Aurora Cannabis’s (ACB:CSE) Marijuana Plants Start Flowering
AURORA COMMENCES FLOWERING OF 2400 MEDICINAL CANNABIS PLANTS CONSISTING OF 7 STRAINS
2015-04-28 – News Release -Aurora Cannabis Inc.’s 2,400 clones of seven different strains have been moved to the flowering stage. Commonly used names for the strains are Purple Kush, Agent Orange, Girl Scout Cookies, LSD, Strawberry Cough, AK47 and Exodus Cheese. Patients can be assured that the variety of strains will address a wide range of needs. More strains will be introduced as production ramps up. Aurora is expecting the first harvest to occur towards the end of June, 2015. Once in full production, the facility will be harvesting approximately 2500 plants every 7 days that will result in up to 100 kg of product per harvest.
Aurora’s patient acquisition plan is in the process of being finalized and the Company is confident that it will establish a significant customer base for sales while ensuring that our patients are not compromised by product shortages. This is an exciting time for Aurora and its shareholders as Aurora will begin producing a steady stream of revenue through the sales of its expertly cultivated and safe artisanal medical cannabis to customers across Canada.
Inspectors of Health Canada’s Office of Controlled Substances have visited Aurora twice since the cultivation license was issued (March 25 and April 21) and were satisfied with the facility, procedures and the progress thus far. The successful outcome of these and previous inspections continues to demonstrate Aurora’s commitment to operating successfully in this developing branch of the pharmaceutical industry. Further, in keeping to its vision of producing artisanal medical-grade cannabis, Aurora is proceeding forward with production under a unique advisory relationship designed to expand and augment each strain’s unique medical potential. This relationship was recently secured via an audit performed in California by Aurora’s quality control team.
Aurora is pleased to announce that it has entered into a contract with Ample Organics to obtain, utilize, and be supported by their advanced seed to sale enterprise resource planning (ERP) software platform for cultivation and sales of medical cannabis and medical cannabis related products. The software will enhance Aurora’s recordkeeping, traceability and overall efficiency in all aspects of facility operations. The progressive software will also help ensure that Aurora is operating as a leader in this expanding industry with only the most innovative solutions and products being made available to its future patients.
John Prentiss, CEO of Ample Organics, stated, “Ample Organics could not be more excited to have the privilege of working with the talented and experienced team at Aurora. Their purpose-built, state- of-the-art facility will now be powered by the most comprehensive software solution available today. We firmly believe that this partnership will set the bar thus further defining the Aurora Standard as the leader in this nascent industry, resulting in the best client experience in the cannabis space at every level.”
Aurora has also entered into a contract to employ the services of MMJ Hype, a division of Triforce Media Inc., a full service cannabis-marketing agency that is dedicated to providing Aurora with the highest quality search engine optimization (SEO), social media, marketing, reputation management and web analytics in the industry. Maxwell Duchaine commented, “MMJ Hype is looking forward to working with Aurora on generating additional website traffic from search engines and increasing brand awareness across Canada. MMJ Hype and Triforce Media will leverage the latest digital marketing tactics to ensure a leading position within this burgeoning industry.”
Aurora has entered into 11 non-disclosure agreements including 4 in the United States to review in detail additional synergistic opportunities within the cannabis space. Terry Booth, CEO of Aurora, commented: “The opportunities in the Cannabis industry are plentiful. It is imperative that we stay on point and focus on our strategy which is inherent to our strengths and talents.”
Aurora is the gold sponsor of the upcoming Jacob Securities Inc. investment event. Jacob Securities is a Toronto based, independent full-service investment bank, providing underwriting and financial advisory services to companies in the power, infrastructure, technology, energy and mining sectors. The event has attracted investors from around the world. Leslie Bocskor of Electrum Partners and Terry Booth, CEO of Aurora, will be guest speakers at the event.
In addition to the Jacobs investor conference, Aurora is proud to be a part of the upcoming Canadian Securities Exchange event hosted on May 6th in Calgary. The “TakeStock! Alberta Spring Investor Forum” will be featuring Aurora’s CEO, Terry Booth, as a speaker.
