For week four of The Future of Cannabis program, we took a closer look at the exciting infused products and extracts sector. Making up the largest portion of the Viridian Cannabis Index, infused products and extracts is also the sector where cannabis can truly begin to remold its image among the public. Not only does this sector offer the chance to remold the industry through the creation of a new consumer culture, it also provides inroads into the huge nutraceutical market. It’s an array of new opportunities that could help build an entirely new cannabis industry for the future.
That doesn’t mean there aren’t serious headwinds as well. These companies still have to handle the cannabis plant, meaning they’re also dealing with the “cash problem” created by federal prohibition. There are also issues with creating consistency in dosing, not to mention concerns at how the packaging of edibles can be made to ensure that cannabis products aren’t mistaken for simple snacks.
Equities.com and Viridian Capital Advisors spent the week breaking down all of the huge opportunities, and equally significant risks, that exist in the sector and helped provide any investor with the information he or she might need to make a decision, including interviews with industry insiders like Jeff Goh and Tripp Keber.
As always, you can take a look at the entire four weeks of The Future of Cannabis special feature series by visiting What is the Future of Cannabis?
Here’s a recap of everything we published in our Week Four focus on the infused products and extracts sector:
Week Four: The Infused Products and Extracts Investment Opportunity in Cannabis
Growing Popularity of Infused Products Pushing Cannabis into the Mainstream: In our final sector deep dive feature, we look at how infused products and extracts are building new markets and appealing to consumers that previously wouldn’t have been interested. Between improved quality in edibles, celebrity endorsements, a variety of new vaping products, and a toehold in the massive nutraceutical market, the opportunities for growth in this sector are potentially tremendous.
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
- Jeff Goh: The Cannabis Industry has Come a Long Way – Jeff Goh, President and CEO of Medbox (OTCQB:MDBX)
- Tripp Keber: 2015 Has Been the Year of Infused Cannabis Products – Tripp Keber, CEO of Dixie Brands
- Is Cannabis Ready to Go Cannabis Mainstream? – Steve Berg, CFO of O.penVAPE
- Momentum in the Cannabis Industry – with Tripp Keber, CEO of Dixie Brands
Sector Research: With so many different methods for extraction and means for consumption, the infused products and extracts sector offers up a wide range of potential for products. It’s also giving an opportunity for branding that previously didn’t exist for cannabis companies. Do you know the estimated value of the total brand equity of the 500 largest public companies by market cap is nearly $6 trillion?
Names to Know in the Infused Products and Extracts Sector:
- Golden Leaf Holdings (CNX:GLH): Toronto-based Golden Leaf Holdings produces and sells cannabis products created using CO2 extracted cannabis, including cannabis oil vaporizer cartridges, dabbables CO2 cannabis concentrate, and gummies and caramels.
- Cannabix Technologies (OTC:BLOZF): Based in Vancouver, Cannabix has a portfolio of breath testing technologies that can detect the presence of THC in breath.
- Mettrum Health (CVE:MT): Mettrum is engaged in research, development, production, and distribution of cannabis products. Wholly-owned subsidiary Oilseed Works, Inc. (OWI) is a licensed producer and processor through Health Canada.
- Nutritional High (CNSX:EAT): Nutritional High, which operates only in US states where their business is legal, focuses on developing, acquiring, and designing products in the edibles and oil extracts category for medicinal and recreational use.
- Lexaria Corp. (LXRP): Vancouver-based Lexaria makes teas enriched with hemp oil under the brand name ViPova through its subsidiary PoViva Tea LLC.
- Organigram Holdings (CVE:OGI): Oranigram, a licensed producer of medical marijuana through Health Canada, is committed to producing marijuana and marijuana products for medical use.
- The MaryJane Group (OTC:MJMJ): The Colorado-based MaryJane Group is the leader in the new canna-lifestyle hospitality industry, with two Bud+BreakfastTM locations where consumers can partake in cannabis consumption while enjoying top tier lodgings as a part of the budding canna-tourism industry.
In Conclusion: The Future of Cannabis Appears Strong
This brings to a close our special feature series The Future of Cannabis, but it’s only just the beginning for the legal cannabis industry. As we have dug into over the last four weeks, the public perception of the plant has changed a great deal and continues to change rapidly. A majority of Americans and Canadians now believe that cannabis should be legalized for recreational use in their country.
So, with legalization increasingly appearing to be a question of “when” rather than “if,” the opportunity that currently exists in the cannabis space is potentially a once-in-a-lifetime situation. Investors with a healthy appetite for risk are not likely to find any sector with greater potential for massive returns.
So, just like Joe Kennedy made a chunk of his considerable fortune by anticipating the end of prohibition and snapping up liquor distribution rights before their value was obvious, investing in the cannabis space now, while carrying tremendous risk, could also mean getting in on the ground floor of the next Budweiser (BUD). So keep coming back to Equities.com to get all the information you need to make an informed decision about whether you want to be a part of the future of cannabis.
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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