Cannabis Market

Savvy Investors Seek out Innovative Cannabis Opportunities

By July 28, 2019 No Comments

NEW YORK, July 26, 2019 /PRNewswire/ — The booming cannabis industry has created opportunities for many driven entrepreneurs. In particular, many may be looking to launch something standard such as operating a retail dispensary or starting up a cultivation facility. However, these are the most common businesses within the cannabis industry and face heavy competition among one another. Moreover, dispensaries and cultivation sites both require licenses granted from the federal or provincial governments and some regions can experience a large influx of applications while typically, only a handful are granted to companies. While certain businesses can dominate a region or report attractive financials, investors are more interested in innovative companies and in 2018, they poured approximately USD 1.3 Billion into startups and other private ventures, according to Crunchbase. Overall, investors are keen on the cannabis startup market space as a multitude of companies have developed innovative ways to consume or grow cannabis. Furthermore, the statistics do not include all investments made. For instance, tobacco giant, Altria, and beverage producer, Constellation Brands, poured billions of dollars collectively into the industry. To note, the two large corporations invested in the industry because they are witnessing their primary market segment growth decline.in addition to the largest names in the cannabis market, there are plenty of small companies that are creating extraordinary products or technologies to help accelerate the growth of the industry. Overall, the cannabis industry is still in its infancy stage, meaning there is still a plethora of opportunities to seize. According to data compiled by Grand View Research, the global legal marijuana market is expected to reach USD 146.4 Billion by 2025 while registering a CAGR of 34.6%. Codebase Ventures Inc. (OTC: BKLLF) (CSE: CODE), India Globalization Capital, Inc. (NYSE-A: IGC), Auxly Cannabis Group Inc. (OTC: CBWTF) (TSX-V: XLY), United Cannabis Corporation (OTC: CNAB), Invictus MD Strategies Corp. (OTC: IVITF) (TSX-V: GENE)

Unique businesses such as cannabis deliveries, security systems, automated machinery, and advanced grow house technologies have captivated investors. Some of the most successful startups have fundraised more than tens of millions of dollars throughout funding rounds. Moreover, the most outstanding companies have even raised hundreds of millions of dollars. According to PitchBook, venture capitals have put USD 1.2 Billion into U.S.-based cannabis companies so far in 2019, which is significantly more than in 2018. Moving forward, the market is positioned for further growth as legalization continues to spread throughout the world. And while many opportunities are prevalent within the North American region, the expansion of the industry could have entrepreneurs and investors exploring other regions throughout the world. For instance, regions such as Latin America, Europe, and Australia have become popular regions where cannabis companies have launched operations. Moreover, emerging markets such as U.S. states like Michiganand Illinois, which are the two most recent states to legalize recreational cannabis, may become alluring investment opportunities. “We, and most market participants, are cautiously optimistic that a change in federal rules around cannabis is coming within the next one to three years,” said Evan Eneman, Chief Executive Officer of MGO | ELLO, via email, according to the Institutional Investor. “Investments will accelerate if, and when, the federal government legalizes cannabis, and private investors who are either new to the industry or relative veterans are developing bullish investment theses and deploying capital into the industry in anticipation of this change.”

Codebase Ventures Inc. (OTCQB: BKLLF) (CSE: CODE) is also listed on the Canadian Securities Exchange under the ticker (CSE: CODE). Earlier this week, the Company announced the formation of a subsidiary for its investment focus in the cannabis sector.

Codebase has formed a dedicated investment subsidiary named Code Cannabis Investments. The focus of the subsidiary will be on identifying cannabis industry assets and startups that require capital and expertise to accelerate their business models and scale to meet areas of demand in the market.

Highlights:

  • Code Cannabis Investments subsidiary provides investment vehicle specific to the cannabis industry
  • Code Cannabis Investments will be identifying early stage companies with significant growth potential
  • Subsidiary business model aimed at delivering capital and expertise to bring innovative business models to market and generate revenues

“There are some highly talented entrepreneurs who are developing innovative and compelling business models in and as a result of the fast-growing legal cannabis sector,” said Mr. George Tsafalas, President and CEO. “Our team has developed terrific relationships in the cannabis sector and the number of intriguing investment opportunities led us to form this subsidiary so that we have a laser focus on realizing the potential that exists to drive results for our shareholders.”

About Codebase Ventures Inc: The Company’s mission is to make strategic investments in emerging sectors and markets, including cannabis and technologies such as blockchain and cryptocurrencies, where innovative business models and technologies have the potential to be transformative and deliver the greatest value to shareholders. Codebase Ventures Inc. is a hands-on team of entrepreneurial and technology experts who invest early in great ideas. The Company operates from the understanding that emerging sectors including cannabis and technology are evolving rapidly, bringing early opportunities for strategic investments that can deliver the exponential returns to shareholders.”

