September 30, 2021 -- InvestorsHub NewsWire -- NetworkNewsWire
Editorial Coverage: It should come as no surprise that one of
the strongest trends in the health care space is the rising wave of
natural wellness and natural alternatives categories. While the
COVID-19 pandemic may have accelerated the momentum, the movement
had begun well before people around the world were sent home, where
self-care and well-being became watch words. A natural extension of
this focus on self is cannabis, as growing research seems to
support the potential benefits this natural plant may provide.
Dubbed cannabis 3.0, the next phase of cannabis market maturation
features exciting innovation, high-quality offerings and growing
investor interest in a space with seemingly unlimited potential.
Companies already operating in the space are taking a close look at
the opportunities to identify their next best
move. BevCanna Enterprises Inc. (CSE: BEV)
(OTCQB: BVNNF) (FSE: 7BC) (Profile) has chosen to expand and
diversify its business, moving from a high-capacity cannabis
beverage company into a compelling health and wellness company
through a number of accretive acquisitions. Other companies making
significant moves in the world of cannabis include Canopy Growth Corporation (NASDAQ:
CGC), Tilray Inc. (NASDAQ:
TLRY), Cresco Labs Inc. (CSE: CL) (OTCQX:
CRLBF) and Curaleaf Holdings Inc. (CSE: CURA) (OTCQX:
CURLF).
- A recent report estimates the 2021 market will reach $19.89
billion with 27% CAGR projected as the sector moves forward.
- After two milestone acquisitions, BevCanna now boasts two
cannabis-related licenses and a global presence in natural wellness
markets.
- BevCanna operations include a 40,000-square-foot,
state-of-the-art beverage production facility with annual capacity
of 210 million bottles.
- Its Embark Health acquisition gives BevCanna added revenue, IP
and a second production facility to increase its asset base to more
than $100 million.
Click here to view the custom infographic of
the BevCanna Enterprises Inc. editorial.
Cannabis 3.0 on the Horizon
A recent Quince
Market Insights reports that the global cannabis market
appears ready to take off, “attributed to the rising awareness
among customers concerning the health advantages of cannabis and
its increasing medical application.” The report estimates the 2021
market will reach $19.89 billion and forecasts that the sector is
now positioned to see 27% compound annual growth.
Cannabis 1.0 was the legalization of cannabis, followed by 2.0,
which involved the introduction of derivatives such as edibles and
other consumables into an eager market. With cannabis 3.0 and U.S.
legalization on the horizon, cannabis is gaining popular acceptance
with consumers introducing it into their everyday lives, as a
component in mainstream products in everything from drinks and
pharmaceuticals to personal hygiene and beauty products.
Such widespread application has created the undergirding
for market activity as smart companies strategically plan for
the future. In the hustle, BevCanna
Enterprises Inc. (CSE: BEV) (OTCQB: BVNNF) (FSE:
7BC) has emerged as a leader, diversifying its already
strong operations in accretive acquisition activity involving a
range of wellness brands and companies designed to expand both its
product offerings and manufacturing capabilities. This deliberate
expansion has included new channels such as direct to consumer
e-commerce, high-growth adult-use cannabis products, hemp-derived
CBD products, and wellness-focused non-cannabis products bridging
the intersection of two of the fastest-growing consumer categories:
wellness and cannabis.
BevCanna’s growth has been carefully led by executives with
decades of expertise in creating, branding, and manufacturing
iconic brands. These veteran players boast resumes touting
positions of leadership at such well-known entities as Rogers, Best
Buy, SC Johnson, Walmart, Pepsi, Costco, Colgate, and more.
In addition to its distinguished executive team, BevCanna’s
portfolio is equally compelling. The company owns in-house brands
Anarchist Mountain, Pure Therapy and the innovative TRACE water
& supplement brand, along with partner brands Keef Brands. As
the nation progresses in both popular acceptance and government
support, the Keef collaboration offers exposure to more than 1,000
U.S. dispensaries. On top of that, with the acquisitions of Naturo
Group and Pure Therapy wrapped up, BevCanna completed another
company-maker-type of deal.
