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ABcann Global (TSX.V: ABCN) (OTCQB: ABCCF)

PostPosted: Mon Aug 14, 2017 4:21 pm
by QualityStocks
ABcann Global (TSX.V: ABCN) (OTCQB: ABCCF) ABcann Medicinals, Inc. is a globally licensed, cost efficient producer of premium quality organic standardized medicinal cannabis. One of the earliest licensed Canadian medical marijuana producers under Canada's federally-controlled Access to Cannabis for Medical Purposes Regulations (ACMPR), ABcann has five years of operating experience in the burgeoning medical marijuana space. The company currently owns and operates a fully functioning 14,500 square foot facility in Napanee, Ontario. Additionally, ABcann owns 65 acres of real estate with proper zoning and existing infrastructure in place to support the construction of another production facility of up to one million square feet.

In a November 2016 report, market research firm Canaccord Genuity Group forecasted that the medical marijuana market in Canada could see sales in excess of $8 billion by 2024, creating a sizable opportunity for the country's licensed producers (LPs). The research firm also noted that the "rigorous process of becoming a licensed producer of cannabis in Canada imposes significant barriers to entry and there will be a shortfall of supply in a legalized market in the short-term." This market barrier serves as a strategic advantage for ABcann as it prepares for its highly-anticipated IPO, which is currently scheduled for April 2017.

Canaccord's synopsis of the Canadian cannabis industry is supported by recent market activity, as companies sporting one of the illustrious Canadian government licenses for medicinal production have recorded strong growth following IPO. Canopy Growth (OTC: TWMJ), one of the largest fully-licensed Canadian marijuana growers, saw share prices skyrocket by more than 700 percent in the months following its initial offering. Aphria Inc. (OTC: APHQF), another licensed grower, climbed by more than 900 percent following its IPO. Other companies that have recorded huge growth since going public include Aurora Cannabis (OTC: ACBFF), climbing nearly 900 percent, and SupremePharma (OTC: SPRWF), which soared more than 1,300 percent.

With these market trends in mind, ABcann's impending IPO is one that prospective investors in the marijuana sector will want to explore. Recalls from some of the biggest players in the Canadian cannabis industry have highlighted the considerable learning curve that LPs face in today's market, which makes ABcann's proven track record in the market all the more noteworthy. The company has built a reputation over the years for its best-in-class standardized approach to growing cannabis, including the thoughtful omission of pesticides and a computer monitored growing technique that allows ABcann to minimize the risks of variance in its yields and ensure the creation of consistently high-quality products.

This technique, which the company calls the ABcann Advantage, has helped it record a customer retention rate of 94.7 percent alongside 30 percent month-over-month customer growth. When combined with ABcann's current yield rate, which it has measured at roughly 100 percent greater than the industry average, the company has constructed a strong foundation upon which to build a sizable presence in the global cannabis industry. This global growth potential is illustrated by ABcann's partnership with Israel's Syqe Medical, producer of the world's first selective-dose pharmaceutical grade medicinal plant inhaler. After visiting the company's production facility, Perry Davidson, founder of Syqe Medical, noted that ABcann's production technologies put it "in a class with the best in the world" in its ability to produce standardized pharmaceutical grade cannabis.

ABcann's entry into the public sector is being guided by a seasoned management team, board of directors and advisory board that feature well over a century of combined industry experience. Ken Clement, the company' founder and executive chairman, has been the key component and driving force behind ABcann's development since its inception. His vision of standardized production and dosage sets ABcann apart in the medical cannabis sector. Clement is joined on the company's management team by CEO Aaron Keay. Keay brings more than a decade of capital markets experience to ABcann, having played a role in raising approximately $250 million for public and private market issuers.

Notably, ABcann also has access to the 'Father of Cannabis Research', Raphael Mechoulam, PhD, through its board of advisors. An organic chemist and professor of medicinal chemistry at the Hebrew University of Jerusalem, Mechoulam was the first scientist to isolate both cannabidiol (CBD) and tetrahydrocannabinol (THC), and he has received more than 25 prestigious academic awards, including the Rothschild Prize in Chemical Sciences and Physical Sciences in 2012.

With more than 65 acres of growth capacity, a healthy cash balance to fund upcoming construction efforts, steady sales growth, industry-leading yield rates and an established operations team in place, ABcann is well-positioned to compete in the rapidly-expanding Canadian medicinal cannabis industry. These factors, along with the company's ongoing global expansion into the European, Australian and Israeli markets, show why ABcann Medicinals' upcoming public offering fits the bill as "Canada's Next Medical Marijuana IPO."

Re: ABcann Global (TSX.V: ABCN) (OTCQB: ABCCF)

PostPosted: Mon Aug 14, 2017 4:58 pm
by QualityStocks
ABcann Global Corporation (TSX.V: ABCN) (OTCQB: ABCCF) Looks Strong for Investors in Booming Canadian Cannabis Market

- ABcann’s low current market cap compared to similar companies offers an obvious opportunity for investors
- ABcann Global is one of Canada’s most dominant growers of medical marijuana and one of the growers to meet Canadian government’s stringent licensing requirements
- Major expansion of ABcann’s production capacity is underway

An interesting opportunity for investors can be found in ABcann Global Corporation (TSX.V: ABCN) (OTCQB: ABCCF), a Canadian grower of medical marijuana. ABcann recently acquired ABcann Medicinals and boasts a recent IPO, appointment of a new medical consultant, and major expansion plans.

ABcann is new to the public market, having launched its initial public offering on May 4. However, the company is one of the most experienced Canadian growers. ABcann is one of Canada’s dominant medical growers, producing organically grown, pesticide-free medicinal-grade marijuana using scalable, proprietary growing technology, which allows the consistent generation of high-quality products.

The company’s low current market cap offers an obvious opportunity for investors, as ABcann compares well with other companies in the industry. For example, Supreme Pharmaceuticals has a market cap of $250 million, and Hydropothecary Corp. is valued at $150 million. Emblem Corp. – with the same size growing facility as ABcann – is valued at $200 million.

ABcann’s expansion plans are ramping up, and its proprietary, advanced growing technology is highly scalable. A new chamber is planned for the company’s current facility in Napanee, Ontario, which currently produces 1,000 kilograms annually.

In addition, land has already been purchased for a new 71,000 square-foot facility which will have a production capacity of 20,000 kilograms each year – 20 times ABcann’s current production. In further plans, a 65-acre property for a planned 1.2 million square-foot growing facility is ready for development.

One of the first companies to obtain a production license under Canadian Marijuana for Medical Purposes Regulation, ABcann acquired a license in March 2014. Only three percent of companies that apply for a license make it through the extensive six-step process, which requires a comprehensive background check and prior investment in a growing facility.

In July, ABcann announced its inclusion in the Horizons Medical Marijuana Life Sciences ETF (TSX: HMMJ). The ETF index selects companies with operations in biopharmaceuticals, medical manufacturing, distribution, and other marijuana industry services.

In June, the company announced the appointment of Dr. Michael Shannon as chief medical consultant. Shannon brings a long history of health care experience in the private and public sectors and joins an all-star management and advisory team which includes Dr. Raphael Mechoulam, a professor of medicinal chemistry at Hebrew University of Jerusalem who is widely regarded as the “Father of Marijuana Research.”

For more information, visit the company’s website at www.ABcann.ca

Re: ABcann Global (TSX.V: ABCN) (OTCQB: ABCCF)

PostPosted: Tue Aug 15, 2017 5:03 pm
by QualityStocks
Green Rush taking Hold in Canada as US Lawmakers Continue to Spin Tires

NetworkNewsWire Coverage: The North American marijuana market is growing at rates that are similar to those recorded by broadband internet in the 2000s. This stunning comparison, noted in a 2017 report by Arcview Market Research, highlights the potential short-term and long-term effects of what many analysts are referring to as the “green rush.” ABcann Global Corp. (OTCQB: ABCCF) (TSX.V: ABCN) (ABcann Profile) is one company looking to make the most of the opportunities presented by this growth. With a strong cash position and plans to implement one of the most aggressive expansion plans in the industry, ABcann could be the next in a long line of cannabis stocks that have exploded in value in recent years. Some examples include Canopy Growth Corp. (OTC: TWMJF) (TSX: WEED), which rose by more than 700 percent following its initial public offering; Aphria, Inc. (OTCQB: APHQF) (TSX.V: APH), which spiked from C$0.75 at IPO to a high of C$6.60 earlier this year; Supreme Pharmaceuticals, Inc. (OTC: SPRWF) (TSX.V: FIRE), which soared by over 1,600 percent after its IPO; and industry investment firm Cannabis Wheaton Income Corp. (OTC: KWFLF) (TSX.V: CBW).

According to Arcview data, the North American cannabis sector is currently on pace to achieve a compound annual growth rate of 25 percent through 2021, when the market is expected to top $20.2 billion. “What broadband changed for the internet was a kind of remarkable parallel to legalization for cannabis,” Tom Adams, editor in chief of Arcview Market Research, stated in an interview1 with Business Insider. “We saw what had been a $5 billion industry — like this one — in North America take off at that point on new growth spurts.” These parallels are promising for investors looking to capitalize on the ongoing cannabis boom. In early 2000, Pew Research Center2 found that just one percent of U.S. adults had access to home broadband services. Today, nearly three-quarters of U.S. adults have broadband service at home.

While a considerable amount of the focus on North American marijuana legalization remains on the unpredictable U.S. market, it presents a number of challenges that put growers and their investors in an uncomfortable position. Although 29 states and the District of Columbia currently have laws broadly legalizing marijuana in some form, these markets operate in a sort of legal gray area that directly contradicts with existing federal laws stemming from the Controlled Substances Act (CSA). Passed in 1970, the CSA identifies marijuana as a Schedule I substance with a high potential for abuse3 and no currently accepted medical use. As such, industries operating across state lines, most notably banks and other financial institutions, have largely steered clear of the promising sector. Despite nationwide sales of $5.4 billion in 2015, according to The Arcview Group, banking options for these budding U.S. businesses have remained few and far between. A 2017 survey by the California Growers Association found that 75 percent of its members didn’t have a bank account, and this dearth of banking options extends to markets across the country, according to a survey by Marijuana Business Daily.

These banking complications present concerns regarding both the safety and sustainability of U.S. marijuana markets, and they’ve been compounded in recent months by inconsistent rhetoric from the current presidential administration. In June, the Washington Post reported4 that Attorney General Jeff Sessions requested that congressional leaders undo federal medical marijuana protections that have been in place since 2014. Sessions went on to cite a “historic drug epidemic” as justification for a planned crackdown on medical marijuana. Though the protections, known as the Rohrabacher-Farr amendment, were extended through September 30, 2017, as part of a spending bill signed into law in early May, the current administration’s efforts to “crackdown” on state cannabis programs continues to cast a shadow of unpredictability on the industry, adding an inescapable level of risk for the investment community.

