Medindia
Medindia LOGIN REGISTER
Advertisement

5 Companies Using Tech to Transform the Cannabis Industry

Wednesday, May 30, 2018 Drug News
Advertisement
LONDON, May 30, 2018 /PRNewswire/ --
Advertisement

FN Media Group Presents OilPrice.com News Commentary

In a matter of weeks, Canada will most likely legalize marijuana for recreational use. Expectations for a pot boom sent stocks soaring in 2017, and while enthusiasm ebbed early this year the index for cannabis stocks is up 71 percent from November last year. Production of marijuana is expected to surge this year and companies are looking abroad for more investment. Mentioned in today's commentary includes: GW Pharmaceuticals plc (NASDAQ:GWPH), Canopy Growth Corporation (OTC:TWMJF) (TSX:WEED), Scotts Miracle-Gro Co. (NYSE:SMG), Aurora Cannabis (TSX:ACB) (OTC:ACBFF), Hydropothecary Corp (TSX-V:THCX).

Advertisement

"Cannabusiness" is one of the hottest market trends this year but finding the right company can be challenging. The industry is full of risky plays: growers who lack a market outlet, or distributors without access to sufficient product.

Analysts have become wary, even warning investors away from the riskiest plays. But that doesn't mean there isn't plenty of opportunity for investors who do their research make smart choices.

Here are five companies that span the cannabis space, who could profit from this year's biggest trends in the pot market:

#1 GW Pharmaceuticals (NASDAQ:GWPH) 

This major pharma company is getting into the cannabis game through a major industry milestone: in 2018, GW Pharma received approval for its cannabis-based drug Epidiolex from the Federal Drug Administration. For the first time, the FDA approved a drug based on cannabis for the American market…and GW Pharma's stock enjoyed a huge boost at the news. The drug itself is expected to be a big seller, one of the 10 biggest new drugs of 2018 according to Evaluate Pharma.

Epidiolex reduces seizures in patients and could usher in a new age of federally-approved cannabis-based drugs used for a wide variety of treatments. And GW has some of the world's leading experts in the field of marijuana research.

With the U.S. government ready to step in to reduce opioid abuse, cannabis drugs like Epidiolex could get a boost. GW Pharma is the first to profit from this trend, and it could be the pioneer that brings cannabis drugs into the mainstream.

#2 BLOCKStrain Technology Corp. (DNAX - Trading on the TSX-Venture)

Marijuana is an industry that comes with a lot of risk, and even more uncertainty-products are developed and sold on the black market, producers are unsure if their plants are adequately protected from intellectual theft, and consumers have little protection or quality control. But now, a company has emerged to solve those problems by deploying the power of the blockchain.

BLOCKStrain (DNAX - Trading on the TSX-Venture) is the first company dedicated to verifying marijuana products as they enter the market. The company has developed a "smart hub" for cannabis, a repository that can act as a "single source of truth for cannabis strains and their ownership."

The company uses the blockchain technology that allows transactions to be processed at lightning speeds without the need for a sluggish middleman. BLOCKStrain's network will act as a "clean, immutable, legal and transparent distribution network of product between producers and consumers." It's the first time a company has dedicated itself to bringing this level of security and transparency to the pot market.

BLOCKStrain verifies every marijuana product that clients add to its blockchain database, tracking products and ensuring validity.

Their service is a crucial one. As Canada undergoes wide-spread legalization of marijuana, ensuring greater transparency for producers and consumers will be crucial to the industry's growth, which could be as large as a $77-billion market.

BLOCKStrain has already signed on its first client: WeedMD Inc., a fully licensed producer (LP) under Canada's Access to Cannabis for Medical Purposes Regulations (ACMPR).

According to Derek Pedro, design, cultivation and production partner at WeedMD, "BLOCKStrain is best positioned to protect our intellectual property by further validating and securing our best-in-class genetics."

In March, BLOCKStrain received a $500,000 infusion from WeedMD. And this deal is just the first of many: several other clients are about to ink deals, and BLOCKStrain has its sights set on every LP in Canada…and now, there are more than 100 that will need the services of the blockchain to verify and protect their products.

BLOCKStrain's CTO is a veteran of applying cutting-edge tech to the cannabis industry. As CTO of Weedmaps, he oversaw the company's multiple technology systems during an exciting growth phase in 2015. And why stop at pot? BLOCKStrain's CEO, Robert Galarza, has already indicated interest in broadening the scope of the company's services beyond cannabis to the grocery industry, which is valued at $2.3 trillion.

