Investment bosses project that the global cannabis industry will be worth $350 billion by 2030, with the launch of what will be the world’s largest medical cannabis fund.
A London-based investment firm expects the global cannabis industry to be worth $350 billion in the next 10 years, generating ‘trillions’ of dollars in shareholder value.
Chrystal Capital Partners launched the $100 million Verdite Capital Fund – Europe’s largest cannabis-focused investment fund – in October, with plans to take it to $200 million through later fundraising.
This would make it the largest cannabis fund outside of North America and the largest medical-focused cannabis fund in the world.
Investment partner Kingsley Wilson, who has over 20 years experience in finance, told Cannabis Health that the global sector was in the ‘sweet spot’ for investors to cash in on capital growth.
“The timing is absolutely spot on. We’re through the pioneering early years and in the last two years, the sector valuations have gone up substantially, he said.
“Initially there was a lot of excitement and a lot of companies got backed – some of which potentially shouldn’t have – but now we’re into the cannabis 2.0 era and we can see great companies emerging delivering very strong revenue and profit growth.”
Regulated in Guernsey, the Verdite Fund intends to invest in 10 to 15 businesses operating in the legal and regulated cannabis markets, prioritising those in the health and pharmaceutical industries.
It recently closed in on its first $75 million investment and has now launched the marketing to raise the last $25million for a first close of $100 million, before continuing to fundraise to reach $200 million
“At $200 billion, that would put us in the top five funds globally, but most of those are very focused on recreational cannabis,” Kingsley said.
“We expect to be the largest medical focused healthcare fund in the world.”
The sector is expected to grow expedentionally over the next decade as cannabis is legalised medically and recreationally in more countries across the world.
“There is some nervousness but we think that fear is passing as the wave of legalisation is spreading across the world,” he continued.
“Last year, legal cannabis sales globally were $15 billion and this year it is expected to be $20-25 billion – that is already larger than the global music industry.
“If we fast forward 10 years we think medical, wellness and pharmaceutical products will be pretty much legal on a global basis and that drives a legal market worth $350 billion. Those sectors typically trade at about three times sales, so we think there’s around one trillion dollars of shareholder value that is created over the next decade.
“That is why investors of all sizes should be starting to look at cannabis.”
In recent years big-name brands from other sectors, namely Nestle, Altria and Constellation Brands have moved into the cannabis space and Kingsley expects this to accelerate once cannabis is legalised federally in the US.
“We can see lots of examples of blue-chip companies from other sectors, whether that’s pharmaceutical, tobacco, alcohol, or fast-moving consumer goods, recognising the growth potential of cannabis. A lot of them are still nervous about going in, while it is still federally illegal in the US, but we expect that once that situation gets resolved, we’ll see the floodgates open,” he said.
“When you look at states in the US where cannabis has been legalised for a number of years, there has been a substantial decrease in consumers spending on over-the-counter products, pharmaceuticals, tobacco and alcohol.
“These companies want to capture the growth potential of the legal cannabis market and protect the consumer dollars by investing the sector.”
While North American cannabis funds tend to be steered towards recreational use, Kingsley sees the biggest potential in the pharmaceutical and medical industries and has formed a team of 12 expert advisors, including founder of Canopy Growth, Bruce Linton.
“We are only focused on health care. Europe is a very different market to the US and where we see the most value is towards the higher-regulated end of the market, which is pharmaceutical and science,” he added.
“We think those will be the largest and the fastest-growing sectors and that is where investors will make a lot of money over the next few years.”
Rapper Lil’ Kim announces new cannabis brand ‘aphrodisiac’
The New York rapper becomes the latest celebrity to launch their own cannabis collection which is due in 2022.
The singer has announced the launch of her own cannabis brand, Aphrodisiac which is being produced in partnership with Superbad inc.
Lil Kim’s new products will be available across California in 2022, although there is no official launch date announced.
The brand is being produced in collaboration with the innovative cannabis brand, Superbad inc. Superbad was established in 2020 combining cutting edge technology and sleek design for cannabis consumers. They currently have seven acres of indoor grow and a “state-of-the-art facility” employing over 200 people.
Kimberly Denise Jones who goes by her stage name, Lil’ Kim has been working on the brand for two years. She has also partnered with the brand CampNova, which offer vertically integrated marketing and a distribution platform.
The rapper wants the cannabis line to reflect her personal style and says she has personally tested her own products. The collection is tailored to Lil’ Kim’s own preference in genetics and strains.
Lil’ Kim collection
There are plans to expand the range to other legal states such as Michigan, New Jersey and New York. Originally from New York, Lil’ Kim hopes to be able to release the collection in her home state.
In an interview with Forbes magazine, she said: “I’ve actually been working on this for about two and a half to three years. This is something that didn’t just come overnight. It’s something I’ve always wanted to do.”
Lil’ Kim is the latest celebrity to enter the cannabis space with her own collection. Earlier this year, Justin Bieber announced he would be releasing a collection of pre-rolls called Peaches with premium brand Palms. The products are currently available in California, Nevada, Massachusetts and Florida.
