International cannabis company jumps into the global 57 billion dollar cannabis market. Phoenix Life Sciences International Limited (OTCMKTS: PLSI) and the international cannabis market set to explode.
With cannabis stocks moving back into the spotlight in the heat of incredible money flows and market action over recent weeks, we have been obsessively looking out for sharp plays that the crowd has missed – stocks that fit a top-tier description, but that haven’t been picked up yet in the markets.
These stocks offer the most potential right now as we see it. And PLSI is the current king of that hill according to our analysis.
Learn More About PLSI at your brokerage today!
The company is one of the very few integrated players, with an end-to-end operational strategy that covers everything – farm to table – from cultivation of cannabis to distribution of refined products that span a fast-tracked pipeline attacking $1.14 trillion in total market footprint.
The company is also already global in its strategy, which may set it apart as well.
Company: Phoenix Life Sciences International Limited
Latest News: http://finance.yahoo.com/q/h?s=PLSI+Headlines
Company Website: https://plsi.co/
- PLSI is possibly the most impressive cannabis play that the crowd hasn’t found yet.
- PLSI is already working with federal governments and national healthcare systems.
- PLSI is starting to see major topline growth, with quarterly y/y revs increasing sharply.
- PLSI is coming off an RSI trough under 51, pointing to a massively oversold stock now heading back the other way.
- PLSI just recorded a MACD Bullish reversal, suggesting a technical change in trend.
- PLSI has developed a deep pipeline of cannabis treatment options addressing some of the biggest healthcare markets.
Phoenix Life Sciences International Limited (OTCMKTS: PLSI) is an adaptive healthcare solutions company. PLSI is in business to advance research and integrate programs and manufacturing of products that target and treat diabetes, pain, cancer, and address psychological, gastrointestinal, autoimmune, neurological and sleep disorders.
The company strives to create partnerships and integrate these programs for human health into communities worldwide as part of its Global Health Initiative.
According to company materials, “Phoenix Life Sciences International Limited is headquartered in Denver, Colorado. Over the past four years, many of our partner organizations have worked hard to develop and access a broad range of industry and pharmacology specialists. The partnership includes botanists, biologists, industrial and organic chemists, medical doctors, researchers, packagers and distributors. We are delighted to announce that in September 2018 we merged many of these partnerships and affiliations together under the name Phoenix Life Sciences International Limited. Without the support and collaboration of many individuals, this vision wouldn’t have been realized and we thank them for their global vision.”
As far as recent catalysts, the company just announced its common stock is now publicly traded in the United States, trading under the symbol OTC: PLSI and released some initial statements on its global production strategy for cannabinoid-based healthcare solutions.
According to the release, Phoenix Life, which is a consolidation of multiple domestic and international businesses including Stem BioScience, Inc., Blue Dragon Ventures, along with the MediJane brand, aims to be the premier global healthcare company that changes the way that many diseases and conditions are treated around the world.
“We are confident that we will be able to impact the health and wellbeing of millions of people around the world with our highly-sophisticated cannabis derived formulations and our unique production and distribution models,” said Martin Tindall, incoming Chief Executive Officer of Phoenix Life Sciences International. “I am excited to help guide the company to success and remain committed to the vision of life-enhancement through better healthcare.”
Following that announcement, the company also hit the wires to provide an update on the completion of merger documents with the Secretary of State in Nevada, as well as appointed a new renowned audit firm and retired a substantial amount of convertible debt.
As a part of the final steps of its merger that created Phoenix Life Sciences International Limited, documents were processed through the Secretary of State for Nevada. The documents, including form and certificate of merger, were received back by the company, leaving only this week’s boards of directors’ appointments in the finalization of the company merger.
In other words, it’s all systems go for PLSI at this point.
Which brings us to this very interesting chart. Shares of the stock have started to move with some bullish potential under the surface of the tape.
The stock recently broke out above its 200-day simple moving average on increasing volume. As noted above, the stock has one of the smallest trading floats we have ever come across (under 25k shares). That means any influx of buying interest will send this to the moon.
You can see a good example of this back in January of this year, when PLSI went from $2.50/share to $90/share in 6 days. That’s no joke. And it could happen from here given this tiny float and the increasing attention being paid to the cannabis space.
