The marijuana industry during the second week of May has seen a solid amount of stability. While stability has not been a characteristic of the industry for quite some time, it seems as though it has steadily been introduced in greater numbers over the past year or so. Many of the top companies within the industry are those who produce large quantities of the substance. This, however, does not take into account the large amount of potential with the companies that offer alternative services to the market. These companies have a lot to offer, and should definitely be given a second look.
TransCanna Holdings Inc. (TCAN)(TCAN.CN) is a company based out of Canada, that has been working to offer a large range of services to the companies that operate within the cannabis market. The company has several subsidiaries, but most importantly their California location has helped to reach one of the largest marijuana markets in the world. The company states that they offer integrated branding, transportation, and distribution services through various wholly-owned subsidiaries.
Recently, the company announced that they have secured a 10,000 square foot facility in Adelanto, CA. The new facility is led under a sublease agreement that would allow them the use of the multipurpose facility which has been shown to be of superior quality and includes armed security personnel. Jim Pakulis, CEO of TransCanna stated that “As we’ve represented since the commencement of TransCanna, it’s crucial to have a main facility, which we now have with the acquisition of the 196,000 square foot vertically integrated facility in Modesto, and up to five satellite facilities located strategically throughout the state.”
Pakulis went on to state that “This is in preparation for TransCanna to provide our clients with up to fifteen reliable, consistent branded products in a timely manner. In order to do that to scale, we needed to have a significant size nursery, grow, manufacturing, bottling, baking, extracting, and transportation and distribution facility and satellite offices, which we now have. Separately but related, we negotiated lease terms that are approximately thirty percent below market rates, with the added benefit of a completely fenced complex and armed security guards present at all times.” This new facility should give them a large benefit as they continue to move to the top of the services side of the cannabis industry.
HEXO Corp. (NYSEMKT:HEXO) is considered to be one of the largest marijuana companies in the whole of the industry. The company builds a strong case for themselves due to not only their low valuation but their revenue as well. The company is worth around $1.6 billion with an annual revenue year-on-year of around $10 million.
With the production capacity to grow as much as 150,000 kilograms per year, it seems as though they are poised for a large amount of growth. Additionally, they also have a supply agreement with the province of Quebec which should help with any overproduction concerns in the near future. Investors should continue to keep an eye on HEXO over the coming months to years.
Pursuant to an agreement between an affiliate of MAPH Enterprises, LLC (owners of MarijuanaStocks.com), Midam Ventures LLC and TransCanna (TCAN.CN), Midam is being paid $33,000 per month for 3 months byTransCanna (TCAN.CN) for a period from February 14, 2019 to May 14, 2019. We may buy or sell additional shares of (TCAN.CN) in the open market at any time, including before, during or after the Website and Information, to provide public dissemination of favorable Information about TransCanna (TCAN.CN)