With regard to the Bakerview Business Borough in Bellingham, Washington, the Company’s wholly- owned subsidiary, Australis Capital Inc., is pleased to announce that this project has progressed with the signing of a Memorandum of Understanding with AJR Builders Group. This signing is another step towards developing Australis Holdings LLP’s plans in the creation of the best multifaceted project in Washington State that will exclusively cater to the recreational and medical cannabis industry.
- Published in Blog, Medical Marijuana
Aurora Cannabis (ACB:CSE) Milestones and Objectives for Success
Aurora Cannabis Inc. Setting up to become a Top Marijuana Producer in North America
With a full license to produce up to 5,500 Kilograms/year and a state-of-the-art, purpose-built facility exceeding governmental expectations, Aurora Cannabis Inc. is a promising Canadian marijuana producing company. With sound market strategies, Aurora intends to increase its production facility to 50,000 square feet every 1,5 years.
Aurora’s milestones since the beginning of 2015
• January 26, 2015 – Completion of the 55,200 square foot brand new facility in Mountain View County, Alberta.
• February 20, 2015 – Aurora received the federal license to produce medical marijuana under the Marijuana for Medical Purposes Regulations. Among the few organizations in Canada, Aurora is also the sole licensed producer within Alberta -Canada’s most business-friendly province. While the application was being processed, Aurora’s scientific team was organizing meetings with leading botanists from around the world, and developed a patent-pending pest control system.
• March 10, 2015 – Appointment of Dr. Jason Dyck, PhD, to its Board of Directors. Dr. Dyck specializes in the molecular biology of heart disease and metabolism. He is a leader in his field and has extensive experience in drug discovery and commercialization.
Important developments in the US
“Weed 3: The Marijuana Revolution”, a CNN documentary aired on April 19| 2015, explores the politics of medical marijuana research in the US. Dr. Sanjay Gupta interviewed President Barack Obama, who showed his support for the Careers Act of 2015. He also declared on record that it would be appropriate to follow science vs ideology and treat drug abuse issues from a public health model, as opposed to an incarceration model.
The Act, if passed, will entail the following for the marijuana industry:
• states will be able to legalize medical marijuana use without federal interference
• increase research on the medical benefits
• alter marijuana’s status as “dangerous drug”
US Marijuana market forecast
- Existing demand drives rapid growth from $1.5 billion in 2013 to $2.7 billion in 2014 – a 74{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} increase in one year
- It is expected to grow to $3.5 billion – an additional 32{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} in 2015
What this means for Aurora Cannabis Inc.?
In March 2015, Aurora Cannabis Inc. opened Australis Capital Inc. – a wholly owned subsidiary focused on opportunities in the United States with respect to production, processing, extracting of derivatives, and sale of both medicinal and recreational cannabis.
On April 7, 2015 Aurora Cannabis Inc., through Australis Capital Inc., made an agreement with AJR Builders Group LLC (Bellingham, Wash.), to form Australis Holdings LLP. Under this partnership, Australis will develop and construct a new marijuana production and processing facility on the 24.5 acres in the Bakerview Business borough (Whatcom County, Wash.). The site will be largest industrial development catering to the cannabis industry in Washington. (Read full description).
- Aurora will provide training, quality control, operation manuals and technical support for a number of turnkey production facilities;
- Operations in the state of Washington will facilitate expansion plans to serve recreational and medical marijuana markets in other American states.
Considering the imminent possible changes in the US legislation, paired with Canadian regulatory environment implemented as the Aurora standard, Aurora Cannabis has the potential for extensive market-defining impact.
Objectives and strategies for success
• Capture the majority of the market share.
• Adapt to changes in laws and markets.
• Expand activities beyond North America.
• Extensive marketing campaigns and set a different tone to the “marijuana” conversation.
• Create strategic partnerships with the marijuana scientific communities.
We encourage you to visit Aurora Cannabis website and view the Company’s investor presentation.
With their license now official, this creative energy can now be directed to producing the highest quality Medical Marijuana possible.
- Published in Blog, Medical Marijuana
Aurora Cannabis (ACB:CSE) to build Marijuana Production Plant in Washington State
AURORA CANNABIS SIGNS DEAL TO CONSTRUCT A NEW CANNABIS PRODUCTION AND PROCESSING FACILITY IN WASHINGTON STATE
Aurora Cannabis Inc., through its wholly owned subsidiary, Australis Capital Inc., has entered into a partnership agreement dated April 7, 2015, with AJR Builders Group LLC of Bellingham, Wash., to form a limited liability partnership named Australis Holdings LLP to construct a new marijuana production and processing facility in the state of Washington.
