Based on data provided by Arcview Market Research, legal cannabis sales in North America totaled $6.7 billion in 2016 and are projected to grow at a compound annual growth rate of 25 percent to an estimated $20.2 billion by 2021. The demand of cannabis from legal markets is expected to increase as more states legalize either recreational or medical use. Consumers in North America spent over $53 billion in the legal and illegal cannabis markets combined in 2016. According to another report from Arcview Market Research, the licensed cannabis stores are as profitable as Starbucks stores and the recreational markets will double the size of the medical market by 2021. Chineseinvestors.com, Inc. (OTC: CIIX), CV Sciences, Inc (OTC: CVSI), Freedom Leaf, Inc. (OTC: FRLF), GB Sciences, Inc. (OTC: GBLX), Isodiol International Inc. (OTC: ISOLF).
A major portion of the legal cannabis industry Cannabidiol products. Cannabidiol, or CBD, is one of at least 113 active cannabinoids identified in cannabis. The CBD market is growing rapidly in recent years due to CBD's medical benefits. Sean Murphy, the Founder and Publisher of Hemp Business Journal, said: "Hemp Business Journal estimates the total retail value of all hemp products sold in the U.S. to be at least $688 million for 2016. We estimate the hemp industry will grow to $1.8 billion in sales by 2020, led by hemp food, body care, and CBD-based products. The data demonstrates the hemp industry is growing quickly at 22% five year CAGR and being led by food and body care products, with Hemp CBD products showing a 53% AGR."
Chineseinvestors.com, Inc. (OTCQB: CIIX) on February 28th announced the details of the stock dividends related to the upcoming spinoff of all hemp-related assets including its China-based wholly owned foreign enterprise, CBD Biotechnology Co. Ltd. ("CBD Biotech") and its wholly owned United States subsidiaries, ChineseHempOil.com, Inc. ("Chinese Hemp Oil") and Hemp Logic, Inc. ("Hemp Logic").
Last month, the Company's subsidiaries achieved combined sales of over $100,000.00 and are well positioned to continue to achieve substantial growth into 2018 and beyond. CIIX plans to spin off all of its hemp related assets including, but not limited to, CBD Biotech, Chinese Hemp Oil and Hemp Logic into a single private company (the "New Company") with the goal being to bring the New Company into the public market in 12 to 18 months that follow. The New Company will issue one share of stock in the New Company for every four shares of CIIX's common stock held by investors as of the date of the spinoff, May 31, 2018.
According to CIIX's CEO, Warren Wang, "We want to provide our shareholders the opportunity to take advantage of this dividend; therefore, we encourage holders of our preferred stock to convert into common prior to May 31, 2018."
CIIX will continue to oversee the progress of the New Company. CIIX's CEO, Mr. Wang, and its CFO, Paul Dickman will serve on the board of directors of the New Company. CIIX is also currently evaluating potential independent board members for the New Company and individuals to join the management team.
CIIX has enjoyed success in helping to support various startup companies through its advertising and public relation related support services. Many of those startup companies have gone on to achieve strong stock prices. We look forward to the Company's spin off continuing this track record of success. Chinese Hemp Oil, Hemp Logic and CBD Biotech represent the Company's only involvement in the hemp industry, with its hemp-based CBD products; therefore, spinning off these entities will completely remove the parent, CIIX, from its involvement in the hemp industry, leaving the New Company to capitalize on the continuously growing hemp industry and other complimentary ventures.
"This is a great time to spin off CIIX's CBD focused assets as we continue to explore new ways to expand its core financial services business, including its recent move into the cryptocurrency and blockchain technology industry," according to ChineseInvestors.com, Inc.'s CFO Paul Dickman.
CV Sciences, Inc (OTCQB: CVSI), located in San Diego, California and Las Vegas, Nevada, focuses on drug development activities on products containing cannabidiol (CBD) as the active pharmaceuti...
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