Remember, this is one of the only true global integrated cannabis players out there.
Phoenix Life Sciences International Limited (OTC:PLSI) is creating a global platform for the re-introduction of organic, plant based pharmaceuticals and programs for creating healthcare solutions and reducing total cost of national healthcare programs
“Our business is to advance research and integrate programs and manufacturing of products that target and treat; diabetes, pain, cancers, and address psychological, gastrointestinal, autoimmune, neurological and sleep disorders.
Creating partnerships for integrating these programs for human health into communities worldwide as part of our Global Health Initiative. Working with developing nations on programs to improve affordable healthcare and creating industry.
Phoenix Life Sciences uses organically produced plants, including cannabis, extracts the purist of active ingredients and encapsulates them for maximum bio availability and efficacy. Providing a patient-centric alternative to the low efficacy and the high side effects of conventional pharmaceuticals. Giving doctors and their patients an easy to take, easy to manage, accurately dosed natural healthcare solution.
Phoenix Life Sciences International is targeting to build production to service over 2.5 million patients over the next 5 years.”
Key Team Members:
Martin Tindall, CEO and Founder
Tindall has an extensive career in large scale organizational change. His career focus has been in the integration of technology with international trade and finance. Initially trained in accounting and commercial and company law, he has held various roles including Chief Information Officer at Bartercard, Executive Director of Kronos International Investments and particularly enjoyed environmental projects that deliver sustainability.
Starting Phoenix in 2013, after the death of his father from chemotherapy treating his pancreatic cancer, Tindall is devoted to providing advancement in the treatment of cancer, diabetes and other diseases using safe, non-toxic, plant based pharmaceutical solutions.
Janelle Marsden, Managing Director
Marsden has held senior roles across many industry sectors. Trained at a master’s level in construction, architecture and finance, she has been awarded senior roles over the past 20 years in both the public and private sector. Having lived in Australia, U.S. and Italy, Marsden has worked on large scale implementation projects and managed large agriculture developments. Marsden’s skills include agricultural grow, product implementation, organization and marketing. She has been the chair and board member of tourism, economic development and food and wine entities and has demonstrated her ability to drive and grow industries from the ground up. Marsden will also directly over see the infrastructure developments and ensure that Phoenix continues to meet its environmental, financial, timely and quality outcome.
Learn More About PLSI at your brokerage today!
This report is for information purposes only and is neither a solicitation or recommendation to buy nor an offer to sell securities. MMJreporter is not-a-registered-investment-advisor. MMJreporter is not a broker-dealer. Information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. MMJreporter accepts no liability for any losses arising from an investor’s reliance on the use of this material. MMJreporter has been compensated 25k for coverage of this stock by Phoenix Life Sciences International Limited this month. MMJreporter and its affiliates or officers currently hold 395,000 shares of this stock. MMJreporter and its affiliates or officers will purchase and sell shares of common stock of these stocks, in the open market at any time without notice. MMJreporter will not update its purchases and sales of these stocks in any future postings on MMJreporter’s websites. Certain information included herein is forward-looking within the context of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words “may”, “would,” “will,” “expect,” “estimate,” “anticipate,” “believe,” “intend,” ” project,” and similar expressions and variations thereof are intended to identify for ward-looking statements. Such forward-looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. *MMJreporter does not set price targets on securities. Never invest into a stock discussed on this web site or in this email alert unless you can afford to lose your entire investment..
The Next Big Thing In Cannabis With High Upside Potential
Core One Labs, Inc. (CSE: COOL); (OTCQX: CLABF): Better Bioavailability PLUS True Vertical Integration Puts this Company into a Class of its Own
In the rapidly-growing legal cannabis market, many investment opportunities can look very similar.
So when you discover a company that truly stands apart from the rest – it’s worthy of immediate attention.
That’s the case with Core One Labs, Inc. (CSE: COOL); (OTCQX: CLABF) – a company with an “unfair advantage” that right now appears to be the best way for investors to play California’s sustained legal cannabis growth.
Learn More About CLABF at your brokerage today!
What is the “unfair advantage” Core One Labs, Inc. has that no one else does?
Core One Labs, Inc. has removed every middle man from the equation in its business – achieving true vertical integration.
