NetworkNewsWire
Editorial Coverage: North American cannabis markets have
achieved tremendous growth in recent years, and that trend shows no
sign of slowing down. Cannabis research firm ArcView has called for
an annualized growth rate of 26 percent through 2021, as the
burgeoning industry benefits from growing popular support and
regulatory changes. Perhaps the most notable of these pending
amendments is Canada’s planned nationwide legalization of
recreational cannabis. Canadian Health Minister Ginette Peitipas
Taylor has stoked optimism regarding an August or September 2018
official launch date for recreational cannabis across Canada.
Choom Holdings, Inc. (OTCQB: CHOOF) (CSE: CHOO)
(CHOOF
Profile), with its growing portfolio
of four late-stage licensed producer applicants, is primed to
pounce on this new market opportunity. Through an aggressive
acquisition strategy and strong commitment to developing national
retail distribution, Choom has quickly positioned itself as a major
player among other North American cannabis industry mainstays like
Cronos Group, Inc. (TSX: CRON) (NASDAQ: CRON),
Canopy Growth Corporation (TSX: WEED) (OTC:
TWMJF), Aphria, Inc. (TSX: APH) (OTCQB:
APHQF) and Hiku Brands Company, Ltd. (CSE: HIKU)
(OTC: DJACF) (DJACF
Profile).
An Evolving Regulatory Landscape
Canada’s quest to become the first G7 nation to legalize
recreational marijuana comes with a number of logistical and
regulatory challenges (http://nnw.fm/zfk3U). Two of the most prominent in the
nascent industry have related to licensing, both for growers and
retailers. Canadian cultivators are currently subject to the Access
to Cannabis for Medical Purposes Regulations (ACMPR). Implemented
in 2016, the ACMPR places the administration of Canada’s cannabis
cultivation industry in the hands of Health Canada, the federal
department tasked with responsibility for national public health.
Currently, only producers who are licensed under the ACMPR may sell
or provide dried marijuana, fresh marijuana, cannabis oil or
starting materials. With the number of licensed producers limited
on a provincial basis, ACMPR approval marks a significant milestone
in the development of all Canadian cannabis producers.
Licensing for the sale of recreational cannabis, on the other
hand, has been tasked to individual provinces. With full-scale
legalization rapidly approaching, multiple provinces have already
begun awarding licenses for the sale of recreational cannabis,
including Manitoba and Saskatchewan (http://nnw.fm/axi7A). Much like ACMPR approval has
proven to be a ‘make or break’ retail license achievement for
cannabis firms. Companies that successfully position themselves to
secure these early retail permits figure to have a key strategic
advantage in the supply and sale of products directly to consumers
through retail outlets.
Riding the Wave
The Choom Holdings,
Inc. (OTCQB: CHOOF) (CSE: CHOO) team is well accustomed to
navigating the tides of change on its way to fields of green. The
company prides itself on its ability to channel the laid-back
spirit of Hawaii without missing out on the opportunities presented
by the changing marijuana markets of North America. In total, the
company Choom™ has acquired two ACMPR applicants and has agreements
in place to acquire two additional ACMPR applicants, including its
most recent addition (http://nnw.fm/1KMa3), Saskatchewan-based High Way 10
and parent company Flower Power Cannabis Pharms.
The High Way 10 acquisition could mark a tremendous leap forward
for Choom and its shareholders. In a news release announcing the
acquisition, Choom noted that High Way 10’s initial 17,000 square
foot facility is located on a 120-acre parcel of land, providing
ample room for future expansion. As it stands, the facility is
estimated to produce approximately 1,500 kg of dried cannabis per
annum. According to Chris Bogart, president and CEO of Choom, “Upon
completion of the retrofitting and compliance within the initial
17,000 sq. ft. building, Flower Power intends to submit its
affirmation of readiness ("AOR") evidence package to Health Canada,
which they hope will follow with the receipt of a cultivation
license shortly thereafter.”
