The legal marijuana industry continues to record impressive growth and this burgeoning industry is already a multi-billion-dollar market.
While many investors are focused on the United States marijuana market, the real action is taking place north of the border.
Canada has become a global marijuana leader and licensed firms are exporting marijuana products to countries like Germany, Australia, Colombia, the Cayman Islands, Uruguay, Chile, Brazil, and more.
The Canadian cannabis market remains one of the hottest places to invest and investors have recognized this opportunity. During the last two years, more than $1 billion has entered the Canadian marijuana industry and we think this trend is just getting started.
Look for a Differentiated Opportunity
While the marijuana opportunity in Canada is significant, companies must differentiate their strategy to stand out. So far this year, the market has seen several Canadian marijuana firms go public and this is also a trend that is just getting started.
One company that went public earlier this year and offers a differentiated opportunity is Cannabis Wheaton (CBW.V) (KWFLF). The company differentiated itself by introducing a streaming financing model to the cannabis industry and its streaming partners include 15 companies in six provinces across Canada.
Of Cannabis Wheaton’s streaming partners, 3 have sales licenses (ABcann, Broken Coast, and Green Relief), 4 have cultivation licenses, and 3 have affirmation letters.
Continues to Execute and Work to Create Value
Shares of Cannabis Wheaton have come off its August lows as the marijuana streaming firm has continued to execute on its initiatives.
In early August, Cannabis Wheaton completed its purchase of $15 million of ABcann Global (ABCN.V) (ABCCF) common stock at $2.25 per share. This Investment is part of a larger phased investment by Cannabis Wheaton to fund an additional 50,000 square feet at ABcann’s second production facility.
Shortly after Cannabis Wheaton finalized its purchase of ABcann, the company took steps to strengthen its team by adding Elfi Daniel-Ivad to its Advisory Board. Elfi is the Head of Submissions, Regulatory at Eurofins Experchem Laboratories Inc., where she leads a team in the development of regulatory submission strategies for Natural Health Products (NHPs), OTC drugs, cosmetics, medical devices, food products, site licenses, medical establishment licenses and applicants to become licensed cannabis producers.
Capital Raise Provides the Funds Needed to Execute
In late June, Cannabis Wheaton raised $50.2 million in aggregate gross proceeds and closed its private placement of special warrants and convertible debenture units. The firm sold 30,000 convertible debenture units for $30 million and the remainder came from the sale of 20,252,203 special warrants.
The company plans to use the net proceeds to finance its streaming partners and for general corporate and working capital purposes. This raise was significant for Cannabis Wheaton as it strengthened the company’s balance sheet and provided the capital needed to close on its deals.
credit:420intel.com
