Auxly and Kindred Announce Canadian Brokerage Agreement
Auxly Cannabis Group Inc. (TSX.V - XLY) ("Auxly") and Kindred Partners Inc. ("Kindred") are pleased to announce that they have entered into a brokerage agreement pursuant to which Kindred will act as Auxly's exclusive sales agent for its adult-use cannabis products in Canada.
E-Commerce is Steadily Becoming a Viable Platform for the Cannabis Industry
Over the past several decades, the retail industry has drastically changed due to the development and propagation of e-commerce. Today, many consumers tend to prefer purchasing products online because they can simply browse stores anywhere at the palm of their hands. However, transitioning towards a digital business is not as simple as it seems for certain industries. Specifically, the cannabis industry has faced countless legal barriers that have hindered its expansion into the digital marketplace. For instance, because of cannabis' legality concern, companies in industries like finance, marketing, and advertising have steered clear. However, as more regions continue to move towards legalization, various industries have become interested in locking into agreements and partnerships with cannabis companies. In particular, the U.S. passed the Farm Bill in 2018, which legalized hemp-derived CBD products. Initially, many companies explicitly noted that they wouldn't partake in the cannabis industry because of legal concerns. Nonetheless, after the passage of the Farm Bill, large corporations had begun to commercialize and advertise CBD products. And as the cannabis industry continues to expand, it is expected that technology will play a pivotal role in the development of the industry. While brick-and-mortar dispensaries will still be popular in legal regions, digital platforms are projected to further accelerate overall sales. According to data compiled by Ameri Research, the global legal marijuana market was valued at USD 14.3 Billion in 2016. By 2024, legal marijuana global sales are projected to reach USD 63.5 Billion while exhibiting a CAGR of 21.1% from 2017 to 2024. Pasha Brands Ltd. (OTC: CRFTF) (CSE: CRFT), KushCo Holdings, Inc. (OTC: KSHB), The Green Organic Dutchman Holdings Ltd. (OTC: TGODF) (TSX: TGOD), MariMed Inc. (OTC: MRMD), Auxly Cannabis Group Inc. (OTC: CBWTF) (TSX-V: XLY)
Technology Aides the Cannabis Industry to Overcome Regulatory Obstacles
Cannabis legalization efforts are rapidly accelerating, yet under federal regulations, the plant is still classified as an illegal substance. Currently, more than half the U.S. has legalized cannabis for either medical or recreational use. The classification of plant puts the cannabis industry in a difficult position. For instance, many banks explicitly mention they will not provide financial services such as loans or opening an account for a cannabis-related business. Shannon Hatton, Co-Founder and Chief Executive Officer of Fiddler's Greens, a California-based tincture maker, said she experienced numerous issues with starting up her business because bank loans were not an option. If Hatton were to mention cannabis when applying for a loan, she could potentially run the risk of having her checking account closed, according to Leafly. Henceforth, creating a cannabis business is not a simple task and requires a large sum of money. For example, opening a legal adult-use business can cost anywhere from USD 2 Million to USD 5 Million. Additionally, businesses can also wait up to two years before they are approved for a license to operate. And for anyone attempting to start a business, the metrics could be very intimidating. As a result, entrepreneurs have seized the opportunity and created their own institutions to serve the cannabis industry. According to Mordor Intelligence, the cannabis market is expected to reach USD 89.1 Billion from USD 14.5 Billion in 2018. Additionally, the market is expected to register a CAGR of 37% during the forecast period from 2019 to 2024. Global Payout, Inc. (OTC: GOHE), The Supreme Cannabis Company, Inc. (OTC: SPRWF) (TSX: FIRE), Auxly Cannabis Group Inc. (OTC: CBWTF) (TSX-V: XLY), Liberty Health Sciences Inc. (OTC: LHSIF) (CSE: LHS), United Cannabis Corporation (OTC: CNAB)