January 4th, 2018 – Phivida Holdings Inc. (“Phivida” or the “Company” traded as (“VIDA:CNX“) or (“PHVAF“) announced today that it has entered into a distribution agreement with Green Reef Distributing Inc. to distribute its products across the State of California.
“We are excited to be the first state to launch Phivida’s line of branded CBD-infused functional foods, beverages and clinical products into the US marketplace,” said Nick Gagliardi, CEO and President of Green Reef Distribution Inc. “These products will be available to retail customers through 550 dispensaries across the State of California — a market for CBD-based products that is growing exponentially as active people and families discover the benefits of CBD from hemp oil.”
According to a recent report, the market for hemp-derived CBD is growing at 55 per cent a year and will hit the $1 billion mark by 2020. The CBD market in California alone has been pegged conservatively at $90 million per year with some estimates placing it at $120 million per year. The total size of the California medical market for the year ending 2017 has been estimated at $7.7 billion. The state is home to 5,560 pharmacies — the most of any state — as well as 8,256 grocery stores and 13,992 health stores.
The move to legalize marijuana in California, the US’ most populous state with almost 40 million people, saw the state become the world’s largest commercial market for recreational marijuana.
The cannabis market is expected to generate an additional $1 billion (€833 million) in tax revenue.
“The agreement with Green Reef is an important advancement into market penetration intoUnited States,” said John David Belfontaine, President and CEO of Phivida. “We have every confidence that Green Reef has the expertise, the experience and the ambition we need to deliver our products to consumers in California and we are looking forward to a strong first year of sales.”