Healthy Diversification: Enertopia’s V-Love(TM) Goes to Market
The global sexual wellness industry is expected to grow at a 7% compound annual growth rate over the five years, according toTechNavio analysts. While companies like Church & Dwight Co. Inc. (NYSE:CHD) and Ansell Limited (ASX:ANN) generate the lion’s share of the market, investors may want to look toward small-cap and micro-cap companies as pure-plays within the industry.
Enertopia Corp. (ENRT), an aspiring producer of medical marijuana under Canada’s MMPR program, diversified into the sexual wellness industry on February 9th with the launch of V-Love(TM). Later that month, the company exhibited at the Vancouver Wellness Show to some 30,000 attendees and sponsored Maureen McGrath – a leading media personality and expert on women’s sexual health.
Just three months later, the company moved from a prototype product into full-scale production with the first products on the shelves of Loblaws City Market in British Columbia, Canada. Management will be holding a launch party from 11AM to 2PM on Saturday May 9th at the location, along with educational sessions on women’s health education in order to further promote Enertopia’s product line and mission within the growing industry.
The company’s four-month sponsorship of Maureen McGrath’s popular Sunday Night Sex Show on CKNW radio should also help bring visibility to its V-Love(TM) product. Ms. McGrath is a clinician with a special interest in women’s sexual desire, which makes her an ideal media personality to convey the company’s product and message to a large and interested audience over time.
Over the long run, management plans on expanding V-Love(TM)’s distribution into new markets throughout Canada. In addition to expanding these distribution channels, the company plans to introduce additional health and wellness products into both Canada and the USA markets in order to further drive revenue and ultimately build long-term shareholder value.
With a market capitalization of under $3 million, the market may be underestimating Enertopia’s potential in both the MMPR and sexual awareness industries. Investors are in a sense paying for a medical marijuana company and receiving the sexual wellness side of the business for free, especially given the comparable valuations for similar pre-MMPR publicly traded equities, such as Supreme Pharmaceuticals Inc.’s (SPRWF), who has a $12 million market capitalization.
The company also has two potential MMPR projects, which further improves its odds of success in that arena. Its Burlington joint venture with Lexaria Corp. (OTC:LXRP) has applied to produce up to 10,000 kg of dried medical marijuana each year. In December, the firm announced that it has advanced to the Enhanced Screening Stage of the MMPR process, and requested a Ready to Build letter from Health Canada.
The Green Canvas project in Regina, Saskatchewan is scalable to 55,000 ft2 and is undergoing upgrades to 14,000 ft2 to become compliant with Health Canada standards. Earlier this month, management announced that it has extended the joint venture in good faith to June 30, 2015 from February 28, 2015 due to uncontrollable delays in Health Canada’s approval of MMPR projects.
In the end, Enertopia’s move into the sexual wellness space could help drive near-term revenues as it continues to move its MMPR projects forward. With a market capitalization of under $3 million, investors may be getting a bargain on both of these businesses, particularly given the valuations seen at many other companies that are pursuing (but do not yet possess) MMPR licenses throughout Canada.
For more information, visit the company’s website at www.enertopia.com.
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SOURCE: Cannabis Financial Network
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