Expanding into Wellness
BevCanna began its expansion into the wellness space in November
2020 when it initially announced its plans to purchase Naturo
Group, a partner company since 2017. The acquisition resulting in
the addition of an estimated $38 million in assets, including a
40,000-square-foot, state-of-the-art, HACCP-certified beverage
manufacturing facility with capacity of 210 million bottles
annually in PET/RPET, aluminum and glass formats; a pure alkaline
spring water source located onsite; 315 acres of outdoor
cultivation possibility; and proprietary Health Canada-approved
fulvic and humic plant-based mineral formulation.
The land and alkaline spring water source alone are valued at
more than $28
million, a true value proposition for a company with a market
capitalization around $56 million. Along with that, BevCanna has
also obtained requisite government approval to expand its facility
to 170,000 square feet for CPG and cannabis purposes.
Through the Naturo Group
acquisition, BevCanna added the TRACE brand to its growing
portfolio. The leading mineralized water and supplement brand is
sold in more than 3,000 Canadian retail locations, with active
expansion into the U.S. market with initial efforts focused on
California, Illinois and New York. Fulvic acid has gained popular
anecdotal attention as a natural supplement and immune system
enhancer for warding off a variety of diseases and
conditions such as allergies, eczema and even Alzheimer’s
disease. In addition, the Naturo Group’s product catalog features a
diverse array of alkaline and natural spring waters, plant-based
mineral concentrate and mineralized shots and more.
A U.S. Head Start
The Naturo Group acquisition had followed on the heels of
BVNNF’s announcement that it planned to acquire Pure
Therapy, a natural health product company known for
meticulously crafted goods, including nutraceutical and hemp-based
cannabidiol products, through its e-commerce platform across North
America and Western Europe. Pure Therapy had a base of
approximately 23,000 customers at the time; BevCanna has already
increased that customer base by about 15%, adding 3,270 new active
customers. The company is also working to accelerate growth by
capitalizing on the decades of marketing expertise that the Pure
Therapy offers.
BVNNF has a forward-looking strategy in place that includes
plans to add its own nutraceuticals and CBD product line to the
global health and wellness market, with a focus on the growing U.S.
CBD space. Through its Pure Therapy lines and its partnership with
Keef Brands, a top U.S. cannabis-infused beverage company, BevCanna
appears to have a head start in those efforts.
Working on Advancements
The company is working on other advancements too. BevCanna
signed on the line to enter a definitive agreement to acquire
Embark Health Inc. The all-stock, C$21-million transaction valued
BEV stock at C$0.45, a 33% premium to the average price of the
stock for the five days leading into the deal being disclosed.
Embark brings extensive manufacturing and intellectual property
assets related to high-end solventless cannabis extracts such as
bubble hash, traditional pressed hash, rosin, dry sift and its
best-selling Hazel Hash Stick. Embark also increases BevCanna’s
capacity to manufacture cannabis concentrates, liquids, powder
beverage mixes, topicals and edible products. In addition, in the
last three months Embark generated C$790,000 in revenue at ~65%
gross margin through its four adult-use brands. The potential
outlined in the agreement includes earn-out payments to Embark
shareholders if revenue reaches $92.18 million within three
years.
The acquisition also adds ProteinQuest, for which Embark is the
majority shareholder, to BevCanna growing health and wellness
portfolio. This strategic move could benefit BevCanna in multiple
ways, not the least of which involves adding the combined company
total of more than $100 million in assets the BVNNF balance
sheet.
Furthermore, BevCanna’s already strong management team become
even more impressive with the addition of Bruce Dawson-Scully
(founder and CEO of WeedMD); Marcus “Bubbleman” Richardson (best
known for being the founding pioneer of bubble hash); Michael West
(global extraction expert who has developed, designed, and built
more than a dozen world-class extraction facilities for companies
such as Cresco Labs (CL:CSE); and Curtis Leifso, an expert in
enhanced bioavailability drug-delivery technology.
Making Moves in Cannabis
Other smart companies are making significant moves in the
cannabis space, by way of product innovation and/or acquisition.
The activity is not going unnoticed as investors and consumers
alike are turning their attention to this burgeoning sector.
