LOS ANGELES, September 25, 2017 /PRNewswire/ --
The summer has been
Of course Canada's first-mover Cannabis companies are taking the lead and seeing first
This situation is further fuelled by Prime Minister Justin Trudeau's efforts to fulfill his campaign promise to legalize recreational use of marijuana in the Great White North. His goal is for recreational marijuana to be available in Canada by July 1, 2018.
That mandate is setting the stage for some very big things.
Markets are aware of the trend and rewarding companies that show the ability to make key operational advances and show solid revenue growth while keeping costs in hand.
These companies include Aurora Cannabis (OTCQX: ACBFF) (TSX: ACB.TO), Aphria Inc. (OTCQB: APHQF) (TSX: APH.TO) and MedReleaf Corp. (OTC: MEDFF).
All three of these companies are licensed medical marijuana providers in Canada and each has reported improving financial results.
Another early LP company worth mention is MYM Nutraceuticals Inc. (OTCQB: MYMMF) (CSE: MYM.CN), a newcomer to the group that is gaining attention for its announced development of one of the world's largest cannabis greenhouses expected to dwarf all others.
These participants all fall into the Licensed Producer (LP) category with the government sanctioned authority to produce and process cannabis.
HOW BIG IS BIG?
The cannabis market is showing major room for growth and strong profits.
Professional services firm Deloitte expects that the annual retail marijuana market in Canada could be at least $4.9 billion and perhaps as high as $8.7 billion. Most reviewers expect that it will surpass Canada's legal alcohol market valued at $22.1 billion last year.
But the three largest current suppliers of medical marijuana in Canada have a combined annual revenue of less than $100 million at present. Getting from here to the projected $4.9 billion (or $8.7 billion) mark is going to require phenomenal growth and expansion, especially by the leaders in production.
According to a new report by Arcview Market Research, the North American marijuana sales grew by an unprecedented 30% in 2016 to $6.7 billion as the legal market expands in the U.S. and Canada.
The market for the Cannabis derivative, CBD alone hit $170 million in 2016 and is projected to grow $1 billion by 2020.
The potential $22.6 billion cannabis industry is still in its infancy, and for investors there seems to be no limit on the potential value this sector can offer.
THE GROWTH CURVE
In the early stages, producers began with simple greenhouse facilities and growing operations. With the hyper growth in demand for more and high quality cannabis, the momentum has shifted and it's a race to build new, larger facilities with better yields of higher quality pot.
The current largest facility is a 350,000 square feet of greenhouse space in Ontario by the leader in growing, Canopy Growth.
Aurora Cannabis is hard at work on its massive 800,000 square feet of growing space in the town of Leduc, Alberta, near the Edmonton Airport.
AmeriCann Inc. is planning to surpass Aurora's new facility with the largest cannabis greenhouse operation in the US at roughly 1 million square feet to be located in Massachusetts.
Not to be outdone, is MYM Nutraceuticals has announced its plans to build a 1.5 million-square-foot cannabis production facility consisting of fifteen 100,000-square-foot-greenhouses.
Operations at this scale will certainly give the industry a new leaf on production. They will need it in order to keep pace with demand.
MYM MOVING UP
MYM Nutraceuticals is an interesting junior on the move.
The company and its majority-owned subsidiary CannCanada signed an exclusive deal with the Quebec municipality of Weedon to build its 1.5 million square foot facility in 2016.
The Weedon community views its efforts as a means to create jobs and foster an entire industry in the process. To show its commitment, the town of Weedon itself is acquiring the 329 acres of land for MYM to establish its mega facilities.
This is a considerable benefit for MYM Nutraceuticals.
While it is being built in 4 phases, the Weedon marijuana operation will ultimately be one of the largest grow operations on the planet. MYM expects that it can produce over 150,000 kg of cannabis per year there.
MYM also announced another smaller production facility that it expects to have online in Laval, Quebec by the end of the fourth quarter of 2017.
Along with growing and cultivation at Laval and Weedon, MYM is pretty diversified. The company is advancing formulation and production to support its branding and distribution. Its cannabis-based brands include Joshua Tree, MyHemp Skin Therapy, and HempMed offerings.