This from cultivation all the way through product delivery…the Company controls it all. This provides significant cost savings not only by reducing the middlemen… but also minimizing taxes that can drive product costs sky high in many cases.
So – much like a company selling technology, such as Apple – Core One Labs, Inc. manages the entire production and sales process from start to finish, selling directly to the consumer as opposed to selling to a retailer for a fraction of the price.
The Company’s flagship product – CannaStrips™, which are similar to breath strips – offer consumers cannabis-infused strips that are a safer, healthier option than any other form of delivery.
This is because – when compared to other forms of cannabis products, CannaStrips™ have a significant advantage in bioavailability.
It’s all thanks to a patented science that allows for a more consistent – and longer-lasting – customer experience compared to other forms such as edibles or vaping.
Core One Labs, Inc. offers a compelling combination of…
A safe, effective, patented cannabis product – CannaStrips™ — which is unlike any other on the market today…
Lower price points – just $1 per package – and higher margins than others in the cannabis space thanks to efficient production…
A true vertically integrated business model that allows the Company to control every aspect of the supply chain from seeds to delivery…
And the growth opportunities available in California – the world’s largest cannabis market.
Core One Labs, Inc. through its California wholly-owned subsidiaries has permits to cultivate, extract, produce, manufacture, transport, distribute and conduct retail dispensary sales, accompanied by home delivery of marijuana products for sale in California.
True Vertical Integration is the Key for Core One Labs, Inc. (CSE: COOL); (OTCQX: CLABF)
“Vertical integration” has become a buzzword in the cannabis industry – and something that is often an exaggeration when claimed by many companies in the cannabis sector.
The Company’s vertically integrated scientific approach includes total control of every aspect of its supply chain – from genetics, seeds, seedlings, cultivation, extraction, distillation and manufacturing.
This true vertical integration for Core One Labs, Inc. stands alone in the cannabis industry and offers the Company a powerful advantage in the market.
Core One Labs, Inc. controls its transportation, distribution and direct delivery, making it the most complete vertical integration in the cannabis sector.
Effective, Healthy and Convenient:
Core One Labs, Inc.’s CannaStrips™
Core One Labs, Inc.’s flagship product is CannaStrips™ — cannabis-infused strips that are a safer, healthier option than any other form of delivery.
Each fast-acting, sublingual dissolving strip has a consistent dosage and allows for a discreet and comfortable delivery system.
This convenient, effective and safe cannabis product is truly one-of-a-kind – and the company’s state-of-the-art growing technology and laboratory give Core One Labs, Inc. (CSE: COOL); (OTCQX: CLABF) the ability to provide an unmatched customer experience on a consistent basis.
Because Core One Labs, Inc. controls every aspect of the manufacturing and delivery process, CannaStrips™ is able to offer the consumer a precisely measured, consistent dosage.
CannaStrips™ — which are similar to breath strips – offer a delivery method that is not only convenient for consumption but is also more direct when compared to cannabis edibles, which are ingested.
Edibles are ingested…and in that process the blood containing the medication – including THC or CBD – is absorbed through the intestines and must first filter through the liver, where as much as 60% of the medication is removed from the bloodstream.
This process, known as FPM (First Pass Metabolism) can take up to 45 minutes and can be stressful to the liver.
CannaStrips™, on the other hand, offer a safe consumption method for the enjoyment of cannabis and its benefits. Each strip has a consistent dosage and allows for a discreet and comfortable delivery system.
The patented science behind CannaStrips™ is called Transmucosal Delivery of Biologically Active Agents.
To put it simply, this is a method for delivering biological molecules systemically – directly across mucous membranes – to make it easier for delivery and repeatability of dosage.
The CannaStrips™ extract is reduced to a micro particulate size and homogenized into a lipid encapsulation. This allows the active cannabinoids and terpenes to enter the bloodstream quickly through the buccal membrane of the mouth and remain in the bloodstream until receptors in the body are available.
CannaStrips™ offer an effective dosage with no liver involvement. The result is a consistent, precise and effective experience for each of the company’s five unique products:
Rêveur: A Luxury Brand of Superior Quality Live Resin
Smoking cannabis will always appeal to a certain number of consumers. To address this demographic, Core One Labs, Inc. (CSE: COOL); (OTCQX: CLABF) has developed Rêveur, a luxury brand line of superior quality live resin.
