Integrated Cannabis Company (OTC: ICNAF) / (CSE: ICAN) Sets The Stage For More Growth In 2019
The legal cannabis industry has provided some of the biggest opportunities of our lifetime. What began as a novelty industry has now boomed into a massive sector with multi-billion dollar valuations. But something that the average investors have ignored is exactly what could pose the biggest pot stock opportunity of the year.
[NEWS 10/8/2019] Integrated Cannabis’ (ICNAF) (ICAN) Ganja Gold Announces California Launch of first CBD Infused Pre-Roll
Since 2014, the cannabis industry has gone through cycles. Momentum builds up right until early June and then slowly trails off during the summer. When has the sector historically begun to rally back? September. But what’s different about this year apart from others is a huge legalization event in October that could put CBD, extract, and the general cannabis market on the map. Though legalization went into effect across Canada in 2018, derivatives like extracts and oils have been restricted. This October all that changes and it could be a major catalyst for this sector.
How Has Integrated Cannabis Company (OTC: ICNAF) / (CSE: ICAN) Done In The Past?
Beyond that, MarijuanaStocks.com has consistently focused on certain companies that could present well-timed potential ahead of events like this. One in particular has been Integrated Cannabis (OTC:ICNAF) (CSE:ICAN) and for good reason. Just a quick look at the last few times we featured this company, it was a key evolutionary points in the company’s history, and that ultimately translated into big breakouts.
Late Summer Of 2017 we began profiling Integrated Cannabis (OTC:ICNAF) (CSE:ICAN) as it was going through the process of its first major acquisition, X-SPRAYS, a brand of THC and CBD oral sprays:
We were there from the beginning when (at the time CNRP Mining) Integrated Cannabis (OTC:ICNAF) (CSE:ICAN) was just beginning to build its business. First-hand, we saw this pot stock go on a massive 92% breakout into the early part of September. But this was just the beginning as many of us would come to know. As the company was in the middle of its next phase of growth – initial distribution – MarijuanaStocks.com was right there to connect the dots. Once again we saw the market for Integrated Cannabis (OTC:ICNAF) (CSE:ICAN) breakout even further in November. This time it was a jump from $0.33 to as high as $1.98; 500%:
And the most recent time we brought attention to Integrated Cannabis (OTC:ICNAF) (CSE:ICAN) was during late August/early September of last year just as legalization was about to happen across Canada. It was also a point when Integrated Cannabis (OTC:ICNAF) (CSE:ICAN) was expanding its product line AND entering key development agreements with additional companies. To say the least, the mix of market timing and corporate progress could have been keys to the second biggest run ($0.31 – $1.58) this pot stock has seen, to date:
This is no secret. Integrated Cannabis (OTC:ICNAF) (CSE:ICAN) has repeatedly driven major interest, especially during times that the cannabis industry is approaching milestones. But what may-be even more important is that MarijuanaStocks.com has been at the front line each time Integrated Cannabis (OTC:ICNAF) (CSE:ICAN) has hit major milestones of its own…
THIS IS WHY WE’RE MENTIONING IT NOW.
Integrated Cannabis Company (OTC:ICNAF) (CSE:ICAN) Has Once Again Begun To Evolve
It isn’t a coincidence that once again Integrated Cannabis (OTC:ICNAF) (CSE:ICAN) is at the center of attention right now. Not only has it completed several big deals over the last year, RIGHT NOW, the company has inked a NEW DEAL that could bring even more opportunity during this next phase of cannabis industry growth.
Integrated Cannabis (OTC:ICNAF) (CSE:ICAN) Expands Into California Market
Integrated Cannabis (OTC:ICNAF) (CSE:ICAN) started the summer of 2019 with yet another major acquisition. This time it was for California-based licensed cannabis manufacturing business Ganja Gold.
Want to understand the full potential that this deal could present? You should start by understanding Ganja Gold and the California market first. For starters, the market itself is poised for growth. In a report released by Arcview Market Research and BDS Analytics, Sales will hit $3.1 billion in 2019 and $7.2 billion in 2024, which will be “40% larger than Canada and 253% larger than the next-largest state (cannabis market), Colorado.” [1]
READ MORE: Integrated Cannabis Company, Inc. (ICAN) (ICNAF) Ganja Gold is the Top Infused Pre-Roll Brand in California
Through July 2019, the cannabis company reported roughly USD$3,300,000 in sales to date for the fiscal year 2019. The GanjaGold team believes it is their duty to produce the finest and most reliable cannabis products to build upon the efforts of those before them. They are paving the way for a brighter presentation of the cannabis community while developing the most inspiring cannabis products.