In a press release, he stated: “I’m a fan of Palms and what they are doing by making cannabis approachable and helping to destigmatise it — especially for the many people who find it helpful for their mental health.”
Always Pure Organics: A day in the life with Chikako Yoshida
Regional Director of Asia, Chikako Yoshida, gives us a glimpse of her typical workday and discusses working in cannabis.
Chikako Yoshida, regional director of Asia for Always Pure Organics shares her experience of working in the cannabis industry.
Always Pure Organics is excited to give you a glimpse behind the curtain once again.
Join us for our latest episode of a Day in the Life, in which regional director of Asia, Chikako Yoshida discusses her experience working for Always Pure Organics and in the cannabis industry.
In this episode, we follow our Regional Director of Asia, Chikako Yoshida, as she takes us through her typical workday. Having previously worked in counterterrorism for the United Nations, Chikako joined the APO team in May 2020. Chikako has such an interesting story to tell, we’re honoured to have her on the team as she embodies our mission to cultivate cannabis acceptance and accessibility worldwide.
Chikako Yoshida said: “Upon learning about the power of cannabis and seeing the high potential growth of Always Pure Organics, I decided to change career from preventing illicit drugs to promoting cannabis to help people in need. I feel that by joining APO, I can help fulfil my life’s mission to support children and their families who fight against illness and sickness by providing them with cannabis products.”
CBGA may be ‘more potent’ than CBD against seizures in Dravet syndrome
Dr Lyndsey Anderson said there is more to explore when it comes to creating more treatment options for Dravet syndrome.
Scientists say they have found the ‘Mother of all cannabinoids’ which may help to reduce seizures in Dravet syndrome.
A new study on mice from the University of Sydney found that three acidic cannabinoids found in cannabis reduced seizures in Dravet syndrome, an intractable form of childhood epilepsy.
The three cannabinoids are cannabigerolic acid (CBGA), cannabidivarinic acid (CBDVA), cannabigerovarinic acid (CBGVA). All three but CBGA in particular “may contribute to the effects of cannabis-based products in childhood epilepsy” noted the researchers and were found to potentially have ‘anticonvulsant properties.”
The study marks the first time that three acidic cannabinoids were found to potentially help reduce seizures for Dravet syndrome.
Speaking with Cannabis Health News, the lead author of the study, Dr Lyndsey Anderson, said: “We found that CBGA exhibited both anticonvulsant and pro-convulsant effects. CBGA was more potent than CBD against febrile seizures in a mouse model of Dravet syndrome. We also found that a combination of CBGA and clobazam was more effective than either treatment alone. Additionally, we found that CBGA was anticonvulsant in the maximal electroshock acute seizure model, a model for generalized tonic-clonic seizures.”
She added: “CBGA did, however, present some proconvulsant effects. The frequency of spontaneous seizures in the mouse model of Dravet syndrome was increased with a high dose of CBGA. Also, CBGA was proconvulsant in the 6-Hz acute seizure model, a model of focal, psychomotor seizures.”
Although CBGA shows promise, Dr Anderson also stressed that it needs more research before it can replace CBD. She cautioned that Dravet syndrome patients may still need to proceed with caution.
“Artisanal cannabis-based products are believed to reduce seizures in Dravet syndrome patients,” she said. “As these oils contain rare cannabinoids like CBGA, it is possible CBGA then contributes to the anticonvulsant effects of these artisanal cannabis oils. However, there were proconvulsant effects observed with CBGA, suggesting that Dravet syndrome patients may need to proceed with caution. The proconvulsant liability of CBGA would need to be addressed before it replaced CBD as an anticonvulsant.”
What is CBGA?
Sometimes referred to as ‘the mother of all cannabinoids,’ CBGA is the precursor molecule to many different cannabinioids including CBD and THC. It is thought to help some diseases such as colon cancer, metabolic disease and cardiovascular disease. It is a non-intoxicating cannabinoid much like CBD.
Dr Anderson explains that more research is needed to explain how the three cannabinoids work together.
“We don’t know how they work together yet,” she said. “We found that CBGA, CBDVA and CBGVA were all individually anticonvulsant against thermally induced seizures in the mouse model of Dravet syndrome. We did not investigate whether a combination of these three cannabinoids would result in a greater anticonvulsant effect than either cannabinoid alone. Future work will definitely explore this possibility.”
CBGA future research
This isn’t the end of the research into CBGA for Dravet Syndrome. Dr Anderson said there is more to explore when it comes to creating more treatment options for Dravet syndrome.
She said: “Next on the horizon for this research is to explore whether the anticonvulsant properties of CBDVA and CBGVA translate to other seizure types including spontaneous seizures in the mouse model of Dravet syndrome. Additionally, we have extensively interrogated the anticonvulsant potential of individual cannabinoids and identified ten with anticonvulsant properties.”
“We are now interested in investigating what happens when we combine these anticonvulsant properties. It remains an open possibility that greater anticonvulsant effects are achieved when the cannabinoids are administered in combination.”
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