While the U.S. cannabis market continues to evolve, Canada is currently preparing to legalize recreational marijuana at the federal level, becoming the first G7 country to do so. The new law, set to come into effect on July 1, 2018, will expand upon a booming medical marijuana market led by a number of licensed growers. Because licensing for growers is completed at the federal level, the number of licenses is limited, preventing the space from becoming oversaturated and enabling companies to record rapid and sustainable growth. As noted by Canaccord Genuity Group Inc. in a November 2016 report, “The rigorous process of becoming a licensed producer of cannabis in Canada imposes significant barriers to entry and there will be a shortfall of supply in a legalized market in the short-term until production capacities catch up by 2020.” The report goes on to forecast that Canadian cannabis sales could exceed $8 billion by 2024.

Many Canadian cannabis growers have already experienced sizable share price increases in recent years, but one company that could be on the verge of a significant uptick is ABcann Global Corporation. At just over three months old and having completed its U.S. listing on the OTCQB Venture Market on July 13th (http://nnw.fm/BTh41), ABcann is firing out of the gate with approximately $43 million in cash in its coffers, 100 percent ownership of a 65-acre parcel of land upon which to construct expansions to its operations and a completely licensed and fully operational production facility with annual production capacity of about 1,000 kilograms of cannabis.

At the heart of ABcann’s expansion effort is its advanced growing technology, which not only creates a consistent, organically grown, pesticide free standardized product, but also brings down costs through the use of exclusive, computer-controlled environmental systems. By monitoring every variable in the growing, curing and harvesting processes, the company is able to produce yield quantities that significantly exceed those produced through traditional growing techniques.

Unlike many of its U.S. counterparts, ABcann has found early success in attracting investors thanks in part to the predictability of the Canadian market. On August 2, the company announced (http://nnw.fm/aVAL7) the close of an initial $15 million investment by Cannabis Wheaton Income Corp., the world’s first cannabis streaming company, as part of a larger phased investment to fund an additional 50,000 square feet at ABcann’s second production facility at its 65-acre Kimmett property in Napanee, Ontario. Plans for this facility, in addition to the company’s current construction plans for a 100,000 square foot purpose built facility at the Kimmett property, position ABcann to expand at a rate that’s unparalleled in the Canadian cannabis industry. It’s important to note that Cannabis Wheaton’s valuation of ABcann comes at a 160% premium over the company’s current share price of $0.68. Cannabis Wheaton paid $2.25 per share – $15 million cash – in a $30 million financing, the remaining $15 million of which is expected to fund an additional production with ABcann.

Understanding ABcann’s potential upside is most easily accomplished by studying its competitors in the Canadian market. Because the Canadian government limits the number of cannabis production licenses granted under the Marihuana for Medical Purposes Regulations (more than 1,600 companies have applied to become licensed producers since 2013, with only 19 winning LP status from 2013-2014), the market maintains extremely high barriers to entry. These barriers helped propel Canopy Growth Corporation from a share price of C$2.20 at IPO in May 2014 to a high of C$17.86 for its Canada-listed stock in November 2016, when it became Canada’s first billion dollar marijuana stock. Today, Canopy is one of the biggest growers in the world, boasting indoor and greenhouse production facilities spanning over half a million square feet and a collection of brands such as Tweed, Bedrocan and Mettrum. Canopy’s emergence as one of the world’s leading diversified cannabis companies comes as the firm continues to steer clear of the U.S. market. As it noted in an August 4 news release, Canopy is committed to only conducting business in jurisdictions where it is “federally legal to do so,” in an effort to avoid “being exposed to undue risks.”

Aphria Inc. is another player in the Canadian cannabis industry that has experienced tremendous growth since going public in November 2014. The company’s products, which include capsules, oral solutions and vaporizers featuring 100 percent greenhouse grown medical cannabis, have propelled it to the forefront of the global medical cannabis industry. Aphria’s PPS for its Canada-listed shares hit a high of C$7.79 in November 2016 just before it closed on an offering generating gross proceeds of C$40.25 million to fund further expansion efforts. To date, the company has raised more than C$160 million while recording seven consecutive quarters of positive EBITDA and continuing to expand its production capacity. Unlike Canopy Growth Corporation, Aphria is also eyeing the unpredictable U.S. cannabis market. On April 4, Aphria announced the launch of a U.S. expansion strategy through a lead investment in an entity to be renamed Liberty Health Sciences Inc.

Another Canadian cannabis grower that’s recorded huge gains since going public is Supreme Pharmaceuticals, Inc. Since its IPO in February 2014, Supreme’s Canada-listed shares have soared by over 1,600 percent, climbing to a high of C$2.05 in November 2016. Beginning with 7ACRES, a federally approved medical marijuana company operating a hybrid greenhouse production facility, Supreme has taken a unique approach to establishing a foothold in the Canadian cannabis market. In 2015, the company focused its business model on its strength in cultivation by becoming the country’s first B2B-focused licensed producer. More recently, on June 1, Supreme announced the listing of its common shares on the TSX Venture Exchange, graduating from the Canadian Securities Exchange, in an effort to facilitate further growth.

The Canadian cannabis market has shown to be a fertile proving ground for growers with the resources, leadership and licenses required to compete. ABcann’s strong management team led by CEO Aaron Keay and chairman and founder Ken Clement, alongside its outstanding advisory board headed by the “Father of Cannabis Medicine” Dr. Raphael Mechoulam, has positioned the company to follow in the footsteps of competitors like Canopy Growth Corporation, Aphria Inc. and Supreme Pharmaceuticals. Cannabis Wheaton Income Corp. has already provided a vote of confidence for ABcann’s chances in the form of a $15 million investment, and ABcann’s aggressive expansion strategy has earned it a ‘Buy’ rating and a price target of $2.25 from PI Financial. With the company still trading for less than many of its competitors did before recording huge increases to their share prices, ABcann should be on the radar of any investor looking to capitalize on the North American marijuana boom. As noted in an article published by CNBC, “Now is the right time to bet big on marijuana… [as] the pot industry is poised to be gigantic.”

Editorial Sources:
1) Business Insider: http://nnw.fm/Q4UKl
2) Pew Research: http://nnw.fm/m0OG5
3) Drugs.com http://nnw.fm/3UhrB
4) Washington Post http://nnw.fm/J46mL

For more information on ABcann Global please visit: ABcann Global (TSX.V: ABCN) (OTCQB: ABCCF)

Re: ABcann Global (TSX.V: ABCN) (OTCQB: ABCCF)

PostPosted: Wed Aug 16, 2017 5:36 pm
by QualityStocks
Investors Eye Sweet Spots in Canada’s Booming Cannabis Market

NetworkNewsWire Editorial Coverage: Canada is the mecca of the North American cannabis market, boasting legalization in every province and an array of investment opportunities, such as ABcann Global Corporation (TSX.V: ABCN) (OTCQB: ABCCF), a Canadian grower of medical marijuana. ABcann recently acquired ABcann Medicinals and boasts a recent IPO, appointment of a new medical consultant, and major expansion plans. As one of Canada’s most dominant growers of medical marijuana and one of the growers to meet the Canadian government’s stringent licensing requirements, ABcann could be positioned to see the post-IPO success achieved by Supreme Pharmaceuticals, Inc. (OTC: SPRWF) (TSX.V: FIRE), Emblem Corp. (OTC: EMMBF) (TSX.V: EMC), Canopy Growth (OTC: TWMJF) (TSX: WEED) and Aurora Cannabis (OTC: ACBFF) – all of which showcased astounding post-IPO gains in the favorable North American cannabis sector.

Ontario-based ABcann Global made its debut on the public market in May 2017 with an IPO priced at $0.80 per share and ambitious plans to foster domestic production facilities and international opportunities. PI Financial analyst Jason Zandberg was quick to initiate coverage of ABcann with a one-year price target of $2.25, which, as of August 15, represents a 160% premium over the company’s stock price of $0.68.

Despite its relative infancy as a publicly traded security, ABcann is one Canada’s dominant medical growers, recognized for using proprietary growing technology to produce organically grown, pesticide-free medicinal-grade marijuana.

The company’s low current market cap offers an obvious opportunity for investors, as ABcann compares well with other companies in an industry that Arcview Market Research expects to top $20 billion by 2021 (http://nnw.fm/4oqBD).

A look at some of ABcann’s peers demonstrates the potential of this market. Among them is Supreme Pharmaceuticals, which soared more than 1,600% after its IPO and currently trades at $0.87 per share. As of August 15, Supreme’s market cap is $250 million. Another Canadian cannabis play, Emblem Corp., has the same size growing facility as ABcann and is valued at $200 million, trading at $1.45 per share. Aurora Cannabis, which surged nearly 900% after its initial offering, trading at $1.97, is valued at $723 million.

Canopy Growth, one of the largest fully-licensed Canadian marijuana growers, saw share prices skyrocket by more than 700% in the months following its IPO. As the heavyweight of the group, Canopy is trading at $6.94 per share with a market cap of $1.17 billion.

As noted by analyst Zandberg, part of ABcann’s potential for such a performance is its ability to achieve high yields of its medicinal-grade marijuana through a scalable, computer-controlled growing environment that enables monitoring and control to ensure optimal plant growth while avoiding disease and other plight. ABcann’s expansion plans are ramping up, and a new chamber is planned for the company’s current facility in Napanee, Ontario, which currently produces 1,000 kilograms annually.

The sweet spot of ABcann’s growing position is that it owns the land to be occupied by a new 71,000-square-foot facility with a production capacity of 20,000 kilograms per year – 20 times ABcann’s current production. In further plans, a 65-acre property for a planned 1.2 million square-foot growing facility is ready for development.

Additionally, ABcann was one of the first companies to obtain a production license under Canadian Marijuana for Medical Purposes Regulation, putting it among only 3% of companies that make it through the extensive six-step application process, which requires a comprehensive background check and prior investment in a growing facility.

In July, ABcann announced its inclusion in the Horizons Medical Marijuana Life Sciences ETF (TSX: HMMJ). The ETF index selects companies with operations in biopharmaceuticals, medical manufacturing, distribution, and other marijuana industry services.

Though ABcann as a public company is only three months old, it occupies a unique position with $43 million in cash to fulfill its expansion plans. Earlier this month, as part of a $30 million financing, Cannabis Wheaton Income Corp. made an initial $15 million investment in ABcann to fund additional build-out at the company’s second production facility. The remaining $15 million will fund an additional production expansion with ABcann. Notably, Cannabis Wheaton’s valuation of ABcann matches Zandberg’s price target of $2.25 per ABcann share.

