LOS ANGELES, November 7, 2017 /PRNewswire/ --
While it is unclear who will capitalize most from Canada's move to legalize pot in July of 2018, it seems that licensed producers (LPs) are still key.
Not surprisingly, they continue to offer the best value in the space to date.
Leading companies already heavily investing in this area include Aphria (TSX: APH) (OTC: APHQF), Canopy Growth (TSX: WEED) (OTC: TWMJF), Organigram Holdings Inc. (TSX-V: OGI) (OTC: OGRMF), and MYM Nutraceuticals Inc. (CSE: MYM) (OTC: MYMMF).
The public LPs are generally the most advanced in terms of attaining revenue and profitability. Many of these companies have grown and harvested many crops and have an established customer base for their products.
Investors like the security that this group holds and are showing their favor.
Likely the best known for its high profile in production is Canopy Growth Inc. (TSX: WEED) (OTC: TWMJF). Its stock was as high as $13 per share in February of 2017, but has returned to the $10 level. It is on most investors' watch lists.
Several other competitors have entered the market to offer similar promise.
Other cannabis LPs joining the race to produce include Aphria (TSX: APH) (OTCQB: APHQF), which is establishing itself as the lowest cost producer, Organigram Holdings Inc. (TSX-V: OGI) (OTCQB: OGRMF), who are focused on producing the highest quality marijuana in Canada, along with MYM Nutraceuticals Inc. (CSE: MYM) (OTCQB: MYMMF), that is developing two production operations including a mega facility bigger than any producer to date.
BIG STAKES
Although it is still in the early going, Canada's fledgling marijuana industry has shown unbelievable potential for generating wealth and increasing the country's economy.
Deloitte estimates the market has a base retail value between $4.9 billion-$8.7 billion, which would rival the size of the Canadian alcohol market, currently pegged at $5 billion annually.
Vivien Azer of Cowen & Co. said in a recent report, "When you consider ancillaries such as growers, testing labs, security, etc., the economic impact could range from $12.7 to $22.6 billion."
That figure doesn't account for impact on other area like taxes and tourism etc.
According to researchers, in order to meet the low end of the estimates for the adult-use market, Canada would have to produce over 600,000 kg of cannabis a year.
Looking at the entire industry the numbers are even more over staggering.
The cannabis plant derivative Cannabidiol (CBD), which is legal in all 50 US states and Canada, was responsible for $170 million in the US 2016 and is projected to hit $1 billion by 2020.
The American marijuana industry as a whole is expected to hit $50 billion by 2026.
Any way you slice it, there are big stakes up for grabs in the growers and producers sector.
The significant increase in demand over current production capacities is key in driving the rush to build new and better grow facilities.
BIG, BIGGER, BIGGEST
To accommodate expansion, the cannabis industry is in a race to build the biggest, best, most sophisticated greenhouses in the world.
The early lead goes to Canopy's Tweed facility in Niagara-on-the-Lake, Ontario, which covers 350,000 square feet of greenhouse space. It is at present the world's largest marijuana greenhouse.
On its heels is Aurora Cannabis, which began work on their Leduc facility near the Edmonton Airport. This entry is designed to be more than double the size of Canopy at a gigantic 800,000 square feet of growing space.
That equates to a grow capacity of 100,000 kgs of cannabis annually.
Next in line is AmeriCann Inc. who have announced plans to build the largest cannabis greenhouse facility in the USA. This behemoth will cover roughly 1 million square feet and located in Massachusetts.
But, here's where MYM leapfrogs all of their plans: MYM Nutraceuticals and its majority-owned subsidiary CannCanada signed an exclusive deal with the Quebec municipality of Weedon to build a 1.5 million-square-foot cannabis production facility, consisting of fifteen 100,000-square-foot-greenhouses.
As envisioned, this massive marijuana operation will be one of the largest grow operations on the planet with the potential to produce over 150,000 kgs of cannabis per year-or roughly $750,000,000 worth annually at current market value.
Ironically, all of this increase in production will still not likely result in enough marijuana to fill the massive demands in a post legalized environment.
MYM TAKES UP ROOT
MYM Nutraceuticals sees itself as a long-term player, and so they have made their efforts part of the communities they plan to work in.
This has been a real win for MYM.
The developing cannabis producer has worked in tandem with the municipality in Weedon to create jobs and spark an entire industry in the process. Weedon itself has gone so far as to commit to acquiring the 329 acres of land for MYM to establish its mega facilities.
The first phase of the Weedon plan, which accounts for 300,000 square feet of greenhouse space, has both architectural and security plans completed. The additional four phases that will see the complete build out are in development.
