stations and kiosks for seamless in-store browsing and ordering
- Verano’s active operations span 13 states, comprised of 142 dispensaries and 13 cultivation and processing facilities with more than 1 million square feet of cultivation capacity
CHICAGO, July 26, 2024 (GLOBE NEWSWIRE) — Verano Holdings Corp. (Cboe CA: VRNO) (OTCQX: VRNOF) (“Verano” or the “Company”), a leading multi-state cannabis company, today announced the opening of Zen Leaf Fairless Hills in Pennsylvania on Friday, July 26th, following a ceremonial ribbon cutting at 11 a.m. local time. Zen Leaf Fairless Hills is located at 203 Lincoln Highway and will be open Monday through Saturday from 9 a.m. to 8 p.m. and Sunday from 10 a.m. to 6 p.m. local time.
The dispensary is located in Bucks County, the fourth largest county in the Commonwealth with a total population of over 630,0002 residents. To increase accessibility and convenience, Zen Leaf Fairless Hills features large in-store kiosks and numerous point-of-sale stations to enhance the browsing and ordering experience for patients. To celebrate the grand opening of Zen Leaf Fairless Hills and following a ceremonial ribbon cutting, patients will be greeted with complimentary deals and doorbusters on featured branded products.
“We are excited to bring the Zen Leaf experience to local patients in Fairless Hills, where our talented team members will continue to deliver hospitality-driven care and top-quality products for local patients,” said George Archos, Verano Founder and Chief Executive Officer. “As the Pennsylvania medical cannabis patient population continues to grow, we are grateful for the opportunity to deepen our roots in Bucks County at our newest Zen Leaf location in the Commonwealth, and look forward to providing a warm and welcoming environment for current and future patients.”
Zen Leaf Fairless Hills adds another convenient outlet for Philadelphia area patients, and solidifies Verano’s footprint in the state as one of the Company’s 18 affiliated Pennsylvania dispensaries. Verano’s Pennsylvania operations also include a state-of-the-art 62,000 square foot cultivation and processing facility in Chester, where the Company produces its signature Verano Reserve flower and Troches, concentrates and vapes; (the) Essence and Savvy flower and extracts; and Avexia RSO cannabis oil and topicals. For additional convenience and accessibility, patients can choose to order ahead at ZenLeafDispensaries.com for express in-store pickup.
About Verano
Verano Holdings Corp. (Cboe CA: VRNO) (OTCQX: VRNOF), one of the U.S. cannabis industry’s leading companies based on historical revenue, geographic scope and brand performance, is a vertically integrated, multi-state operator embracing a mission of saying Yes to plant progress and the bold exploration of cannabis. Verano provides a superior cannabis shopping experience in medical and adult use markets under the Zen Leaf™ and MÜV™ dispensary banners, including Cabbage Club™, an innovative annual membership program offering exclusive benefits for cannabis consumers. Verano produces a comprehensive suite of high-quality, regulated cannabis products sold under its diverse portfolio of trusted consumer brands including Verano™, (the) Essence™, MÜV™, Savvy™, BITS™, Encore™, and Avexia™. Verano’s active operations span 13 U.S. states, comprised of 13 production facilities with over 1,000,000 square feet of cultivation capacity. Learn more at Verano.com.
Contacts:
Media
Verano
Steve Mazeika
VP, Communications
Steve.Mazeika@verano.com
Investors
Verano
Julianna Paterra, CFA
VP, Investor Relations
Julianna.Paterra@verano.com
Forward Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans, strategies, or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. Generally, such forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “future”, “scheduled”, “estimates”, “forecasts”, “projects,” “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases, or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. Forward-looking statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking statements herein, including, without limitation, the risk factors described in the Company’s annual report on Form 10-K for the year ended December 31, 2023, its quarterly report on Form 10-Q for the quarter ended March 31, 2024 and any subsequent quarterly reports on Form 10-Q, in each case, filed with the U.S. Securities and Exchange Commission at www.sec.gov. The Company makes no assurances and cannot predict the outcome of all or any part of the on-going litigation with Goodness Growth referenced in this press release, including whether the Company will prevail on its Notice of Application and its counterclaim, or whether Goodness Growth will prevail on its claim for damages against the Company. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information or forward-looking statements that are contained or referenced herein, except as may be required in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice regarding forward-looking information and statements.
