Vinergy Resources (CSE:VIN) in conjunction with its proposed acquisition of MJ Biopharma has announced that it has signed a letter of intent to acquire up to 51 percent of a European plant breeding company.
As quoted in the press release:
This development is a major step forward in establishing Vinergy as a leader in the global cannabis industry. The Target is a leading developer of plants and plant genetics and has been providing global customers with various commercial agriculture services for over 25 years. In 2016 they shipped over 35,000,000 plant products to the global marketplace. As part of the acquisition, Vinergy now has access to an extensive catalogue of over 2000 hemp and cannabis strains with the ability to supply those strains to customers globally.
Together with Vinergy, the Target has the capacity to expand rapidly into the hemp, cannabis and cannabinoid (CBD) sectors across Europe. “CBD is revolutionizing the global chronic pain management market and we have determined we can utilize our first mover advantage to take a leading market position in multiple countries,” said Mr. Kent Deuters, CEO of MJ Biopharma. “Given the current marketplace dynamics, existing customer base and technology we now have access to; we plan to immediately roll out several new hemp and CBD initiatives. Additionally, it’s important for our investors to know that we are diversified and not totally dependent on the cannabis space but have multiple complimentary revenue verticals.”
The global CBD market is experiencing significant growth: Europe’s market potential for CBDs is estimated to be EUR2 billion as a treatment for chronic diseases, according to a new report by Nova-Institute and HempConsult (both of Germany). The reports reviewed the market for non-psychotropic CBD which is increasingly in demand as a food supplement and pharmaceutical. The Hemp Business Journal estimates the total U.S. CBD market will grow to a $2.1 billion market in consumer sales by 2020 with $450 million of those sales coming from hemp-based sources.