Re: ABcann Global (TSX.V: ABCN) (OTCQB: ABCCF)

PostPosted: Thu Aug 17, 2017 4:19 pm
by QualityStocks
ABcann Global Corporation’s (TSX.V: ABCN) (OTCQB: ABCCF) New Investment a Testament to the Company’s Future

- One of first licensed medical cannabis producers in Canada
- $15 million equity investment starts construction of new 50,000 square foot facility
- Production to quadruple in booming market

Legal since 2001, medical cannabis operations in Canada changed dramatically about a year ago when the Access to Cannabis for Medical Purposes Regulations (ACMPR) went into effect. Health Canada now strictly oversees licensing, monitoring and compliance of commercial medical cannabis producers. Health Canada conducts thorough reviews of applications to ensure compliance with the regulations and works closely with producers once licensed to monitor and ensure compliance with such strictures as personnel security measures, good production practices, packaging, shipping, record keeping and import and export requirements. Licenses are difficult to acquire, and frequent inspections hold producers to stringent standards.

One of the very first licensed producers and a pioneer in Canadian medical cannabis, ABcann Global Corporation (TSX.V: ABCN) (OTCQB: ABCCF) has always held to meticulous specifications in the production of its pharmaceutical grade, plant-based medicines. Maintaining standards designed to exceed government requirements, ABcann grows plants only in small batches in order to create controllable, consistent and predictable yields. The plants are nurtured in controlled environmental chambers to deliver dependable results with each harvest. Chemical and pesticide free, ABcann produces medical cannabis that effectuates the same medical response with every use.

Medical cannabis business is booming in Canada. The number of medical marijuana patients continues to grow rapidly, increasing nearly 30 percent in the first quarter of this year, while sales of medical cannabis increased over 24 percent from last year. The growth trajectory shows no signs of slowing, and, given the licensing process and stringent inspections, licensed producers already in production are well positioned to reap substantial rewards.

Given ABcann’s underlying value, the recent announcement by Cannabis Wheaton Income Corp. (TSX.V: CBW) comes as little surprise. In a July 28th press release, Cannabis Wheaton, which invests in and supports a wide range of cannabis cultivation companies, announced Exchange approval for its purchase of $15 million of common shares of ABcann Global at $2.25 per share. This initial investment is part of a larger phased investment for the construction of an additional 50,000 square feet of pure cultivation space next to ABcann’s current 14,000 square foot cannabis cultivation facility in Ontario, Canada.

With a market capitalization around $82 million, ABcann presents great value for Cannabis Wheaton. Other Canadian licensed producers carry much higher market valuations. Emblem Corp., with nearly the same sized facility as ABcann, trades around the two dollar mark and carries a $170+ million market cap. Supreme Pharmaceuticals has a $250 million cap, and Hydropothecary Corporation maintains a $150 million cap, even after a voluntary stop-sale / stop-shipment when evidence of unapproved fungicide was found in its products. Cannabis Wheaton’s minority stake in ABcann looks to be a steal.

ABcann has already invested over $20 million in ongoing operations and international expansion plans. The company currently owns and operates a 14,000 square foot state-of-the-art facility. It also owns an adjoining 50 acres of land that’s slated for construction of the new 50,000 square foot production facility financed by Cannabis Wheaton’s equity investment. The additional cultivation space at the new facility is anticipated to provide Cannabis Wheaton with an estimated eight million grams of cannabis per year, while its equity position in ABcann should pay off handsomely as well.

ABcann’s proprietary cultivation methods already produce high quality cannabis with industry leading yields, and this latest announcement is a testament to ABcann’s future. The Canadian government recently stated that it will press ahead in 2017 with plans to legalize marijuana for adult recreational use. That market is expected to be worth $5 billion a year by 2020, according to leading industry analysts. This latest investment in ABcann appears both well timed and financially prescient.

For more information, visit the company’s website at www.ABcann.ca

Re: ABcann Global (TSX.V: ABCN) (OTCQB: ABCCF)

PostPosted: Tue Aug 22, 2017 5:07 pm
by QualityStocks
Canadian Cannabis Leaders Sharpen Focus on Increasing Yield, Plant Quality

NetworkNewsWire Coverage: Growing marijuana in North America, for obvious reasons, has historically been an underground affair. Amid growing legalization in favor of recreational and medicinal use, growing cannabis on mass scale is rapidly becoming a necessity for companies in a burgeoning industry driven by incredible consumer demand. Canada is ahead of the United States in this regard, as the country legalized marijuana for medicinal use in 2001 and recently approved national legalization for recreational use, which will go into effect in 2018. For this reason, Canadian companies have access to more capital needed for production, though only three percent of growers who apply for licensing are accepted. In a highly regulated environment, Canadian growers undertake a significant task in learning how to grow marijuana on a mass scale in order to meet rising demand for high-yield, high-quality product. ABcann Global (TSX.V: ABCN) (OTCQB: ABCCF) (ABcann Profile) may have cracked the code for this need, thanks to a partnership with the University of Guelph and a $30 million financing deal with Cannabis Wheaton Income Corp. (OTC: KWFLF) (TSX.V: CBW). When the company IPO’d in May, it joined the ranks of several other Canadian companies occupying favorable market positions, including Canopy Growth Corp. (OTC: TWMJF) (TSX: WEED), Aphria, Inc. (OTCQB: APHQF) (TSX.V: APH) and Aurora Cannabis, Inc. (OTCQX: ACBFF) (TSX.V: ACB).

As one of only three percent of companies to successfully obtain a production license in 2014 under the Access to Cannabis for Medical Purposes Regulations (ACMPR), and in partnership with the University of Guelph, ABcann Global has learned the techniques of mass yield, having developed a unique, computer-controlled environmental system that replicates natural growing environments. Located at the company’s production facility in Napanee, Ontario, this controlled indoor system integrates scalable growing chambers, LED lighting, and organic fertilizers/soil while eliminating pesticides and toxins. Every aspect of the process – from air quality and oxygen, to CO2 levels, water quality, light, temperature, humidity, nutrition, and curing – is monitored and controlled for consistent, high-quality, mass-quantity plant production. Prioritizing growing techniques and getting to this stage of operations took management foresight.

Now, at just three months old, ABcann has raised $43 million in cash, allowing it to quickly execute its expansion strategy and business model. A significant aspect of this strategy – aside from its advanced growing technology – is land ownership. To this accord, ABcann owns 65 acres of land in Napanee and, with its recent financing (http://nnw.fm/aVAL7) from Cannabis Wheaton, is set to expand at an unprecedented rate in the Canadian cannabis industry.

An additional $15 million investment by Cannabis Wheaton, recognized as one of the biggest cannabis company in the world, will support a second production facility, aside from ABcann’s plans to build a 100,000-square-foot complex. The $30 million financing agreement demonstrates ABcann’s potential for growth, as Cannabis Wheaten invests in and partners with promising cannabis companies to help them leverage their diversity and expertise to fulfil its streaming goals. This strategy helps reduce the impact of licensing and build-out delays, cultivation challenges, and issues with access by clinics, pharmacies, and government purchasing agencies. Importantly, it has its own methods of boosting yield in the industry.

In addition to supplying medical marijuana within Canada, ABcann is also growing its roots internationally. The company exports seed to Australia and dried flower to Israel, and it is expected to begin shipments to Germany in 2017. Plans for expansion are being aided by a recently granted license from Health Canada to build single- or double-layer grow rooms at a new facility.

Cannabis Wheaton’s investment in ABcann was priced at a $2.25 per share valuation, an approximate 160% premium over ABcann’s current valuation between $0.61 and $0.90.

Another industry player with significant grow room is one of the biggest growers in the world, Canopy Growth. With a market cap of $1.2 billion and a 52-week range of $2.81-$14.39, Canopy represents a higher-priced entry point into the Canadian cannabis sector. The Smith Falls, Ontario-based organization maintains diversified brands and has more than 500,000 square feet of production capacity. Its Tweed brand is produced in an automated, climate-controlled greenhouse facility within the former Hershey Chocolate Factory. The company also sustains its yield through the 50,000+ square-foot Bedrocan Canada facility, which has implemented processes used in the Netherlands for decades. A second, distribution-based location delivers products imported from the Netherlands to Canadian customers.

Investors in the Canadian cannabis market also gravitate toward Aphria, with its valuation of $655.9 million and 52-week range of $1.79-$6.60. Aphria grows 100 percent of its products in a sunlight-powered greenhouse that churns out many product types and blends available to health professionals and patients via prescription. Each stage of the growing process is tightly controlled. The company engages in water sampling, nutrient profiling, and pest management, so no unwanted components are added to any of its blends. Extensive laboratory testing is conducted by in-house scientists and outside laboratories so that the potency levels of its products and quality of its procedures are upheld.

Vancouver, British Columbia-based Aurora Cannabis is focused on affordable medical products and offers free shipping across Canada. It takes pride in a state-of-the-art facility that uses water harvested from the Canadian Rockies. A mountain-based facility with ideal lighting and other resources, and a drive to succeed and contribute to the industry, are paying off. From June 2015 to November 2016, the company saw a 1,419 percent gain, including an 887 percent climb after launching its initial public offering. Aurora is also notable for a mobile app in addition to its service to patients and physicians. The app is designed to simplify the purchase of medical cannabis using technologies such as push notifications, fingerprint authorization, streamlined navigation, and a focus on user experience. Fast and efficient order processing affords performance that is helping clients from all walks of life participate in the industry.

The growth of ABcann and the other discussed companies reflects the “safety” of Canadian cannabis stocks versus those listed solely in the United States, as the latter continues to wrestle with state/federal legalization of marijuana. Without this burden, the Canadian market is thriving. In a November 2016 report, market research firm Canaccord Genuity Group forecast that the medical marijuana market in Canada alone could see sales in excess of $8 billion by 2024, creating a sizable opportunity for the country’s relatively small number of licensed producers (LPs) – and for those who have mastered the requirements of high-volume yield. As demonstrated by ABcann, adequate funding for expansion to achieve high yields and growth rates is key in this increasingly competitive landscape.

For more information on ABcann Global please visit: ABcann Global (TSX.V: ABCN) (OTCQB: ABCCF)

Re: ABcann Global (TSX.V: ABCN) (OTCQB: ABCCF)

PostPosted: Wed Aug 23, 2017 3:49 pm
by QualityStocks
As Recreational Cannabis Legalization Looms, the Field of Opportunity is Green for Canada’s Leading Growers

NetworkNewsWire Coverage: Medical cannabis use has been legal in Canada since 2001, and Canada is now working to become the first industrialized nation to input a comprehensive system permitting the recreational use of marijuana. Sweeping legislation has been introduced by the Canadian government that takes aim at permitting nationwide recreational cannabis use by July 2018—a move applauded by companies that are currently licensed to produce medical marijuana in Canada or are engaged in providing services to growers. These companies include ABcann Global Corporation (TSX.V: ABCN) (OTCQB: ABCCF) (ABcann Profile), which recently closed a milestone financing agreement with Cannabis Wheaton Income Corp. (TSX.V: CBW) (OTC: KWFLF), an investor and supporter of cannabis cultivation companies, as well as Canopy Growth Corp. (TSX: WEED) (OTC: TWMJF), Aphria Inc. (TSX: APH) (OTC: APHQF), and Aurora Cannabis Inc. (TSX: ACB) (OTCQX: ACBFF).