That's a serious effort for a smaller company.
It's also interesting when contrasted against the bigger players; Aphria trades at more than 40 times sales, Aurora Cannabis trades at over 67 times sales and the leader, Canopy Growth trades 34 times sales. Huge expectations for growth are already priced into the valuations of each of these companies.
MYM Nutraceuticals is still in the very early stages, but its share price reflects that, which might make it the most attractive of all.
As a model, Canadian pot companies appear to be setting the standard with quick sales growth, falling growth costs, and improving financials. It is apparent that companies building capacity, expanding rapidly and managing brand and distribution could get the most mileage out of what looks like marijuana's best season ahead.
Aurora Cannabis (OTCQX: ACBFF) (TSX: ACB.TO)
Through its wholly-owned subsidiary, Aurora Cannabis Enterprises Inc., Aurora Cannabis is a major LP, operating a 55,200 square foot, state-of-the-art production facility in Mountain View County, Alberta. Aurora made waves when it announced the construction of its 800,000 square foot 'Aurora Sky' facility second 800,000 square foot production facility at the Edmonton International Airport. Aurora's also involved in Quebec, with its third 40,000 square foot production facility set to be completed in Pointe-Claire, Quebec, on Montreal's West Island. Aurora also holds a minority stake in leading extraction technology company Radient Technologies Inc., based in Edmonton, and a minority stake in Australian company Cann Group Limited, which was the first in Australia to conduct research on and cultivate medical cannabis. Aurora also owns German wholesale importer, exporter, and EU medical cannabis distributor Pedanios.
Aphria (OTCQB: APHQF) (TSX: APH.TO)
Aphria Inc., boasts itself as one of Canada's lowest cost producers, that produces, supplies and sells medical cannabis. Located in the greenhouse capital of Canada, Leamington, Ontario, Aphria provides pharma-grade medical cannabis, and quality patient care. Aphria was the first public LP to report positive cash flow from operations, and the first to report positive earnings in consecutive quarters.
MedReleaf Corp. (OTC: MEDFF)
MedReleaf sets The Medical Grade Standard for cannabis in Canada and around the world. The first and only ISO 9001 certified cannabis producer in North America, MedReleaf is a R&D-driven company dedicated to patient care, scientific innovation, research and advancing the understanding of the therapeutic benefits of cannabis. Sourced from around the world and perfected in one of two state of the art facilities in Ontario, MedReleaf delivers a variety of premium products to patients seeking safe, consistent and effective medical cannabis.
For a more in-depth look into MYM you can view the in-depth report at USA News Group: http://usanewsgroup.com/2017/09/11/biotech-sector-poised-to-deliver-more-health-and-wealth-2-2-2
Article Source: USA News Group http://usanewsgroup.com [email protected]
Legal Disclaimer/Disclosure: This piece is an advertorial and has been paid for. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this Report should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. We make no guarantee, representation or warranty and accept no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of USA News Group only and are subject to change without notice. USA News Group assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this Report.
DISCLAIMER: USA News Group is Source of all content listed above. FN Media Group, LLC (FNM), is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated in any manner with USA News Group or any company mentioned herein. The commentary, views and opinions expressed in this release by USA News Group are solely those of USA News Group and are not shared by and do not reflect in any manner the views or opinions of FNM. FNM is not liable for any investment decisions by its readers or subscribers. FNM and its affiliated companies are a news dissemination and financial marketing solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. FNM was not compensated by any public company mentioned herein to disseminate this press release.
FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements.
Contact Information: Media Contact e-mail:[email protected] U.S. Phone: +1(954)345-0611
SOURCE USA News Group
Subscribe to our Free Newsletters!
Sarcoma, is a cancer that may arise from several soft-tissues or bone. Treatment in early stages is ...
A wonder drug, soda bicarb or baking soda can be used for skin, teeth, hair, kidneys and much more ...
Melasma, also called as chloasma, is a skin hyperpigmentation problem characterized by brown spots ...View All