While the company’s portfolio also includes three late-stage
licensed producer applicants based in British Columbia — bolstered
by its entry into a definitive agreement to acquire Island Green
Cure that was announced on April 19 (http://nnw.fm/rl1V7) — High Way 10’s presence in
Saskatchewan immediately diversifies Choom’s national presence at
an important time. As previously noted, the Saskatchewan Liquor and
Gaming Authority (SGLA) last month announced that the province
would commence issuing retail permits. Because the SGLA has limited
(http://nnw.fm/3CdnK) the number of retail
permits to 51 for the first three years to ensure a controlled
rollout, time of filing could play a major role in establishing the
landscape of the local industry in coming years. In an April 17,
2018, news release, Choom provided (http://nnw.fm/F91gh) a retail overview, noting that it
has secured nine retail locations in Alberta and seven in British
Columbia, in addition to submitting 32 applications for retail
permits in Saskatchewan.
“We have now established a footprint to position Choom™ as a
leading private cannabis retailer in Western Canada,” Bogart noted
in a recent news release. “We will continue to pursue retail
licensing opportunities across the country and remain committed to
serving all Canadians in the coming consumer cannabis market.
Choom’s vision of delivering an elevated customer experience
through our curated retail environments, with the creation of
modern, stylish storefronts is well underway.”
The Financial Impact of Regulation
As Choom enters the final phases of Health Canada’s ACMPR
permitting procedure, a complex seven-stage process (http://nnw.fm/Tc5J0) that commonly takes more than a
year to complete, it could be in line for considerable financial
growth. Cronos Group, Inc., operating as PharmaCan
Capital Corp., acquired ACMPR licensed producer Peace Naturals
Project Inc. in 2016, establishing itself as the first Canadian
company to own and operate licensed producers in both Ontario and
British Columbia. In January 2018, Cronos announced that Peace
Naturals had obtained a dealer’s license pursuant to the Controlled
Drugs and Substances Act under Health Canada, enabling the company
to export medical cannabis extracts, including concentrated oil and
resin products, internationally. In the weeks that followed, Cronos
became the first cannabis stock to list on the Nasdaq Global
Market. Its U.S.-listed shares spiked from $3.31 in early December
2017 to a 52-week high of $9.40 in early March.
Share price increases related to key industry licensing and
certification go well beyond Cronos to include many of the Canadian
cannabis industry’s most recognizable names. Canopy Growth
Corporation, a leading diversified cannabis company
boasting collaborations with cannabis icon Snoop Dogg, breeding
legends DNA Genetics and Green House seeds and Fortune 500 alcohol
leader Constellation Brands, announced (http://nnw.fm/nMk5X) in early February that it had
been conditionally selected by the Government of Manitoba to
operate cannabis retail stores in the province. Since that
announcement, Canopy’s Canadian stock has rallied from C$26.50 in
mid-February to a high of C$33.41 in mid-March. Canopy’s Manitoba
selection marks the second provincial retail agreement for the
company, echoing the geographically diversified strategy currently
being implemented by Choom Holdings.
Aphria, Inc. is another Canadian cannabis
industry mainstay with an eye on geographical diversification as
nationwide recreational legalization looms. In late January, Aphria
announced (http://nnw.fm/5J0wR) its entry into an $826 million
deal to acquire NuuverA, Inc., further demonstrating the fiscal
value of Canada’s vaunted licensed producer status. In August 2017,
Nuuvera and Aphria entered a global strategic partnership initially
focused on the Canadian market. In January of this year, the two
firms announced a new offtake agreement for an additional 60,000 kg
of cannabis production. In the days following that announcement,
Aphria’s Canada-listed shares built on recent achievements to reach
a high of $C22.08, up from C$6.50 in October 2017.
Following this industry-wide trend, recreational and medical
cannabis company Hiku Brands Company, Ltd. saw its
Canadian shares climb to C$3.02 in mid-February following news that
it was conditionally awarded (http://nnw.fm/Br06p) one of four master retail
licenses in Manitoba’s highly competitive request for proposal
process for the right to operate retail cannabis stores. This PPS
was the highest achieved by Hiku since shortly after the close of
the late-January merger between DOJA Cannabis Company Limited and
TS Brandco Holdings Inc. that resulted in the newly-combined
company, again reiterating the positive market reaction that has
traditionally been associated with regulatory milestones in the
competitive Canadian marijuana market.
A Burgeoning Market Opportunity
With a clear track record of PPS growth related to approvals
from both Health Canada’s ACMPR licensed producer program and
provincial retail opportunities, the nation’s impending
legalization of recreational cannabis could present tremendous
upside for investors with the foresight to capitalize on market
trends. All told, cannabis industry tides are high, and, as Choom’s
website proudly outlines, it’s a great time to ‘Say Hello to
Opportunity’ (http://nnw.fm/5KfMw).
