The Cannabis Crisis No One is Talking About

Wednesday, May 16, 2018 Drug News
Email Print This Page Comment bookmark
Font : A-A+

FN Media Group Presents News Commentary

LONDON, May 16, 2018 /PRNewswire/ --

The clock is ticking down. In August 2018,

Prime Minister Trudeau will sign the Cannabis Act - fully legalizing recreational marijuana in Canada. With mere months until this $22.6 billion market opens up, there's a problem most people are ignoring: there's not enough pot to go around.

Licensed cannabis growers only have about 60,000kg per year of capacity. That's well short of the 900,000 kg Canadians are expected to consume in the first 12 months after legalization. Mentioned in today's commentary includes:  Innovative Industrial Properties (NYSE:IIPR), AbbVie Inc (NYSE:ABBV), Zynerba Pharmaceuticals (NASDAQ:ZYNE), Insys Therapeutics (NASDAQ:INSY), Compass Diversified Holdings (NYSE:CODI).

For companies like Cannabis Wheaton (CBW; CBWTF) that can help plug the supply gap, this represents a huge opportunity. After introducing the world's first "cannabis streaming" model in 2017, they now have exposure to effectively 2,000,000 square feet of cultivation space.

Here are five reasons why the world is watching Canada very closely.

#1 The Great Canadian Marijuana Explosion  

In November 2017, the proposed Cannabis Act was passed by the lower house of the Canadian Parliament and is now with the Senate. It is expected that the law will be fully enacted by the end of summer, 2018, opening all of Canada to legalized cannabis.

The economic impact is predicted to be truly massive. For companies like Cannabis Wheaton, it's possibly a once in a lifetime opportunity.

Right now, licensed producers in Canada only provide about seven% of the potential recreational demand, serving a medical marijuana patient base of 300,000 people. With full legalization in place, Deloitte estimates the total economic impact of the industry could be $22.6 billion annually - more than the combined sales of beer, wine and spirits.

The most recent data by Marijuana Policy Group asserts that demand for recreational cannabis in Canada will be much stronger than expected. It could exceed 900,000 kgs next year.

Cannabis Wheaton, thanks to its streaming model, access to capital and market expertise, is well positioned to exploit the need for future expansion. And, with legalization going global - CBW could become a future cannabis "multi-national", serving consumers around the world.

#2 A Unique Streaming Business Model

Cannabis Wheaton (CBW; CBWTF) is the first company to propose "cannabis streaming" - bank-rolling the growth plans of licensed producers in exchange for equity and a steady stream of royalties or taking possession of a portion of the actual pot.

CBW has signed partnership agreements with 17 facilities across six provinces, with a combined 2.0 million effective square feet of cannabis growing space. The company also has partnerships with 39 clinics, with access to over 30,000 registered medical marijuana patients.

They also have tremendous diversification. Cannabis Wheaton is building a pan-Canadian network of streaming partners - including producers and distributors.

Additionally, Cannabis Wheaton recently launched its "Wheaton Licensing Program," to assist applicants wishing to become Licensed Producers with knowledge of the market. Think of it as an "incubator" for potential cannabis producers and distributors, all of which could be future streaming partners or acquisition targets.

#3 "Downstream" Leverage  

Through 2021, Cannabis Wheaton (CBW; CBWTF) expects to capitalize on the massive supply shortage in Canada's newly legalized markets. Eventually - however - supply will catch up with demand. In response, the company is aggressively climbing the value chain. The structure they use to talk about this system is the oil and gas terminology of upstream, midstream and downstream.

Upstream is all the cultivation - where they collect royalties from their streaming partners or can take physical possession of the cannabis to sell into a higher value channel where higher margins can be captured.

Midstream is where the product goes after it leaves the grow facilities. Edibles, beverages and other innovative formats are increasingly popular and today account for at least 50% of products consumed in recreational U.S. states like Colorado and California.

Downstream is straight to consumer distribution channels. CBW has split these efforts into three channels: medical, domestic retail, and international.

They've also partnered with Province Brands - which aims to become the first company to develop a premium line of beverages brewed exclusively from cannabis. The agreement will give Wheaton a 10-year exclusive relationship with the nation-wide store chain for medical cannabis distribution.

Cannabis Wheaton also have their eyes set on emerging legal markets in Latin America. In January, they announced the acquisition of 80% of Uruguay cannabis company Inverell - which produces high grade CBD oil at incredible margins.

#4 Broad Access to Capital  

In November 2017, Cannabis Wheaton completed a private placement of convertible debenture units for $35 Million in additional capital. Following that in January 2018, the company raised an additional $100 million through another offering of convertible debentures.

Cannabis Wheaton recently announced a $10 million debt financing deal with Beleave Inc., the parent company of a licensed producer, built around a novel debt instrument dubbed the Debt Obligation repayable in Product Equivalent, or "DOPE Note". This allows the company to loan Beleave up to $10 million and receive repayment in cannabis, which can be sold by Beleave to its patients and/or customers or the company can sell on to other distributors. The first $5 million has already been advanced.

#5 Highly Connected & Experienced Management Team 

Cannabis Wheaton (CBW; CBWTF) has a strong team at the helm, an experienced group of cannabis experts with enough market savvy to take full advantage of Canada's changing regulations.

CEO Chuck Rifici is a well-known figure in the cannabis industry, the co-founder of Canada's largest government-sanctioned marijuana producer, Canopy Growth Corp.

CBW is well positioned to navigate the regulatory environment. Rifici can count on legal knowledge from industry expert Hugo Alves, another industry pioneer and now President and Director of Cannabis Wheaton. Possibly no one in Canada knows more about the regulatory environment than him.

