With the passing of Bill C-45 in June 2018, Canada will be the first G7 country to legalize marijuana for recreational use, in October 2018 – making this a very exciting time for the cannabis market and its investors. But the financial and entrepreneurial opportunities go beyond the cannabis product itself.
Innovative technology geared towards cannabis-centred companies and marijuana-infused wellness products will also be in high demand, leaving the market wide open for swift growth and Canadian leadership in the international industry.
Vancouver-based company The Yield Growth Corp. is getting a head start on developing cannabis wellness brands.
“Canada is poised to be at the forefront of cannabis and wellness,” says Penny Green, president and CEO of The Yield Growth Corp. “We are among very few countries that have invested confidently in the future of the cannabis industry. But we can expect this to change very soon.”
A new frontier
Green – who has taken many cannabis companies public over the last five years – launched Yield Growth with the intention of it being the largest international cannabis “topicals” company in the world.
Topical cannabis products contain tetrahydrocannabinol (THC), cannabidiol (CBD) or hemp, and are designed to be used on the face and body. Yield Growth is a company focused on the development and launch of cosmetic and therapeutic products containing essential oils. All of these products, set to launch in early 2019, are designed to be infused with CBD or THC.
Yield’s modern wellness lines are inspired by Ayurveda, an ancient and effective medical system that uses plant-based ingredients for healing and wellness. The Yield product lines include over 50 cosmetic and therapeutic products based on proprietary and completely organic formulations.
Vancouver has a culture that supports new cannabis products, says Green. In that progressive climate, Yield Growth is working on building assets, licensing internationally and teaming up with Canadian companies expanding into international territories. Recently, Yield Growth partnered with another fast-growing Canadian cannabis company, CROP Infrastructure Corp., for Italian distribution. CROP is a publicly traded company listed on the Canadian Securities Exchange under the symbol CROP.
Expected market growth
According to a recent study by Arcview Market Research and BDS Analytics, the North American cannabis market is expected to grow from $9 billion to $47 billion over the next 10 years. This progress is expected to be seen around the world as well.
The study also estimated the global wellness market at $3.5 trillion, with beauty, anti-aging and complementary and alternative medicine leading the way.
Recreational use will dominate global sales, says Green. While there are many companies competing with actual cannabis, leading brands have yet to be established.
“The future of cannabis will be all about branding,” says Green. “We will see a competition among brands.… There are no companies legally competing with topical products in Canada as this has not previously been a legal industry.”
The growing cannabis industry is creating a demand for innovation in finance, licensing, marketing and technology. In addition to developing its topical brands, Yield provides technology development services to companies in the cannabis industry.
An exciting time for Canadian investors
Canadian investors now have the opportunity to move from being commodity cultivators to branded product producers, says Green.
“The analogy is coffee,” says Green. “Branded product producers such as Starbucks and Kicking Horse make the profit margins.”
Cannabis wellness companies that create branded products, patents, services and intellectual property specifically focused on cannabis will make the profit margins and generate rapid market appreciation, says Green.
“Now is the time to invest in the cannabis industry. Not since the end of Prohibition has there been an opportunity this big,” says Green.
For more information on Yield Growth and investment opportunities, visit www.yieldgrowth.com.