MYM has advanced on another Quebec-based project, with the recent approval and permitting to begin construction on the company's smaller facility in Laval. This operation will have the capacity of producing 1,000 kgs of cannabis annually. It's scheduled for completion by the end of Q4 2017.
Along with growing and cultivation at Weedon and Laval, the company is advancing formulation and production to support branding and distribution of its entities Joshua Tree, MyHemp Skin Therapy, and HempMed offerings.
MYM appears well diversified.
Out of all the noise in this space, the leaders are emerging. LPs seem to the obvious choice and are gaining ground fast.
MYM Nutraceuticals is on a fast track.
The company has been building its brand and distribution, alongside its growth and product quality. They've combined this with experienced management and channel partners who can contribute to them becoming one of solid players in the LPs category.
POTENTIAL COMPARABLES
Aphria (TSX: APH) (OTCQB: APHQF)
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.
Organigram Holdings Inc. (TSX-V: OGI) (OTCQB: OGRMF)
Organigram Holdings Inc. is a TSX Venture Exchange listed company whose wholly owned subsidiary, Organigram Inc., is a licensed producer of medical marijuana in Canada. Organigram is focused on producing the highest quality, condition specific medical marijuana for patients in Canada. Organigram's facility is located in Moncton, New Brunswick and the Company is regulated by the Marihuana for Medical Purposes Regulations.
Canopy Growth Inc. (TSX: WEED.TO) (OTC: TWMJF)
The granddaddy of the corporate cannabis sector, Canopy Growth is the world's largest diversified cannabis company. Canopy boasts a wide offering of distinct brands and curated cannabis varieties in dried, oil and capsule forms. Most widely recognized is Canopy's subsidiary Tweed which is the world's most recognized marijuana production brand, as well as an industry educator. Accompanying Tweed in Canopy's portfolio is medical-grade cannabis producers Bedrocan Canada. In total, Canopy Growth's numerous state-of-the-art production facilities total over half a million square feet of GMP-certified indoor and greenhouse production capacity.
For a more in-depth look into MYM you can view the in-depth report at USA News Group:
http://usanewsgroup.com/2017/11/06/the_marijuana_boom_is_here_to_stay-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.
Media Contact Information: FN Media Group, LLC Media Contact e-mail: [email protected] U.S. Phone: +1(954)345-0611
SOURCE USA News Group
Advertisement
While it is unclear who will capitalize most from Canada's move to legalize pot in July of 2018, it seems that licensed producers (LPs) are still key.
Advertisement
Not surprisingly, they continue to offer the best value in the space to date.
Leading companies already heavily investing in this area include Aphria (TSX: APH) (OTC: APHQF), Canopy Growth (TSX: WEED) (OTC: TWMJF), Organigram Holdings Inc. (TSX-V: OGI) (OTC: OGRMF), and MYM Nutraceuticals Inc. (CSE: MYM) (OTC: MYMMF).
The public LPs are generally the most advanced in terms of attaining revenue and profitability. Many of these companies have grown and harvested many crops and have an established customer base for their products.
Investors like the security that this group holds and are showing their favor.
Likely the best known for its high profile in production is Canopy Growth Inc. (TSX: WEED) (OTC: TWMJF). Its stock was as high as $13 per share in February of 2017, but has returned to the $10 level. It is on most investors' watch lists.
Several other competitors have entered the market to offer similar promise.
Other cannabis LPs joining the race to produce include Aphria (TSX: APH) (OTCQB: APHQF), which is establishing itself as the lowest cost producer, Organigram Holdings Inc. (TSX-V: OGI) (OTCQB: OGRMF), who are focused on producing the highest quality marijuana in Canada, along with MYM Nutraceuticals Inc. (CSE: MYM) (OTCQB: MYMMF), that is developing two production operations including a mega facility bigger than any producer to date.
BIG STAKES
Although it is still in the early going, Canada's fledgling marijuana industry has shown unbelievable potential for generating wealth and increasing the country's economy.
Deloitte estimates the market has a base retail value between $4.9 billion-$8.7 billion, which would rival the size of the Canadian alcohol market, currently pegged at $5 billion annually.
Vivien Azer of Cowen & Co. said in a recent report, "When you consider ancillaries such as growers, testing labs, security, etc., the economic impact could range from $12.7 to $22.6 billion."
That figure doesn't account for impact on other area like taxes and tourism etc.
According to researchers, in order to meet the low end of the estimates for the adult-use market, Canada would have to produce over 600,000 kg of cannabis a year.
Looking at the entire industry the numbers are even more over staggering.
