For week three of The Future of Cannabis program, we drilled into the cultivation and retail segment of the overall market. Arguably, no other group is as correlated with the success and failure of the legalization movement than this one, covering both end points of the seed-to-sale process. As the regulatory and political landscape continues to expand toward wider legalization, the cultivation and retail companies could offer the closest to pure play opportunities as investors can get.
But as with any opportunity, the investment thesis is tied to overcoming short-term obstacles to capitalize on long-term catalysts. As we’ve done in the previous weeks, Equities.com and Viridian Capital Advisors breaks down the “cash program” posed by the current market realities and the long-term potential once this generational shift toward legalization is realized. But don’t take our word for it. See why some of the largest business titans like Netflix Co-Founder Mitch Lowe, Wall Street veterans and innovative entrepreneurs are so excited about this space.
To learn more about The Future of Cannabis program, we encourage you to read What is The Future of Cannabis?
Here’s a recap of everything we published in our Week Three focus on the Cultivation and Retail Cannabis Market.
Week Three: The Cultivation and Retail Investment Opportunity in Cannabis
The (Untapped) Multi-Billion Dollar Market in Cannabis Cultivation and Retail: In this sector deep dive feature, we look at the $35 billion to $50 billion market that is the cannabis industry. As the business climate becomes more favorable, an increasing number of grow and retail companies are being introduced to the market, as well as an entire ecosystem of ancillary businesses to support those operations. See which companies are currently leading the way.
Expert Interviews: We wanted to serve as a platform for leading voices in the cannabis market to provide their perspectives and to encourage dialogue about the industry. Here’s who we heard from this week
- Who’s Driving the $60 Billion Cannabis Market Revolution? – Mitch Lowe, Co-Founder of Netflix and Board Member of MedBox, Inc.
- As the Industry is Legalized, Growers Will be Able to Invest Long Term – Staffan Hillberg, the CEO of Heliospectra
- How Cannabis Companies can get the Reg A Beat – David Feldman, partner at Duane Morris LLP
Sector Research – State Legalization and Popular Support Initiatives Drive Growth in Legal Marijuana Market: As cannabis becomes more prominent as a business opportunity, the capital markets are taking notice. In addition, the commoditization of cannabis creates a tradable market that adds to the standardization of pricing dynamics with major implications on the evolution of the industry. This new layer of stability opens the door for big business to finally enter into the fray through perhaps major acquisitions as the most likely scenario.
Names to Know in the Cultivation and Retail Cannabis Space:
- Canopy Growth Corp. (TSXV:CGC): Canopy Growth Corp. is the result of a merger between Tweed Marijuana, Inc. and Bedrocan Cannabis Corp. in August 2015 to create the largest licensed cultivating and selling entity of cannabis in Canada. Canopy Growth Corp. currently operates Tweed, Tweed Farms, and Bedrocan Canada.
- Kaya Holdings, Inc. (OTCQB:KAYS): Kaya Holdings owns and operates various brands that produce, distribute, and sell cannabis products including raw flower, concentrates, and infused products. Kaya was labeled the first fully reporting U.S. public company to own and operate a vertically integrated seed-to-sale marijuana enterprise.
- Organigram Holdings, Inc. (TSXV:OGI) (OTCQB:OGRMF): OrganiGram is a licensed producer and seller of cannabis under Health Canada’s Marihuana for Medical Purposes Regulations (MMPR). Under these regulations, OrganiGram is currently the only licensed producer and seller of cannabis in the New Brunswick province in Canada.
- Terra Tech Corp. (OTCQX:TRTC): Terra Tech is an experienced producer of agricultural products that has established operations in the cannabis industry. Terra Tech operates in several markets through its subsidiaries.
- Café Serendipity Holdings, Inc. (OTCQB:CAFS): Café Serendipity Holdings, Inc. is based in Henderson, Nevada and owns and operates Café Serendipity. It is a builder of upscale branded turnkey retail store solutions, technology, quality control sciences to the growers, adult consumers, and approximately 6,000 existing legal medical marijuana dispensaries in the USA. The company is marketing its unique brand and product lines through a coast-to-coast licensing network.
- Monarch America, Inc. (OTCQB:BTFL): Monarch America, Inc. is a fully integrated management and consulting company, delivering trusted high-value products, services, and turnkey solutions to the legal and regulated marijuana and hemp industry. The Company's wholly-owned subsidiary, The Big Tomato, Inc., is a leading supplier of hydroponics & indoor gardening supplies for Denver, Colorado and the surrounding communities since May of 2001.
- CannLabs, Inc. (OTCQB:CANL): CannLabs, Inc. provides services to commercial, governmental and educational entities focused on the Cannabis industry. The company leverages its propriety scientific, testing processes, cloud-based business intelligence and data/analytics as well as consulting services to garner revenues from legalized Cannabis states and their constituents. Through Carbon Bond Holdings Inc. and the state certified labs it has relationships with, CannLabs delivers best practices around products, services and business intelligence focused on the Cannabis industry.
- Two Rivers Water & Farming Company (OTCQB:TURV): Two Rivers assembles its water assets by acquiring irrigated farmland with senior water rights. Two Rivers current farm operations convert feed crop farmland into fruit and vegetable crop production in Pueblo County Colorado. In December 2012, Colorado legalized the personal use and cultivation of marijuana. As a result, Two Rivers is providing greenhouses and processing facilities for licensed marijuana growers in Colorado on land with water rights not used for fruit and vegetable crop production.
- MJ Holdings, Inc. (MJNE): MJ Holdings, Inc. acquires and leases real estate to licensed marijuana operators, including, but not limited to, providing complete turnkey growing space and related facilities to licensed marijuana growers and dispensary owners. Additionally, MJ Holdings plans to explore ancillary opportunities in the regulated marijuana industry.
- Phytofarms, Inc.: Phytofarms, Inc. is an agricultural cooperative designed to support permitted commercial industrial hemp cultivators across the United States, and Canada.
- Med Cannabis Pharma (MCPI: Med-Cannabis Pharma, Inc. is a publicly-traded company focused on marijuana retail distribution, cultivation, and infused products in the emerging legal cannabis industry by investing in strategic asset growth through evaluating, financing, and purchasing.
Week Four Preview: Infused Products Market Opportunity in Cannabis
As we enter the final stretch of this program in week four, our coverage shifts to the most innovative and consumer-oriented group of the cannabis industry. Infused products have completely changed the way customers can access the benefits of cannabis, and sets the table for the industry to really gain traction into mainstream culture. In fact, many modern businesses in the cannabis today, particularly those in the infused product category, may be unrecognizable to those that haven’t been paying attention to this market the past several years. Be sure to come back next week as we dive in.
You can read more from our special program The Future of Cannabis here. To find out why Equities.com and Viridian Capital Advisors launched this program, be sure to read What is The Future of Cannabis? This program was made possible by the support of our sponsors. Click here for a full list of our sponsors.
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