With this management team in place and its unique business model to back it up, Cannabis Wheaton considers itself better positioned than any other firm to take full advantage of the coming cannabis boom.

More companies in the therapeutics industry:

Innovative Industrial Properties (NYSE:IIPR)'s leasing plan is simple: the marijuana grower is responsible for everything from taxes to maintenance. The company's hands-off approach allows for a steady stream of revenue with little oversight.

AbbVie Inc (NYSE:ABBV) is one of the pioneers of marijuana-based treatment in the biopharmaceutical industry, realizing the potential of its cornerstone product, Marinol , years ahead of the competition.

Zynerba Pharmaceuticals (NASDAQ:ZYNE) is another innovator in the industry, creating a revolutionary transdermal THC patch, and the world's first and only synthetic non-psychoactive CBD patch.

Insys Therapeutics (NASDAQ:INSY) broke ground with its sublingual pain medication, Subsys, and with its advanced knowledge of synthetic cannabinoids, the company created a novel CBD product used to treat pediatric epilepsy.

Compass Diversified Holdings (NYSE:CODI) has a key stake in Manitoba Harvest, a company which uses hemp, a type of cannabis which does not contain THC, to create hemp-based foods, oils, and supplements.

By. Charles Kennedy


FORWARD-LOOKING STATEMENT. Statements in this communication which are not purely historical are forward-looking statements and include statements regarding beliefs, plans, intent, predictions or other statements of future tense. Forward looking statements in this article include: that the Canadian government will fully legalize and regulate cannabis this year; that the Canadian medical and recreational markets combined will be worth $8 billion in gross sales in the year after legalization; that Cannabis Wheaton Income Corp. ("Cannabis Wheaton") can raise funds and partner quickly with new firms looking to get into the Cannabis industry and access the expertise of Cannabis Wheaton's management team and non-dilutive capital; that there will likely be a supply shortage; that, if cannabis markets open up in other industrialized countries, the global cannabis market could expand exponentially; That Cannabis Wheaton's production costs will be low; that Cannabis Wheaton may be able to help supply cannabis to markets outside Canada; that producers will need to obtain additional financing from companies like Cannabis Wheaton; that Canadian users of cannabis will consume 900,000 kg next year; that Cannabis Wheaton could become a future cannabis "multi-national"; that Cannabis Wheaton is better positioned to take advantage of the boom than other companies; and that the cannabis market in the world is worth over $31B. Forward-looking information is based on the opinions and estimates of Cannabis Wheaton at the date the information is made, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information.  Forward looking statements involve known and unknown risks and uncertainties which may not prove to be accurate. Actual results and outcomes may differ materially from what is expressed or forecasted in these forward-looking statements. Matters that may affect the outcome of these forward looking statements include: that Cannabis may not be legalized on the timeline as expected or at all; that markets may not materialize as expected; that cannabis may not turn out to have as large a market as thought or be as lucrative as thought as a result of competition or other factors; that Cannabis Wheaton may not be as able to diversify or scale up  as thought because of potential lack of capital, lack of facilities, regulatory compliance requirements in Canada or outside of Canada or lack of suitable employees, partners or suppliers; that Cannabis Wheaton may not be able to raise funds and offer better conditions to potential partners than competitors in the cannabis industry; that partners of Cannabis Wheaton may not be granted licenses or additional capacity under existing or newly applied for licenses for them to grow for the cannabis market; that foreign governments may not allow Cannabis Wheaton to operate in their countries; that actual operating performance of the facilities affiliated with Cannabis Wheaton do not meet expectations; that competition quickly develops; that Cannabis Wheaton may not be able to retain key employees, partners and suppliers; costs may be higher than expected and profits therefore lower; competitors may capture most or all of the increased market demand; and other risks affecting the Company in particular and the cannabis industry generally, including without limitation risks related to most agricultural crops, including crop failure. The forward-looking statements in this document are made as of the date hereof and the Company disclaims any intent or obligation to update such forward-looking statements except as required by applicable securities laws.



This communication is a paid advertisement and is not a recommendation to buy or sell securities., Advanced Media Solutions Ltd, and their owners, managers, employees, and assigns (collectively, "we" or 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 Cannabis Wheaton seventy-five 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. If we own any shares we will list the information relevant to the stock and number of shares here. We have been compensated by Cannabis Wheaton to conduct investor awareness advertising and marketing for [TSX-V:CBW and OTC: CBWTF]. receives financial compensation to promote public companies. 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 has not been independently verified and is not guaranteed to be correct. The information is collected from public sources, such as the profiled company's website and press releases, but is not researched or verified in any way whatsoever to ensure the publicly available information is correct.

SHARE OWNERSHIP. The owner of owns shares of this featured company and therefore has an additional incentive to see the featured company's stock perform well. The owner of will not notify the market when it decides to buy more or sell shares of this issuer in the market. The owner of 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.

LEGAL ADVISORY. Investing in companies associated with the cannabis industry may be illegal in the jurisdiction where a reader resides. Before investing in any public company involved in the cannabis industry, potential investors should check with their legal advisor as to whether an investment will breach local or federal law.

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 If you do not agree to the Terms of Use , please contact to discontinue receiving future communications.

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


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: U.S. Phone: +1(954)345-0611


Post your Comments

Comments should be on the topic and should not be abusive. The editorial team reserves the right to review and moderate the comments posted on the site.
* Your comment can be maximum of 2500 characters
I agree to the terms and conditions

News A - Z


News Search

Medindia Newsletters

Subscribe to our Free Newsletters!

Terms & Conditions and Privacy Policy.

Find a Doctor

Press Release Category

Press Release Archive

Stay Connected

  • Available on the Android Market
  • Available on the App Store