Highlights:
- Partnership agreement with Australis
- Construct new Marijuana Production & Processing Facility
- Bakerview Business Borough catering to the Cannabis industry in Washington
- Aurora to provide training, quality control, operation manuals and technical support for a number of turnkey production facilities.
- Operations in the state of Washington will facilitate expansion plans to serve recreational and medical marijuana markets in other US states.
Australis has recently acquired two (2) parcels of land totaling 24.5 acres in Whatcom County, WA in an area designated as the Bakerview Business Borough. The intention of Australis is to develop and construct a new marijuana production and processing facility utilizing the skills and experience of AJR. AJR has experience and a proven track record in developing facilities ideal for growing marijuana. The business park is situated in an I-502 approved area for recreational and medical marijuana businesses. The joint venture between ACI and AJR gives Australis exclusive development rights to develop a marijuana production and processing facility.
Located in the heart of Bellingham’s light industrial submarkets, the Bakerview Business Borough will be the largest, fully entitled, industrial development catering to the cannabis industry in Washington. When fully built out, the business park represents an opportunity of over a million square feet of production, processing and retail space. The area includes a dedicated space for a flagship processing facility for Australis that will further the “Aurora Standard”. Plans are currently in place for a sports bar, several restaurants, a rock climbing facility, a local microbrewery and craft distillery, and marijuana industry related supply stores. Multiple undisclosed celebrity brands of cannabis will be produced in the park along with a celebrity branded Vapor lounge. Each production facility space will offer a turnkey solution and I-502 licensees that lease these facility spaces will benefit from being able to grow in accordance with the renowned Aurora Standard – a production model synthesized from Canada’s global-leading health & safety standards along with experience from Aurora’s curated cannabis advisory team. Aurora will provide training in cultivation to ensure sanitary conditions and products (whole bud or extracts) are competitive quality-wise in any market, standard operating procedures and cutting edge technical support to the producers as part of a turnkey package. With an existing 12,500 sq. ft. warehouse and utilities on site, the first production warehouse will be available for occupancy in the summer of 2015, while work is conducted on the engineering and infrastructure for the remaining site.
Australis will organize tours of the production facilities by way of specific viewing areas, making this not only a multifaceted cannabis community but also an educational, exciting destination spot experience for tourists and locals. Nestled at the base of Mount Baker, the Bellingham area saw tourists spend $573.9 million dollars in 2013, many of whom are Canadians. Only 40 minutes from Vancouver and 90 minutes from Seattle, the Bakerview Business Borough is in a prime location to attract a high number of cannabis enthusiasts, and those curious about cannabis from both major cities. Tenants will be five minutes from Bellingham International Airport and 10 minutes from downtown. The port of Seattle is 90 miles south and a new deep-water port is being constructed just 30 miles away. Follow this link to view a video of the property: https://vimeo.com/112839760 (The password is “Mary”).
“We are looking forward to leveraging Aurora’s knowledge and cutting edge science to capitalize on Washington States recreational and medical marijuana markets,” said Jason Ragsdale, managing director of AJR Builder’s Group. “The planned project includes a state of the art processing facility and a variety of grow options including Hoop Houses, high-tech green houses and efficient indoor production facilities. These production facilities will be leased to serious 502 license holders under a turnkey situation. All producers will be expected to uphold the Aurora Standard as it pertains to the recreational and medical markets in Washington. ACI will provide the necessary resources to ensure that standard is being followed thus furthering their brand and reputation. Many license holders see the need for this type of partnership, the concept of multiple cannabis producers and processors in one location will give our partnership the ability to cultivate the highest quality strains of cannabis. We can start generating revenues within 90 days.”
“We believe that the advancement of our operations in the State of Washington will facilitate the Company’s strategic growth and expansion plans to serve the growing recreational marijuana market south of the border. Jurisdictions in the United States that we are presently focused on include Alaska, Oregon, Washington, Colorado, and Washington D.C. Nevada and California are also being looked at very closely as both states have recreational marijuana bills on their ballots for 2016,” commented Terry Booth, CEO of Aurora.
