Cannabis Products are Becoming More Acceptable
NEW YORK, February 23, 2017 /PRNewswire/ --
The U.S. cannabis market is growing rapidly as four more states have legalized cannabis for recreational use in 2016. According to a new report published by New Frontier Data, the legal cannabis market was worth an estimated $7.2 billion in 2016 and is projected to grow at a compound annual growth rate of 17%. While adult recreational sales are projected to jump from $2.6 billion in 2016 to $11.2 billion by 2020, with a 25% CAGR. The market may grow faster as the estimate was based on the states that have pass legalization initiatives, but not included the states that may pass in the future. Vinergy Resources Ltd. (OTC: VNNYF) (CSE: VIN.CN), MassRoots Inc. (OTC: MSRT), Medical Marijuana Inc. (OTC: MJNA), MCig Inc. (OTC: MCIG), Cannabis Science Inc. (OTC: CBIS)
Increased support for legalization of cannabis is a major factor that drives the growth of cannabis market. According to the data from National pollster Gallup, support for nationwide legalization of cannabis is 60% in 2016 poll, up from 25% in 1995. Four more states legalized recreational cannabis last November, with a total of eight states. While cannabis for medical use is now legal in 28 states. Increased spending on recreational cannabis is another driver of growth. Dispensaries in Colorado alone sold $1.3 billion of legal cannabis in 2016, up from $996 million in 2015.
Vinergy Resources Ltd. (OTCQB: VNNYF) (CSE: VIN.CN) in conjunction with its proposed acquisition of MJ BioPharma (announced December 14, 2016) is pleased to announced yesterday that, "as a part of the Company's strategy to develop products that test and identify specific cannabinoid isolates for targeted therapeutic purposes it has signed a binding Letter of Intent ("LOI") to acquire 65% of Biolennia Laboratories Inc. (the "Laboratory").
Biolennia will provide a host of drug testing services to support MJ BioPharma's product line and provide research and development (R&D), product formulation, extraction facilities, systems design and develop standard-operating-procedures (SOPs). The lab is currently in the process of applying for a Dealer's License from Health Canada. Once issued the license will allow the Company to process cultivated cannabis (extracts and/or derivatives) for R&D purposes.
Biolennia was founded in 2001 by Dean Swift as the internal R&D and quality testing laboratory to support Micrylium Laboratories Inc. ("Micrylium"). In 2002 it upgraded to a full active ingredient and microbial testing laboratory for several Health Canada approved products. Biolennia is a specialty development laboratory with expertise in Microbiology (bacteria, fungi, viruses), Chemistry (proteins, enzymes, drug testing, material science and analytics). The Laboratory currently provides testing, R&D and quality control for a proprietary line of Health Canada registered and approved industrial disinfectants and other consumer products on behalf of Micrlylium.
Biolennia has in-house expertise in methods accepted by Health Canada and the Federal Drug Administration (FDA) for determining purity and quality of many of the materials and methods used in validating cannabis and or testing cannabis products. Biolennia brings a highly talented team of Microbiologists who are familiar with testing high purity water, ethanol, ethyl acetate, propylene glycol, xylitol, glycerine, propandiaol, d-limonene, myrcene, and beta caryophelline."
