Right now, marijuana stocks are red hot. The market continues to see huge momentum build and what’s more is that now we’ve begun to see a climate that is heating up for cannabis stock IPO’s. It wasn’t that long ago that the only option to go public as a cannabis company was some minor exchange like the OTC or a lesser Canadian listing.
God forbid the company made an attempt to list on one of the premier exchanges in the US. But times change and over the last year we’ve not only seen multi-billion dollar strategic investments made into companies like Canopy Growth, but we also have an entire country going fully legal. Ever since Canada announced that it will be going fully legal on October 17, the cannabis market has been heating up and right now IPO’s for pot stocks are in full view.
One of the most anticipated marijuana stock IPO’s this month has many looking at Next Green Wave for potential. Though the excitement is on Canada right now, we can’t forget that the US market is still in its “early stages”. One of the hottest markets, which is in California, continues to present massive opportunity especially considering its recent move to go legal for medical and recreational cannabis.
California’s passage of a ballot initiative (Proposition 64) to legalize recreational marijuana is important because of the sheer size of the state. The medical marijuana market in California was nearly $3 billion in 2017, which is about twice the size of Colorado’s entire marijuana market.
According to estimates from Arcview Market Research and BDS Analytics, by 2022, California’s total marijuana market could be somewhere around $7.7 billion. With the state of California having commenced recreational sales on January 1st, 2018, it is poised to become the largest cannabis market in North America.
Why Pay Attention To Next Green Wave Right Now?
Aside from the fact that NGW is about to IPO on a major Canadian exchange (for now), the company’s framework is built on a model that is well suited for scaling into the ever-expanding California cannabis industry.
Next Green Wave holds all four Conditional Use Permits in California. These include one of each of the following: cultivation, operation of a functioning nursery, extraction and distribution of cannabis. Not only does this support a fully optimized business model but it also takes away the usual distribution barriers that some companies in this market face. Furthermore, NGW has both the medical and recreational sides covered.
Like a number of the large market leaders, NGW is taking a strategic approach to the market and ensuring that it can handle a full scale, seed-to-sale business. For example, holding both a nursery and cultivation license gives NGW a unique ability to make full use of every product cultivated, selling not only the flower but also seeds, clones, by-products and concentrates, which ultimately gives the company multiple revenue streams.
On another side of the coin is extraction, which has been holding a bright spotlight recently in the media. Extraction processes allow companies like NGW to produce pure cannabidiol (CBD) and tetrahydrocannabinol (THC). The by-products allow NGW to infuse these into edibles, topicals and other cannabinoid products, which some have identified as major revenue drivers for future growth.
If the “neighbors to the North” can be a gauge, according to Health Canada statistics, sales of cannabis oil in the first three months of 2018 outpaced those of dried flower by 56%. In terms of year-over-year growth for the two forms of cannabis, extracts are easily the winner with a large increase of 82% over the same period in 2017 compared to a 13% in year over year performance for dried flower.
But then you also need to consider that NGW has more. A distribution license rounds out the offering and allows the company to implement targeted brand, marketing, sales, and distribution strategies to sell in-house branded products as well as partners’ branded products.
Also bear in mind that NGW has raised over CAD$21 million dollars prior to its IPO, which it is currently using to acquire, design and build state-of-the-art production facilities that will fully utilize all 4 Conditional Use Permits. Further, according to the company’s Chairman, Leigh Hughes in his interview in The Australian, it gives them a strong competitive advantage and it reflects Next Green Wave’s B2B business model.
Yes, Size Matters – Next Green Wave Expansionary Program
Next Green Wave is at the trailhead of a large expansionary program as well, which include 4 sites:
Projected Revenue Q1/2019*
Projected Revenue Q1/2020*
Nursery, extraction, distribution facility
Projected Revenue Q1/2019*
Projected Revenue 2020*
The company is in the process of building out four planned sites. The first 35,000-sqft facility (Facility A), which is already 85% complete, is expected to be fully operational by the end of this year.
Facility A and Facility B will house indoor nursery and cultivation operations, with a combined capacity of 85,000-sqft. The company has already acquired 3,240-sqft space recently, Facility C, which is being retrofitted to become Next Green Wave’s extraction and research & development facility as well as its distribution hub.
On top of all of this, there’s another 250,000-sqft used for greenhouse space that will be built as Facility D and begin to create a nursery and grow revenue by 2020*. This kind of modern facility provides NGW the ability to grow, breed, extract and distribute a wide array of products that range from premium flower and oil to finished consumer packaged goods.
