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Will McKesson Make Maricann Canada’s Next Unicorn Stock?

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Now you can add McKesson to the list of major corporations taking a stake in the legitimate marijuana industry with a recent deal to partner with medical marijuana grower Maricann (CNQ:MARI).

Suddenly, the formerly quiet grower that didn’t even have a stock market listing until this April is becoming the most talked about company in Canada’s medical marijuana universe.

The McKesson deal is just one of the major events pushing it into the spotlight, but it’s the one that has immediate upside potential.

McKesson, with $199 billion in annual sales, is the largest pharmaceutical distributor in the US and Canada. Its McKesson Canada division controls about 20% of Canada’s pharmacies. Ultimately the Maricann deal, which was announced quietly in August, will make Maricann the exclusive grower to supply medical marijuana products in McKesson’s five retail pharmacy chains.

Maricann Prepares to Take a Big Slice of the Market

Dundee Capital predicts that Canada’s medical marijuana sales will reach $3 billion by 2024.

Maricann is already selling direct to patients. That was a $4 million business last year, when the company first got approval from Health Canada. The company projects sales at $23 billion business next year (2018).

Now, with the McKesson venture, Maricann is preparing to sell product through regular pharmacies as well. This is likely to attract patients who prefer to buy medical marijuana near where they live, just as they do with their other medical supplies. With the two strong distribution channels at its command, you can see why Maricann stands ready to take a sizeable slice of Canada’s medical marijuana market.

The McKesson deal wasn’t the only startling news lately.

This fall, Canaccord Genuity named Maricann as its “Top Pick” among marijuana stocks

In the young marijuana business, a Canaccord blessing is like having angels proclaim its greatness. Canaccord is one of the three most influential investment banks in Canada’s marijuana industry. Its in-depth industry reports are widely read and followed. In the past, Canaccord has thrown its weight behind companies like Canopy Growth, Aurora Cannabis and Aphria—all of which have reached “unicorn” status, as companies with $1 billion or higher market caps.

That the Cannacord “Top Pick” rating came before news of the McKesson deal should give you an idea how strongly industry insider feel about Maricann’s outlook.

The real hint that Maricann was about to join the big leagues, though, came in June.  That was when MJIC added Maricann to both the North American Marijuana Index (35 public companies) and the Canadian Marijuana Index (18 companies). That’s very high profile.

And all this was hardly digested before news broke the next bombshell….

Maricann Is Fast approaching a 10X Canadian Expansion  

Maricann is definitely taking its place among the big growers already.

At present, it is operating from a 46,000 sq. ft. facility in Langton, Ontario that can produce about 2,200 kg of marijuana per year. But this is increasing rapidly.

Maricann is another 800,000 sq. ft. of growing space at that site. At full expansion, the Langton facility will be capable of producing 100,000 kg of marijuana.

The first phase of this expansion should be completed this winter.  That means that within six months, Maricann will be capable of adding another 25,000 kg to its annual production—about 10X what it’s growing now.

All systems are go. On Nov. 8, Health Canada lifted Maricann’s growing limitations at the Ontario operation and the new Maricann license increases its permitted capacity to 6,250,000 grams of marijuana on site at any one time.

This upgrade presents a 480% increase in production capacity for Maricann—above the full extent of the expansion that is currently being built, that is.

Germany Is Maricann’s Differentiator

Maricann stands out from the pack on several counts, but none more than its foray into the European markets.

In Germany, MARI has an option to buy an existing facility near Dresden that it will  convert to an indoor grow house. It’s a huge space—a 1.5 million sq. foot building in excellent condition that was formerly a Cargill meat packing plant.

The new German facility is almost twice as large as the Ontario expansion plans, and it should be ready to use within months.  If Maricann can achieve the same yields per square foot it is getting in Canada, the German operation could add another 47,000 kg to annual production–more than 20X what MARI produced last year.

