Next Green Wave (NGW:CSE NXGWF:OTCQB)
<< Next Green Wave aiming to be a world-class, vertically integrated cannabis powerhouse acquiring partnerships with OMG; a CBD growing operation in Columbia and acquiring SDC; a social media leader with a reach of 25 million people >>
“Not only does this acquisition (SDC) give us an array of premium brands associated with key world-renowned influencers to penetrate global markets, it also gives us increased distribution with revenues from sales, along with direct to consumer reach, relationships and specialty extraction methods. Having the opportunity to market through strategic brand partners to millions of validated and loyal followers is a big deal when marketing consumer products.” – Leigh Hughes, CEO of Next Green Wave
HIGHLIGHTS
- NGW is a fully integrated, seed-to-sale, retail cannabis company. They are focused distribution and product acquisitions and also the expansion of their existing large dispensary relationships
- It is licensed for medical and recreational cannabis operations in Coalinga, California, with four medical and recreational Conditional Use Permits (CUP’s) for cultivation, nursery, volatile & non-volatile extraction and distribution
- Two indoor operations totaling 85,000 square feet with plans to increase production facility capacity to 350,000 square feet.
- Composed of world class industry experts, including members of Loud Seeds, A cannabis seed brand inducted into the High Times Seed Bank Hall of Fame and has won the High Times Cannabis Cup 6 times since 2012!
- Raised more than $21M in 2019
- NGW acquired 100% of manufacturing and extraction leader, SDC, gaining eight leading cannabis brands with 45 cannabidiol and tetrahydrocannabinol products that have a combined global social influencer reach of over 25 million people and with more than 100 million YouTube views
- NGW makes a strategic investment in Organic Medical Growth (OMG), a Canada-based company focused on producing and commercializing CBD (cannabidiol) products derived from medicinal and industrial cannabis in Colombia.
Share Structure as of March 15, 2019 – MKT Cap – 80.8M – Shares out – 120.5M – Price – .67
CLOSER LOOK
On March 15th 2019 NGW announced its strategic investment plan with OMG to provide collaborative and commercial strategic support services which include 1. the adopting of nursery, cultivation and manufacturing techniques that will enable OMG to produce high-quality cannabinoid oil through large-scale production and in compliance with GMP (good manufacturing practices) standards. 2. planning and design of necessary infrastructure for its outdoor and indoor facilities. 3. licensing of Next Green Wave’s medicinal consumer product goods and brands across OMG’s entire distribution network subject to countrywide regulation approval. This partnership has positioned NGW to have a healthy equity position into OMG as well as a gateway to 7000 retail outlets in Columbia for NGWs brands. Having a 15% position in OMG puts NGW in a strategic influential position to bring OMG on the map with its competitors.
Leigh Hughes says “Pharmacielo (PCLO.TSXV – $943M market cap and $10.19) and Khiron Life Sciences (KHRN:TSXV – $308M market cap and $3.44) are two Colombian comparable for OMG.”
In addition to swift partnerships, on March 11th, 2019, NGW signed a definitive agreement to acquire 100 per cent of California-based SDC Ventures. This acquisition came at a price of $27 million and in return obtained the visibility of 25 million people through 8 established brands and influencers with major exposure on social media and 100+ million views on YouTube. Alongside the social marketing, SDC brings over 30 different types of extraction-based products across its 8 brand partners including everything from vape cartridges, rosins, ice water hash, tinctures, dog products, consumables as well as a number of CBD wellness and recovery products. Speciality extraction and manufacturing methods include ice water hash – the washing of the cannabis plant from whole plant fresh frozen material, rosin pressed from ice water hash and cannabis only terpenes that have a special process to end with a final result that has never been winterized. Next Green Wave plans to employ these new extraction methods and bring leading products to the market within the next three months.
Led by six-time Cannabis Cup High Times award winner, Mike Jennings, the team works to build strong industry partnerships to support the Seed-to-Consumer distribution. The use of Intrexon’s Botticelli’s plant propagation platform to enable the rapid production of proprietary cannabis cultivars for the California market is one of the agreements that will contribute to Next Green Waves vision of becoming a world-class nursery. “I have not seen advances with as much potential to be disruptive to plantlet production as the Botticelliâ„¢ technology and am looking forward to realizing its potential in collaboration with the talented Intrexon team.” Says Mike Jennings.
Alongside strategic acquisition, Next Green Wave sits on 15 acres of land zoned for cannabis production and manufacturing in Coalinga, California. The company’s first state-of-the-art facility on the property has been completed and is currently being hooked up to the power grid. A second facility for research and innovation is being retrofitted and expected to be ready for production in Q2 of 2019. In addition to the existing facilities, the company has the ability to add a further 250,000 sq ft greenhouse to its land parcel increasing its capacity to 350,000 sq ft. Next Green Wave is a vertically integrated business that holds many, difficult to acquire licences in the following categories; Indoor Cultivation – Adult Use (up to 15,000 ft²), Indoor Cultivation – Medical (up to 5,000 ft²), Nursery Adult, Nursery Medical, Distribution – Adult, Distribution – Medical, Volatile Extraction – infusion and manufacturing. The procurement of these licences puts NGW in a position to service the North American market, from seed to consumer and now soon the global market. The NGW master plan is currently being realized and, on its way, to being a world-wide operation in an industry that is ever-expanding. Think of putting it on the watch list…. just to see how high it goes.