Through the superior quality of the extraction process, Rêveur live resin is created to contribute to a community of the urban professional living a refined lifestyle.
Rêveur is extensively lab-tested to be contaminate-free and contains a high percentage of cannabis-derived terpenes and THCA. Rêveur products are available in indica, sativa and hybrid strains.
Rêveur is the purest reflection of the plant’s essence, bringing beauty, sophistication and elegance to the world of cannabis concentrates.
Core One Labs, Inc. Offers Access to Unrivaled Expertise in 6 Critical Areas of Vertical Integration
By developing a solution to resolve the issues associated with pesticide-riddled cannabis products – and developing a truly vertically integrated operation – Core One Labs, Inc. (CSE: COOL); (OTCQX: CLABF) has become a game-changing company.
Core One Labs, Inc. has eliminated virtually every middleman mistake and cost margin in its operations.
This will translate into a superior product and customer experience as well as increased margins at every level of production and distribution with potentially significant increases in net profit margin.
Here’s a quick look at how Core One Labs, Inc. has eliminated third party excuses and developed a fully integrated market solution to produce superior products.
Step 1: Isogenic Nursery
Core One Labs, Inc.’s state-of-the-art genetics nursery has the capability to supply up to 60 contracted cultivators to grow its seedlings into mature, ready-to-harvest cannabis plants.
These plants have precise genetics for extraction and distillation to help produce CannaStrips™ formulations. The Company also generates additional revenue from the sale of seedlings to cultivators.
By controlling its supply chain from start to finish – beginning with the isogenic nursery – Core One Labs, Inc. ensures the highest quality ingredients are used for every product the company delivers.
Step 2: Multi-Level Cultivation
The Company’s cultivation system is unlike any other cannabis cultivation currently in operation today. The multi-level environment is controlled within one single degree of temperature variation and less than 2 percent of humidity variation continuously.
This is all accomplished with 170 tons of a proprietary air/humidity conditioning system and the entire environment is circulated through almost 300 feet of ultraviolet light every 3 minutes, significantly reducing the chance of contamination in the grow.
Core One Labs, Inc. controls the environment from purification of the water to each individual plant being monitored for all of its nutritional, water, temperature and pH needs.
Step 3: Extraction
Core One Labs, Inc.’s extraction permits allow for CannaStrips™ production and the production on behalf of third parties for white label products such as extracts for edibles, drops, vaping cartridges, sprays and topical ointments. Most cannabis products require cannabis extracts (oils) or distillate, which Core One Labs, Inc. can supply.
This capability will serve growing industry demand across the state of California as the need for high quality extracted cannabis oil increases with a price as high as $10,000 per liter.
Step 4: Distillation
Core One Labs, Inc. projects that its distillation activities will generate high margin revenues throughout 2019 and beyond.
The Company’s Cash Flow per Square Foot ratio value is 1 million dollars per 100 square feet ($1 million per 30.5 sq. meters) annually, a figure that is higher than any other industry in the world.
Step 5: Manufacturing
Core One Labs, Inc.’s production equipment is constructed from pharmaceutical grade stainless steel and built to FDA specifications. At a 40% run rate, the equipment has the capacity to produce 500,000 CannaStrips™ per day.
The packaging equipment is also constructed from pharmaceutical grade stainless steel and produces individually sealed, water resistant, shelf-stable, pharmaceutical grade and FDA-childproof compliant packaging. The packaging equipment is capable of meeting production capacity and producing 500,000 CannaStrips™ per day.
Step 6: Dispensary/Delivery
Core One Labs, Inc. (CSE: COOL); (OTCQX: CLABF) has a brick-and-mortar dispensary – the Highway 395 Dispensary – located within 100 meters of, and clearly visible from, California’s famous Highway 395.
This dispensary will be the flagship for CannaStrips™ and Rêveur’s promotional point-of-sale and direct delivery.
Over 120,000 vehicles will pass this dispensary every day on a stretch of Highway 395 that connects the eastern halves of Northern and Southern California.