This deal has begun to open up a big opportunity for Integrated Cannabis (OTC:ICNAF) (CSE:ICAN).
Ganja Gold: A Power Move For Integrated Cannabis & California Market Dominance
The deal also sees Integrated Cannabis (OTC:ICNAF) (CSE:ICAN) tapping directly into a diverse and potent pipeline of products under the Ganja Gold flag. These products are already actively sold in over 230 dispensaries across the state of California. Ganja Gold is already the largest infused pre-roll brand in California with 52% of the infused pre-roll market. That’s according to BDS analytics. To truly understand the opportunity presented to Integrated Cannabis (OTC:ICNAF) (CSE:ICAN), you need to understand Ganja Gold. This is one of if not the top-selling brands out there right now. The numbers speak for themselves as the closest competition to Ganja is still far from hitting the same mark.
But new deals could push the limits even further. But it’s not just the size of the brand. It’s also about the scalability and for Ganja Gold that could be very promising. They’ve already got a 4,000 sq.ft. fully licensed cultivation facility. There’s also a 2,700 sq.ft. fully licensed manufacturing facility with state-of-the-art proprietary, custom pre-roll manufacturing equipment being developed and installed on-site.
The pre-roll manufacturing equipment is being built by a leading developer of pharmaceutical equipment in Silicon Valley. This automated machine will be able to produce 600 pre-rolls per hour and will require 2 personnel to operate. Highly efficient, highly scalable means to continue pushing the margin on its brand expansion. To this point, Integrated Cannabis (OTC:ICNAF) (CSE:ICAN) inked a deal (via Ganja Gold) with Nabis, which is one of California’s largest Type 11 Cannabis Distributors.
Through the state-wide exclusive distribution partnership with Nabis, all Ganja Gold products including their most popular infused pre-roll line Tarantula will go into distribution. This now allows the company to tap directly into a major distribution chain. Nabis provides a network for the fulfillment, storage, and sales of wholesale cannabis products for over 70 major brands including Canndescent, Henry’s Original, STIIIZY, Bloom, and THC Design to retailers across the state from small delivery businesses to major dispensary chains.
Why Is Pre-Roll Such A Big Deal?
You may have seen the bigger focus on “vaping” lately. Although the concentrate and edible categories are rapidly growing, pre-rolls are one of the main forms of consuming cannabis.
This arena that Integrated Cannabis (OTC:ICNAF) (CSE:ICAN) is playing in is massive. Pre-roll product growth sales went up 63% in Colorado, 318% in Washington State and 236% in Oregon. Compare that to the growth of flower in all three States and you may be surprised at what you find.
In five states where adult-use cannabis is legal, 100 million pre-rolled joints were sold in 2018 at an average retail price of US$7.73 each, with single packs the most popular size, BDS data show. Furthermore, in Arizona, California, Colorado, and Oregon, BDS Analytics’ GreenEdge point-of-sale tracking data show pre-rolls made up roughly 6.6 percent of pot sales the past three years, up from 3.5 percent in 2015 [2]. If 5 states is an indication of the market size, just look at the total pre-roll segment in North America. It is estimated to be 492.8 million pre-rolls sold in 2018 across the United States and Canada according to data from Ganjapreneur [3].
At the scale that Integrated Cannabis (OTC:ICNAF) (CSE:ICAN) will be operating at, this could open up other opportunities. With over 20,000 pre-rolls a week at a standard 8-hour workday, the production could offer options for white labeling for dispensaries and other brands. Automation is still a relatively new “thing” in legal cannabis. Pre-roll manufacturing is one of the most labor-intensive cannabis products because the current equipment is so new and very manual. Now, Integrated Cannabis (OTC:ICNAF) (CSE:ICAN) will be one of just a few companies that have fully automated capabilities to scale up production.
But Don’t Forget All Of The Major Milestones Integrated Cannabis Company (OTC:ICNAF) (CSE:ICAN) Has Achieved To Date!
It would be a disservice to only talk about the company’s latest milestones especially if you’re new to this company. Over the last 2 years, MarijuanaStocks.com has followed this evolution closely and members have seen, first-hand, the growth that has gone on with the company.
Integrated Cannabis (OTC:ICNAF) (CSE:ICAN) has made a point to align itself with some of the foremost companies within the cannabis industry. This has been to increase distribution as well as enhance the current product offering.
Nevada’s Open For Business: Integrated Cannabis (OTC:ICNAF) (CSE:ICAN); A Pot Stock To Watch
Distribution deals in the largest Cannabis market are just one part of this story. Integrated Cannabis (OTC:ICNAF) (CSE:ICAN) has begun to expand into other markets as well. Earlier this year, the company completed the acquisition of Nevada cultivation, manufacturing and real property interests of V6E Holdings LLC and Sullivan Park Capital LLC.
