Accessibility Statement Skip Navigation
  • Resources
  • Blog
  • Journalists
  • +44 (0)20 7454 5110
  • Client Login
  • Send a Release
Return to PR Newswire homepage
  • News
  • Products
  • Contact
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All Public Company News
      • All Multimedia News
      • View All News Releases

      • Regulatory News

      • D/A/CH Regulatory News
      • UK Regulatory News
      • View All Regulatory News

  • Business & Money
      • Auto & Transportation

      • Aerospace & Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads & Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking & Road Transportation
      • View All Auto & Transportation

      • Business Technology

      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • View All Business Technology

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film & Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Financial Services & Investing

      • Accounting News & Issues
      • Acquisitions, Mergers & Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalisation
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • View All Financial Services & Investing

      • General Business

      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls & Research
      • Trade Show News
      • View All General Business

  • Science & Tech
      • Consumer Technology

      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • View All Consumer Technology

      • Energy & Natural Resources

      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil & Gas Discoveries
      • Utilities
      • Water Utilities
      • View All Energy & Natural Resources

      • Environ­ment

      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • Aerospace & Defence
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation & Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking & Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • Carriers & Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • Animals & Pets
      • Beers, Wines & Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics & Personal Care
      • Fashion
      • Food & Beverages
      • Furniture & Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewellery
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film & Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Health

      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • View All Health

      • Sports

      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • View All Sports

      • Travel

      • Amusement Parks & Tourist Attractions
      • Gambling & Casinos
      • Hotels & Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • Animal Welfare
      • Corporate Social Responsibility
      • Economic News, Trends & Analysis
      • Education
      • Environmental
      • European Government
      • Labour & Union
      • Natural Disasters
      • Not For Profit
      • Public Safety
      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • View All People & Culture

  • Overview
  • Distribution
  • Paid Placement
  • Multichannel Amplification
  • Disclosure Services
  • SocialBoost
  • Rooms
    • MediaRoom
    • ESG Rooms
  • AI Tools
  • General Enquiries
  • Media Enquiries
  • Partnerships
  • Hamburger menu
  • Cision PR Newswire UK provides press release distribution, targeting, monitoring, and marketing services
  • Send a Release
    • Phone

    • +44 (0)20 7454 5110 from 8 AM - 5:30 PM GMT

    • ALL CONTACT INFO
    • Contact Us

      +44 (0)20 7454 5110
      from 8 AM - 5:30 PM GMT

  • Client Login
  • Send a Release
  • Resources
  • Blog
  • Journalists
  • News in Focus
    • Browse News Releases
    • Regulatory News
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
    • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Client Login
  • Send a Release
  • Resources
  • Blog
  • Journalists
  • Overview
  • Distribution
  • Paid Placement
  • Multichannel Amplification
  • Disclosure Services
  • Cision Communications Cloud®
  • AI Tools
  • Client Login
  • Send a Release
  • Resources
  • Blog
  • Journalists
  • General Enquiries
  • Media Enquiries
  • Partnerships
  • Client Login
  • Send a Release
  • Resources
  • Blog
  • Journalists

Canadian Cannabis Presents Opportunities in Cultivation and Retail


News provided by

NetworkNewsWire

26 Apr, 2018, 12:30 GMT

Share this article

Share toX

Share this article

Share toX

NEW YORK, April 26, 2018 /PRNewswire/ --

NetworkNewsWire Editorial Coverage 

For the very first time, a developed country stands at the precipice of legalizing recreational cannabis. Despite a slight delay from the original July 2018 legalization goal, industry analysts agree that Canada is on course to fully legalize recreational marijuana in August or September of this year, clearing the way for adults aged 18 and over to legally purchase the drug from licensed dispensaries across the nation. For companies like Choom Holdings, Inc. (CSE: CHOO) (OTC: CHOOF) (CHOOF Profile), Aurora Cannabis, Inc. (TSX: ACB) (OTC: ACBFF), Namaste Technologies Inc. (CSE: N), Emerald Health Therapeutics, Inc. (TSX-V: EMH) (OTC: EMHTF) and The Supreme Cannabis Company, Inc. (TSX-V: FIRE) (OTC: SPRWF), this unprecedented regulatory shift is likely to unleash huge opportunities across multiple industry sectors, most notably cultivation and retail operations.

