Favorable Regulations Put California at Forefront of Cannabis Delivery Services - Financialnewsmedia.com - News Commentary
PALM BEACH, Florida, March 27, 2019 /CNW/ -- What happens on the west coast of the U.S. has a way of being at the forefront of trends that will sprawl across the nation and the rise of home delivery services for legal marijuana is again one of those subjects. Both Oregon and California at present have authorized these services but it is California that is leading the race due to its more permissible regulatory environment. A recent Forbes article titled "A Tale Of Two Markets: Cannabis Delivery In California And Oregon" said: "Sure, we now have recreational cannabis in common. In certain regions in both states, you can even have it delivered to your home. But that's where the retail cannabis trends in California and Oregon differ most: the home delivery scene. In southern Californian cities, delivery is king. It was king before recreational laws even passed, when medical marijuana patients were able to have cannabis delivered prior to this year. The LA Times reports 128 permits have been issued throughout the state to marijuana retailers allowing them to deliver to homes" Active Companies from around the market with current developments this week include: Driven Deliveries, Inc., (OTC: DRVD), Tilray, Inc. (NASDAQ: TLRY), Newstrike Brands Ltd. (TSX: HIP) (OTC: NWKRF), HEXO Corp.(NYSE: HEXO) (TSX: HEXO), MedMen Enterprises Inc. (CSE: MMEN) (OTC: MMNFF).
An article in The Rolling Stone looked at California's advantage. It headline said: "Weed Delivery Officially Legal In California - Though it had been allowed under temporary regulations, the final rules will make it the only state to fully allow home delivery — no matter the local laws." It continued: "One of the most noteworthy policies allows dispensaries to make marijuana deliveries to any jurisdiction in California, even those municipalities which have passed local laws prohibiting cannabis. The rules guarantee legal protection to the more than 100 state-licensed "non-storefront" delivery companies and their customers in so-called pot "deserts"These approved regulations are the culmination of more than two years of hard work by California's cannabis licensing authorities," Lori Ajax, chief of the state Bureau of Cannabis Control, said in a statement.
Driven Deliveries, Inc., (OTCPK: DRVD) BREAKING NEWS: Driven Deliveries, the world's first and only publicly traded cannabis delivery company, announced today the launch of its new delivery model, Driven Direct. This will allow the Company to work directly with brands and retailers to deliver a broad range of cannabis products directly to consumers.
Driven Direct will be launching with multiple retail partners in California, and will offer delivery throughout the state covering major metro centers and the majority of the population.
Driven Direct's structure will resemble that of Amazon's delivery model. The program is designed to let entrepreneurs run their own local delivery networks featuring the Driven Deliveries logos. Each delivery unit will begin its day at a designated Driven station in California, where packages ordered from local retailers are then picked up by Driven Deliveries Inc. drivers and delivered direct to the consumer. Location-based algorithms will determine which packages are sent to these delivery stations.
The program is critical in addressing the retailers' primary transportation issue: last mile delivery. "Last Mile Delivery" is a term used in supply chain management and transportation planning to describe the movement of people and goods from a transportation hub to a final destination, in this case the consumer. In 2018, the Global Last Mile Delivery market size was $30.2 billion and it is expected to reach $55.2 billion by the end of 2025, with a CAGR of 9.0% during 2019-2025.
"Management is extremely pleased to unveil our new strategic delivery model, Driven Direct," stated Mr. Chris Boudreau, Chief Executive Officer of Driven Deliveries, Inc. "In addition to expanding our relationships with local cannabis retailers throughout the state, this program will allow us to significantly enhance our brand throughout the country's largest legal cannabis market." Read this and more news for DRVD at: https://www.financialnewsmedia.com/news-drvd/
In the industry developments and happenings in the market this week include:
Tilray, Inc. (NASDAQ: TLRY) Recent Developments: The National Association of Corporate Directors (NACD) announced the 2019 NACD Directorship 100, a list of the most influential leaders in the boardroom and corporate governance community. Included among this year's esteemed honorees is Christine St.Clare, a member of the Board of Directors and Audit Committee Chair for Tilray, a global pioneer in cannabis research, cultivation, production and distribution.
"We are thrilled to see Christine St.Clare honored for her achievements and invaluable contributions to the success of many companies, including Tilray, over the course of her impressive career," says Brendan Kennedy, Tilray President and CEO and member of the board. "Tilray is proud to have appointed one of the first majority woman-led board of directors in the cannabis industry and to have established thought-leaders like Christine on our team."
Newstrike Brands Ltd. (TSX: HIP.V) (OTCPK: NWKRF), this week announced that Up Cannabis Inc. ("Up Cannabis"), its wholly-owned subsidiary, has entered into an agreement with Cannabis NB as a licensed producer to supply cannabis.
"We are very excited to announce this partnership with Cannabis NB," said Jay Wilgar, CEO of both Newstrike and Up Cannabis. "Being among the select group of licensed producers that will supply cannabis to the New Brunswick marketplace is a privilege, and we look forward to helping Cannabis NB achieve its goals of providing safe, reliable product to adult-use consumers."
HEXO Corp. (NYSE: HEXO) (TSX: HEXO) closed up over 6% on Tuesday at $6.66 trading over 6.4 Million shares by the market close. HEXO recently reported its financial results for the second quarter of the 2019 fiscal year, the Company's first full quarter following the legalization of adult-use cannabis in Canada. Total gross revenue for the quarter reached $16.2 million, an increase of 144% from the previous quarter.
"This is an exciting time for HEXO as we continue to achieve milestones on the way to becoming a top two cannabis company," said HEXO Corp CEO and co-founder, Sebastien St-Louis.
MedMen Enterprises Inc. (CSE: MMEN.CN) (OTCQX: MMNFF) recently announced that it has signed a binding term sheet for a senior secured convertible credit facility of up to US$250,000,000 (the "Facility") from funds managed by Gotham Green Partners ("GGP" or the "Investor"), an investor in the global cannabis industry. Management believes this is the largest investment to date by a single investor in a publicly traded cannabis company with U.S. operations.
"This strategic partnership with Gotham Green Partners represents another key milestone for MedMen and stems from our long-standing relationship with The Cronos Group and GGP's brand portfolio," said Adam Bierman, CEO of MedMen.