Despite the widespread legalization of medical marijuana in Canada, the licensing requirements for cannabis growers are incredibly strict, with only three percent of the growers who apply for licensing obtaining approval. ABcann Global was one of Canada’s very first companies to successfully obtain licensure to produce medical cannabis. Under Canada’s Marijuana for Medical Purposes Regulations, ABcann obtained its production license in March 2014, followed by the successful attainment of a cannabis sales license in December 2015.

ABcann went public in May 2017 with an IPO priced at $0.80 per share, and PI Financial analyst Jason Zandberg quickly initiated coverage with a one-year price target of $2.25 (USD). As of August 21, 2017, ABcann’s price was at $0.90 (CAD) and $0.73 (USD); its market cap was at $89.664 million (CAD) and $72.727 million (USD); and the company’s YTD return was 275 percent. The company’s annual production capacity is currently at 1,000 kg, and build-out plans presently in motion would increase that to an estimated 20,000 kg.

Though ABcann is still young as a publicly traded security, the company has become one of the foremost medical cannabis growers in Canada, standing out with its proprietary growing technology, which results in the production of top-quality, organically grown, pesticide-free medical-grade cannabis. ABcann’s low current market cap presents a clear opportunity for investors—particularly when contrasted with the company’s Canadian cannabis peers, which, as previously mentioned, are few in number. There are currently only 54 licensed cannabis producers in all of Canada1.

Comparable competing companies with much higher prices and market caps than ABcann include Canopy Growth Corp., which, as of August 21, was at a price of $8.51 (CAD) and $6.79 (USD) and had a market cap of $1.436 billion (CAD) and $1.143 billion (USD); Aphria Inc., with a price of $5.73 (CAD) and $4.57 (USD) and a market cap of $795.436 million (CAD) and $634.405 million (USD) as of August 21; and Aurora Cannabis Inc., with a price of $2.42 (CAD) and $1.93 (USD) and a market cap of $887.615 million (CAD) and $707.891 million (USD).

ABcann’s growth potential is indisputable. Within just three months of becoming a publicly traded company, ABcann has raised $43 million in cash, which has enabled the company to rapidly carry out its expansion strategy and business model. Recent financing from cannabis streaming company Cannabis Wheaton Income has positioned ABcann to grow at a rate unprecedented in Canada’s marijuana market. Cannabis Wheaton, which invests in and supports a broad range of promising marijuana cultivation companies, announced near the end of July that it has obtained Exchange approval to purchase $30 million of ABcann Global common shares with a $15 million cash tranche priced at $2.25 per share. The initial investment of $15 million is part of a larger phased investment to construct additional square footage of pure cannabis cultivation space adjacent to ABcann’s current 14,500-square-foot cultivation facility in Ontario. ABcann has confirmed that its plans to commence construction at its Kimmett facility in Q3 2017 remain on track, and that the previously announced plans for a 71,000-square-foot phase 1 facility have been expanded to 100,000 square feet.

In producing its medicinal cannabis, ABcann employs a proprietary plant-growing technology that includes the use of environmentally-controlled chambers that can monitor and regulate all variables during the growing process. Through a partnership with the University of Guelph, ABcann has mastered mass yield techniques and has developed, at its production facility in Napanee, Ontario, a pioneering, computer-controlled environmental system that duplicates natural growing environments. This controlled indoor system combines scalable growing chambers, LED lighting, and organic fertilizers and soil while simultaneously eliminating toxins and pesticides. All aspects of the process are monitored and controlled, resulting in consistent, high-quality plant production in mass quantities.

Thanks to the company’s innovative approach and systems, ABcann is able to produce organically grown and pesticide-free, high-yielding cannabis plants that produce top-quality products that are consistent with each new batch. The company can control both environmental and nutrient demands to create particular strains of cannabis, free of the variation that is so common when large quantities of marijuana are produced in less-controlled, larger rooms and in greenhouse-type environments. This modular approach to systems technology eradicates scale-up risk and enables ABcann to locate its operations anywhere in the world while maintaining consistency and product quality.

In addition to its Canada operations, ABcann is pursuing opportunities in Germany, Australia and other jurisdictions and is also endeavoring to develop multiple delivery vehicles.

ABcann compares impressively with other companies in Canada’s explosive medical cannabis industry—companies with much higher market caps and share prices. With Canada on the verge of blanket legalization of marijuana, the opportunity for investors is clear. In a country where stringent licensing standards have made cannabis growers few and far between, ABcann is a standout marijuana player to be reckoned with.

Editorial Sources:
1) Government of Canada: http://nnw.fm/2ehJD

For more information on ABcann Global please visit: ABcann Global (TSX.V: ABCN) (OTCQB: ABCCF)

Re: ABcann Global (TSX.V: ABCN) (OTCQB: ABCCF)

PostPosted: Thu Aug 24, 2017 5:17 pm
by QualityStocks
ABcann Global Corp. (TSX.V: ABCN) (OTCQB: ABCCF) Licensed to Grow Cannabis by Feds in Canada

- An early mover in the Canadian cannabis space
- Serving Canada’s most populous province
- New funding deal signed for $15 million at $2.25 per share

As befits its status as a first mover in the Canadian cannabis space, ABcann Global Corp. (TSX.V: ABCN) (OTCQB: ABCCF) is racing ahead with plans to supply the medical marijuana needs of Canada’s most populous province. Construction plans at its Kimmett facility in the third quarter of 2017 remain on schedule, and the previously announced plans for a 71,000 square foot phase 1 project have been expanded to 100,000 square feet. The company recently signed a funding deal that prices the business well above market valuation. It appears that ABcann is one MMJ outfit that the smart money is betting on.

ABcann was one of the earliest players to apply for a cannabis grower’s license in Canada, which was granted in March 2014, well before the current Access to Cannabis for Medical Purposes Regulations (ACMPR) were implemented on August 24, 2016. That early start has advanced ABcann much further along the learning curve than subsequent licensees. In addition, having worked in collaboration with the University of Guelph in Ontario, Canada, to study the growing process, ABcann’s expertise is superior to most other LPs. It has developed state-of-the-art growing technology that produces high yields and consistency in its produce as it scales up. Also, somewhat like in retail, where location is a major determinant of success, ABcann’s location is fortuitous. Its operations are situated in Canada’s most populous province of Ontario, which, with 13.5 million people, accounts for close to 40 percent of Canada’s total population.

Knowledge of the growing process is particularly important if a licensed producer is going to scale up successfully. An essential requirement of medical marijuana is consistency. The product must be relied on to deliver a standardized quantity and quality of active ingredients every time it’s taken. Imagine the peril to patients of undergoing prescribed regimens of a medication with psychoactive properties where the dosages vary randomly.

Quality is obviously a crucial issue and, indeed, was one of the reasons that ABcann was founded by Ken Clement. ABcann’s mission, he has said, is “to deliver consistent, standardized medicinal cannabis that the public and patients can consistently rely on” (http://nnw.fm/2bmGl). Now, ABcann is able to produce an organically grown, pesticide-free, standardized product with a growing system that controls air quality, carbon dioxide and oxygen levels, water quality and volume, light spectrum and cycles, temperature and humidity, plant nutrition and the curing process.

Earlier this month, ABcann announced completion of the initial funding phase of its partnership with Cannabis Wheaton (TSX.V: CBW). Under the deal, CBW has purchased $15 million worth of ABcann common shares at $2.25 per share. The cash forms part of a larger phased investment by Cannabis Wheaton that is expected to fund an additional 50,000 square feet of production space, capable of producing 35,000 kilograms of product per year, at ABcann’s second facility. This expansion comes alongside ABcann’s existing construction plans for a 100,000 square foot facility at its Kimmett property in Napanee, Ontario.

Since debuting on the Toronto Venture Stock Exchange at $1.00, ABcann stock has traded down a little, but, as recent events indicate, it may be a diamond in the rough. The Cannabis Wheaton deal valued the stock, which currently trades at C$0.87, at $2.25.

For more information, visit the company’s website at www.ABcann.ca

Re: ABcann Global (TSX.V: ABCN) (OTCQB: ABCCF)

PostPosted: Mon Aug 28, 2017 4:31 pm
by QualityStocks
NetworkNewsBreaks – ABcann Global Corporation (TSX.V: ABCN) (OTCQB: ABCCF) Announces Release of High Level CBD Product

ABcann Global Corporation (TSX.V: ABCN) (OTCQB: ABCCF) this morning announced the release of one of Canada’s highest legal CBD:THC ratio products by wholly-owned subsidiary ABcann Medicinals Inc. CBD-Med has a ratio of 27.6:1 (18.5% CBD to 0.67% THC), making it one of Canada’s highest CBD products under Health Canada regulations. “The development of these products is in line with ABcann’s corporate strategy as a premium product provider of organic, pesticide free cannabis,” Ken Clement, executive chairman of ABcann, stated in the news release. “As the Company continues to scale production capacity, our product line will expand as we strive to increase shareholder value through capturing a larger market share of the current global medical markets.” Looking forward, ABcann anticipates being able to sell oils in October as it continues to diversify its product lines. Additional products to be marketed by the company are expected to include a 1-1 THC/CBD drop, a high THC dropper and a high CBD dropper. ABcann expects to release additional product details in the coming weeks.

Re: ABcann Global (TSX.V: ABCN) (OTCQB: ABCCF)

PostPosted: Tue Aug 29, 2017 4:41 pm
by QualityStocks
ABcann Global Corp. (TSX.V: ABCN) (OTCQB: ABCCF) Ensuring Quality of Medical Cannabis Products with Proprietary Growing Technology

- Environmentally-controlled growing chambers generate consistent, superior quality
- Proprietary technologies eliminate risk, ensuring patients enjoy peace of mind
- Publicly-traded ABcann entered funding deal for $15 million at $2.25 per share

The Canadian government’s recent announcement that Broken Coast Cannabis Ltd. is recalling several products sold last year after two banned pesticides were found in random samples illustrates the importance of ABcann Global Corp.’s (TSX.V: ABCN) (OTCQB: ABCCF) controlled, pesticide-free approach to growing medical marijuana (http://nnw.fm/VM7zD).