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1 Pennsylvania Department of Transportation
2 United States Census Bureau
Cannabis
Unlocking New Horizons in Health: TNR, The Niche Research Reveals the Transformative Power of Minor Cannabinoids
Wilmington, Delaware, July 25, 2024 (GLOBE NEWSWIRE) — Minor cannabinoids refer to the lesser-known compounds found in the cannabis plant, distinct from the well-known THC (tetrahydrocannabinol) and CBD (cannabidiol). While THC and CBD dominate the market, minor cannabinoids such as CBG (cannabigerol), CBC (cannabichromene), and CBN (cannabinol) are gaining attention for their potential therapeutic benefits. These compounds are extracted from both marijuana and hemp plants, with varying legal restrictions depending on their THC content. The minor cannabinoids market is poised for significant growth, driven by increasing consumer awareness and demand for alternative health and wellness products. As regulatory environments around cannabis products evolve, companies are exploring the potential of minor cannabinoids in various applications, including pharmaceuticals, nutraceuticals, cosmetics, and food and beverages.
Minor cannabinoids are being researched for their potential therapeutic effects, including anti-inflammatory, analgesic, and neuroprotective properties. This versatility facilitates product diversification in various industries. Companies are investing in research and development to create novel formulations and delivery methods for minor cannabinoids. This includes nano-emulsions, encapsulation technologies, and controlled-release systems to enhance bioavailability and efficacy. For example, in January 2022, CBDA + CBGA Tincture a new product was launched by Hometown Hero CBD. This 30ml tincture contains 600mg each of CBGA, CBDA, CBG, and CBD. Derived from hemp, the cannabinoids in this tincture comply with legal requirements across all 50 states in the USA. There is an increasing consumer preference for natural as well as plant-based remedies, which in turn is driving the demand for cannabinoid-infused products. This trend is particularly strong among younger demographics seeking alternatives to traditional pharmaceuticals. Evolving regulatory frameworks, particularly in regions like North America and Europe, are creating opportunities for legal market expansion. Regulatory clarity is crucial for market participants to navigate compliance and market entry.
Global Minor Cannabinoids Market: Key Datapoints
|
Market Value in 2023 |
US$ 17.8 Bn |
|
Market Value Forecast by 2034 |
US$ 42.3 Bn |
|
Growth Rate
|
8.2% |
|
Historical Data
|
2016 – 2022 |
|
Base Year
|
2023 |
|
Forecast Data
|
2024 – 2034 |
Increasing consumer interest in health and wellness products, coupled with the perceived therapeutic benefits of cannabinoids, is a major driver of market growth. Progressive cannabis legalization in various parts of the world, including the United States and parts of Europe, is expanding the addressable market for minor cannabinoids. Significant investments in research and development by pharmaceutical and biotechnology companies are accelerating product innovation and clinical trials. The market remains fragmented with opportunities for new entrants and niche players to introduce specialized products catering to specific consumer needs.
The COVID-19 pandemic initially disrupted supply chains and retail channels for minor cannabinoids products. However, the crisis also underscored the importance of health and wellness, leading to increased interest in natural remedies, including cannabinoids. As economies recover, the market is expected to rebound stronger.
The geopolitical tensions, such as the Russia-Ukraine conflict, have also affected global markets, including the minor cannabinoids sector. Fluctuating currency values, supply chain disruptions, and geopolitical uncertainty have impacted production and distribution channels. However, the long-term impact will depend on geopolitical developments and their influence on global trade and regulatory environments.
The minor cannabinoids market presents significant opportunities for growth and innovation, driven by evolving consumer preferences, regulatory advancements, and expanding research initiatives. Companies that can navigate regulatory complexities, invest in research and development, and respond to shifting consumer trends are well-positioned to capitalize on this emerging market. As the market matures, collaboration across sectors and regions will be crucial in unlocking the full potential of minor cannabinoids in various industries worldwide.
Global Minor Cannabinoids Market: Key Takeaways of the Report
- Cannabigerol (CBG) segment by product type is expected to grow at a CAGR of 6.7% in the minor cannabinoids market due to increasing research highlighting its potential therapeutic benefits, including anti-inflammatory, antimicrobial, and neuroprotective properties. As consumer awareness grows and regulatory environments become more favorable, there is heightened interest in CBG-based products for their diverse health applications, ranging from skincare to pharmaceutical formulations, driving sustained market demand and expansion.
- Pharmaceutical segment by application, leads the minor cannabinoids market with a significant revenue share of 35.8% owing to growing recognition of cannabinoids’ potential in therapeutic applications. Cannabinoids like CBD, CBG, and others show promise in treating conditions such as epilepsy, chronic pain, and anxiety disorders, backed by increasing clinical research and favorable regulatory developments. Pharmaceutical companies are investing heavily in cannabinoid-based drug development, driving market growth as they seek to capitalize on these compounds’ efficacy and market potential in addressing unmet medical needs.
