New Demands in #Cannabis Industry are beginning to Generate Revenue for
Ancillary Providers (OTC: $GOHE) (OTCQB: $MCOA) (OTC: $KSHB) (OTCQB: $MRMD)
Point Roberts, WA and Delta, BC - September 6, 2019 (Investorideas.com
Newswire) Investorideas.com, a leading investor news
resource covering hemp and cannabis stocks releases a snapshot reporting on the
continued development of the cannabis ancillary market as the sector matures;
expanding into new states and countries.
The maturation of the Canadian and US markets, along
with the rapid expansion of international cannabis markets is now beginning to
drive the ancillary sector of the industry as more companies realize the need
for better payment processing, more reliable delivery services and advanced
infrastructure. These new demands on the industry are beginning to generate
revenue for such ancillary providers and also provide investors a lower-risk
entry point to the cannabis industry as these ancillary providers have no
direct plant contact.
This was highlighted by Innovation Shares, a provider
of thematic ETFs who recently announced changes in its monthly rebalance of The Cannabis ETF
and has added four companies to the portfolio: Valens GroWorks Inc., EnWave
Corp., cbdMD Inc. and Fire & Flower Holdings while removing three other
companies: CannTrust Holdings, Vivo Cannabis and Innovative Industrial Properties.
"We are excited to expand THCX's footprint in the various cannabis
industry sub-themes by including three companies whose businesses revolve
around ancillary services and CBD-based consumer products," said Matt
Markiewicz, Managing Director of Innovation Shares. "In particular,
Valens, EnWave, and cbdMD all operate at the crossroads of science and
technology which should appeal to investors who are looking for differentiated
exposure outside of a traditional seed-to-sale story."
Global Payout Inc. (OTC: GOHE) and its wholly owned subsidiary, MTrac Tech
Corporation yesterday announced that as the Company enters the last month of
the third quarter of 2019 it has reached a point where it is effectively
processing tens of millions of dollars in daily transaction volume across its
growing base of clients in the multibillion-dollar cannabis industry.
As demonstrated in
the Company’s recent Q2 disclosure detailing Company financials, MTrac’s growth
trajectory has remained positive and has continued to gain significant traction
throughout the year. This growth can be attributed to the successful
strengthening of their foothold and market reach in what has become one of the
most dynamic industries in today’s economy. This feat has been accomplished in
part through MTrac’s success in securing several strategic service agreements
with some of the largest companies within the cannabis industry today.
The company has
recently signed a new account application with an anticipated 34 locations and
has applications coming in weekly for the services offered through MTrac.
In addition to their
expanding market reach, the Company is also fully engaged with key legislative
partners in different states to help push for the adoption of their system as a
means of providing merchants within these states with a viable and compliant
payment processing alternative to cash as they remain focused on delivering
“The Key to Cashless®” to as much of this diverse and expanding
industry as possible.
MARIJUANA COMPANY OF
AMERICA INC. (OTCQB: MCOA) recently announced the official launch of its premium cannabis
delivery service, VivaBuds, in the San Fernando Valley, California.
In April, the Company announced it had acquired a 20% ownership interest
in Natural Plant Extract of California (“NPE”) to establish a joint venture to
create VivaBuds, a California marijuana delivery company that offers customers
a dynamic opportunity to purchase low-cost premium cannabis products directly
from farmers using a “Tell a Friend” approach. For more information, please
visit the VivaBuds website at www.VivaBuds.com. The VivaBuds mobile application is
currently live on Google Play and available for download on all Android
devices.
“We are extremely pleased to have officially launched our delivery
service throughout the San Fernando Valley, where demand for cannabis continues
to increase unabatedly,” said CEO of MCOA, Mr. Donald Steinberg. “We believe
that by providing delivery and our high-quality premium products to our
consumers, we will increase revenues, expand margins, and improve our overall
brand recognition. I am confident that this new endeavor dovetails perfectly
with our commitment to become a global leader in the legal production,
processing, and distribution of cannabis products. Going forward, management
will continue to leverage strategic operations and decisions that enhance value
for all our shareholders.”
