Cannabis Market's Rapid Growth has Created a Demand for Specialized Security Services
January 17, 2019 at 09:00 AM EST
NEW YORK, January 17, 2019 /PRNewswire/ --
The U.S. legal cannabis industry has grown significantly and to the point that it now rivals large worldwide corporations like Netflix and McDonalds. And the industry is expanding rapidly due in part to California's massive cannabis market. According to data compiled by Marijuana Business Daily's Factbook, the legal cannabis market delivered revenues of approximately USD 6.2 Billion in 2017 and is expected to grow by more than 200% from 2017 to 2022. The data projects that legal cannabis sales in the U.S. could surpass those of firearms and ammunition by the end of 2019. The market will continue to develop as the medical and recreational segments flourish due to their widespread legalization. Recent cannabis trends have also caught the attention of the alcohol and tobacco industry and many companies within those sectors are investing in cannabis to accelerate their growth, and in return, further expand the overall cannabis industry. 3 Sixty Risk Solutions Ltd. (OTC: PTVYF), Canopy Growth Corporation (NYSE: CGC), Curaleaf Holdings, Inc. (OTC: CURLF), Planet 13 Holdings Inc. (OTC: PLNHF), Cannabis Sativa, Inc. (OTC: CBDS)
Despite the cannabis industry's rise, components of it still remain illegal under federal law. Due to federally mandated rules, many public sector businesses, such as banks, are barred from working with cannabis-related businesses. Concerns over acquiring services for the cannabis industry has led to the creation of specialized private sectors. Specifically, security services have come into the spotlight due to the industry's current value. Cannabis businesses involved in operations like cultivation, retail, and dispensaries are demanding security services like guards, surveillance, alarms, and transportation. "To state the obvious: Marijuana is valuable. So is everything involved in growing, processing, transporting and selling it," said John Schroyer of Marijuana Business Daily. "That value, along with plenty of state and local government rules requiring marijuana companies to implement security measures, has given rise to a thriving industry niche focused on helping cannabis businesses protect their assets and employees."
3 Sixty Risk Solutions Ltd. (OTC: PTVYF) is also listed on the Canadian Securities Exchange under the ticker (CSE: SAFE). Earlier this week, the Company announced breaking news that, "3 Sixty Secure Corp, a wholly-owned subsidiary of 3Sixty, has entered into a three-year master services agreement to provide security services to Canopy Growth Corporation ("Canopy Growth") (TSX: WEED) (NYSE: CGC) across Canada. As part of the agreement, 3 Sixty Secure Corp. will provide 24/7 guarding services to protect Canopy Growth's Canadian facilities, as well as other security services as required. The agreement will include all existing and future Canopy Growth facilities across Canada. The agreement with Canopy Growth expands services to include all of its national facilities and extends the prior agreement from a one-year term to a three-year term.
'Reaching an agreement that extends and expands security services provided to Canopy Growth marks another important milestone for 3Sixty as we continue to assert ourselves as leaders in cannabis security,' said Thomas Gerstenecker, CEO and Founder of 3Sixty. 'I believe that our selection by Canopy Growth, a world-leading cannabis company, reaffirms the quality of our protective service offerings and supports our position as a leader in security services. Our sales pipeline is robust, and we are engaged with numerous companies seeking leading security solutions tailored to the cannabis industry and within non-core industries that require a full-spectrum of exceptional security services and solutions.'
About 3 Sixty Risk Solutions Ltd. - 3 Sixty Risk Solutions Ltd., operating through its wholly-owned subsidiary, 3 Sixty Secure Corp., is one of Canada's leading security service providers to the cannabis sector, transporting approximately $250 million of product every month. 3Sixty provides cannabis security consulting, guarding and secure transport security services to more than 500 customers and more than 60 licensed cannabis producers, including some of the world's largest, such as licensed producers owned by Canopy Growth Corporation. 3Sixty has a staff of over 250 employees and employs a fleet of over 60 vehicles, which management believes provides a combined security footprint to approximately 30 million square feet of patrolled area.
About Canopy Growth Corporation - Canopy Growth is a world-leading diversified cannabis and hemp company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms. From product and process innovation to market execution, Canopy Growth is driven by a passion for leadership and a commitment to building a world-class cannabis company one product, site and country at a time. Canopy Growth has operations in 12 countries across five continents. Canopy Growth is proudly dedicated to educating healthcare practitioners, conducting robust clinical research, and furthering the public's understanding of cannabis, and through its wholly owned research arm, Canopy Health Innovations, has devoted millions of dollars toward cutting edge, commercializable research and IP development. Through partly owned subsidiary Canopy Rivers Corporation, Canopy Growth is providing resources and investment to new market entrants and building a portfolio of stable investments in the sector. From our historic public listing on the Toronto Stock Exchange and New York Stock Exchange to our continued international expansion, pride in advancing shareholder value through leadership is engrained in all we do at Canopy Growth. Canopy Growth has established partnerships with leading sector names including cannabis icon Snoop Dogg, breeding legends DNA Genetics and Green House seeds, and Fortune 500 alcohol leader Constellation Brands, to name but a few. Canopy Growth operates ten licensed cannabis production sites with over 4.3 million square feet of production capacity, including over 500,000 square feet of GMP certified production space. For more information visit http://www.canopygrowth.com."