Several other cannabis-growing Canadian companies also reaped the attention of authorities following mandatory testing. Hydropothecary and Peace Naturals both had products recalled earlier this year following detection of banned pesticides in some products, while Supreme Pharmaceuticals Inc. is still awaiting its license from Health Canada to grow and sell medical cannabis (http://nnw.fm/pY3ba).

In contrast, ABcann’s flagship production facility in Napanee, Ontario, continues to meet demand, even as its expansion plans move forward with an expedited construction timeline announced last month (http://nnw.fm/ED43c).

“ABcann has moved methodically through each stage of our growth since first obtaining our license in 2014,” founder and director Ken Clement said in an update published on the company’s website. “Providing a high quality, standardized pesticide-free product to our patients remains our number one priority as we initiate our largest expansion plans to date.”

ABcann has approximately $43 million in cash and 100 percent ownership of a 65-acre parcel located not far from its current facility. Phase 1 of the expansion project includes building a 100,000 square foot facility with an annual production capacity of about 1,000 kilograms of cannabis (http://nnw.fm/BPbg9).

A recent $15 million investment in the company by Cannabis Wheaton, part of a $30 million commitment, underscores the company’s belief in ABcann’s tremendous potential for growth (http://nnw.fm/SIc5V).

ABcann’s commitment to growing and providing standardized quality products for the medical marijuana community is a critical component of its future growth plans. The company’s mission, says Clement, is “to deliver consistent, standardized medical cannabis that the public and patients can consistently rely on.”

For more information, visit the company’s website at www.ABcann.ca

Re: ABcann Global (TSX.V: ABCN) (OTCQB: ABCCF)

PostPosted: Thu Sep 07, 2017 4:31 pm
by QualityStocks
NetworkNewsBreaks – ABcann Global Corp. (TSX.V: ABCN) (OTCQB: ABCCF) Names Barry Fishman as New CEO

ABcann Global Corp. (TSX.V: ABCN) (OTCQB: ABCCF) this morning announced the appointment of Barry Fishman as its new chief executive officer, effective October 1, 2017. Fishman brings nearly two decades of experience as a business leader to the ABcann team, having most recently served as CEO of international specialty pharmaceutical company Merus Labs. Under his leadership, Merus’s sales and EBITDA grew at a CAGR of greater than 50 percent, leading to the company’s acquisition by Norgine B.V. in July 2017 for total considerations of roughly $342 million. “Barry’s proven experience as a CEO of complex, highly-regulated organizations with international operations will serve ABcann and our shareholders well as we continue to execute our growth strategy, including the significant expansion of our production capacity, and establishing our unique leadership position in the cannabis industry,” Ken Clement, executive chairman of ABcann, stated in the news release. “We would also like to take this opportunity to thank Aaron Keay for the committed and dedicated work he has done positioning ABcann within the capital markets and we look forward to his continued active involvement with the Company, including serving on our Board of Directors.”

Re: ABcann Global (TSX.V: ABCN) (OTCQB: ABCCF)

PostPosted: Fri Sep 15, 2017 3:58 pm
by QualityStocks
NetworkNewsBreaks – Recent Competitor Recalls Illustrate Importance of ABcann Global’s (TSX.V: ABCN) (OTCQB: ABCCF) Innovative, Pesticide-Free Cannabis Growth Practices

Recently, the Canadian government announced that Broken Coast Cannabis Ltd. was recalling several products sold in 2016 due to the discovery of two banned pesticides in random samples, and several other Canadian cannabis growers have also had product recalls this year after banned pesticides were discovered in their products during mandatory testing. Instances like these serve to further illustrate the importance of the controlled, pesticide-free medical marijuana growth practices of ABcann Global Corp. (TSX.V: ABCN) (OTCQB: ABCCF), which continues to meet product demand through its Napanee, Ontario, production facility and is also moving forward with expansion plans. An article further discussing this topic reads: “ABcann has moved methodically through each stage of our growth since first obtaining our license in 2014,” founder and director Ken Clement said in an update published on the ABcann website. “Providing a high quality, standardized pesticide-free product to our patients remains our number one priority as we initiate our largest expansion plans to date.”

Re: ABcann Global (TSX.V: ABCN) (OTCQB: ABCCF)

PostPosted: Mon Sep 18, 2017 4:16 pm
by QualityStocks
NetworkNewsBreaks – ABcann Global Corp. (TSX.V: ABCN) (OTCQB: ABCCF) Nets Total Proceeds of $11.9 Million from Exercise of Warrants

ABcann Global Corp. (TSX.V: ABCN) (OTCQB: ABCCF) this morning announced that it has received total proceeds of nearly $11.9 million from the exercise of an aggregate of 19,185,965 warrants since the closing of its acquisition of ABcann Medicinals Inc. on April 28, 2017. With these funds, ABcann’s current cash position stands at approximately $45 million, giving the company the means to execute previously outlined plans to expand its production capabilities. “ABcann thanks our shareholders for their continued support and confidence as we work toward expanding our facilities and increasing production,” Aaron Keay, director and CEO of ABcann, stated in the news release. “Our strong financial position, represented by our current cash position is earmarked for new construction and will facilitate the timely execution of our business plan. The Company’s main focus in the coming months will be on the deployment of capital towards the expansion of our existing Vanluven facility and development and construction of the new Kimmett facility, as well as the pursuit of our international expansion plans.”

Re: ABcann Global (TSX.V: ABCN) (OTCQB: ABCCF)

PostPosted: Tue Sep 19, 2017 4:06 pm
by QualityStocks
What it Takes to Thrive in Canada’s Multi-Billion-Dollar Marijuana Industry

NetworkNewsWire Editorial Coverage: Canadian medicinal marijuana sales could exceed $8 billion by 2024, as forecast by Canaccord Genuity Group’s November 2016 market research report. ABcann Global Corp. (TSX.V: ABCN) (OTCQB: ABCCF) (ABcann Profile) is considered one of Canada’s strongest growers, boasting a customer retention rate of 94.7 percent, no history of product recalls, and computer-controlled production that have strengthened the company’s reputation for its pharmaceutical-grade cannabis. While ABcann already occupies a strong position, its leadership team continues to draw on pharmaceutical and capital markets experience to help achieve broader corporate goals. These advantages separate ABcann from other producers such as Canopy Growth Corp. (TSX: WEED) (OTC: TWMJF) and Aurora Cannabis Inc. (TSX: ACB) (OTCQX: ACBFF); led to a milestone financing agreement with investment firm Cannabis Wheaton Income Corp. (TSX.V: CBW) (OTC: KWFLF); and solidify the company’s position among high valuation companies like medical cannabis supply provider Aphria (TSX: APH) (OTC: APHQF).

Experienced leadership is part of what has helped ABcann Global Corp. (TSX.V: ABCN) (OTCQB: ABCCF) earn its stripes in the marijuana industry. Under the helm of CEO Aaron Keay, ABcann became a publicly traded company in April 2017. Keay also exercised several warrants, adding $13 million to the company coffers of $48 million in working capital.

Keay’s previous expertise in capital markets, including raising capital and overseeing finance and merger and acquisition transactions, gave him the ability to bring the company to the forefront of the Canadian medicinal marijuana industry and into the sights of Cannabis Wheaton (TSX.V: CBW) (OTC: KWFLF). On August 2, ABcann announced (http://nnw.fm/aVAL7) the close of an initial $15 million investment ($2.25 per share) by Cannabis Wheaton as part of a larger phased investment to fund an additional 50,000 square feet at ABcann’s second production facility at its 65-acre Kimmett property in Napanee, Ontario. Plans for this facility, in addition to the company’s current construction plans for a 100,000-square-foot purpose-built facility at the Kimmett property, position ABcann to expand at an unprecedented rate in the Canadian cannabis industry.

Notably, Cannabis Wheaton’s valuation of ABcann comes at a 160% premium over the company’s current share price of $0.68. The cannabis streaming company based its valuation of ABcann on more than strong leadership, however. As stated earlier, ABcann’s history is void of any product recalls, unlike some major Canadian growers, and is reputed for its pesticide-free growing capabilities. As the company explores international opportunities, reputation for pharmaceutical-grade products is vital.

In a press release announcing the release of one of Canada’s highest legal CBD:THC (cannabidol:tetrahydrocannabinol) ratio products available on the market, via its ABcann Medicinals, Inc. subsidiary, the company noted the importance of pesticide-free, high-quality production.

“The development of these products is in line with ABcann’s corporate strategy as a premium product provider of organic, pesticide free cannabis,” Ken Clement, executive chairman of ABcann, stated (http://nnw.fm/MVa1v). “As the Company continues to scale production capacity, our product line will expand as we strive to increase shareholder value through capturing a larger market share of the current global medical markets.”

Keay further emphasized the point in regard to the company’s global expansion strategies.

“ABcann will continue to advance our core businesses and subsidiaries as production capacity continues to increase through our aggressive construction and expansion plans,” he said. “The construction timelines at both of our locations position ABcann to become a strong competitor in the existing global medical market and to take advantage of the emerging adult consumer market that is expected to emerge in 2018.”

Even Keay’s recent decision to step down from his post as CEO (http://nnw.fm/cniW8) demonstrates considerable leadership. Keay will continue to contribute his experience in the capital markets to the company, working with incoming CEO Barry Fishman to move the company forward. Fishman will assume this role starting October 1, 2017. A business leader for nearly 20 years, Fishman served a nearly three-year role as CEO of Merus Labs (TSX: MSL), an international specialty pharmaceutical company – gaining invaluable expertise aligned with ABcann’s commitment to marketing the highest quality, pharmaceutical-grade cannabis. Under Fishman’s tenure, Merus saw a compound annual growth rate of over 50 percent and was purchased for about $342 million in July 2017. Fishman also served as CEO of Teva Canada and Taro Canada, vice president of Marketing at Ely Lilly, and is on the board of Aurora Cannabis.

In addition to prime leadership, another key aspect of ABcann’s valuation is the fact that it owns the land housing its licensed production facilities. Notably, these facilities have the infrastructure to support scalable production in a computer-controlled environment, with precise control over air and water quality, temperature and humidity, and plant nutrition to ensure high product quality. The company operates a 14,500-square-foot Vanluven facility in Napanee, Ontario, which has an annual production capacity of 1,000 kg. The 71,000-square-foot Kimmett facility is currently under construction and is expected to add 20,000 kg of production capacity annually. Future expansion is planned on 65 acres of company-owned land, with an estimated 1.2 million square feet of development space and power, water, and waste infrastructure already in place.