Washington Initiative 502 (I-502) for the legalization of recreational marijuana and marijuana related products for adults 21 and over appeared on the general ballot in November 2012. The initiative passed with a significant percentage of the vote, and was credited with producing the highest voter turnout in the nation at an astounding 81{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}. The result of I-502’s successful ratification has been a new and flourishing industry for every aspect of marijuana cultivation, extraction, processing, packaging, and sales. The recently passed Senate Bill 6062 changes end users’ tax from 75{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} to 37{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}. Another bill passed by Washington legislature, SB 5052, will overhaul the states medical marijuana market. SB 5052 will eliminate the allowance of up to 300 unregulated dispensaries that have operated in the state for years. This bill will cause many consumers to move to the new regulated recreational market and will also raise the standard of quality in the medical market. Significant positive changes in the regulation of recreational and medical marijuana continue to occur at the time of this acquisition.
The 24.5 acres of land were purchased for a price of USD $2.3 million. ACI has provided an initial funding of approximately CAD $1.6 million by way of a secured loan to Australis.
Subject to shareholder approval the Company intends to spin out ACI under a Plan of Arrangement under the Business Corporations Act (British Columbia) (the “Arrangement”), pursuant to which shares of ACI will be distributed to the holders of common shares of Aurora on a pro-rata basis. The directors of the Company believe that the creation of two separate public companies, one focused in Canada and one focused in the U.S. and international markets will enhance their respective business operations and provide shareholders of Aurora with diversified investment choices. The Company will announce the details of the Arrangement in due course. There can be no assurances or guarantees that the Arrangement will be completed or approved by the exchange.
- Published in Blog, Medical Marijuana
InMed Pharmaceuticals arranges $1-million financing
2015-04-06 11:25 ET – News Release
Mr. Craig Schneider reports
INMED PHARMACEUTICALS, INC. ANNOUNCES NON-BROKERED PRIVATE PLACEMENT FOR UP TO C$1,000,000
InMed Pharmaceuticals Inc. will conduct a non-brokered private placement of up to four million units at a price of 25 cents per unit for aggregate gross proceeds of up to $1-million. Each unit will consist of one common share and one-half of one non-transferable share purchase warrant. Each whole warrant will be exercisable by the holder to acquire one additional common share at a price of 40 cents for a period of 12 months following the closing of the financing.
Completion of the private placement is subject to receipt of regulatory approval. All securities issued will be subject to a statutory four-month hold period under applicable securities laws.
The net proceeds from this private placement will be used for general working capital purposes. Finders’ fees in cash or warrants may be payable in accordance with the policies of the exchange.
We seek Safe Harbor.
- Published in Blog, Life Sciences
InMed Gains Health Canada Exemption for Cannabinoid Use
2015-03-23 08:12 ET – News Release (Marketwired)
INMED RECEIVES EXEMPTION STATUS FROM HEALTH CANADA
InMed Pharmaceuticals Inc. (CSE:IN, OTCQB:IMLFF) has received a notice from Health Canada dated March 12, 2015, approving InMed’s application for an exemption under Section 56 of the Controlled Drugs and Substances Act.
This exemption allows InMed to use a specified quantity of selected cannabinoid compounds including Delta 9 tetrahydrocannabinol and cannabidiol. Importantly this exemption allows InMed to possess the controlled substances and to administer them for research and development purposes, which include in vitro studies as well as the use of these compounds in animal models of human diseases.
Craig Schneider, president and chief executive officer, states, “Obtaining this exemption is a critical milestone for InMed as we prepare for human clinical studies for our lead programs in glaucoma (CTI-085) and arthritis (CTI-091) moving towards the clinical development of their respective proprietary delivery systems.”
The Office of Controlled Substances’ licensed dealer has also been notified so that it may import the controlled substances on behalf of InMed.
About InMed
InMed is a clinical stage biopharmaceutical company that specializes in developing cannabis based therapies through the research and development into the extensive pharmacology of cannabinoids coupled with innovative drug delivery systems. InMed’s proprietary platform technology, product pipeline and accelerated development pathway are the fundamental value drivers of the company.
