This Co. Could Increase Cannabis Industry’s Profit Margins

 

April 25, 2019 -- InvestorsHub NewsWire -- Microcap Speculators -- Indoor cannabis production takes a lot of energy.  A standard grow facility uses 10 times the amount of electricity per square foot as a regular office building of the same size.  This is due to the many needs of a grow operation such as high-intensity lights, fans, heating, cooling, water pumps, and CO2 injection systems, according to the Southwest Energy Efficiency Project. While indoor farming requires a lot of energy in general, there are added problems for cannabis manufacturers due to heavy regulations.  One example are the security precautions that require growers to maintain cameras and store video footage.

One company in position to solve big cannabis’ major problem is CleanSpark, Inc. (USOTC: CLSK). CLSK’s microgrid energy solution dramatically decreases the cost of energy associated with producing each pound of valuable cash crop.  A cannabis business using $90,000 per year in energy has the potential to reduce its operating costs (flowering stage) from $270/lb. to $200/lb., producing a 15% ROI over 10 years.  It is a microgrid company with several revenue generating projects.  It released an Edgar filing reporting $20 million in financing in the form of Debenture, the Series B Preferred Stock, the Warrant and the Common Stock.  With the warrants being priced $3.50 per share with respect to 2,000,000 Warrant Shares, $4.00 with respect to 100,000 Warrant Shares, $5.00 with respect to 100,000 Warrant Shares, $7.50 with respect to 50,000 Warrant Shares and $10.00 with respect to 50,000 Warrant Shares, the parties are surely anticipating growth.  This committed financing will help accelerate the development and deployment of CleanSpark's Distributed Energy Resource (DER) Solutions to commercial customers.

CleanSpark provides advanced energy software and control technology that enables a plug-and-play enterprise solution to modern energy challenges.  The company’s services consist of intelligent energy monitoring and controls, microgrid design and engineering, microgrid consulting services, and turn-key microgrid implementation services.  CleanSpark’s software allows energy users to obtain resiliency and economic optimization.  Software is uniquely capable of enabling a microgrid to be scaled to the user’s specific needs and can be widely implemented across commercial, industrial, military, agricultural and municipal, deployment.

CLSK has outlined several initiatives in their recent letter to shareholders.  CLSK is planning to initiate a marketing campaign to start reaching indoor cannabis growers dealing with inefficient energy usage in need of their services, push forward their projects with recent acquisition of Intellectual Property of Pioneer Critical Power Inc, and facilitate growth in their R&D to find new industries their solution can improve.  Start your research now.


Today we are highlighting: CleanSpark, Inc. (USOTC: CLSK), Canopy Growth Corporation (NYSE: CGC), Aurora Cannabis, Inc. (NYSE: ACB), Planet 13 Holdings, Inc. (PLNHF), and Curaleaf Holdings, Inc. (USOTC: CURLF).

This financing is the latest in a long string of positive announcements by CleanSpark, Inc. (USOTC: CLSK) (Market Cap: $122.288M; Share Price: $2.84).  The company engaged a firm to navigate their up listing, announced the near completion of a $900k contract to install a CLSK microgrid at a U.S. Marine Corps Base and has been progressing on a $18.3 million deal with NYSE company, MAC.  Continue reading to learn why now is the time to start your research on CLSK.  It had recently announced that it has received new orders of approximately $438,000 since the closing of the definitive agreement on January 22, 2019 to acquire the intellectual property of Pioneer Critical Power Inc.  The custom equipment backlog has increased to approximately $3.9 million, an increase of approximately 8.3% from the backlog levels on the date of acquisition. Their acquisition of intellectual property of Pioneer Critical Power Inc. has already been a boon for their bottom line.  

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Canopy Growth Corporation (NYSE: CGC) (Market Cap: $16.694B; Share Price: $48.37) completed an all-cash acquisition of Spain-based licensed cannabis producer Cáñamo y Fibras Naturales S.L. (Cafina).  Canopy said that the acquisition provides it the foundation to expand its European production footprint into one of the most ideal-growing regions in the world.  The company wants to build a strong presence in Europe.  It has a 430,000-square-foot licensed production site in Odense, Denmark, as well as its ISO 13485 internationally-certified Storz and Bickel facility in Tütlingen, Germany.