When understanding the tremendous opportunities in Canada’s marijuana market, it’s worth noting the growth story of Canopy Growth (TSX: WEED) (OTC: TWMJF), one of the biggest growers in the world, with more than half a million square feet of production space. The company saw its share prices skyrocket from C$2.20 at its IPO in May 2014 to a high of C$17.86 in November 2016, setting it up as Canada’s first billion-dollar marijuana stock. Canopy Growth recently moved to further solidify its expansion in New Brunswick with the acquisition of ACMPR applicant Spot Therapeutics, which, when licensed and fully expanded, will provide around 100,000 square feet of production space. The company also expanded its Smiths Falls and Bowmanville South footprints last quarter by 33% and 200%, respectively. Canopy is currently trading on the TSX exchange at C$10.27 per share, as of September 15, with a market cap of C$1.7 billion.

Aurora Cannabis (TSX: ACB) (OTCQX: ACBFF), for which incoming ABcann CEO Fishman is a board member and independent director, has also taken a strong position in the Canadian market. Shares of the licensed Canadian grower climbed by more than 900 percent following its IPO, currently trading at C$2.64 with a valuation of $969 million. As the only licensed producer of medical marijuana in Alberta, Aurora operates a 55,200-square-foot cultivation and harvesting facility in the Rocky Mountains, and it is in the process of adding an additional 840,000 square feet across two other sites in Canada. Aurora owns a 19.9% stake in the first Australian company licensed to cultivate and conduct research on medical cannabis, and it owns a leading Germany-based wholesale importer, exporter and distributor of medical cannabis.

Currently valued at C$884 million and trading at C$6.73, Aphria (TSX: APH) (OTC: APHQF) was the first publicly licensed producer to go cash flow positive from operations. The company produces capsules, vaporizers, and orally-administered cannabis oil droppers. In addition to addressing the demand for such products, a focus on safety, consistency, and the quality of patient care has contributed to the company’s rise. Aphria also has a strategy to expand into the growing U.S. medical cannabis market. Aphria currently trades at C$6.38 with a valuation of $885 million.

Canada’s top growers are flourishing thanks to the country’s legalization of medical marijuana, and with recreational legalization set for July 2018, these producers are gearing up to take advantage of a forecast rise in recreational demand. Supported by $43 million in working capital, a strong leadership team of extensive pharmaceutical and capital markets expertise, and an enviable reputation for pharmaceutical-grade cannabis and cultivation technologies, ABcann has the potential to achieve a market valuation more closely aligned with its peers. With a market cap of C$83 million and trading at $0.84, ABcann may offer investors an attractively priced entry point into the burgeoning global marijuana industry.

For more information on ABcann Global please visit: ABcann Global (TSX.V: ABCN) (OTCQB: ABCCF)

Re: ABcann Global (TSX.V: ABCN) (OTCQB: ABCCF)

PostPosted: Tue Sep 19, 2017 4:14 pm
by QualityStocks
At ABcann Global (TSX.V: ABCN) (OTCQB: ABCCF), Medicinal Cannabinoid Quality and Safety are Founding Principles

- Producer of consistent, standardized medicinal cannabis
- Menu of cannabis strains with varying CBD:THC ratios
- ABcann’s CBD-Med is one of Canada’s highest-CBD products

In an interview with Cantech Letter (http://nnw.fm/IOcj0), Aaron Keay, CEO of ABcann Global (TSX.V: ABCN) (OTCQB: ABCCF), talked about the factors that triggered the genesis of the company, one of Canada’s trailblazing producers of medicinal cannabis. Ken Clement, the founder of ABcann, with his wealth of experience and knowledge, had observed the variability in consistency and potency of cannabis that was currently available. Although, in general, not much of a bother to recreational users, to those using cannabis for pain relief or other medical purposes, this was causing a great deal of concern.

Inconsistency in product quality makes the determination of optimal dosage levels impossible to achieve. As a result, “to deliver consistent, standardized medicinal cannabis that the public and patients can consistently rely on” became one of ABcann’s founding principles. That principle continues to guide the company to this day. The Canadian-licensed producer recently announced the release of one of Canada’s highest legal CBD:THC ratio cannabis products. This new product expands the range of therapies now available to patients and so increases the efficacy of current treatment regimens in the promising new field of cannabinoid therapies.

At present, the majority of cannabinoid therapies are directed to alleviate the chronic pain resulting from a variety of maladies. Since delta-9 tetrahydrocannabinol (THC) and cannabidiol (CBD) are the cannabinoids occurring at the highest concentrations in cannabis, the therapeutic effects of the plant and its derivatives are most likely derived from these components acting alone or together.

This is a line of research that has been explored successfully by GW Pharmaceuticals. The European company produces Sativex, a treatment for the relief of symptoms in patients with moderate to severe spasticity due to multiple sclerosis (MS), which contains a one-to-one ratio of THC to CBD. While many patients have found relief from pain in high-THC cannabis, a subset of these have reported short-term memory impairment, dysphoria (feeling uneasy for no apparent reason), increased levels of anxiety and even panic attacks. Fortunately, CBD is devoid of such malignant manifestations, exhibiting calming and uplifting properties that appear to mitigate the unwanted effects of THC. As a result, strains of cannabis that are rich in CBD, like those produced by ABcann, are most helpful to those averse or intolerant to THC and to patients who want pain relief without too much of a ‘high’.

A look at the stats released by Health Canada will show where ABcann is on the CBD:THC ratio spectrum. Most cannabis strains (54%) on the Canadian market have a high CBD:THC ratio, with THC over 15% and CBD less than 1%. Many others (29%) have less THC but negligible amounts of CBD, with THC less than 15% and CBD under 1%. Only 14% of strains have both THC and CBD levels that exceed 5%, and just 3% of strains have less than 1% THC and more than 9% CBD, a highly prized category in which the latest ABcann strains can be found.

Late last month, the company announced (http://nnw.fm/P3g5J) the release of its top-of-the-line CBD-Med, which has a ratio of 27.6:1 (18.5% CBD to 0.67% THC). This adds to ABcann current lineup of high-CBD products, which already include NC:Med, with 18.9% CBD to 1% THC and DC:Med, with 15.4% CBD to 1% THC. ABcann also expects to be able to sell oils from October 2017, a range that will include a 1:1 THC/CBD drop, a high THC dropper and a high CBD dropper.

For more information, visit the company’s website at www.ABcann.ca

Re: ABcann Global (TSX.V: ABCN) (OTCQB: ABCCF)

PostPosted: Thu Sep 21, 2017 6:11 pm
by QualityStocks
Production Bottleneck Spells Opportunity for Canada’s Cannabis Producers

NetworkNewsWire Editorial Coverage: While developments in U.S. marijuana markets have no trouble attracting headlines, many seasoned investors have discovered a more predictable method of capitalizing on the cannabis boom by turning their attention to the north. Data from Health Canada suggest that almost 130,000 Canadians had signed up with the country’s 38 licensed cannabis producers by the end of 2016, more than tripling in number from the previous year. One of these licensed producers is ABcann Global Corp. (OTCQB: ABCCF) (TSX.V: ABCN) (ABCCF Profile), which has remained focused on changing the face of medical cannabis since its launch in 2014. With fellow licensed producers Canopy Growth Corp. (OTC: TWMJF) (TSX: WEED), Aurora Cannabis, Inc. (OTCQX: ACBFF) (TSX: ACB) and Aphria, Inc. (OTCQB: APHQF) (TSX: APH) all recording huge PPS spikes approaching or exceeding 1,000 percent following their respective IPOs, ABcann’s comparatively low market cap, combined with its strong balance sheet reflecting investment from cannabis streaming company Cannabis Wheaton Income Corp. (OTC: KWFLF) (TSX.V: CBW), makes it an intriguing investment opportunity as Canada prepares to legalize recreational use of marijuana at the federal level in 2018.

The impending legalization of marijuana for recreational use in Canada could offer licensed producers a chance to record tremendous growth in the coming months. According to a 2016 report by Deloitte, the legal Canadian marijuana market could soon be worth $18 billion annually. As for volume, Deloitte forecast annual demand for the plant at about 1.32 million pounds per year. Therein lies the opportunity. As of the 2016 report, Canada’s network of licensed growers produced about 20,000 pound of dried marijuana per year. Just last week, investors were given an early glimpse into the possibilities presented by this supply bottleneck.

As reported by Vice News, New Brunswick’s financial minister last Friday announced two historic supply deals with Organigram and Canopy Growth Corp. with a combined value of more than $80 million. Both companies saw a jump in share prices following the announcement, but the scale of these agreements demonstrates the nearly insatiable demand for volume in the Canadian cannabis market ahead of next year’s legalization measures. The Financial Post notes that Organigram’s supply agreement with New Brunswick accounts for about 25 percent of its anticipated annual production. With Quebec and Ontario having recently floated details of their individual plans for July’s complete marijuana legalization goal and the other seven Canadian provinces now on the clock, the market is ripe for expansion.

“These are the first agreements that any province has signed for supply from licensed producers in Canada,” Organigram CEO Greg Engel told the Financial Post. “Part of the initiative to get this supply agreement in place was they understand that there will be a supply deficiency for the first couple years of the adult recreational market, and they wanted to make sure that they were in a position to get a significant supply going forward and be the first to do so.”

ABcann Global Corp. (OTCQB: ABCCF) (TSX.V: ABCN) with its fully operational Vanluven production facility, is well-positioned to capitalize on this expansion. The company’s computer-controlled growing platform helps it produce in excess of 250 grams of cannabis per square foot each year, placing it among the highest yields within the Canadian sector, according to data from PI Financial. Likewise, these reliable growing systems have proven extremely adept at producing a consistent chemical compound from plant to plant and batch to batch, allowing ABcann to achieve a long-term cannabinoid profile with deviations of less than 10 percent. This is particularly noteworthy as some competitors within the Canadian cannabis market have faced product recalls resulting from substandard consistency and other production issues.

Canada’s largest cannabis producer, Cannabis Growth Corp., through its recently-acquired Mettrum Health Corp. subsidiary, is one company that has faced product recalls in recent months. Health Canada classified the product deficiency as a Type III recall, defined as “a situation in which the use of, or exposure to, a product is not likely to cause any adverse health consequences.” Aurora Cannabis, Inc. announced a Type II recall of its products in January 2017, with some of its marketed offerings containing “residual levels of myclobutanil and/or bifenazate that exceed any of the levels permitted in food production for these two pesticides.” Aphria, Inc. initiated a Type III recall of its own in March 2017 due to mislabeling of the delta-9-tetrahydrocannabidiol (THC) content of some of its products.

In the face of these quality concerns in the burgeoning industry, ABcann has not had any product recalls. The company’s management team notes that ABcann’s reputation for the consistent production of pharmaceutical-grade cannabis will be vital to both its expansion within Canada and its entry into additional global markets.

