Cannabis Stock Report: Canopy Growth Eyes International Market, Kannaway Partners with Hempy’s, ABcann Steps Up
Canopy Growth Looks To International Cannabis Market
Canopy Growth (TSX:WEED), Organa, and Green House announced their partnership in a new cultivation facility. The 20,000 square foot indoor grow facility is in Ontario. Known as Agripharm Corp., the group hopes it is a step towards the international cannabis market. Canopy, who originally owned the site, will keep a 40 percent stake in the facility. Green House will obtain a 40 percent stake, and Organa will grab the remaining 20 percent.
While full financial details are not yet public, Canopy subsidiary Canopy Rivers Corp. will put in $20 million to help the facility expand. Green House Holdings is a Dutch seed distributor with offices in North America. Organa brands come out of Colorado, where they make name products such as Bakked.
The three companies released a joint statement where they proclaimed, “together, the [venture] is positioned to take sought-after genetics, insert those genetics into consumer-friendly ingestion formats, and put them on stores’ shelves across [Canada], and abroad.”
Kannaway LLC. Partners With Hempy’s
Medical Marijuana Inc. (OTCMKTS:MJNA) subsidiary Kannaway LLC. announced a distribution partnership with the Hempy's Brand. The agreement calls for hemp and cotton textile products that are environmentally sound. Together the two will create all-natural fiber merchandise through "a transparent supply chain."
Kannaway LLC. specializes in the marketing and network sales of hemp-based botanical products. They are under Medical Marijuana Inc., a hemp-industry player that buys cannabis companies. Hempy’s is a legacy hemp producer in the United States, first founded in 1995.
"We are very pleased to be able to offer another way for Kannaway customers to improve their daily lives with the benefits of the hemp plant," Kannaway CEO Blake Schroeder commented. "The textiles used to manufacture these Hempy's® products are environmentally friendly and durable, two qualities that are important to both our company and our customers."
ABcann Global An Industry Giant
ABcann Global Corp. (OTC: ABCCF) (TSX.V: ABCN) became a valuable market player this year in advance of Canadian legalization. They produce upwards of 250 grams of cannabis per square foot a year via a computer growing platform. It is one of the highest yields in all the Canadian sector.
The medical cannabis company jettisons costs by growing a premium product in replicated geographies. Their yield is 100 percent over the industry average, with a customer return rate of 94.7 percent. With $43 million in working capital, ABcann broke ground on two new facilities. They plan to increase production significantly in 2018.
"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," a company news release stated. "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."
Cronos Group Inc. (OTCMKTS:PRMCF), a small but profitable Canadian cannabis company is looking to play ball in the big leagues. The owner of Peace Naturals Project Inc. (Ontario) and Original BC Ltd. (British Columbia) has revenues of under $2 million but is growing at 24 percent with cash holdings of $4.4 million. This month Cronos announced a joint venture with Kibbutz Gan Shmuel. The two companies will produce, manufacture, and distribute medical cannabis globally. The move received approval from the TSX Venture Exchange.
Canadian company MYM Nutraceuticals (OTCMKTS:MYMMF) is a rising star in the cannabis market. The company announced the scheduled completion of its Laval project on December 15th. Afterwards, they will prepare the final steps for cultivation with Health Canada. Earlier MYM closed the last part of its non-brokered private placement of 771,000 shares at $0.50 per unit. Total gross proceeds were $385,500. MYM develops high-end organic medicinal marijuana supplements and topical products.
Experts foresee a comeback for 22nd Century Group Inc. (NYSE:XXII) after a dismal October that saw share prices dip from $3.50 to $2 per share. The company, a biotech firm that deals in cannabis research, began the year strong. Prices rose from under $1 to a high of $3.50 before dropping and stagnating in late October. Despite the drop, overall numbers continue to impress, and many see better times ahead for the stock.
News and Notes
AbbVie Inc. (NYSE:ABBV) saw a 121 percent increase in put options on Wednesday after investors purchased 278 of them in what amounts to an unusual day of trading for the maker of the FDA approved drug Marinol. On Friday the company traded down $0.86 hitting $93.61. Their one year low is $58.60 while the one year high is $98.26.
North American Cannabis Holdings (OTCMKTS:USMJ) is negotiating the acquisition of a Canadian marijuana dispensary. "Any cannabis company developing a sector product or service offering should be looking to get into Canada,” said CEO Steven Rash. The company recently reported year-to-year revenue growth of 44 percent.