We Seek Safe Harbor
- Published in Blog, Life Sciences, Medical Marijuana
Patients vs Government -The Battle for Medical Marijuana
By: Frehiwote Negash –
It’s been nearly a year since the Medical Marijuana Purposes Regulation has gone into effect and the debate over who has the “right to grow” has shift into a legal battle about patients’ rights and accessibility versus government oversight. The fight for medical marijuana has taken a decidedly different tone here in Canada compared to our southern neighbor. While U.S senators from both parties are fighting to get medical marijuana passed into law at the federal level, patients in Canada are battling their own government to continue to grow their own cannabis without having to turn to commercially licensed producers. The Harper government lost its latest appeal to prevent registered medical marijuana users from growing their own pot at home. The Federal Court of Appeal unanimously upheld the injunction that allows these exempted patients from purchasing medical marijuana under the new system. That means while the government gears up for another round in the courts, these patients will still be able to produce their own medicine. However, the recent arrest of Bob Dillman and his wife in Dartmouth, N.S has added fuel to the fire. Dillman, who was allowed to produce his own medicine under the old regime, was charged along with his wife with production and possession of marijuana. The take away for users reliant on their own production is that the new regulations view them as criminals, not patients.
The previous medical marijuana system, which came into effect in 2001, allowed patients to either grow their own pot or designate someone to grow it for them should they choose not to purchase their cannabis through Health Canada. The new system allows for patients to purchase their pot from through producers who have been sanctioned by Health Canada while phasing out the home cultivation option. Patients have argued that the new regulations violate Section 7 of the Canadian Charter which protects “life, liberty and security of the person.” They argue that the under the new system, prices for medical marijuana are expensive for the amount they consume. It isn’t just a question of affordability but also of quality control and choice as patients want to decide for themselves what to consume and not have to worry about the limitations on possession. Another issue with the current system is whether there is enough supply to meet the demand as only a handful of the 23 licensed producers have already begun large scale production. With the number of registered users expected to grow ten-fold within the next decade, the system needs revamping but it is not without its merits.
The government argues that with the new system it reduces the need of Health Canada monitoring grow –ops and reduces safety concerns in communities. The process of acquiring a license is difficult as wannabe producers are required to go through a number of security checks. While there are a number of issues with the long wait times, the sense here is that Health Canada’s rigorous process is better for the patient and places license holders under stringent quality control regulations forcing them to be accountable. If medical marijuana is to become a $ 1 billion industry, then government oversight is essential for the safety of the patient. There are merits to both arguments but the crux of the issue how to more clearly define Health Canada’s mandate on the issue.
Source: CBC, Yahoo News
- Published in Blog, Life Sciences
Organigram Provides Shareholder Update
OrganiGram Holdings Inc. (ACB:CSE) has provided an update to shareholders while reviewing milestones of 2014 and looking at the growth and goals of 2015.
Since the inception of OrganiGram in April, 2014, the company has been growing and developing at a very fast pace. Through this growth, there have been some tremendous achievements, which include receiving its organic certification, producing its first crops, listing of shares on the TSX Venture Exchange and completing three phases of construction. OrganiGram is excited to capitalize on these achievements and execute on the business plan.
Moving forward, the company’s shareholders, patients and partners will begin to see the results from the foundation laid in 2014. To date, the company has been extremely focused on expanding the production facility while, at the same time, working to increase production levels. These efforts will begin to provide significant product to the market in March of this year. Thereafter, the utilization of the company’s existing rooms and rooms under construction will ensure that OrganiGram is poised to meet its financial goals in 2015.
OrganiGram would like to take this opportunity to congratulate Trauma Healing Centers on the opening of its first clinic, in Halifax, N.S. OrganiGram is proud to be partnered with Trauma Healing Centers on research initiatives to assist veterans and others suffering with posttraumatic stress disorder (PTSD).
