New York, New York (NetworkNewsWire) – 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.
For more information on ABcann Global please
visit: ABcann Global
(TSX.V: ABCN) (OTCQB: ABCCF)
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