The cannabis plant derivative Cannabidiol (CBD), which is legal in all 50 US states and Canada, was responsible for $170 million in the US 2016 and is projected to hit $1 billion by 2020.
The American marijuana industry as a whole is expected to hit $50 billion by 2026.
Any way you slice it, there are big stakes up for grabs in the growers and producers sector.
The significant increase in demand over current production capacities is key in driving the rush to build new and better grow facilities.
BIG, BIGGER, BIGGEST
To accommodate expansion, the cannabis industry is in a race to build the biggest, best, most sophisticated greenhouses in the world.
The early lead goes to Canopy's Tweed facility in Niagara-on-the-Lake, Ontario, which covers 350,000 square feet of greenhouse space. It is at present the world's largest marijuana greenhouse.
On its heels is Aurora Cannabis, which began work on their Leduc facility near the Edmonton Airport. This entry is designed to be more than double the size of Canopy at a gigantic 800,000 square feet of growing space.
That equates to a grow capacity of 100,000 kgs of cannabis annually.
Next in line is AmeriCann Inc. who have announced plans to build the largest cannabis greenhouse facility in the USA. This behemoth will cover roughly 1 million square feet and located in Massachusetts.
But, here's where MYM leapfrogs all of their plans: MYM Nutraceuticals and its majority-owned subsidiary CannCanada signed an exclusive deal with the Quebec municipality of Weedon to build a 1.5 million-square-foot cannabis production facility, consisting of fifteen 100,000-square-foot-greenhouses.
As envisioned, this massive marijuana operation will be one of the largest grow operations on the planet with the potential to produce over 150,000 kgs of cannabis per year-or roughly $750,000,000 worth annually at current market value.
Ironically, all of this increase in production will still not likely result in enough marijuana to fill the massive demands in a post legalized environment.
MYM TAKES UP ROOT
MYM Nutraceuticals sees itself as a long-term player, and so they have made their efforts part of the communities they plan to work in.
This has been a real win for MYM.
The developing cannabis producer has worked in tandem with the municipality in Weedon to create jobs and spark an entire industry in the process. Weedon itself has gone so far as to commit to acquiring the 329 acres of land for MYM to establish its mega facilities.
The first phase of the Weedon plan, which accounts for 300,000 square feet of greenhouse space, has both architectural and security plans completed. The additional four phases that will see the complete build out are in development.
MYM has advanced on another Quebec-based project, with the recent approval and permitting to begin construction on the company's smaller facility in Laval. This operation will have the capacity of producing 1,000 kgs of cannabis annually. It's scheduled for completion by the end of Q4 2017.
Along with growing and cultivation at Weedon and Laval, the company is advancing formulation and production to support branding and distribution of its entities Joshua Tree, MyHemp Skin Therapy, and HempMed offerings.
MYM appears well diversified.
Out of all the noise in this space, the leaders are emerging. LPs seem to the obvious choice and are gaining ground fast.
MYM Nutraceuticals is on a fast track.
The company has been building its brand and distribution, alongside its growth and product quality. They've combined this with experienced management and channel partners who can contribute to them becoming one of solid players in the LPs category.
POTENTIAL COMPARABLES
Aphria (TSX: APH) (OTCQB: APHQF)
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.
Organigram Holdings Inc. (TSX-V: OGI) (OTCQB: OGRMF)
Organigram Holdings Inc. is a TSX Venture Exchange listed company whose wholly owned subsidiary, Organigram Inc., is a licensed producer of medical marijuana in Canada. Organigram is focused on producing the highest quality, condition specific medical marijuana for patients in Canada. Organigram's facility is located in Moncton, New Brunswick and the Company is regulated by the Marihuana for Medical Purposes Regulations.
Canopy Growth Inc. (TSX: WEED.TO) (OTC: TWMJF)
The granddaddy of the corporate cannabis sector, Canopy Growth is the world's largest diversified cannabis company. Canopy boasts a wide offering of distinct brands and curated cannabis varieties in dried, oil and capsule forms. Most widely recognized is Canopy's subsidiary Tweed which is the world's most recognized marijuana production brand, as well as an industry educator. Accompanying Tweed in Canopy's portfolio is medical-grade cannabis producers Bedrocan Canada. In total, Canopy Growth's numerous state-of-the-art production facilities total over half a million square feet of GMP-certified indoor and greenhouse production capacity.
For a more in-depth look into MYM you can view the in-depth report at USA News Group:
http://usanewsgroup.com/2017/11/06/the_marijuana_boom_is_here_to_stay-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.
Media Contact Information: FN Media Group, LLC Media Contact e-mail: [email protected] U.S. Phone: +1(954)345-0611
SOURCE USA News Group