OrganiGram’s chief executive officer, Denis Arsenault, states: “Over the past few months, OrganiGram has moved into a best-in-class manufacturing facility. Our processes and systems have been developed to a point where we produce high-quality products, in an organic form, which has and will continue to exceed the requirements of our clients. While we continue to evolve and improve, our facility will begin to supply the market with an established source of product on a consistent basis. We have a superior management team in place that is not only focused on supply but also quality, efficiency and product development. The results of our efforts will not only be very profitable for the company and shareholders but most importantly will provide a rapidly increasing client base with a medicinal product that assists in a much-improved quality of life for many. The developments of the next few weeks and months will be both exciting and fruitful for our company.”
We seek Safe Harbor.
- Published in Blog
Spending Bill to Restrict Persecution of Legal Cannabis Businesses
In wake of the government shutdown as Congress attempts to wrap up a two-year legislative session, the 2014 Continuing Resolution Omnibus bill was passed on Saturday.
With 1603 pages, this $1.1 trillion dollar bill, one long line has received little fanfare – It states that the Department of Justice (and, therefore, the FBI) cannot spend money to investigate, raid or prosecute cannabis businesses that are accredited as legal within their parent states. It is important to note that this does not restrict spending from previous budgets.
To be specific, the bill says:
“None of the funds made available in this Act to the Department of Justice may be used, with respect to the States of Alabama, Alaska, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Hawaii, Illinois, Iowa, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nevada, New Hampshire, New Jersey, New Mexico, Oregon, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Washington, and Wisconsin, to prevent such States from implementing their own State laws that authorize the use, distribution, possession, or cultivation of medical marijuana.”
“Congressional leaders seem to have finally gotten the message that a supermajority of Americans wants states to be able to implement sensible marijuana reforms without federal interference,” said Tom Angell, head of the pro-legalization Marijuana Majority. “This legislation greatly reduces the chances that costly and senseless DEA raids will come between seriously ill patients and the doctor-recommended medicine they need for relief.
This does not mean that the DOJ will stop monitoring the cannabis industry, or that there is a sudden change in legalization. It will also not affect any on going investigations or persecutions, and only applies to the states mentioned – any state who changes their cannabis laws will have to wait till the next budget to be recognized.
The spending bill also “prohibits both federal and local funds from being used to implement a referendum legalizing recreational marijuana use in the District of Columbia,” according to a summary from the House Appropriations Committee.
DC’s initative would actually cost them nothing – it would save district money to not enforce laws against marijuana possession. Essentially, it prevents DC Council from spending its time and resources to approve the legalization initiative and send it to Congress. Under federal law, this is a required step in order to legalize.
Congress previously used this authority to block DC from implementing a medical marijuana law for nearly 12 years. Federal lawmakers have also prevented DC from using local tax dollars to fund abortion services and life-saving clean needle exchange programs. They can experiement with medical marijuana… but not legalization.
While not all encompassing, this does show that the American federal government is moving away from persecution, and is willing to update its archaic views on cannabis sativa.
- Published in Blog, Medical Marijuana
Organigram ( OGI:V) – Why You Should be Looking at Them Now.
Chris Parry has become one of the forefront speakers on the Medical Marijuana space in Canada, covering many of the rise and falls of this space. Recently through his MMPRInvestments, They released a free report covering Organigram (OGI:V).
Chris points out probably the most important aspect when considering which company to get involved with – Organigram’s deal with the Trauma Healing Centers. In the Canadian MM industry, they are the only company currently with a deal that will cater to individuals who have government backed health insurance. This coupled with its organic certification, easy scale capacity and bilingual nature ( Quebec monopoly in the making..?), makes OGI one of the top MM producers. And don’t forget, MM has show great promise for victims of PTSD.
Let that sink in for a second, then go read the full report here
- Published in Blog
The MMPR Investments Report: Organigram (OGI:V)
The medical marijuana space in Canada has been crazy for the last year.
From the sudden emergence of a corporate medicinal cannabis supply system to court cases allowing formerly registered users to continue growing their own product, to the crazy profligation of unregulated dispensaries in Vancouver while other cities shut them down as soon as they appear, the mining-to-marijuana rush, the crazy share price spikes and crashes, the suited brokers shoving through barbed wire fences to do deals with motorcycle club employees, the boardrooms with baggies of samples being passed around… nobody could have foreseen the madness.
But out of madness, eventually, comes sanity. And the Canadian weedspace right now is verging on the sane.