Germany only recently approved medical marijuana, but there were no German companies ready to produce. Maricann, with its experience will likely be the first approved company to produce medical marijuana in Germany. This is a lead it’s likely to keep, too, because Germany only plans to issue 11 growing licenses. One of them will certainly have Maricann’s name on it.

Maricann Competes Hard on Cost, Too

As it builds out its added capacity, Maricann is perfecting its growing system so that it will be able to position itself as one of Canada’s lowest-cost producers. The company expects it will be able to produce high-grade medical marijuana at just  $1.34 per gram ($38 per ounce).

Even as medical marijuana prices fall, Maricann will easily remain profitable and very capable of undercutting most, if not all, its competitors.

 

Looking Ahead… A New Drug, More Growth, Enormous Value

The McKesson deal, Cannacord’s blessing, approval for more production…. All that should be more than enough to interest any investor, but the news just keeps coming.

In August, Maricann agreed to acquire NanoLeaf Technologies, a biotech that holds a number of licenses for pharmaceuticals and cosmetics. What that brings to MARI is the potential to market the first ever marijuana in a gel cap with verified standard dosages.

Nobody else has that. Maricann expects that the gel caps will be ideal for medical delivery of cannabis oils, which it produces at its Ontario facility.

But perhaps the most compelling reason for investors to load up on Maricann is that this well-financed, strongly growing company is also deeply undervalued. Based on revenues, it is selling at a 50%-60% discount to its marijuana industry peers.  On earnings to economic value basis, it’s at a 47% discount.

Cheap stock, strong growth, and industry respect—there’s a lot to love about Maricann.

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Smart Cannabis (OTCMKTS:SCNA) Forays Into Retail Sales Of Hemp And Cannabis To Enhance Growth And Reward Shareholders

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Smart Cannabis (OTCMKTS:SCNA) has forayed into the retail sales of hemp and cannabis to enhance the growth and boost value for the shareholders. It is on the backdrop of the recommendation of its Interim Chief Executive Officer, Mark Cheung, to enter the retail sales business because the company is already into a greenhouse business.

Smart Cannabis acquires Budding Botanicals

Smart Cannabis acquired Budding Botanicals as of October 1, 2019, and merged it with its subsidiary – Next Generation Farming Inc. Budding Botanicals is engaged in the sales of hemp and CBD products online. It is also selling these products through Southern Californian pop-up locations.

Mark said the company is pleased to unveil hemp and CBD retail operations. He further said this new initiative helps the company to enjoy rapid growth in cannabis and improve value for the shareholders going forward.

Builds Type 6 cannabis extraction facility

Next Generation Farming, a subsidiary of Smart Cannabis, entered a pact to construct a type 6 cannabis extraction facility. The new facility is to operate the sub-zero extraction methods. It will also develop software for managing online distribution.

Secures contract for expanding cannabis cultivation

Smart Cannabis has secured a contract for expanding the cultivation of cannabis in Yolo County, California. Its subsidiary – Next Generation Farming has recently revamped eight greenhouses in Yolo County and installed its Smart App. As part of the expansion contract, the company will expand the cultivation to 60,000 Sq. Ft. It will modify the facility to reduce the threat of airborne hemp seeds cross-pollination with the cannabis crops.

Smart Cannabis has previously retrofitted the greenhouse facility (24,000 Sq. Ft.) in Yolo County, California. It also equipped the facility with its Smart app technology to ensure the yield of high-quality cannabis in high volumes all over the year.

Adds Mr. Freitas to its advisory board

Smart Cannabis added Mr. Freitas to its advisory board in April 2019. He is working with its subsidiary – Next Generation Farming, since 2017. Freitas played a critical role in several of the projects. He contributes expertise in the field of construction, scheduling, cost estimation, design, site improvements, structures, and maintenance of buildings.

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The US FDA Supports Tetra Bio Pharma Inc (OTCMKTS:TBPMF) with A Favorable Letter Of Advice To Proceed With The Development Of QIXLEEF

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The US Food and Drug Administration has supported Tetra Bio Pharma Inc (OTCMKTS:TBPMF) with a favorable letter of advice to advance the development of QIXLEEF, which provides relief from uncontrolled pain for adults.