In addition, Core One Labs, Inc. is launching its 420 Prime Delivery Service as part of the Highway 395 Dispensary.
This revolutionary new service will be able to receive online orders for cannabis products and deliver them directly to the customer’s home or place of business, thus removing all potential middle men and potentially increasing margins for the Company.
The 420 Prime Delivery Service allows for delivery of all types of products – not just Core One Labs, Inc. brands – directly to the consumer.
This revolutionary new delivery service will provide same-day delivery access to 39 million California residents – and 260 million annual visitors – making Core One Labs, Inc. an early favorite to claim the title of “The Amazon of Cannabis.”
The rapidly-growing legal cannabis market has created many opportunities for investors to consider. And the unique combination of factors working in favor of Core One Labs, Inc. (CSE: COOL); (OTCQX: CLABF) could make this company the single best way for investors to play California’s ongoing cannabis boom.
Here are 5 reasons investors should consider looking more closely at adding shares of Core One Labs, Inc. (CSE: COOL); (OTCQX: CLABF) in the early stages of this bull market:
1) Enormous California Market – California’s population of 39.3 million makes it the world’s sixth-largest market by itself and projections for rapid growth ahead in this market create significant upside opportunity for well-positioned companies.
2) True Vertical Integration – While many cannabis companies falsely claim to be “vertically integrated,” Core One Labs, Inc. (CSE: COOL); (OTCQX: CLABF) offers true vertical integration. The Company controls every aspect of its supply chain – from genetics, seeds, seedlings, cultivation, extraction, distillation and manufacturing.
3) Successful Flagship Product – Core One Labs, Inc. ’ flagship product – CannaStrips™ — are cannabis-infused strips that are a safer, healthier option than any other form of delivery available. And at just $1 per package, CannaStrips™ offer an affordable cannabis experience no other company can match.
4) Dispensary and Delivery– The Company’s new Highway 395 Dispensary – and its 420 Prime Delivery Service – provide an opportunity to serve even more customers while eliminating the middlemen associated with the retail process. This allows the Company to better manage its customer experience while also achieving higher margins.
5) Future Growth Potential – In addition to its activities in the California market, Core One Labs, Inc. (CSE: COOL); (OTCQX: CLABF) has also signed a letter of understanding with National Green Biomed Ltd. This agreement calls for the construction of a manufacturing facility in British Columbia, Canada which will incorporate all the technologies the Company has developed over the past five years into producing CannaStrips™ for global distribution.
This report is for information purposes only and is neither a solicitation or recommendation to buy nor an offer to sell securities. MMJreporter is not-a-registered-investment-advisor. MMJreporter is not a broker-dealer. Information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. MMJreporter accepts no liability for any losses arising from an investor’s reliance on the use of this material. MMJreporter has been compensated 40k for coverage of this stock by Core One Labs, Inc per month. MMJreporter and its affiliates or officers currently hold ZERO of this stock. MMJreporter and its affiliates or officers will purchase and sell shares of common stock of these stocks, in the open market at any time without notice. MMJreporter will not update its purchases and sales of these stocks in any future postings on MMJreporter’s websites. Certain information included herein is forward-looking within the context of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words “may”, “would,” “will,” “expect,” “estimate,” “anticipate,” “believe,” “intend,” ” project,” and similar expressions and variations thereof are intended to identify for ward-looking statements. Such forward-looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. *MMJreporter does not set price targets on securities. Never invest into a stock discussed on this web site or in this email alert unless you can afford to lose your entire investment.
California cannabis stocks take off after new July 1 regulations
Stocks jump as much as 105% in 30 days…and still rising!
Undervalued Chemesis International Inc. (OTC: CADMF / CSE: CSI) is the single best way for investors to play this fast-moving scenario.
While most cannabis investors are still looking to Canadian producers for big stock profits, the California pot market is starting to rise like a tsunami.
The savviest investors are jumping from Canadian cannabis stocks to catch the California wave. If you’re out for big profits, it’s time for you to jump in too.
Consider this. In the 30 days ending September 11, these California-focused cannabis stocks have given their investors returns that beat the market by an average of 29-to-1.