Gone are many of the early share price rockets. Companies like Green and Hill, and Growlife, and Enertopia, and Creative Edge Nutrition, which had market caps as high as when they launched, now scrape bottom. The ticker symbol plays like BUD and THC are nowhere to be seen. And investors that, formerly, played all day, bouncing their cash from play to play depending on what was being promoted, are now butthurt, poorer, and looking for where to go next.
That’s the bottom end.
At the top, some serious wheels are turning. I’ve looked deep into the soul of many of these companies and I like what I see. Canadian medical marijuana is a mess of bureaucratic regulations, to be sure, but that torturous process has effectively allowed the market to be filtered through a sieve that has left only the high quality, the well-funded, the professionally run and the well supported companies standing.
Companies like Bedrocan, the Canadian subsidiary of a Dutch parent that has the monopoly on European medical marijuana and has earned $1m in revenue just reselling imported product from its parent. And Tweed, which two licensed facilities and a big war chest, the first mover in the market that stands tall on its effective marketing campaign and US investor base penetration. And Mettrum, a new player that keeps it cards close to its chest while it quietly connects registered patients to its product. And Supreme, which is marching towards its license with a plan to grow medical marijuana in a massive Ontario based facility, and sell it on the cheap to feed the low end of the market.
These are all fine companies. There are others, earlier in their licensing process, that may add to the roster. But there’s one that, right now, to me, has demonstrated it stands tall.
That company is Organigram.
You’ll find it in the Canadian markets under the ticker V.OGI. In the US, it’s OGRMF.
Why do I like this company? How much do I like this company?
Let’s get into that.
Organigram is not selling more weed than anyone else. It’s not got more name recognition than anyone else. It’s not sitting on a billion square feet of growing space. But it has something REALLY important in Canada, and North America proper.
It has a deal.
That deal is with Trauma Healing Centres (or THC), a group that is opening a series of clinics across Canada aimed at treating people with post-traumatic stress disorder. That means, largely, military veterans and first responders.
The deal promises to bring Organigram as much as $22m over the first two years, and to expand outward from that. But while that’s nice, it’s not the most important thing.
The deal also promises to give Organigram a bankable off-take arrangement upon which it can plan ahead. Instead of fighting for every patient, the THC group will bring the patients to them. But that’s not the most important thing.
The deal will embrace Organigram’s certified organic product (something no other company has), and will take advantage of the company’s truly bilingual structure (something, again, no other company has, and which gifts the company Quebec as a virtual monopoly).But, again, not the most important thing.
The important thing is veterans in Canada have government-backed health insurance, and medical marijuana is an accepted treatment for PTSD.
This means Organigram has a deal that, as a first in North America, will be insurance-backed, to serve a large segment of the population exclusively.
Anxiety disorders, or which PTSD is one of the largest segments, cost the US health system $42.3 billion annually, according to the Sidran Institute. Around half of that is spent on drugs, and those drugs are significantly more expensive – and less effective – and have more side effects – than medicinal cannabis.
Currently, Health Canada puts the potential market for medical marijuana at $1.3b per year in 2022. So if Organigram can be the go-to place for Canadian veterans and first responders to turn to for their PTSD relief, the market radically dwarfs the expected registered medical marijuana user for all other ailments.
This won’t happen tomorrow. It won’t happen next month. But when it happens, when the healing centres open and the veterans groups, which are behind THC, start moving their brothers into that system, Organigram won’t have time to scratch itself for all the business it’ll be handling.
And that’s why the company, right now, is working feverishly to expand. All the money it has raised in previous months, all of it is going to expansion of its present facility – something it can do because it just purchased the building next door and worked with the municipality to merge the two properties into one address. No need for a new MMPR!
I own Organigram stock. I’m not selling. I’m going to have to make that disclosure every time I write about this company for a long time to come because I have no plans to cash in my stake. I’m waiting for dividends, and I’m very happy in my belief dividends will one day flow hard.
There are several great investment options in medical marijuana in Canada. You should seriously consider them and invest where you think your money will be safest and most productive.
For me, that’s Organigram. V.OGI. Get in.
Written by: Chris Parry
NOTE: The author of this report has been paid for its production and dissemination and owns Organigram stock. Please do your own due diligence before making any investment and speak to a licensed professional for investment advice.
- Published in Blog