V6E Holdings LLC is the owner of a cannabis cultivation business and license in the state of Nevada. Sullivan Park Capital LLC is the owner of a cannabis manufacturing business and license in the state of Nevada. The acquisition of the cultivation and manufacturing assets will allow Integrated Cannabis (OTC:ICNAF) (CSE:ICAN) to directly participate in the Nevada cannabis market.
Just like in California, Integrated Cannabis (OTC:ICNAF) (CSE:ICAN) is wasting no time when it comes to laying down roots. The company has a fully licensed cultivation facility with 10,000 sq.ft. of expansion onsite and underway. There’s also a 3,000 sq.ft. fully licensed manufacturing facility with additional 2,000 sq.ft. of expansion room onsite. Additionally, the company also has a 100% owned, 17,000 sq.ft. building on a 1.5-acre parcel that is fully zoned and permitted for cannabis.
Why Nevada? The state has grown to become a robust market for legal cannabis. According to data from Statista, the forecast estimates a marijuana sales value is approximately $814 million U.S. dollars in the state in 2025 [4]. Thanks to a constant flow of tourism fueling the market, a position in Nevada could be key to US growth. Not to mention that it has a population of over 3 million people with another 40 million, or so tourists filtering through each year.
Timing Is Important Right Now
Marijuana stocks have always been cyclical in nature since legalization first began. But right now, for Integrated Cannabis (OTC:ICNAF) (CSE:ICAN) there are very specific things to take into consideration. One, as you’ll see, has to do with the sector in general, the other is specific to Integrated Cannabis (OTC:ICNAF) (CSE:ICAN)
Could Canada’s Next Move Send The Sector To New Highs?
No matter which country you’re in, big sector announcements can trigger momentum. We saw this for ourselves last year when Canada fully legalized marijuana across the country. It didn’t matter if a stock was doing business in Canada, the US, or across the pond; marijuana stocks soared.
This year, there’s a big move coming in October that’s already been highly publicized. In October of 2019, Canada will open the market for edible and alternative cannabis products, which Deloitte estimates to become a $2 billion, market on its own!
“The introduction of new cannabis products has created unique market opportunities for edibles, beverage, and health, and wellness companies as a wider assortment of cannabis formats become available over time. Cannabis 2.0 will appeal to a much broader consumer base including those cannabis consumption methods,” explains Jennifer Lee, Consumer Advisory & Analytics contact, Deloitte [5].
This is where “timing” could be of the utmost importance for those looking at Integrated Cannabis (OTC:ICNAF) (CSE:ICAN) right now. The reason is that among all of its deals – both completed and pending – Integrated Cannabis has also developed a THC-infused spray product. The completion of a market ready Tetrahydrocannabinol (THC)-infused spray product already has the required licensure for manufacturing of the product in Colorado. Once the Canadian market formally opens the doors to products like this, the opportunity could be exponential for the company across North America.
What About Money Raised To Fund Expansion?
If this wasn’t enough, we’ve also found that if you’re looking at Integrated Cannabis (OTC:ICNAF) (CSE:ICAN) right now, it’s at a vital period before its May funding tranche has a chance to expire…let’s explain.
One of the biggest concerns with any stock, let alone marijuana stocks is the possibility of dilution. Every stock has dilutive events; that’s one of the popular ways that companies raise money. But specific to Integrated Cannabis (OTC:ICNAF) (CSE:ICAN), the next time that a larger funding round can convert into shares doesn’t come due until November. How do we know this? Let’s dig deeper.
Back in May 2019, the company announced that it closed a third and final tranche of its previously announced non-brokered private placement:
“In the final, oversubscribed tranche of the Offering, the Company issued 2,500,000 units (each a
“Unit”) at a price of $0.28 per Unit for aggregate gross proceeds of $700,000.”
The important thing to note here is that in the press release, the company also stated something very important. The securities issued from this tranche were also subject to a voluntary hold period of six months from the date of issuance. That puts any signs of new shares from this funding round coming to market at sometime in November of this year. With a full month and a half away along with the big event in Canada marking “Cannabis 2.0,” timing could play a role as well, in our opinion.
Standing Toe To Toe With Top Companies In The Market
Big companies are targeting these types of products. In fact, one of the largest companies in Florida, Trulieve, recently closed a partnership deal with privately held Binske. Other companies like Plus Products, Slang Worldwide, and Green Growth Brands are also some of the larger companies in the arena that are getting positioned for growth! But compared to these companies, Integrated Cannabis (OTC:ICNAF) (CSE:ICAN) is trading at a fraction of the valuation. Plus, for example trades at a market cap of US$100M and did roughly USD$3.5M during its last quarter. But they reported a loss per share and gross margins are under 30%.