Returns since early August:
Chemesis Intl (CADMF) 150%
Solis Tek (SLTK) 105%
CannaRoyalty (CNNRF) 58%
MedMen (MMNFF) 55%
Sunniva (SNNVF) 34%
S&P 500 2%
It’s the beginning of the biggest new bull market today
No other industry today is recording these kinds of returns. Not technology, not Internet retail, not industrials or oil and gas. California-focused cannabis stocks are out-performing nearly everything else in the market, and this is just the beginning.
Legal sales of recreational cannabis began in California on January 1, 2018. The state gave sellers six months to become compliant with new regulations. By July 1 they had to be in strict compliance on purity testing, safety packaging, and content labeling of products.
Plenty failed to meet the stringent standards, and the state started shutting them down. But those that are compliant have seen their stocks soar as laggards are weeded out.
These companies are benefitting from what will soon be the world’s biggest legal cannabis market.
California will soon eclipse entire Canadian cannabis market
California is already the largest cannabis market in the world – by a long shot. ArcView Market Research estimates that the legal and illegal cannabis market in the state surpassed $8 billion in 2016. Newsweek puts the figure even higher at $13.5 billion. The California legal medicinal market alone is responsible for an estimated 62% of US sales.
Now, with legalization, much of the illegal sales will transfer to legal dispensaries, contributing to a growth rate for legal cannabis that is expected to compound at an annual rate of 23%. By comparison, the entire Canadian cannabis market is $4.2 billion.
It’s easy to see why California legal sales will surpass all of Canada’s. More people live in California than in all of Canada. And California’s GDP is nearly three times larger than Canada’s. That means there are more people to use cannabis and more money to buy larger quantities of it.
To put California’s massive cannabis market size in perspective, experts believe legal cannabis sales could surpass beer sales in the state by the end of 2019, topping $5 billion, and $6.5 billion by 2020.
All of which is why California-focused cannabis companies will grow the largest and will dominate the market for years to come.
For comparison, take a look at how cannabis legalization in Canada fueled investor profits.
Profits as high as 9,755%
Though medicinal cannabis has been legal in Canada since 2001, until 2014 it could only be purchased through the government. Laws were relaxed in 2014 to allow sales through private companies. That triggered a gold rush, and produced the first wave of cannabis stock millionaires. Investors saw returns as high as 9,755% in Abattis Bioceuticals and 9,150% in United Cannabis.
There’s no question that Canada’s cannabis stocks have made investors rich. In the last 12 months the Canadian Marijuana Index has shot up 291%, despite a dramatic pullback in January. The last three years has seen a 1,437% rise.
But for Canada-focused cannabis companies, the biggest gains are behind them. The market leaders have already been established. Now you will see a wave of consolidation as second-tier companies are bought up or go out of business, unable to compete with the geographic range and low production costs of the leaders.
That’s why savvy investors are turning to California.
A remarkably uncrowded marketplace
Savvy investors are buying up stocks like Solis Tek (SLTK), CannaRoyalty (CNNRF), MedMen (MMNFF), Chemesis International (CADMF), and Sunniva (SNNVF).
These are not only the dominant players in California, they are among the few players there. One of the reasons is because the new rules are making it harder for new companies to find their financial footing, with licenses and compliance for everything from product potency and zoning requiring the expenditure of tens of thousands of dollars. “Since all of the regulations went into place, now it takes a few hundred thousand to a few million to start,” said Kimberly Cargile, CEO of Sacramento retailer A Therapeutic Alternative.
Morgan Paxhia, founder of Poseidon Asset Management, notes that there are thousands of sellers in the state that have been put out of business because they don’t have the capital or expertise to meet regulatory requirements.
That leaves the enormous California market to a handful of companies that can afford the kind of investment required. Venture capital companies “want you to be holding several half-acre or 1-acre permits and licenses to even think about investing,” says one grower. “Most of the bigger guys, a half-acre grow isn’t going to make them the kind of money they want to make. They want something extremely large.”
One cannabis company that has what it takes to attract the kind of venture capital necessary to be a major player is Chemesis International (OTC: CADMF / CSE: CSI).
Deep-pockets challenger aims to be California’s biggest cannabis company
On August 7, 2018 Chemesis announced the finalization of a draw-down $25 million equity financing deal with Alumina Partners, a New York-based private equity firm. The financing is at the sole discretion of Chemesis, allowing the company to access funds as needed.