- In 2023, Latin America is anticipated as fastest growing region in the global minor cannabinoids market due to evolving regulatory landscapes favoring cannabis legalization and cultivation. This shift is fostering a burgeoning industry infrastructure for cannabis extraction and product development. Additionally, increasing consumer acceptance of cannabinoid-based products for medicinal and wellness purposes is driving market expansion. With a vast potential consumer base and supportive regulatory frameworks, Latin America presents significant growth opportunities for companies seeking to enter or expand within the minor cannabinoids market.
Key Development:
- In December 2023, Rare Cannabinoid Company introduced Uplift Gummies infused with THC and THCV. These gummies combine the relaxing properties of Delta-9-THC with the energizing and appetite-controlling effects of CBD and THCV.
- In October 2022, High Tide Inc., a cannabis retailer, announced that its Colorado-based subsidiary, NuLeaf Naturals, had launched plant-based softgels and full-spectrum multicannabinoid oil in Manitoba. The products feature CBC, CBD, CBG, Delta-9 tetrahydrocannabinol (Delta 9), and CBN.
Browse Related Category Reports
Global Minor Cannabinoids Market:
- Aurora Europe GmbH
- BulKanna
- CBD. INC.
- Fresh Bros Hemp Company
- GCM Holdings, LLC (Global Cannabinoids)
- GenCanna.
- High Purity Natural Products.
- Laurelcrest
- Mile High Labs
- PBG Global
- Rhizo Sciences
- ZERO POINT EXTRACTION, LLC
- Other Industry Participants
Global Minor Cannabinoids Market
By Product Type
- Cannabigerol (CBG)
- Cannabichromene (CBC)
- Cannabinol (CBN)
- Cannabidivarin (CBDV)
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Global Agricultural Textiles Market Size To Worth USD 25.02 Billion By 2033 | CAGR of 4.70%
New York, United States , July 23, 2024 (GLOBE NEWSWIRE) — The Global Agricultural Textiles Market Size is to Grow from USD 15.8 Billion in 2023 to USD 25.02 Billion by 2033, at a Compound Annual Growth Rate (CAGR) of 4.70% during the projected period.
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Products made of agricultural textiles, or agro textiles, increase productivity, shield farmers from harmful chemicals and pesticides, and keep soil from drying out. The word “agro-textile” has been used recently to refer to materials used in horticulture and agriculture that are knitted, woven, and non-woven. Reducing the use of hazardous pesticides and herbicides promotes a sustainable farming culture and is also good for the environment. Agricultural textiles have remarkable mechanical potential, environmental resistance, simplicity of processing, and durability features that can enhance the safety, quantity, and quality of agricultural products. Textile textiles have been utilized in agriculture for a very long period. Most textile materials are woven or nonwoven in manufacture and are made of synthetic materials in a variety of decompositions. Furthermore, future expansion in the worldwide agricultural textiles market is anticipated to be driven by the rising demand for agricultural products. Any agricultural commodity or product, whether raw or processed, that is derived from livestock is referred to as an agricultural product. Agricultural textiles are used to protect crops from insects and birds, as well as to provide shade for plants, which increases crop yield. Furthermore, going forward, the market for agricultural textiles is expected to be driven by the rise in sustainable agriculture methods. Sustainable farming operations employ socially and environmentally conscious farming methods to increase crop output over the long term, reducing adverse environmental effects, and fostering equitable working conditions for farmers. However, increased raw material costs substantially impede the expansion of the worldwide agricultural textile industry. The rising cost of raw materials is creating challenges for the sector.
Browse key industry insights spread across 193 pages with 112 Market data tables and figures & charts from the Report on the “Global Agricultural Textiles Market Size, Share, and COVID-19 Impact Analysis, By Product (Woven, Knitted, Non-Woven, and Others), By Material (Nylon, Polyethylene, Polypropylene, Polyesters, and Others), By Application (Agriculture, Horticulture, Forestry, Aquaculture, and Others), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2023 – 2033.”
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The knitted segment is anticipated to hold the greatest share of the global agricultural textiles market during the projected timeframe.
Based on the product, the global agricultural textiles market is divided into woven, knitted, non-woven, and others. Among these, the knitted segment is anticipated to hold the greatest share of the global agricultural textiles market during the projected timeframe. The fabric’s multiple applications such as wind control, hail protection, and bird netting are what provide the majority of its revenue. The variety of textiles produced by knitting techniques and the ease of handling knitted fabric has led to a growth in demand for the product. Non-woven fibers can be produced by a variety of techniques, such as chemical bonding, thermal fusion, and mechanical entanglement. A web is created throughout manufacture, adding first mechanical strength and later other properties according to the fiber’s intended use.
The polyethylene segment is expected to grow at the fastest pace in the global agricultural textiles market during the projected timeframe.