For more information on Choom Holdings, Inc., please visit
Choom Holdings,
Inc. (OTCQB: CHOOF) (CSE: CHOO).
About NetworkNewsWire
NetworkNewsWire (NNW) is a financial news and content
distribution company that provides (1) access to a network of wire
services via NetworkWire to
reach all target markets, industries and demographics in the most
effective manner possible, (2) article and editorial syndication to
5,000+ news outlets (3), enhanced press release services to ensure
maximum impact, (4) social media distribution via the Investor
Brand Network (IBN) to nearly 2 million followers, (5) a full array
of corporate communications solutions, and (6) a total news
coverage solution with NNW Prime. As a
multifaceted organization with an extensive team of contributing
journalists and writers, NNW is uniquely positioned to best serve
private and public companies that desire to reach a wide audience
of investors, consumers, journalists and the general public. By
cutting through the overload of information in today’s market, NNW
brings its clients unparalleled visibility, recognition and brand
awareness. NNW is where news, content and information converge.
For more information, please visit https://www.NetworkNewsWire.com
NetworkNewsWire (NNW)
New York, New York
www.NetworkNewsWire.com
212.418.1217 Office
Editor@NetworkNewsWire.com
Please see full terms of use and disclaimers on the
NetworkNewsWire website applicable to all content provided by NNW,
wherever published or re-published: http://NNW.fm/Disclaimer
DISCLAIMER: NetworkNewsWire (NNW) is the source of the Article
and content set forth above. References to any issuer other than
the profiled issuer are intended solely to identify industry
participants and do not constitute an endorsement of any issuer and
do not constitute a comparison to the profiled issuer. The
commentary, views and opinions expressed in this release by NNW are
solely those of NNW. Readers of this Article and content agree that
they cannot and will not seek to hold liable NNW for any investment
decisions by their readers or subscribers. NNW is a news
dissemination and financial marketing solutions provider and are
NOT registered broker-dealers/analysts/investment advisers, hold no
investment licenses and may NOT sell, offer to sell or offer to buy
any security.
The Article and content related to the profiled company
represent the personal and subjective views of the Author, and are
subject to change at any time without notice. The information
provided in the Article and the content has been obtained from
sources which the Author believes to be reliable. However, the
Author has not independently verified or otherwise investigated all
such information. None of the Author, NNW, or any of their
respective affiliates, guarantee the accuracy or completeness of
any such information. This Article and content are not, and should
not be regarded as investment advice or as a recommendation
regarding any particular security or course of action; readers are
strongly urged to speak with their own investment advisor and
review all of the profiled issuer’s filings made with the
Securities and Exchange Commission before making any investment
decisions and should understand the risks associated with an
investment in the profiled issuer’s securities, including, but not
limited to, the complete loss of your investment.
NNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E the Securities Exchange Act of 1934, as amended and
such forward-looking statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. “Forward-looking statements” describe future expectations,
plans, results, or strategies and are generally preceded by words
such as “may”, “future”, “plan” or “planned”, “will” or “should”,
“expected,” “anticipates”, “draft”, “eventually” or “projected”.
You are cautioned that such statements are subject to a multitude
of risks and uncertainties that could cause future circumstances,
events, or results to differ materially from those projected in the
forward-looking statements, including the risks that actual results
may differ materially from those projected in the forward-looking
statements as a result of various factors, and other risks
identified in a company’s annual report on Form 10-K or 10-KSB and
other filings made by such company with the Securities and Exchange
Commission. You should consider these factors in evaluating the
forward-looking statements included herein, and not place undue
reliance on such statements. The forward-looking statements in this
release are made as of the date hereof and NNW undertakes no
obligation to update such statements.
Source:
NetworkNewsWire
Contact:
NetworkNewsWire (NNW)
New York, New York
www.NetworkNewsWire.com
212.418.1217 Office
Editor@NetworkNewsWire.com
Hiku Brands Comapny (CSE:HIKU)
Historical Stock Chart
From Nov 2024 to Dec 2024
Hiku Brands Comapny (CSE:HIKU)
Historical Stock Chart
From Dec 2023 to Dec 2024