The financing is designed to protect shareholder value while the company aggressively grows its market share. Such major investments are rare for early stage companies, and serves as a validation of Chemesis’ business plan and growth strategy.
Terms of the deal allow Alumina Partners the purchase of up to $25 million in Chemesis units, consisting of one common share at a 15-25% discount to market price, and one purchase warrant at a 50% premium over market price, all at the exclusive discretion of Chemesis. There are no upfront fees or interest associated with the use of the financing.
Such robust financing is rare for cannabis companies doing business in California. For one thing, cannabis is still illegal on the Federal level. This has stopped many venture capitalists from wanting to participate in the market.
However, the tide is rapidly turning. Casa Verde Capital says that “the cannabis industry will be among the most compelling investment themes of our generation.”
Americans overwhelmingly support legalization
President Trump has promised to protect states that have legalized cannabis. His position was made clear in April of 2018 when he told Colorado Senator Cory Gardner that the state’s cannabis industry would not be targeted, despite the objections of Attorney General Jeff Sessions.
What’s more, in April, the US House of Representatives proposed legislation to loosen federal cannabis regulations. Even formerly staunch opponents are coming around, including former House Speaker John Boehner and conservative Republican congressmen Dana Rohrabacher and Tom Garrett.
More than half of US states allow some form of cannabis use, either medical or medical and recreational. By the end of 2018 that number could be more than three quarters.
They are responding to the will of the people: Americans, including Republicans, overwhelmingly support legalization.
For these reasons and more, venture capital company Alumina Partners bet big on Chemesis International. What they saw was a company that could dominate its market.
Says CEO Edgar Montero, “We are very well capitalized at this point. We have control of our destiny, which is very, very refreshing for our shareholders because now the leverage is on our side.”
Chemesis International (OTC: CADMF / CSE: CSI): First-mover advantage in the enormous California market
In marketing strategy, there’s a term called “first-mover advantage” that offers rare benefit to those companies that can claim it. It’s when a company is among the first key players in a new market or a new industry, and therefore are able to establish themselves before being overrun by competitors.
These companies are able to establish strong brand recognition, shore up the best sources of funding, and build a loyal customer base simply because there aren’t any competitors in the way during their first few years of operation.
Chemesis is one of the few fully compliant first movers in the California market. The company is vertically integrated, which means they are involved in every stage of the cannabis market from seed to sale. That includes cultivation, product manufacturing, branding, distribution, and retail.
The company also owns a state-of-the-art, fully state-compliant facility in Cathedral City, California that provides legal cannabis to a network of dispensaries throughout California.
Chemesis also owns 80% of SAP Global, a California producer with a 2,000 pound processing capacity that can yield as much as 200 pounds of compliant cannabis oil per day, which is substantial. SAP is known for its high quality, and has been the recipient of 26 awards in the past five years.
The producer is intended to provide Chemesis with a consistent revenue stream as the company invests its resources in aggressive growth strategies.
Chemesis also owns Desert Zen, a state-compliant cannabis manufacturing, packaging, distribution, and transport company with a large existing network of dispensaries and distributors throughout California.
Importantly, Desert Zen is able to track all products, monitor safety, and ensure that all seed-to-sale laws are followed throughout the entire supply chain.
Chemesis projects annual revenue from California operations of $61.5 by 2022, with a net income of $27.2.
But California isn’t the company’s only market where they have first-mover advantage.
Chemesis expands into second new market
Part of the company’s unique strategy is to be first-to-market as cannabis legalization expands globally. That was how they were able to establish an early presence in California. And it is why they have now expanded into Puerto Rico.
With medicinal cannabis now legal in Puerto Rico as of 2017, Chemesis has become a first-mover in that market. More than 20,000 patients have registered for medical cannabis in the first year in the territory.
Secretary of Health Rafael Rodriguez Mercado says that the market is “growing exponentially,” with approximately 500 new patients per week. The US territory’s treasury secretary says medical cannabis could generate up to $100 million a year in sales taxes.
