Sector Snapshot - -
How #Cannabis Industry Growth is Accelerating the Ancillary Businesses (OTC:
$GOHE) (OTCQB: $MCOA) (OTC: $KSHB) (OTCQB: $MRMD)
Point Roberts WA,
Delta, BC – September 5, 2019 - Investorideas.com, a leading investor
news resource covering hemp and cannabis stocks releases a snapshot reporting
on the continued development of the cannabis ancillary market as the sector
matures; expanding into new states and countries.
The maturation of the
Canadian and US markets, along with the rapid expansion of international
cannabis markets is now beginning to drive the ancillary sector of the industry
as more companies realize the need for better payment processing, more reliable
delivery services and advanced infrastructure. These new demands on the
industry are beginning to generate revenue for such ancillary providers and
also provide investors a lower-risk entry point to the cannabis industry as
these ancillary providers have no direct plant contact.
Read this in full at https://www.investorideas.com/news/2019/cannabis/09051AncillaryBusinesses.asp
This was highlighted by Innovation Shares, a
provider of thematic ETFs who recently announced changes in its
monthly rebalance of The Cannabis ETF and has added four companies to the
portfolio: Valens GroWorks Inc., EnWave Corp., cbdMD Inc. and Fire & Flower
Holdings while removing three other companies: CannTrust Holdings, Vivo
Cannabis and Innovative Industrial Properties.
"We are excited to expand THCX's
footprint in the various cannabis industry sub-themes by including three
companies whose businesses revolve around ancillary services and CBD-based
consumer products," said Matt Markiewicz, Managing Director of Innovation
Shares. "In particular, Valens, EnWave, and cbdMD all operate at the
crossroads of science and technology which should appeal to investors who are
looking for differentiated exposure outside of a traditional seed-to-sale story."
Global Payout Inc. (OTC: GOHE) and its wholly
owned subsidiary, MTrac Tech Corporation yesterday announced that as the Company
enters the last month of the third quarter of 2019 it has reached a point where
it is effectively processing tens of millions of dollars in daily transaction
volume across its growing base of clients in the multibillion-dollar cannabis
industry.
As demonstrated in
the Company’s recent Q2 disclosure detailing Company financials, MTrac’s growth
trajectory has remained positive and has continued to gain significant traction
throughout the year. This growth can be attributed to the successful
strengthening of their foothold and market reach in what has become one of the
most dynamic industries in today’s economy. This feat has been accomplished in
part through MTrac’s success in securing several strategic service agreements
with some of the largest companies within the cannabis industry today.
The company has
recently signed a new account application with an anticipated 34 locations and
has applications coming in weekly for the services offered through MTrac.
In addition to their
expanding market reach, the Company is also fully engaged with key legislative
partners in different states to help push for the adoption of their system as a
means of providing merchants within these states with a viable and compliant
payment processing alternative to cash as they remain focused on delivering
“The Key to Cashless®” to as much of this diverse and expanding
industry as possible.
MARIJUANA COMPANY OF
AMERICA INC.
(OTCQB: MCOA) recently announced the official launch
of its premium cannabis delivery service, VivaBuds, in the San Fernando Valley,
California.
In April, the Company announced it had
acquired a 20% ownership interest in Natural Plant Extract of California
(“NPE”) to establish a joint venture to create VivaBuds, a California marijuana
delivery company that offers customers a dynamic opportunity to purchase
low-cost premium cannabis products directly from farmers using a “Tell a
Friend” approach. For more information, please visit the VivaBuds website at www.VivaBuds.com. The VivaBuds mobile
application is currently live on Google Play and available for download on all
Android devices.
“We are extremely pleased to have officially
launched our delivery service throughout the San Fernando Valley, where demand
for cannabis continues to increase unabatedly,” said CEO of MCOA, Mr. Donald
Steinberg. “We believe that by providing delivery and our high-quality premium
products to our consumers, we will increase revenues, expand margins, and
improve our overall brand recognition. I am confident that this new endeavor
dovetails perfectly with our commitment to become a global leader in the legal
production, processing, and distribution of cannabis products. Going forward,
management will continue to leverage strategic operations and decisions that
enhance value for all our shareholders.”