Leaning on this reputation for quality, ABcann has already outlined some aggressive expansion plans designed to help it widen its presence in the fertile Canadian cannabis market. The company’s Vanluven facility in Napanee, Ontario, boasts 15,000 square feet of production space, and management expects completion of an additional 15,000-square-foot expansion at the site sometime in 2017. Looking ahead, ABcann also owns a 2,649-hectare parcel of land near its Vanluven facility, known as its Kimmett facility, upon which it plans to construct a 150,000-square-foot facility offering annual cannabis production capacity of 20,000 kilograms. In late July, the company provided an update on these construction efforts, noting that its plans to commence construction at the Kimmett facility remain on track for the third quarter of 2017, with first cultivation from the facility expected in the fourth quarter of 2018. These plans are supported by ABcann’s strong cash position.

ABcann earlier this week reported (http://nnw.fm/zQY7o) total proceeds of $11.9 million from the exercise of warrants since its acquisition of ABcann Medicinals, Inc. in April, bringing the company’s working capital to $45 million, to be used to significantly increase production capacity in 2018.

“ABcann thanks our shareholders for their continued support and confidence as we work toward expanding our facilities and increasing production. Our strong financial position, represented by our current cash position is earmarked for new construction and will facilitate the timely execution of our business plan. The Company’s main focus in the coming months will be on the deployment of capital towards the expansion of our existing Vanluven facility and development and construction of the new Kimmett facility, as well as the pursuit of our international expansion plans,” ,” stated director and CEO Aaron Keay, who as of October 1 will be replaced by incoming CEO Barry Fishman (http://nnw.fm/WrOQ4).

This strong cash position is anchored to news from early August, when ABcann announced the close of a $15 million investment by Cannabis Wheaton Income Corp., the world’s first cannabis streaming company, as part of a larger phased investment to fund its expansion efforts. As noted on its website, Cannabis Wheaton aims to construct a pan-Canadian network of streaming partners connecting licensed producers with consumers. This falls in line with ABcann’s current operations, though, notably, the company has already outlined plans for growth beyond the Canadian border.

In its August 2017 corporate presentation, ABcann highlights its active global initiatives targeting cannabis markets in Europe, Israel and Australia. It is in this area that the company’s proven track record of quality production is expected to be most valuable. As a member of ABcann’s management team told NetworkNewsWire, “With Canadian growers moving so fast into commercial production, the opportunities will be in growing international markets. The licensed producer’s with the best domestic reputations for quality consistency and capacity will be the winners in the new emerging markets … We expect ABcann to be successful in the global supply chain.”

Its plans for the construction of a 150,000-square-foot production facility in the coming months place ABcann in the upper echelon of growers in Canada’s developing cannabis market. It’s joined in these ranks by Canopy Growth, the nation’s largest licensed producer, which operates a diverse collection of brands supported by over half a million square feet of indoor greenhouse production capacity. Canopy Growth was first granted a licensed to legally produce marijuana in January 2014, and its production facility was the first approved under the Marijuana for Medical Purposes Regulations in April 2014. This early-mover status propelled the company to rapid expansion, as it became the first company in the marijuana industry to achieve a valuation of $1 billion in November 2016. ABcann will look to record similar growth through its facility expansion projects, as well as its international growth initiatives.

Despite recent recalls impacting their operations, fellow licensed producers Aphria and Aurora Cannabis are also competing in the booming Canadian cannabis space. Marketing a wide variety of products including capsules, oral solutions and vaporizers, Aphria has recorded seven consecutive quarters of positive EBITDA while continuing to expand its production capacity. Its PPS for its Canada-listed shares have highlighted the growth potential of this evolving market, hitting a high of C$7.79 in November 2016 that marked a 967 percent gain from IPO in February 2015. Similarly, Aurora Cannabis’s Canadian shares rose by 1,419 percent, from June 2015 to November 2016, to C$3.95 as the company implemented a strategy combining low-cost production with high customer growth rates in an effort to maximize market share and compete with low-price competitors.

With federal legalization of recreational use scheduled for 2018, the Canadian cannabis industry is in the midst of a major boom. Producers are scrambling to increase production capacity in the face of a forecast supply dearth, and many are facing the quality concerns and product recalls that are often associated with expedited expansion. ABcann Global, on the other hand, is taking a deliberate approach to the so-called ‘Green Revolution’. In addition to rapidly increasing its production capacity by leveraging its strong cash position, ABcann has remained steadfast in its commitment to consistency and product quality. With no product recalls in its history, ABcann is well-positioned to both expand its share of the Canadian cannabis industry and make strategic entries into promising international markets. These factors, when combined with a market cap that’s significantly lower than its competitors in the cannabis space, make ABcann an intriguing option for investors looking to capitalize on the impending legalization of marijuana in Canada and beyond.

For more information on ABcann Global Corp. please visit: ABcann Global (TSX.V: ABCN) (OTCQB: ABCCF)

Re: ABcann Global (TSX.V: ABCN) (OTCQB: ABCCF)

PostPosted: Tue Sep 26, 2017 12:58 pm
by QualityStocks
ABcann Global Corp. (TSX.V: ABCN) (OTCQB: ABCCF) Attains $43M in Capital, Plans Significant Production Capacity Increase

- Aaron Keay, CEO, says plans set for greater production capacity and strategy for global distribution in emerging markets
- Expansion of ABcann’s Vanluven facility underway, along with construction of the company’s 150,000 sq. ft. Kimmett facility
- Napanee, Ontario-based firm uses proprietary plant-growing technology and is pursuing opportunities in Australia and Germany

ABcann Global Corp. (TSX.V: ABCN) (OTCQB: ABCCF) achieved working capital of $43 million from multiple financings, including private placements and strategic partnerships, during the six months ended June 30, 2017, it announced on August 29 (http://nnw.fm/Wk1ly).

ABcann manufactures and distributes medical cannabis under a license issued by Health Canada to a wholly-owned subsidiary of the company, ABcann Medicinals, Inc. It is currently expanding and constructing facilities to grow more product, in addition to exploring other opportunities of multiple delivery vehicles.

The company specializes in growing cannabis within environmentally controlled chambers which can monitor and control all variables. The result is organically grown and pesticide-free plants that are featured in products boasting consistent quality standards.

“ABcann’s first quarter as a publicly traded issuer was a successful one, leading to the company having over $40 million in current working capital,” CEO Aaron Keay noted in a news release. “With our strong cash position, ABcann expects to significantly increase production capacity in 2018 while pursuing our aggressive construction and expansion timelines at both Vanluven and Kimmett.”

For the three months ended June 30, 2017, ABcann recorded revenues of C$264,319, as compared to $21,465 for the same period last year. For the six months ended June 30, 2017, revenues were $436,802, as compared to $21,840 for the comparable period in 2016.

For more information, visit the company’s website at www.ABcann.ca

Re: ABcann Global (TSX.V: ABCN) (OTCQB: ABCCF)

PostPosted: Fri Sep 29, 2017 4:26 pm
by QualityStocks
NetworkNewsBreaks – ABcann Global Corp. (TSX.V: ABCN) (OTCQB: ABCCF) Achieves $43M in Working Capital, Eyes Substantial Production Capacity Increase for 2018

ABcann Global Corp. (TSX.V: ABCN) (OTCQB: ABCCF), a manufacturer and distributor of medical cannabis in Canada, announced on August 29 (http://nnw.fm/Wk1ly) the achievement of working capital in the amount of $43 million from multiple financings, including strategic partnerships and private placements, during the six months ended June 30, 2017. During that period, ABcann recorded revenues of C$264,319, compared with $21,465 during the same period of 2016. For the six-month period ended June 30, the company’s revenues were $436,802, as compared with $21,840 for comparable period of the previous year. An article further discussing this reads: “ABcann’s first quarter as a publicly traded issuer was a successful one, leading to the company having over $40 million in current working capital,” CEO Aaron Keay noted in a news release. “With our strong cash position, ABcann expects to significantly increase production capacity in 2018 while pursuing our aggressive construction and expansion timelines at both Vanluven and Kimmett.”

Re: ABcann Global (TSX.V: ABCN) (OTCQB: ABCCF)

PostPosted: Tue Oct 03, 2017 5:01 pm
by QualityStocks
Demand Outpacing Supply as Canadian Cannabis Legalization Looms

NetworkNewsWire Editorial Coverage: The Canadian government’s plan to push through legalization of marijuana for recreational purposes by mid-2018 figures to deal a serious blow to the existing black market. However, industry analysts are increasingly skeptical of the ability of the country’s Licensed Producers to keep pace with this forecast spike in demand. As noted in a recent article published by CBC, “Unless something changes quickly, the supply of available pot come legalization next July, will be inadequate, and the black market will continue to thrive.” ABcann Global Corp. (OTCQB: ABCCF) (TSX.V: ABCN) (ABCCF Profile), with its healthy cash position and aggressive expansion plans, is one company seeking to address these supply concerns, particularly in the medicinal market. Joined in the space by Canopy Growth Corp. (OTC: TWMJF) (TSX: WEED), Aurora Cannabis, Inc. (OTCQX: ACBFF) (TSX: ACB), Aphria, Inc. (OTCQB: APHQF) (TSX: APH) and Medical Marijuana, Inc. (OTC: MJNA), ABcann’s relatively low market cap and beefy portfolio of pharmaceutical-grade IP have it on the radar of investors looking to capitalize on Canada’s much-anticipated “green” revolution.

Mere months out from its initial public offering, ABcann Global Corp. (OTCQB: ABCCF) (TSX.V: ABCN) has already shown tremendous potential in setting itself apart from other Canadian growers. The backbone of the company’s operations, which focus on the development of consistent pharmaceutical-grade products that are organically grown and pesticide-free, is its proprietary growing technology. As noted on its website, ABcann’s products are always free of chemicals and produced in small batches to ensure high quality standards. This commitment to quality has helped ABcann steer clear of the recent wave of product recalls in the Canadian cannabis market that has affected many of the industry’s biggest names.

Scaling these operations has become a major focus for ABcann’s management team in recent months, as highlighted by the company’s latest strategic moves. In mid-September, ABcann announced its reception of $11.9 million in total proceeds from the exercise of warrants. When combined with an earlier investment from cannabis streaming company Cannabis Wheaton Income Corp., the infusion brought ABcann’s cash position to approximately $45 million. As Aaron Keay, director of ABcann, noted in that news release, “The Company’s main focus in the coming months will be on the deployment of capital towards the expansion of [its] existing Vanluven facility and development and construction of the new Kimmett facility, as well as the pursuit of [its] international expansion plans.” These facilities mark another upside of ABcann’s business model, as the company owns the land it intends to use for these expansion projects, eliminating potentially costly leasing expenses.

Supported by a strong management team and guided by an experienced advisory board featuring the “Father of Cannabis Research” Dr. Raphael Mechoulam, ABcann’s favorable production yields place it at the forefront of an extremely competitive market. In its corporate presentation, ABcann compares its yields with industry averages based on PI Financial estimates. Cannabis industry mainstay Canopy Growth Corp.’s (OTC: TWMJF) (TSX: WEED) indoor yield per square foot is estimated at roughly 100 grams. Comparatively, ABcann’s indoor yield clocks in at nearly 350 grams per square foot, and the company is targeting further refinements that could support yields in excess of 425 grams per square foot in the near future, far outpacing industry averages.