Key Market Relationships – It’s “High Time” To Build A Brand
Outside of potentially becoming an immediate juggernaut within California’s cannabis market, NGW has also secured key relationships within the industry as well:
NGW secured premium branding sponsorship for California events with High Times as well as a key media partner bringing NGW maximum reach and impressions.
High Times is the global hub for cannabis-related information. High Times anticipates listing on NASDAQ in 2018 and will be a permanent media and events partner with NGW.
CGOC’s investment objectives are to provide holders of common shares long-term total return through capital appreciation by investing in an actively managed portfolio of securities of public and private companies operating in, or that derive a portion of their revenue or earnings from, products or services related to the cannabis industry. CGOC has made an investment of CAD$750,000 in NGW.
Signed a non-binding LOI with a world-class biotechnology firm, Intrexon (XON), to conduct R&D and assist in the commercialization of Intrexon’s high-throughput plant regeneration technology in the cannabis space.
Innovative Leadership – The Key To Future Growth
Another highlight and reason to have NGW on your screen going into the IPO has as much to do with the business as much as it does its leadership team. NGW holds an internationally experienced management team with a focus on consumer-centric solutions and insights lead by six-time Cannabis Cup High Times award winner, Mike Jennings. For investors, insider ownership sits at 45%, which echoes the strong sentiment that the NGW business model emphasizes with respect to growth.
We mentioned the Chairman, Leigh Hughes briefly above, but his reputation precedes him as an innovator. Hughes is an integrated marketing communication professional with more than 15 years of experience, owning his own firm that had clients across global markets. He has been nominated twice for Young Australian of the Year and was a nominee and winner of Western Australia’s 40 under 40 business award in 2012, as recognized by the industry and his peers.
Next Green Wave CEO Mike Jennings is a Californian native from the Central Valley and he has been deeply rooted in the Cannabis industry for more than 20 years (no pun intended). His specialty is in owning and operating dispensaries and cannabis medical offices and he also is the co-founder of Loud Seeds; a multiple High Times Cannabis Cup winning breeding and cultivation company.
Through the Loud Seeds brand, NGW has established relationships with several of the major dispensaries and media in CA. With established brands in both the United States and Europe, Mike’s consumer and industry savvy, he ads a wealth of corporate expertise to the company.
In addition, the company’s co-founder and director, Paul Chow has served as a founding partner, officer, director and corporate consultant to several Canadian public and private businesses during his more than 18-year career in the capital markets. Mr. Chow has a long-standing track record of success in strategic planning, marketing and financing of companies in all stages of growth from startup to IPO.
The Next Big Marijuana Stock IPO To Watch?
Next Green Wave (NGW) is building a world-class business and premium brand portfolio in the State of California. The company is fully licensed to produce and distribute cannabis products for both medical and recreational use and already has 15 acres of approved cannabis zoned development land with main Cultivation, Nursery, Extraction, and Distribution facilities in a prime location between San Francisco and Los Angeles.
“You will not find another multi-billion dollar market growing at a 25% compound annual growth rate anywhere in the world that is not already filled with multi-national companies and institutional investors.”
-Troy Dayton, CEO Arcview Market Research
Top 5 Things To Watch For Near-Term Potential:
1. NGW is fully licensed for all levels of cannabis industry growth including nursery, cultivation, extraction, and distribution.
2. NGW has raised over CAD$20 million in pre-IPO financing
3. Construction on its Facility A is expected to be completed by the end of the year
4. NGW has already begun to establish key relationships with leading public or soon-to-be-public companies with the likes of High Times, Cannabis Growth Opportunity Corporation & Intrexon Corporation
5. Possibly one of the biggest highlights: NGW is expecting to realize revenue in Q1 of 2019; that’s NEXT QUARTER.
MarijuanaStocks.com is always focused on bringing attention to potentially industry leading companies, first. Time and time again we’ve covered leading IPOs and early-stage companies. Now we’re monitoring Next Green Wave prior to its IPO as this company could trigger its own green wave of market growth.
Pursuant to an agreement between an affiliate of MAPH Enterprises, LLC (owners of MarijuanaStocks.com), Midam Ventures LLC and Next Green Wave, Midam is being paid a total of $1,075,000 for a period from October 1, 2018, and ending on April 1, 2019. We may buy or sell additional shares of (Next Green Wave) in the open market at any time, including before, during or after the Website and Information, to provide public dissemination of favorable Information about Next Green Wave.
*Revenue projections based on Q3 2018 Corporate Presentation, Here.