Shows commitment of US FDA

Chief Regulatory Officer and Chief Executive Officer of Tetra Bio, Dr. Guy Chamberland, said the company is excited to receive a favorable letter from advice (LOA) from the US FDA. It shows the commitment of the US FDA to give the nod for this botanical drug to cure chronic pain on achieving positive quality and human clinical data.

The LOA from the US FDA encourages Tetra Bio to advance the development of QIXLEEF to treat chronic pain in patients who have cancer. CEO also said LOA confirms the previous commitment of the FDA to develop and commercialize QIXLEEF to cure non-cancer pain and cancer pain as a second or third line of therapy.

FDA gives in-depth guidance to Tetra Bio

The US FDA gave in-depth guidance to Tetra Bio on January 26, 2017, on advancing QIXLEEF development. Now the recent LOA provides new guidance to Tetra Bio considering the safety and clinical progress of QIXLEEF concerning quality and effectiveness and issues the guidelines for approval to market the drug for non-pain and cancer pain indications.

Commenting on the receipt of LOA from the US FDA, Dr. Guy said the collaboration with FDA is excellent and helps the company to develop prescription drugs complying with laid out requirements for pharmaceutical products.

The demand for pain management is $130 billion

The demand for pain management across the world is expected to reach $130 billion by 2023 from $60 billion in 2016. The pain management drug list comprises medications for chronic back pain, cancer pain, fibromyalgia, neuropathic pain, Migraine, Postoperative Pain, and Arthritic Pain. Dr. Guy said the company is confident of developing QIXLEEF for pains beyond cancer pain. It can be used as a third or second-line therapy to get relief from pain.

Health Canada grants two OTC DINs

Health Canada has granted two over the counter drug identification numbers for Tetra Bio. The company will market the new drugs under the banner TERPACAN by mid-2020. It will also introduce these new products in Europe and the US markets this year.

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American Green Inc (OTCMKTS:ERBB) Expects To Post Revenues Of Over $500,000 In 2020 On Continued Demand For High CBD In The US

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American Green Inc (OTCMKTS:ERBB) is riding on continuous demand for high-quality CBD in the US. It expects to post revenues of over $500,000 this year. Several people in the US see CBD as a pain-relieving solution. Therefore, it expects to drive demand for the use of cannabidiol going forward.

The demand for CBD in the US is $2.75 billion

According to Nielsen, a data measurement authority, the demand for cannabidiol is expected to reach $2.75 billion in 2020. American Green is a reputable company to deliver high-quality CBD at affordable rates. It is backed by excellent customer service, competitive pricing, easy payment alternatives, and easy-to-use website.

Easy to select the right CBD product

Vice President (CBD sales worldwide) of American Green, Kevin Davis, said the American Green Store boasts over 100 premium products allowing the customers to choose the right product with ease. The customers can seek the help of an in-store service representative, live chat, email support, or phone support to choose appropriate CBD product.

Davis said the company is maintaining long-term relationships with its distributors and customers alike after opening the first store three years ago. He further said the company’s executives are helping the customers to select the right product to meet their needs via phone or email.

Affordable pricing

Customers are price conscious in the CBD space. American Green is enjoying the repeat customers because of affordable pricing. The company is maintaining the highest product quality despite selling at reasonable prices.

American Green Smart Vending Machines

American Green is excited that its Smart Vending Machines are purchased by Earthly Mist and installed at several Oklahoma dispensaries. LeJuan, a representative of Earthly Mist, said many customers its smart vending machines because they allow the dispensaries to add a self-checkout feature. Therefore, customers can enjoy the convenience and additional security with American Green Smart Vending Machines.

It has introduced a biometric feature in smart vending machines to allow only qualified customers. Earthly Mist can examine and track the sales using the smart vending machines, which comes with easy to navigate touch screen and robust interface. The company is pleased to use the world-class identification technology at its dispensaries.

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