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Aurora Cannabis (NYSE: ACB) (Market Cap: $9.259B; Share Price: $9.11) and Hempco Food and Fiber Inc. announced that the companies have entered into a binding letter agreement in which Aurora will acquire all of the issued and outstanding common shares of Hempco not already owned by Aurora.  In consideration of the transaction, Aurora has agreed to pay $1.04 per Hempco Share, payable in common shares of Aurora, reflecting a valuation of approximately C$63.4 million on a fully diluted basis.

Headquartered in Edmonton, Alberta, Canada with funded capacity in excess of 625,000 kg per annum and sales and operations in 24 countries across five continents, Aurora is one of the world's largest and leading cannabis companies.  Aurora is vertically integrated and horizontally diversified across every key segment of the value chain, from facility engineering and design to cannabis breeding and genetics research, cannabis and hemp production, derivatives, high value-add product development, home cultivation, wholesale and retail distribution.

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Planet 13 Holdings, Inc. (PLNHF) (Market Cap: $327.231M; Share Price: $2.55) announced that April 20, 2019 was the single biggest shopping day since the company's cannabis Entertainment Complex opened on November 1, 2018.  The company announced they welcomed over 6,000 visitors, 3,500 of which were paying customers at an average of $91.11 per ticket.

PLNHF is a vertically integrated cannabis company based in Nevada, with award-winning cultivation, production and dispensary operations in Las Vegas - the entertainment capital of the world.  Planet 13's mission is to build a recognizable global brand known for world-class dispensary operations and a creator of innovative cannabis products.
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Curaleaf Holdings, Inc. (USOTC: CURLF) (Market Cap: $3.737B; Share Price: $11.1426) and the Veterans Cannabis Project (VCP) announced an initiative that seeks to raise awareness and marks an important milestone to make legal cannabis more accessible for veterans.  Curaleaf Holdings, Inc. is a leading vertically integrated cannabis operator in the U.S. and the Veterans Cannabis Project is an organization that advocates for unrestricted and supported access of medical cannabis for veterans.  A custom designed "Veterans Cannabis Project" pre-roll product will be available for purchase at dispensaries in the 33 states where medical cannabis is legal.  A portion of all proceeds will be donated to the Veterans Cannabis Project.

Curaleaf Holdings, Inc. operates as an integrated medical and wellness cannabis operator in the United States.  It cultivates, processes, markets, and/or dispenses a range of cannabis products.  It announced that it has completed the acquisition of EC Investment Partners, LLC ("Eureka"). Joseph Lusardi, CEO of Curaleaf, said, "The closing of this transaction marks an important milestone for Curaleaf, enabling us to enter the highly attractive California market as a vertically integrated operator with plans to expand across the state."

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Signed by

Priyanka Goel, CFA

Legal Disclaimer:

 

This article was written by Regal Consulting, LLC (“Regal Consulting”).  Regal Consulting has agreed to a three-month term consulting agreement with CLSK dated 9/12/18.  The agreement calls for $10,000 in cash, and 30,000 restricted 144 shares of CLSK per month.  Regal and CLSK have signed an amendment to extend the contract for twelve months starting 10/10/18, and increased the cash component to $20,000 per month.  CLSK has paid an additional $12,000 for services provided in November. CLSK has paid an additional $88,000 for services provided in December.  CLSK has paid an additional $100,000 for services for January.  CLSK has paid an additional $100,000 for services for February.  Regal was paid an additional $100,000 for March services.  CLSK has paid an additional $100,000 for services for March.  CLSK has paid an additional $80,000 for services for April.  CLSK has paid All payments were made directly by Clean Spark, Inc. to Regal Consulting, LLC. to provide investor relations services, of which this article is a part of.  Regal Consulting also paid one thousand dollars cash to microcapspeculators.com to distribute this article.  Regal Consulting may have a position in the securities mentioned in this article at the time of publication, and may increase or decrease its position without notice.  This article is based on public information and the opinions of Regal Consulting. CLSK was given an opportunity to edit this article. This article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any results predicted herein.  Regal Consulting is not registered with any financial or securities regulatory authority, and does not provide or claim to provide investment advice.

 

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SOURCE: Microcap Speculators

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