Canopy Growth Corporation (NASDAQ:
CGC) completed its acquisition
of the Supreme Cannabis Company, a move that further
strengthens Canopy’s overall leadership position within the
Canadian recreational market and creates a pro forma Q4 FY 2021
market share of 18.1. As Canopy continues to focus on the premium
flower segment, the addition of 7ACRES and the 7ACRES Craft
Collective enhances Canopy’s leading market share position and
supplements its production capacity through the acquisition of
Supreme’s low-cost, scalable cultivation facility in Kincardine,
Ontario. This facility has a proven capability for producing
high-quality flower from sought-after strains that have earned
Supreme’s brands their loyal consumer followings.
Tilray Inc. (NASDAQ:
TLRY) launched a
line of medical cannabis edibles in THC and CBD-rich
varieties of chocolates and soft chew gummies. The medical cannabis
edibles are now available for patients across Canada and add to
Tilray’s comprehensive offering of cannabis medicines, including
whole flower, oils, vapes, and pre-rolls developed with patient
health and well-being in mind. “Whether it’s pain management,
anxiety treatment, or everything in between, patients are asking
for more choices in the medical cannabis category, and Tilray
remains committed to the innovations that improve patient
well-being,” said Tilray chair and CEO Irwin D. Simon.
In the last two months alone, Cresco Labs Inc. (CSE: CL) (OTCQX:
CRLBF) has announced a series of
acquisitions and openings that has expanded the company’s
presence in four different states. Last month, Cresco opened a Fort
Lauderdale dispensary, the company’s ninth Florida location. Only a
day later, the company announced plans to acquire Blair Wellness
Center, a top-performing dispensary in Maryland. Earlier this
month, Cresco closed on the acquisition of Cultivate, which
operates three cannabis dispensaries in Massachusetts. And most
recently, the company announced plans to acquire three
high-performing Pennsylvania dispensaries. One of the largest
vertically integrated multistate cannabis operators in the United
States, Cresco is on a mission to normalize and professionalize the
cannabis industry.
Curaleaf Holdings Inc. (CSE: CURA) (OTCQX:
CURLF) opened
Curaleaf Bordentown, the company’s third dispensary in New
Jersey and 109th dispensary nationwide. In addition, the company
launched its Select brand in New Jersey, expanding the brand’s
reach to 19 states. Select Bites, which feature the brand’s
award-winning, concentrated broad-spectrum oil and science-based
formulations that offer precise, consistent cannabis experiences
for any occasion, are now available at all Curaleaf New Jersey
locations. All three of Curaleaf’s New
Jersey dispensaries are strategically located near
the New York and Pennsylvania borders, allowing
the company to better serve the growing East Coast adult-use
market
The cannabis market, including the health and wellness spaces,
appear to be on the verge of major disruption as consumers clamor
for government support and changes in legislation. Companies with
strong operations and high-quality products in place will be in
prime position to benefit.
For more information about BevCanna Enterprises Inc., please
visit BevCanna
Enterprises Inc. (CSE: BEV) (OTCQB: BVNNF) (FSE:
7BC).
About NetworkNewsWire
NetworkNewsWire (“NNW”) is a financial news and
content distribution company, one of 50+ brands within
the InvestorBrandNetwork (“IBN”), that
provides: (1) access to a network of wire
solutions via InvestorWire 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 solutions to ensure maximum
impact; (4) social media distribution via IBN
millions of social media followers; and (5) a
full array of corporate communications solutions. 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 comprising
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.
To receive SMS text alerts from NetworkNewsWire, text
“STOCKS” to 77948 (U.S. Mobile Phones Only)
For more information, please visit https://www.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
NetworkNewsWire (NNW)
New York, New York
www.NetworkNewsWire.com
212.418.1217 Office
Editor@NetworkNewsWire.com
NetworkNewsWire is part of the InvestorBrandNetwork
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.
Cresco Labs (QX) (USOTC:CRLBF)
Historical Stock Chart
From Oct 2024 to Nov 2024
Cresco Labs (QX) (USOTC:CRLBF)
Historical Stock Chart
From Nov 2023 to Nov 2024