In August 2018 Chemesis purchased an 80% interest in Natural Ventures PR LLC, a seed-to-sale medicinal cannabis company based in Caguas, Puerto Rico. Natural Ventures has operated since 2017, and is licensed to cultivate 100,000 square feet of cannabis.
Currently the company owns a 35,000 square foot manufacturing facility, and is producing oil-based products as well as edibles and other cannabis products. (Puerto Rico law restricts medicinal cannabis products to capsules, extractions, lotions, patches, edibles, flower, and oils.)
Chemesis expects their Puerto Rico operations to provide a significant revenue stream totaling $6.7 million in revenue by 2022, with a net income of $2.8 million.
Don’t miss your chance for oversize profits from California’s new recreational cannabis market
On July 1, compliant California cannabis companies put the pedal to the medal. With thousands of non-compliant sellers being wiped from the market, those that remain – the ones with deep-pockets financing and fully compliant facilities and products – will quickly rise to the top.
There are only a small number of them, like Solis Tek (SLTK), CannaRoyalty (CNNRF), MedMen (MMNFF), Chemesis International (OTC: CADMF / CSE: CSI), and Sunniva (SNNVF).
Chemesis International has distinct advantages. If you’re eager to get your share of big cannabis profits, take a close look at Chemesis (OTC: CADMF / CSE: CSI) today. And remember to always do your own due diligence.
High Times Holding Co. is on a Mission and Wants You to Be a Part of It
With such intense attention on the cannabis sector over the last few months, it should come as no surprise that the industry’s mascot, and perhaps its heart and soul, is looking to cash in as well. High Times, the iconic magazine and media property is looking to go public.
The actual entity in question here is High Times Holding Co., which was formerly known as Trans-High Corporation and changed its name to High Times Holding Co. in June, 2017. You probably know it as ‘that marijuana magazine’. The company has actually been around for nearly 45 years. And it’s apparently high time for a move onto the public markets.
Going to the Show
After filing for an IPO in January of this year, those plans were put on hold when it looked like prospects for raising enough in the deal soured. However, in June, the company announced it would be “launching an equity crowdfunding campaign ahead of its application for an initial public offering on Nasdaq later this year.”
Adam Levin, Chief Executive Officer of High Times said, “The campaign is intended to bolster the valuation of High Times Holding Corp while offering non-institutional investors greater access to shares than they would have in an IPO.”
For the offering, High Times set a price of $11 per share, 10% below the price the company expects the shares to trade on Nasdaq.
The company recently acknowledged that it would have to raise at least $14.7 million from the offering to live up to the Nasdaq’s stringent listing standards. They already have about $12.5 million committed from more than 9,000 investors.
Initially, in order to help open the spigots, the company suggested it would accept investments in Bitcoin. However, that plan was changed – without clear explanation. At this point, High Times will take fiat only, but through any means possible (checks, credit cards, ACH or wire transfers), as it strives to raise funds for subscription to is Reg-A+ share offering.
So, what do they need to get to the magic number? Remember, the parent company has a troubled balance sheet, with lots of debt on hand. So far, over half of its raised funds have gone to pay off creditors.
The answer is: more media exposure – it boils down to “Buzz”.
How to Get High
To get that done, the company recently entered into a “no cash” deal with iHeartMedia Inc (OTCMKTS:IHRTQ), a diversified media and entertainment company with a broad mainstream reach. According to the Wall Street Journal, iHeartMedia Inc “will trade up to $10 million worth of advertising inventory for a roughly 5% stake in the publisher of High Times, the 44-year-old marijuana magazine, offering the biggest U.S. radio broadcaster access to the nation’s growing number of cannabis consumers.”
“Cannabis at the end of the day is mainstream,” said High Times Chief Executive Adam Levin. “And iHeart has a huge mainstream appeal.”
In other words, Levin sees this as the deal that can take the High Times investment opportunity to the masses in a big enough way to generate what amounts to a rescue bid for ownership that is big enough to get the company public through the Reg A+ route and in position to meet Nasdaq listing criteria.
Given the buzz right now in front of the full legalization of the Adult-Use market in Canada expected to take effect later this month, and the $5 million to $10 million of ad inventory committed from iHeart, this is the right time to try this unique strategy.
What investors will be left with over the longer term is another question altogether.
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