According to an August 15, 2019 Los Angeles
Times article, California is on pace to secure $3.1 billion in licensed
cannabis sales in 2019, representing the largest legal marijuana market in the
world. Legal sales have increased from approximately $2.5 billion in 2018, the
first year of licensed cannabis sales in California, according to the analysis
by sales-tracking firms Arcview Market Research and BDS Analytics.
KushCo Holdings, Inc.
(OTC: KSHB), the premier producer of ancillary
products and services to cannabis and hemp industries recently announced that it has closed
on a $50 million credit facility (the “Facility”) with Monroe Capital LLC
(“Monroe”), consisting of a $35 million revolving line of credit and an
accordion of up to $15 million that will be available subject to covenant
compliance and borrowing base availability.
The Facility will be for a term of five years
and will be used for working capital and driving organic growth, as well as for
potential acquisitions.
“KushCo continues to execute on its less
dilutive financing strategy that will provide the capital necessary to support
our continued operations and acquisitive growth,” commented Nick Kovacevich,
KushCo’s Chief Executive Officer. “We are excited to partner with an
entrepreneurial-focused private credit firm such as Monroe, and we have plans
to grow our businesses together providing critical products and services to the
cannabis and CBD industry. As the size of our customer’s business grows, it’s
imperative to have an adequately sized credit facility that will increase as our
business grows.”
“We’re excited to enter this hyper-growth
industry with the Company,” commented Ted Koenig, President and CEO of Monroe.
“They are a best in class business in a unique position to take advantage of
opportunities in this emerging business sector and we look forward to
supporting their continued growth and capital needs.”
MariMed Hemp, a subsidiary of MariMed, Inc.
(OTCQB: MRMD), a leading
multi-state cannabis and hemp operator focused on health and wellness, launched the Hemp Engine™, a
turnkey retail marketing platform for the fast-growing CBD sector last month.
The platform supports sales and marketing
decisions for a wide range of CBD products based on quality, popularity and
price point, allowing distributors and retailers to maximize returns and
increase sales efficiency. Co-developed with Sprout™, the leading CRM provider to
the cannabis industry, the platform is driven by proprietary data and
technology.
The Hemp Engine solution includes a complete
“store-within-a-store” package, pre-stocked with a range of CBD products
centered on a retailer’s particular criteria. The platform collects real time
data and pre-screens the data for quality and content. The system helps the
retailer by reducing the time and risk typically involved in choosing among a
wide and sometimes confusing array of CBD products. The package also includes
electronic tablets that provide store customers interactive, educational
information about CBD product attributes, benefits and usage at the
point-of-sale.
“Hemp Engine creates powerful new
distribution opportunities for our hemp-derived CBD brands,” commented MariMed
CEO, Robert Fireman. “It will help us further penetrate the growing hemp space.
We expect to deliver the first in-store installations over the next several
weeks.”
Earlier this year, the company converted its
$30 million debenture into a one-third equity ownership of GenCanna Global, Inc., the Kentucky-based, national leader in
cultivation and production of seed-to-sale cGMP quality CBD. MariMed Hemp was
established to augment this investment and capitalize on MariMed’s marketing
expertise with a new family of CBD brands.
According to Rick Granoff, Co-Founder of the
Hemp Engine, “The Hemp Engine addresses the major needs of retailers and
consumers as CBD popularity and consumption continues to grow. As a
one-stop-shop that greatly simplifies decision making for both groups, it
demonstrates MariMed’s continued thought leadership in health and wellness and
industry-leading innovative approach to the CBD space.”
While there has been
a heavy focus on cultivation and production in the cannabis industry for the
last few years, the industry is now reaching a new turning point in which
ancillary services and infrastructure are becoming more paramount. This growth
in the cannabis ancillary market is not only providing the industry with more
efficient technology and services but is also beginning to bring in more
investment opportunities, with more diversified options than the standard
production story we’ve seen so far.
For investors
following cannabis stocks, Investor Ideas has created a stock directory of publicly
traded CSE, TSX, TSXV, OTC, NASDAQ, NYSE, ASX Marijuana/Hemp Stocks
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