Integrated Cannabis (OTC:ICNAF) (CSE:ICAN), on the other hand, trades at a market cap half that of a company like Plus (US$50M) and currently has agreements in place to dramatically expand across the US. Considering the deal with Ganja Gold alone, it could make a strong argument as to why Integrated Cannabis (OTC:ICNAF) (CSE:ICAN) could find itself on the watchlist of marijuana stock enthusiasts across the market.
And let’s face it; cannabis isn’t going away anytime soon.
There are billions of dollars being heavily spent on this industry right now. That’s right; companies are paying big bucks to get a piece of these kinds of cutting-edge cannabis companies. One of the largest alcohol distributors in the world has placed a bet of more than $4 billion that cannabis will succeed in a BIG WAY.
Considering companies like Constellation Brands, Molson Coors, Altria and the like are throwing their hats into the ring via strategic deals, now could be one of the best times to have the cannabis industry on your radar. This simple fact has brought a massive boost to the industry at large and Integrated Cannabis (OTC:ICNAF) (CSE:ICAN) could be well-positioned to benefit on a global scale! It also should be mentioned that non-alcoholic companies like Coca-Cola, Arizona Iced Tea, and Pepsi have been reported to show serious interest in this niche.
Are You Sitting On The Sidelines While Hedge Fund Managers Are Buying Up Pot Stocks?
If all of this wasn’t enough to raise eyebrows about the cannabis industry, maybe the big money flow from institutions will. In the last two quarters, billionaire, hedge fund manager, and mathematical genius Jim Simons has moved decisively into the cannabis sector, taking large positions in multiple pot stocks.
Simons is known for his work in higher mathematics and military cryptography and founded the Renaissance Technologies hedge fund in 1982. The firm was a pioneer in quantitative trading, the application of higher mathematics to the financial markets, and has developed a reputation as one of the best returning hedge funds in the business. Simons retired from active direction of the company in 2009, but continues as non-executive chairman in an advisory role. Simons’ new positions in cannabis are considerable. Per the 13F filings [6], his firm is steadily upping its stake in pot stocks.
Keep in mind that this is just the evolution of what began in 2018. The largest U.S. banks have started to dip their toes into the marijuana industry, with some now offering equity research on cannabis companies. Goldman Sachs and Bank of America drew attention last year by participating when Constellation Brands, the maker of Modelo and Corona, put $4 billion into Canada’s Canopy Growth Corp. We’ve also seen the likes of Molson Coors and Altria throw their hats into the ring via strategic deals. As the October deadline approaches, who else will be positioning for a potential move?
Leadership Is Key For Integrated Cannabis Company (ICNAF) (ICAN)
If all of this wasn’t enough, the team behind Integrated Cannabis (OTC:ICNAF) (CSE:ICAN) is bringing decades of experience in the cannabis and healthy lifestyle industries to the company.
Seth Wiles – President
Seth Wiles has a proven track record as an innovator and infrastructure builder. Seth was the Senior Vice President and Head of Business Development for Procan Labs. He was a part of the team that builds out the largest distillate manufacturer in California. Seth was also the Senior Vice President of Sales and Operations at PR Newswire, the largest newswire agency in the United States. Seth was Chief Operations Officer at AccuBraille, a $10 million revenue company, along with ContractorOnline, a dotcom technology company acquired by Realtor.com. He has experience bringing multiple companies public. He also has a degree in Finance and Business Administration from Queens College, City University of New York.
Alex Patel – Chief Visionary Officer
Alex Patel is the founder and CEO of GanjaGold. Alex has been involved in the cannabis industry since its infancy. In 2009, Alex started by getting involved as a volunteer and worked his way up by taking on roles as a budtender, a manager and finally an account executive for a few of the top brands in California. Directly interacting with customers and collective owners provided Alex with a deep understanding of customer needs and expertise within the cannabis market to innovate and create original products that have revolutionized the industry.
Alex later embarked on making his own original and branded products under GanjaGold and introduced the Tarantula. This would be the first product of its kind that was focused on top-shelf cannabis, infused with concentrates and coated with a layer of keif. This product shattered conventional price points and breathed new life into what a pre-roll can be. This achievement has nurtured GanjaGold with tremendous brand equity, which can easily be transferred to any cannabis product type under its banner. In September of 2018, Alex took his first round of investment in order to vertically integrate and automate the process to scale and cut costs with the potential to franchise the ICAN business model across state lines. Prior to this, Alex graduated from the University of California, Santa Barbara in 2008 with a degree in Sociology.
