The top three reasons consumers use cannabis are for relaxation (66%), to relieve stress (59%), and to reduce anxiety (53%), according to New Frontier Data and MJ Freeway. Other reasons include improving sleep, treatment of medical conditions, and to enjoy social experiences. These reasons as well as the media hype surrounding CBD are driving many to change their strategic positions and invest more in the wellness segment of CBD, notes news resource Investorideas.com.
Canopy Rivers Inc. recently invested in High Beauty, creator of cannabis beauty brand high. The $2.5 million of shares in High Beauty represent 18.4% of the company on a fully diluted basis.
“Being supported by Canopy Rivers enables us to collaborate within the Canopy Rivers ecosystem and to focus our energy and passion on the creation of a robust new product line using cannabis-derived extracts,” says Melissa Jochim, founder of High Beauty. “Cannabis sativa seed oil is an untapped ingredient resource with amazing skincare benefits. This partnership will allow us to scale High Beauty’s business much higher in a short time frame.”
BoxScore Brands Inc., which develops, markets, and distributes cannabis related and other alternative wellness products including ice cream electronic kiosks in North America, recently announced the addition of CPG veteran Michael P. Flanagan. The company is also announcing a new strategic direction focused on opportunities within CBD and other alternative wellness products.
Michael Flanagan, CEO of BoxScore Brands, says, “Cannabis and other alternative wellness products today resemble the tech industry 25 years ago. The opportunities are broad and consumer adoption is expanding rapidly. We currently operate in California and Nevada, two states at the forefront of adoption and demonstrable growth. This makes perfect sense for the company to pivot product offerings given the positive regulatory environment and our existing assets.”
Adds Raymond Meyers, chairman of the board and founder, “2019 will be an exciting year for our company both strategically and through the addition of new personnel who have deep experience in the Cannabis category as well as new products and branding on a national level.”
Ovation Science Inc. recently unveiled the launch of its new topical skincare product line infused with hemp-derived CBD called ARLO Beauty. This announcement came in conjunction with the announcement that Ovation and Canopy Growth Partners have mutually elected to terminate their license agreement, eliminating the restrictions preventing the company from dealing with other licensed producers in Canada and terminating the rights of first refusal held by Canopy. With the elimination of these restrictions, Ovation can immediately enter the U.S. market thanks to the recent lifting of federal restrictions on CBD products in the U.S.
Because of the non-psychoactive aspect of CBD, bigger brand retailers and distributors are less hesitant to enter the space, notes Investorideas.com. iAnthus Capital Holdings Inc. has agreed to acquire brand CBD For Life and has entered into an agreement with Urban Outfitters. The agreement places CBD For Life products in Urban Outfitters’ e-commerce platform and the top six U.S. retail locations.
With wellness, health and beauty products gaining traction globally, cannabis companies looking to take in early revenue and expand their global footprint the CBD wellness space offer a strong strategic opportunity, Investorideas.com believes. The news source predicts that many more companies will enter this space throughout 2019 as distribution channels continue to open up and the products become more mainstream.