Blockchain could transform entire industries, and BLOCKStrain is poised to bring it to the weed business.

#3 Canopy Growth (OTC:TWMJF) (TSX:WEED)

Judging by market cap, Canopy Growth is the biggest pot player around. The grower bucked the trend in early 2018. As most cannabis stocks slumped, it enjoyed a 10 percent boost, stemming from investor confidence in the company's vertical integration.

Canopy has seen impressive growth, rising by 20.4 percent in the last three months and 292 percent in the last year on the Toronto exchange.  

Canopy is set for a large expansion, in anticipation of increased demand after Canada's legalization goes through this summer. The company has seven facilities totaling 665,000 square feet and is developing greenhouses on 3.7 million square feet in British Columbia.

While the company is keeping expectations of growing potential conservative, with this much land there's a good chance it could emerge by 2019 as Canada's top grower. As a sign of its imminent graduation from scrappy start-up to established pot player, Canopy Growth has applied to list on the NYSE.  

That will place it above the rest: a cannabis company with an established foothold with Fortune 500s and Blue Chip firms.

#4 Scotts Miracle-Gro Co. (NYSE:SMG)

A company with strong name-recognition in garden materials, Scotts Miracle Gro. has emerged as a major cannabis stock and a way to invest in the marijuana boom without exposure to riskier ventures.

Scotts has a 75 percent stake in Gravita International, a company that manufactures hydroponics equipment, a crucial component in marijuana cultivation. The company claims more than $250 million in revenue from their hydroponics holdings.

Scotts acquired another hydroponics firm last month, scooping up Sunlight Supply for $450 million. The aggressive move into hydroponics is part of a strategy concocted by Scotts CEO Jim Hagedorn, who hopes to pivot Scotts into a major cannabis player after the company hit a rough patch in the aftermath of the Great Recession.

The move seems to have paid off: Scotts saw solid growth during 2017 before falling in early 2018 with the rest of the cannabis market. Still, the price has doubled since the doldrums of 2014, and with growers increasing acreage to meet future demand, Scotts should expect demand for hydroponics products to grow at a steady rate moving forward.

#5 Aurora Cannabis (OTCQX:ACBFF) (TSX:ACB)

This cannabis firm just pulled off the first big acquisition in industry history: in May, it announced the takeover of MedReleaf for $2.5 billion. This comes after another big acquisition earlier in the year, when Aurora bought out CanniMed for $852 million.

With so much money to throw around, Aurora is on the verge of pulling an "Amazon" move: dominating every aspect of the marijuana supply chain, from production to distribution.

The company has a huge, 800,000 square foot growing facility that is fully automated: once complete, it could produce 100,000 kilograms of dried cannabis each year. Another facility, 1.2 million square feet in size, is planned for next year.

CEO Terry Booth wants Aurora to be the top grower in the industry, and has his sights set on spreading Aurora to distribution once legalization goes through in Canada.

Like a lot of pot stocks, Aurora shot up in the early part of 2018, only to tumble in February and March. Investors are greeting the news of the MedReleaf acquisition with caution, out of concerns that the company is spreading itself too thin.

But there's no question that Aurora will be the biggest grower in North America by the end of the year, in a superb position to dominate upstream and seize a huge chunk of the market.

Other companies looking to capitalize on the cannabis boom: 

Hydropothecary Corp (TSX-V:THCX) is a another heavy hitter in Canada's cannabis scene. With former BC Health Minister Dr. Terry Lake as the VP of Corporate Social Responsibility, and the well-versed Ed Chaplin, who has raised millions for his previous ventures, as the Chief Financial Officer, the company is sure to have a bright future ahead.

With 4 primary products, including Canada's only peppermint flavored medical cannabis oil sublingual mist, Hydropothecary has chosen quality over quantity. Offering patients the ability to administer their medication in a smoke-free format provides users with an option that is not available just anywhere.

By. Meredith Taylor

**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY** 

Disclaimer for Forward-Looking Information 

Certain statements in this press release are forward-looking statements and are prospective in nature. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. Forward-looking statements in this news release include that Blockstrain's technology will work as well as expected; that the cannabis industry in Canada and worldwide will continue to grow and meet sales expectations; that Blockstrain's technology will successfully validate and verify products, providing security for LPs and transparency for users; that Blockstrain can dominate the Canadian cannabis verification market; that Blockstrain could bring its tech to cannabis markets all over the world; that using the blockchain cuts down on verification costs; that the WeedMD deal could lead to other and bigger such deals; that six more clients are scheduled to come on line, and more partnerships are soon expected to be announced; and that Blockstrain could adapt its technology to service other industries.

Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements including, without limitation, risks with respect to: that Blockstrain's technology may not achieve the expected results and its accomplishments may be limited; that Blockstrain may not establish a market for its services as expected; competitors may quickly enter the industry; general economic conditions in the US, Canada and globally; the inability to secure financing necessary to carry out its business plans; competition for, among other things, capital and skilled personnel; the possibility that government policies or laws may change; technological change may result in Blockstrain's solutions not be the best or cheapest available; Blockstrain not adequately protecting its intellectual property; interruption or failure of information technology systems; the cannabis market may not grow as expected; Blockstrain's technology may not adapt to other industries; and regulatory risks relating to Blockstrain's business, financings and strategic acquisitions. The Company disclaims any intent or obligation to update publicly any forward-looking information other than as required by applicable securities laws.

DISCLAIMERS PAID ADVERTISEMENT. This communication is a paid advertisement and is not a recommendation to buy or sell securities. Oilprice.com, Advanced Media Solutions Ltd, and their owners, managers, employees, and assigns (collectively "the Company") has been paid by the profiled company or a third party to disseminate this communication. In this case the Company has been paid by Blockstrain ninety thousand US dollars for this article and certain banner ads. This compensation is a major conflict with our ability to be unbiased, more specifically: This communication is for entertainment purposes only. Never invest purely based on our communication. Gains mentioned in our newsletter and on our website may be based on end-of- day or intraday data. We have been compensated by Blockstrain to conduct investor awareness advertising and marketing for Blockstrain. Therefore, this communication should be viewed as a commercial advertisement only. We have not investigated the background of the company. The third party, profiled company, or their affiliates may liquidate shares of the profiled company at or near the time you receive this communication, which has the potential to hurt share prices. Frequently companies profiled in our alerts experience a large increase in volume and share price during the course of investor awareness marketing, which often end as soon as the investor awareness marketing ceases. The investor awareness marketing may be as brief as one day, after which a large decrease in volume and share price is likely to occur. We do not guarantee the timeliness, accuracy, or completeness of the information on our site or in our newsletters. The information in our communications and on our website is believed to be accurate and correct, but has not been independently verified and is not guaranteed to be correct. The information is collected from public and non-public sources but is not researched or verified in any way whatsoever to ensure the information is correct. SHARE OWNERSHIP. The owner of Oilprice.com owns shares and/or stock options of this featured company and therefore has an additional incentive to see the featured company's stock perform well. The owner of Oilprice.com will not notify the market when it decides to buy or sell shares of this issuer in the market. The owner of Oilprice.com will be buying and selling shares of the featured company for its own profit. This is why we stress that you conduct extensive due diligence as well as seek the advice of your financial advisor or a registered broker-dealer before investing in any securities.

NOT AN INVESTMENT ADVISOR. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment. INDEMNIFICATION/RELEASE OF LIABILITY. By reading this communication, you agree to the terms of this disclaimer, including, but not limited to: releasing The Company, its affiliates, assigns and successors from any and all liability, damages, and injury from the information contained in this communication. You further warrant that you are solely responsible for any financial outcome that may come from your investment decisions. RISK OF INVESTING. Investing is inherently risky. While a potential for rewards exists, by investing, you are putting yourself at risk. You must be aware of the risks and be willing to accept them in order to invest in any type of security. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell securities.

TERMS OF USE. By reading this communication you agree that you have reviewed and fully agree to the Terms of Use found here http://oilprice.com/terms-and-conditions If you do not agree to the Terms of Use http://oilprice.com/terms-and-conditions, please contact Oilprice.com to discontinue receiving future communications.

DISCLAIMER: OilPrice.com 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 OilPrice.com or any company mentioned herein.  The commentary, views and opinions expressed in this release by OilPrice.com are solely those of OilPrice.com 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 OilPrice.com

Sponsored Post and Backlink Submission


Latest Press Release on Drug News

This site uses cookies to deliver our services.By using our site, you acknowledge that you have read and understand our Cookie Policy, Privacy Policy, and our Terms of Use  Ok, Got it. Close