Nishal Kumar – Director
Nishal Kumar is a serial entrepreneur who is the Founder and CEO of a consumer product company in the health and wellness space. He is also Founder & Chief Design Architect of an aftermarket automotive parts business. Nishal earned a Bachelors degree at the University of British Columbia.
Eugene Beukman – Chief Financial Officer and Director
Eugene is Corporate Counsel of Pender Street Corporate Consulting Ltd., a private company that provides accounting, legal and administrative services, and has held this position since January 1994. Eugene was previously employed as a legal advisor to the predecessor of BHP Billiton, a leading global resources company, a producer of major commodities, including iron ore, metallurgical coal, copper and uranium, with substantial interests in conventional and unconventional oil and gas and energy coal, and a company that creates long-term shareholder value through the discovery, acquisition, development and marketing of these natural resources. Eugene has over 20 years’ experience in the acquisition of assets and joint ventures.
Eugene graduated from Rand University of Johannesburg, South Africa, with a Bachelor of Law degree and a Bachelor of Law Honours Postgraduate degree in 1987. Eugene remains an Admitted Advocate of the High Court of South Africa. He also serves as an audit committee member for a number of other public companies and is a corporate consultant to public companies. He is a director and/or officer of several reporting companies listed on the TSX Venture Exchange and the Canadian Securities Exchange.
Dr. Clive Spray Ph.D. – Chief Scientific Officer
Dr. Clive R. Spray has spent his career in plant biology and nutrition. In 2011, Dr. Spray co-founded Spray Labs LLC, with the express purpose of developing, manufacturing and marketing high-quality, efficacious nutritional supplements based on the previously developed spray delivery system. Over the last 6 years, Dr. Spray has continued to develop and enhance not only the delivery system but also the range of products.
He received his undergraduate and Ph.D. degrees in Chemistry in the UK, during which time he published his thesis on the analgesic properties of plant-derived natural products. His post-doctoral studies included 15 years of research at UCLA, working at the forefront of the mapping of plant genomes, and publishing 27 papers on the subject. Since 1997, Dr. Spray has been responsible for the development and production of a range of liquid spray vitamins and a number of powdered nutritional products and developed and innovative oral spray delivery system for nutritional supplements.
Christopher Cherry – Director
Christopher has over 14 years of corporate accounting and audit experience. Christopher has extensive corporate experience and has held senior-level positions for several public mining companies, including director, CFO and secretary.
Christopher has been a chartered accountant since February, 2009, and a certified general accountant since 2004. In his former experience as an auditor, he held positions with KPMG and Davidson and Co. LLP in Vancouver, where he gained experience as an auditor for junior public companies and as an initial public offering specialist. Christopher served as CFO of Integrated Cannabis in 2012 and 2013, and has extensive knowledge of business in Guyana.
Top 5 Reasons To Have Integrated Cannabis Company (OTC:ICNAF) (CSE:ICAN) On Your Pot Stock Watch List:
- Integrated Cannabis (OTC:ICNAF) (CSE:ICAN) has already begun developing new products as Canada readies itself to enter Marijuana 2.0
- Integrated Cannabis (OTC:ICNAF) (CSE:ICAN) signed multiple deals with key public and private companies to expand its footprint
- Integrated Cannabis (OTC:ICNAF) (CSE:ICAN) already has significant distribution channels in place as the race for cannabis product placement has investors scrambling to find companies with significant market share.
- Integrated Cannabis (OTC:ICNAF) (CSE:ICAN) has a history of breakouts during times of corporate growth – and the deal with Top Selling Brand, Ganja Gold just happened.
- The anticipated attention that cannabis will receive once Canada puts a spotlight on extracts in 2019 could signal new market momentum for companies with products specializing in this niche.
End Notes:
[1] https://bdsanalytics.com/press_releases/new-report-californias-legal-cannabis-market-on-track-to-reach-3-1-billion-in-2019-sales-7-2-billion-in-2024/ [2] https://www.theglobeandmail.com/robcannabispro/article-joints-to-go-pre-rolls-appear-poised-for-growth/[3] https://www.ganjapreneur.com/five-predictions-for-the-pre-roll-sector-of-the-cannabis-industry/
[4] https://www.statista.com/statistics/798082/nevada-cannabis-sales-value-forecast/ [5] https://www2.deloitte.com/ca/en/pages/consumer-industrial-products/articles/nurturing-new-growth.html [6] https://fintel.io/i13f/renaissance-technologies-llc/2019-06-30-0DISCLAIMER:
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