For our latest “Buzz on the Street” Show featuring Codebase Ventures Inc. recent corporate news, please head over to: https://www.youtube.com/watch?v=XkuJOfqGkjA

India Globalization Capital, Inc. (NYSE-A: IGC) has two lines of business: infrastructure and plant and cannabinoid derived products. India Globalization Capital, Inc. recently announced that its subsidiary Holi Hemp’s application has been approved and that it had executed agreements with operators to grow and harvest industrial hemp under the terms and conditions of the Industrial Hemp Program developed by the Arizona Department of Agriculture (AZDA). IGC’s strategy is to ensure the highest quality output by controlling the production of important cannabinoids like Cannabidiol (CBD) and Cannabigerol (CBG) among others, both as a supplier and to support our products such as HyalolexTM and Holi HempTM. The establishment of a grow operation platform is an important step in achieving these objectives and sets the foundation for CBD based brand development, fulfillment, and growth. “We selected Arizona after much analysis including assessing climate, cost of labor, political environment, local support, logistics, market penetration, and competition, among other factors. IGC intends to employ a strategy to plant year-round that reduces the amount of requisite acreage while taking full advantage of the hot weather to land dry the bio-mass. Our plan will focus on about 100 acres for extraction with additional acreage set aside for R&D initiatives. We anticipate having an extraction facility built in time for the November 2019 harvest but various factors, for example building permits, could cause a delay. If we are able to execute on our plans, one acre of hemp can potentially yield about 2,000 Kgs of dry flower that can potentially be extracted and refined into approximately 50 Kgs of THC-free CBD distillate with a current market value of USD 5,500 to USD 7,000 per Kg.,” said Ram Mukunda, Chief Executive Officer. 

Auxly Cannabis Group Inc. (OTCQX: CBWTF) (TSX-V: XLY) is an international cannabis company dedicated to bringing innovative, effective, and high-quality cannabis products to the medical, wellness and adult-use markets. Auxly Cannabis Group Inc. recently announced that Imperial Brands PLC will invest approximately USD 123 million in Auxly by way of a convertible debenture and grant Auxly global licenses to Imperial Brands’ vaping technology and access to its vapor innovation business, Nerudia. “This investment from Imperial Brands will enhance Auxly’s ability to continue to deliver on our business plans and accelerate our growth initiatives to expand our portfolio of branded derivative products,” said Hugo Alves, President of Auxly. “The timing is ideal as we prepare to bring our portfolio of innovative cannabis products to the Canadian market following the legalization of edibles, extracts and topicals later this year.”

United Cannabis Corporation (OTCQB: CNAB) is a biotechnology company dedicated to the advancement of cannabinoids for medical applications and is building a platform for designing targeted therapies to increase the quality of life for patients around the world. United Cannabis Corporation recently announced that its Joint Venture, Jamaica-based Cannabinoid Research & Development (“CRD”), had been issued a license to cultivate cannabis within Jamaica by the Country’s Cannabis Licensing Authority (CLA). Earnest Blackmon, Chief Executive Officer of United Cannabis, commented on the announcement, “Jamaica represents a significant market opportunity and United Cannabis has made a material investment in building the foundation necessary to launch a full-scale operation there. The granting of this license is confirmation from the CLA that we are on our way. I am confident that our outstanding applications will be approved shortly, and we look forward to establishing Jamaica as the production hub for international distribution of United Cannabis products.”

Invictus MD Strategies Corp. (OTCQX: IVITF) (TSX-V: GENE) is a global cannabis company offering a selection of products under a wide range of brands. Invictus MD Strategies Corp. Mr. Trevor Dixon, Chief Executive Officer of Invictus, recently reported that AB Ventures Inc., a company which Invictus is a 25% shareholder, is a late-stage applicant to obtain a cultivation license under the Cannabis Act. AB Ventures received the approval to proceed to construction and will submit its evidence package upon completion of such construction. Notification of review was granted on May 10th, 2019 immediately following Health Canada’s notice of a change to application requirements and procedures. Mr. Ripa, Chief Operating Officer of the Company and a 75% shareholder of AB Ventures, advises, “AB Ventures has completed all conditions set out by the municipality to begin construction on our new 22,000 sq. ft. facility located on 100 acres of rural property only minutes from the recently completed AB Laboratories Inc.’s location previously announced on June 26, 2019. AB Laboratories Inc. is a company that is a 50% owned subsidiary of Invictus. AB Ventures has started with infrastructure upgrades and will begin building construction immediately thereafter.  The project timeline has been longer than expected, but we are excited that approval has been received and a start date is in the near future.”

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