PI Financial, in a May 2017 report, provided some insight into the potential upside offered by ABcann’s proprietary growing techniques as the Canadian cannabis market enters its latest boom period. The analyst firm notes that ABcann is currently on course to reach breakeven as soon as the second quarter of 2018, with a ramp up in sales to $74.2 million forecast for fiscal 2019. These projections came alongside a ‘Buy’ rating and a 12-month price target of C$2.25 for ABcann’s Canada-listed shares, which were trading at C$0.96 as of close of market on September 29.

Promising research reports aside, ABcann’s recent efforts to address the expected shortfall in Canadian cannabis supply place it at the forefront of the blossoming industry. Its strong cash position is being used to both expand its fully-operational Vanluven facility and continue construction of its 150,000-square-foot Kimmett facility. As noted in a July news release, ABcann expects first cultivation from the Kimmett facility in the fourth quarter of 2018, with the project reaching full production capacity by the first quarter of 2019. With this expansion, the company will look to expand on its position in the Canadian market while pursuing a number of global initiatives in Europe, Israel and Australia. “We expect that the increase in production capacity will enable ABcann to increase the sales of our premium, organically grown, pesticide free cannabis products in the current domestic market and position the Company for global distribution in the emerging markets we have targeted,” Keay noted in an August update. “Further, the ability to serve larger and broader markets as a result of the production increase positions ABcann extremely well for the anticipated adult consumer market in July 2018.”

ABcann is joined in the Canadian cannabis sector by a number of companies exploring expansion options of their own. Canopy Growth Corp., widely-recognized as Canada’s first $1 billion weed company, operates a number of core cannabis brands targeting both medicinal and recreational markets. Perhaps most notable in this brand portfolio is Tweed, which Canopy calls “the most recognized marijuana production brand in the world” on its website. The production capacity of the Tweed brand highlights the massive market potential of ABcann’s current construction efforts. Per the Canopy Growth Corp. website, Tweed currently maintains roughly 168,000 square feet of licensed production space, and its campus located at the former Hershey Chocolate factory has about 500,000 square feet of available space for expansion. In other words, ABcann’s 150,000-square-foot Kimmett facility, upon completion, will see the company’s production space surpass one of the world’s most notable cannabis brands, and its superior yields should push ABcann’s production figures well beyond the current limits of Canopy’s flagship label.

Aurora Cannabis (OTCQX: ACBFF) (TSX: ACB), on the other hand, had already set its sights on the forecast supply dearth expected to hit the Canadian market in the coming months. In November 2016, Aurora announced the start of construction on an unprecedented 800,000-square-foot production facility that it’s calling ‘Aurora Sky’. Completion of this project would mark a huge capacity increase from Aurora’s current facility, which clocks in at just 55,200 square feet.

In May, Aphria (OTCQB: APHQF) (TSX: APH) threw its hat into the ring when it announced plans to triple its production capacity as part of its four-part construction effort in Leamington, Ontario. The expansion project is on course for completion in July 2018, according to Aphria CEO Vic Neufeld. Meanwhile, Medical Marijuana (OTC: MJNA), the first publicly traded cannabis company in the United States, has continued to fortify its presence on the international cannabis scene, becoming the first company to have cannabis products subsidized by the Mexican government earlier this year.

Legalization of cannabis for recreational use is creating a huge opportunity for Licensed Producers in Canada. While quality concerns and product recalls have impacted the expansion efforts of many of the industry’s most recognizable names, the importance of consistent and dependable growing techniques has been reaffirmed. ABcann’s combination of a promising IP portfolio, a strong cash position, sizable real estate assets and a relatively low market cap – combined with a clean sheet in terms of product recalls and quality blunders – make it an intriguing investment option in the Canadian cannabis industry. Look for big moves as the company approaches ramp up of production at its new facilities in the coming months.

For more information on ABcann Global Corp. please visit: ABcann Global (TSX.V: ABCN) (OTCQB: ABCCF)

Re: ABcann Global (TSX.V: ABCN) (OTCQB: ABCCF)

PostPosted: Wed Oct 04, 2017 4:23 pm
by QualityStocks
The Generational Growth Opportunity for Canadian Cannabis

NetworkNewsWire Editorial Coverage: The medical cannabis business is booming in Canada, projected to ramp up and exceed $8 billion within seven years. The growth trajectory shows no signs of slowing yet pales in comparison to the global opportunity. A recent analysis by Eight Capital, a Toronto-based investment bank, targets the potential Canadian international medical cannabis market at a staggering $142 billion over the next 15 years (http://nnw.fm/aFP0h). Licensed producers in good standing are best positioned to reap immense rewards from this generational growth opportunity. Of these, ABcann Global Corp. (TSX.V: ABCN) (OTCQB: ABCCF) (ABcann Profile), among Canada’s first licensed producers, is already considered one of its premiere growers. Others vying for position include OrganiGram Holdings, Inc. (OGRMF), Supreme Pharmaceuticals, Inc. (SPRWF), Maricann Group, Inc. (MRRCF) and iAnthus Capital Holdings, Inc. (ITHUF).

With strict laws enacted in 2016, Health Canada now oversees the licensing process, monitoring and compliance of commercial medical cannabis producers. Licenses are difficult to acquire and frequent inspections hold producers to stringent standards. Health Canada now conducts thorough reviews of applications to ensure compliance with regulations and closely monitors licensed producers to ensure compliance with such strictures as personnel security measures, good production practices, packaging, shipping, record keeping, and importantly, import and export requirements. Global demand, especially in Germany, is growing at an “insane” rate.

ABcann Global Corp. (TSX.V: ABCN) (OTCQB: ABCCF) sees Germany as a gateway to vast European and global opportunities. “We’re absolutely at the forefront,” recent CEO Aaron Keay told Marijuana Business Daily. “We look at Europe as a significant part of our strategic plans for expansion, in addition to what we’re doing domestically.” Keay, now focused on global operations, confirmed that ABcann expects to acquire a distribution license and start exporting to Germany in the third quarter.

Meticulous specifications in the production of its pharmaceutical grade, plant-based medicines positions ABcann at the vanguard of Canadian global exporters of medical cannabis products. ABcann’s modular approach to systems technology eliminates scale-up risk and enables ABcann to expand anywhere in the world and still maintain consistency and quality of product. Maintaining standards designed to exceed Canadian government requirements, ABcann Medicinals grows plants only in small batches to create controllable, consistent and predictable yields. The plants are nurtured in controlled environmental chambers to deliver repeatedly dependable results with each harvest. Chemical and pesticide free, ABcann produces medical cannabis that effectuates the same pharmaceutical response with each use. Such quality and consistency are prerequisites for importers of medicinal cannabis, especially in Germany that reimburses medical cannabis under its national health system.

In a testament to consistency, quality and immense global opportunity, Cannabis Wheaton, which invests in and supports a wide range of cannabis cultivation companies, announced in a June 2 press release a $30 million investment into ABcann for current operations and expansion to a 130,000-square-foot facility (http://nnw.fm/CHBi5). Cannabis Wheaton further committed to fully fund, with certain conditions, the construction of an additional 50,000 square feet of ABcann’s Kimmett Facility. The 180,000 square feet of funded production capacity places ABcann among the top of all licensed producers. The $30 million investment is being made in two tranches each at C$2.25 per share. The pricing represents a significant premium to the current price of $0.78 US (about C$1.00) per share.

With a market capitalization around $82 million, ABcann presents great value for Cannabis Wheaton and should be on the radar of investors in this space. Other Canadian licensed producers carry much higher market valuations. Even at a C$2.25 per share valuation (about $180 million US market cap) ABcann still represents a compelling value in the industry with many licensed producers commanding valuations two to four times higher.

One such company carrying such a lofty market valuation is OrganiGram Holdings (OGRMF). With a market cap in excess of $233 million, OrganiGram will have over 220,000 square feet of medical cannabis production space at full build out. Even though its a federally licensed producer, OrganiGram was caught up in two Health Canada recalls of almost all its products sold in 2016 after residual levels of two banned pesticides, myclobutanil and bifenazate, were found and company’s organic certification was suspended until compliance to requirements was demonstrated. Health Canada released a public recall of all products produced between February 1, 2016, and December 16, 2016, which included both dried marijuana and cannabis oil. OrganiGram took remedial measures to rectify the problems, is now back in business after losing a year’s revenues and still carries a $230+ million valuation.

Supreme Pharmaceuticals (SPRWF) has a hefty market cap of around $250 million and is trying to become a leading supplier of affordable medical cannabis by applying commercial agriculture practices to medical cannabis production. Supreme Pharmaceuticals expects to produce 10,000 kilograms of cannabis in 2017, with an estimated value of $35 million. At the end of 2016, the company raised $55 million through a convertible debenture that pays investors 10% annually until maturity in January 2019, at which point the lenders can convert into equity at $1.30 per share which may prove quite dilutive.

Licensed in 2014 and with first sales in 2015, Maricann Group (MRRCF) is now expanding its cultivation, extraction, analytics and production facilities for growth into the adult-use cannabis market in Canada, and longer term, into mature and developing cannabis markets worldwide. In August the company reported Q2 sales declined by 27% from previous year levels and down 42% compared to Q1. Lacking environmental controls, Maricann attributed the shortfall to a March windstorm that allowed sand to enter its greenhouses and ultimately caused destruction of all impacted plants.

With a different approach and no licensed Canadian producers, iAnthus Capital Holdings (ITHUF), through its wholly owned subsidiary iAnthus Capital Management, LLC, offers investors diversified exposure to licensed cannabis cultivators, processors and dispensaries in the United States. iAnthus currently owns, operates or has partnered with marijuana license holders in Massachusetts, Vermont, Colorado and New Mexico. Founded by entrepreneurs with experience in investment banking, corporate finance, law and healthcare services, iAnthus provides a combination of capital and operating and management expertise for its companies. The diversification, while limiting downside in the space, severely constricts upside potential and is reflected in the paltry $36 million market valuation.

Canadian medical cannabis companies are uniquely primed and positioned to tap a generational global growth opportunity. Well-capitalized and largely free from competition, Canadian licensed producers are set to gain a first-mover advantage in new international markets as more and more countries legalize marijuana for medical use. Fortunes will be made as international medical cannabis markets balloon to $142+ billion over the next 15 years. To maximize profits in this space, investors should have direct exposure to licensed Canadian medical cannabis producers.

For more information on ABcann Global please visit: ABcann Global (TSX.V: ABCN) (OTCQB: ABCCF)