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Canopy Growth Corporation (NYSE: CGC) is a world-leading diversified cannabis and hemp company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms. Canopy Growth Corporation, through its Latin American-focused subsidiary, Canopy LATAM Corporation, recently introduced Spectrum Cannabis Peru S.A.C., the newest member of the growing global Spectrum Cannabis family. Spectrum Cannabis Peru will operate as part of the Canopy LATAM network and with Peru poised to introduce new regulations for the use of medical cannabis, this new in-market entity is uniquely positioned to support the opening of the Peruvian market while leveraging Canopy Growth's global expertise in patient and physician education, as well as in medical cannabis production. "We're proud to welcome Peru to the growing family of Spectrum Cannabis countries and to have the chance to serve Peruvian patients and healthcare professionals in the future," said Mark Zekulin, President and Co-Chief Executive Officer, Canopy Growth. "Canopy Growth is a global leader in providing safe, regulated, medical cannabis and by leveraging our experience together with local expertise, we look forward to helping build a responsible Peruvian cannabis industry today and into the future."
Curaleaf Holdings, Inc. (OTC: CURLF) is the parent of Curaleaf, Inc., a leading vertically integrated cannabis operator in the United States. Curaleaf Holdings, Inc. recently announced a series of agreements that will expand its operations, as well as patient access to medical cannabis in the state of Maryland, while further bringing the company's expertise to the medical cannabis community within the state. The agreements include the completion of USD 30 Million in convertible financing with the owners of HMS Health, LLC, HMS Processing LLC, HMS Sales, LLC, and MI Health LLC, and also a USD 2 Million acquisition of an option to acquire Town Center Wellness, LLC. The HMS/MI Businesses consist of a 21,000 sq. ft. cultivation facility and 1,000 square-foot processing facility in Frederick, Maryland, and two separate 1,000 sq. ft. dispensaries, each in Gaithersburg, Maryland. As part of the agreement, the HMS/MI businesses will rebrand and operate under the Curaleaf name, and receive products, services, and other support from Curaleaf. In addition to the financing agreements with the HMS/MI owners, Curaleaf has also completed a separate agreement with the owners of Elevate Takoma that secures the option to purchase 100% of the equity of the company's dispensary. The exercise price of the option is USD 100,000 and may be exercised upon receipt of all regulatory approvals for the transfer of ownership to Curaleaf.
Planet 13 Holdings Inc. (OTCQB: PLNHF) is a vertically integrated cannabis company based in Nevada, with award-winning cultivation, production and dispensary operations in Las Vegas - the entertainment capital of the world. Planet 13 Holdings Inc. recently announced that it served 1,430 customers per day in December with an average ticket above stated expectations. Bob Groesbeck, Co-Chief Executive Officer of Planet 13 said, "We are very pleased with the trajectory of customer traffic and average ticket at the Superstore, having increased our December revenue and customer counts over November in what is always a seasonally slow period for Las Vegas convention and visitor traffic. With the Consumer Electronics Show kicking off a historically strong period on January 8th and our marketing efforts continuing to ramp-up, we expect to continue growing the number of customers served per day and amount of revenue generated. Our TRENDI launch has also been a resounding success, with sales of our newest in-house brand reaching approximately 5% of total sales in December from a standing start in November. Sales of this new line, geared toward the tourist audience, exceeded our expectations and we have re-tooled to grow production in 2019 given demand-driven supply shortages experienced into year-end."
Cannabis Sativa, Inc. (OTCQB: CBDS) is engaged in the licensing of cannabis related intellectual property, marketing and branding for cannabis-based products and services, operation of cannabis related technology services, and ancillary business activities. Cannabis Sativa, Inc. recently announced that the United States Patent Office had issued to CBDS the U.S. Patent number 10105343 titled "Cannabis based compositions and methods of treating hypertension" Marijuana Lozenge on October 23, 2018. The invention relates to a Cannabis-based pharmaceutical composition for the treatment of hypertensive disorders by submucosal delivery comprising a pharmaceutically acceptable base and an effective amount of at least one cannabinoid or endocannabinoid containing extract of a cloned hybrid of the plant Cannabis sativa, subspecies sativa and Cannabis sativa, subspecies indica of the CTSX-ISS lineage. "Cannabis Sativa made a bold deal acquiring this pending IP in the merger acquisition of Kush in 2014, which included Kubby Patent and Licenses. This lozenge patent is the second patent to be granted resulting from that agreement, following the December 2016 issuing of our patented marijuana strain, Ecuadorian Sativa," said Chief Executive Officer Mike Gravel.
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