Based on the material, the global agricultural textiles market is divided into nylon, polyethylene, polypropylene, polyesters, and others. Among these, the polyethylene segment is expected to grow at the fastest pace in the global agricultural textiles market during the projected timeframe. Thermoplastic polymer polyethylene has a volatile crystalline structure and a wide range of uses, depending on the kind. One of the most widely used materials for agricultural textiles is polyethylene, which is somewhat more expensive than polypropylene. Farm products are covered in HDPE fabrics, which shield them from UV radiation and inclement weather. HDPE Yarns are a useful foundation material for applications including braiding, twisting, and weaving. Technically, they are resistant to both alkalis and acids.
The aquaculture segment is predicted for the highest revenue share in the global agricultural textiles market during the estimated period.
Based on the application, the global agricultural textiles market is divided into agriculture, horticulture, forestry, aquaculture, and others. Among these, the aquaculture segment is predicted for the highest revenue share in the global agricultural textiles market during the estimated period. The demand for seafood is rising, and this has led to an increase in aquaculture and the growth of the fishing net industry. Other industries that have benefited from this growth include nutraceuticals, pharmaceuticals, and cosmetics. The crops that grow under shade nets are chosen depending on how well they tolerate light. They also help to reduce damage from excessive heat and increase agricultural yield in the summer. They are used in a variety of procedures, such as floriculture, nursery operations, and vermicomposting.
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Asia Pacific is expected to hold the largest share of the global agricultural textiles market over the forecast period.
Asia Pacific is expected to hold the largest share of the global agricultural textiles market over the forecast period. The region’s noteworthy share can be attributed to the rising demand for agricultural products resulting from changing consumer preferences and population expansion. Due to the significant demand generated by the developing economies of China and India. In addition, China is the biggest consumer since it uses a lot of these textiles for its agricultural and aquaculture sectors. These uses include using nets, mulches, and storage bags to save aquatic life and crops.
North America is predicted to grow at the fastest pace in the global agricultural textiles market during the projected timeframe. Research into more sustainable agriculture practices and consumer interest in organic products will both rise. China is the top region in terms of the agricultural textile market. The region’s expanding aquaculture sector, which generates fish oils, shell meats, and other products, as well as increased domestic consumption, accounts for this development. Policies that support aquaculture at the federal level will drive up demand for these textiles.
Competitive Analysis:
The report offers the appropriate analysis of the key organizations/companies involved within the global market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market. Major vendors in the Global Agricultural Textiles Market include Beaulieu Technical Textiles, Belton Industries, Meyabond, Capatex, Neo Corp International, Garware Technical Fibres, HUESKER Synthetic, Maccaferri, Koninklijke Ten Cate, DuPont de Nemours Inc., Leggett & Platt, SRAM & MRAM Group, Bonar Technical Fabrics, Visaka Industries Limited, and Others.
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Recent Developments
- In June 2024, Beaulieu Technical Textiles highlighted performance and sustainability when introducing their Recover and Recover Pro ground covers at GreenTech Amsterdam 2024. Recover uses recycled materials to reduce CO2 emissions and increase durability, while Recover Pro uses volcanic lava rock to improve plant health and water management. The line provides longevity, cannabis, and UV protection.
Market Segment
This study forecasts revenue at global, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the Global Agricultural Textiles Market based on the below-mentioned segments:
Global Agricultural Textiles Market, By Product
- Woven
- Knitted
- Non-Woven
- Others
Global Agricultural Textiles Market, By Material
- Nylon
- Polyethylene
- Polypropylene
- Polyesters
- Others
Global Agricultural Textiles Market, By Application
- Agriculture
- Horticulture
- Forestry
- Aquaculture
- Others
Global Agricultural Textiles Market, Regional Analysis
- North America
- US
- Canada
- Mexico
- Europe
- Germany
- Uk
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Australia
- Rest of Asia Pacific
- South America
- Brazil
- Argentina
- Rest of South America
- Middle East & Africa
- UAE
- Saudi Arabia
- Qatar
- South Africa
- Rest of the Middle East & Africa
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Global Agricultural Haying and Forage Machinery Market Size, Share, and COVID-19 Impact Analysis, By Type (Forage Harvesters, Conditioners, Balers, Mowers, and Others), By Application (Small Farms, Medium Farms, and Large Farms), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2023 – 2033
Global Agricultural Enzymes Market Size, Share, and COVID-19 Impact Analysis, By Product (Phosphatases, Sulfatases, and Dehydrogenases), By Crop Type (Cereals & Grains, Fruits & Vegetables, Turf & Ornamentals, Oilseeds & Pulses, and Others), By Functionality (Plant Growth Regulation, Crop Protection, and Fertility products), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2023 – 2033
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