According to an August 15, 2019 Los Angeles Times article, California is
on pace to secure $3.1 billion in licensed cannabis sales in 2019, representing
the largest legal marijuana market in the world. Legal sales have increased
from approximately $2.5 billion in 2018, the first year of licensed cannabis
sales in California, according to the analysis by sales-tracking firms Arcview
Market Research and BDS Analytics.
KushCo Holdings, Inc.
(OTC: KSHB), the premier producer of ancillary products and services to cannabis and
hemp industries recently announced that it has closed on a $50 million credit
facility (the “Facility”) with Monroe Capital LLC (“Monroe”), consisting of a
$35 million revolving line of credit and an accordion of up to $15 million that
will be available subject to covenant compliance and borrowing base
availability.
The Facility will be for a term of five years and will be used for
working capital and driving organic growth, as well as for potential
acquisitions.
“KushCo continues to execute on its less dilutive financing strategy that
will provide the capital necessary to support our continued operations and
acquisitive growth,” commented Nick Kovacevich, KushCo’s Chief Executive
Officer. “We are excited to partner with an entrepreneurial-focused private
credit firm such as Monroe, and we have plans to grow our businesses together
providing critical products and services to the cannabis and CBD industry. As
the size of our customer’s business grows, it’s imperative to have an
adequately sized credit facility that will increase as our business grows.”
“We’re excited to enter this hyper-growth industry with the Company,”
commented Ted Koenig, President and CEO of Monroe. “They are a best in class
business in a unique position to take advantage of opportunities in this
emerging business sector and we look forward to supporting their continued
growth and capital needs.”
MariMed Hemp, a subsidiary of MariMed,
Inc. (OTCQB: MRMD), a leading multi-state cannabis and hemp
operator focused on health and wellness, launched the Hemp Engine™, a turnkey retail marketing
platform for the fast-growing CBD sector last month.
The platform supports sales and marketing decisions for a wide range of
CBD products based on quality, popularity and price point, allowing
distributors and retailers to maximize returns and increase sales efficiency.
Co-developed with Sprout™, the leading CRM provider to the cannabis industry,
the platform is driven by proprietary data and technology.
The Hemp Engine solution includes a complete “store-within-a-store”
package, pre-stocked with a range of CBD products centered on a retailer’s
particular criteria. The platform collects real time data and pre-screens the
data for quality and content. The system helps the retailer by reducing the
time and risk typically involved in choosing among a wide and sometimes
confusing array of CBD products. The package also includes electronic tablets
that provide store customers interactive, educational information about CBD
product attributes, benefits and usage at the point-of-sale.
“Hemp Engine creates powerful new distribution opportunities for our
hemp-derived CBD brands,” commented MariMed CEO, Robert Fireman. “It will help
us further penetrate the growing hemp space. We expect to deliver the first
in-store installations over the next several weeks.”
Earlier this year, the company converted its $30 million debenture into
a one-third equity ownership of GenCanna Global, Inc., the Kentucky-based, national leader in
cultivation and production of seed-to-sale cGMP quality CBD. MariMed Hemp was
established to augment this investment and capitalize on MariMed’s marketing
expertise with a new family of CBD brands.
According to Rick Granoff, Co-Founder of the Hemp Engine, “The Hemp
Engine addresses the major needs of retailers and consumers as CBD popularity
and consumption continues to grow. As a one-stop-shop that greatly simplifies
decision making for both groups, it demonstrates MariMed’s continued thought
leadership in health and wellness and industry-leading innovative approach to
the CBD space.”
While there has been
a heavy focus on cultivation and production in the cannabis industry for the
last few years, the industry is now reaching a new turning point in which
ancillary services and infrastructure are becoming more paramount. This growth
in the cannabis ancillary market is not only providing the industry with more
efficient technology and services but is also beginning to bring in more
investment opportunities, with more diversified options than the standard
production story we’ve seen so far.
For investors
following cannabis stocks, Investor Ideas has created a stock directory of publicly
traded CSE, TSX, TSXV, OTC, NASDAQ, NYSE, ASX Marijuana/Hemp Stocks
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