Barriers to Entry

Demand for recreational cannabis in Canada is still, to some degree, a mystery. As a forerunner in the legalization of recreational marijuana, Canada will likely serve as a measuring stick for other countries that are interested in following suit. However, based on various federal and provincial reports, legislators have estimated that nationwide demand could come in at around 800,000 kilograms annually, with the market expected to experience sustained growth in the coming years. The push to address this forecast demand has resulted in a number of cannabis industry heavyweights, with their positions in the market being bolstered by the significant barriers to entry that exist for would-be Canadian cannabis producers.

Currently, cannabis production operations fall under the jurisdiction of the Access to Cannabis for Medical Purposes Regulations (ACMPR). Introduced in 2016 as a replacement for the Marihuana for Medical Purposes Regulations, the ACMPR is administered by Health Canada with the goal of licensing and overseeing the commercial cannabis industry. Companies interested in cultivating cannabis for the Canadian market are required to undergo a complex, seven-stage permitting process under the ACMPR that commonly takes more than a year to complete (http://nnw.fm/g71zA). As a result of this complexity, the firms that successfully navigate the regulatory hurdles associated with the ACMPR to become licensed cannabis producers often achieve significant PPS increases in the wake of approval (http://nnw.fm/jbu2A).

Navigating the Changing Tides

Choom Holdings, Inc. (OTCQB: CHOOF) (CSE: CHOO) is one company that's strategically positioned to capitalize on this post-approval trend in the near future. Choom currently has acquired two ACMPR applicants and has agreements in place to acquire two additional ACMPR applicants, fortified by its recent addition of Saskatchewan-based High Way 10 and parent company Flower Power Cannabis Pharms (http://nnw.fm/Xf26v). As the company noted in a news release announcing the acquisition, High Way 10 is currently in the active review stage of Health Canada's rigorous application process. Following the completion of select tenant improvements to its existing 16,000-square-foot facility, Flower Power intends to submit its affirmation of readiness ("AOR") evidence package to Health Canada, which could result in the receipt of a cannabis cultivation license shortly thereafter. If approved, Choom estimates that High Way 10's current facility is capable of producing approximately 1,500 kg of dried cannabis per year, with plenty of room for future expansion.

Notably, Choom's efforts to scale up its production capacity ahead of the anticipated summer 2018 legalization of recreational cannabis have spanned multiple provinces. On April 19, the company announced its entry into a definitive agreement to acquire Island Green Cure Ltd., an advanced-stage cannabis production license applicant located in Vancouver Island, British Columbia (http://nnw.fm/5ZmQQ). Choom notes that Island Green Cure is currently at the Confirmation of Readiness ("COR") stage of the ACMPR application process.

While Choom has remained committed to expanding its production capacity in recent months, the company has also turned its attention to the retail side of the nascent industry. Unlike cultivation, which is regulated at the federal level, recreational cannabis retail programs will be developed and enforced by individual provinces. For this reason, Choom's recent efforts to diversify its geographic footprint into new jurisdictions, including its entry into Saskatchewan through the High Way 10 acquisition, could prove to be fruitful.

The Future of Retail

Although the exact launch date of recreational cannabis in Canada isn't yet known, the future of the industry, at least from a retail perspective, is currently being developed. Multiple provinces across the country have already outlined details for their retail programs. The Saskatchewan Liquor and Gaming Authority (SGLA), for example, last month announced plans to commence issuing retail permits. Timing could prove to be key for prospective retailers in Saskatchewan. The SGLA has limited the number of permits to 51 for the first three years in an effort to ensure a controlled rollout (http://nnw.fm/BB5zT), and other provinces have detailed similar restrictions. Choom has already made moves to secure its portion of this retail landscape. In an April 17 news release, the company noted that it has already secured nine retail locations in Alberta and seven in British Columbia, as well as submitting 32 applications for retail permits in Saskatchewan (http://nnw.fm/oC8TP). The SGLA is expected to award permits via lottery by June 2018.

Choom's retail plans go beyond permits and regulatory filings. In January, the company released a concept retail store design (http://nnw.fm/n2N2a), and it intends to develop a chain of branded dispensaries in jurisdictions across Canada. Supporting these plans, Choom recently entered into a binding agreement with ABcann Global Corporation (http://nnw.fm/X3eUt), one of Canada's premier growers, through which ABcann will supply Choom with premium cannabis products, subject to regulatory approval. The company marked this deal as a strong endorsement of its strategy and a pivotal step in developing Choom as the premium retail brand in Canada's burgeoning recreational cannabis market.

Promising Market Trends

Diversification into both cultivation and retail operations could prove to be a lucrative opportunity for Choom. Aurora Cannabis, Inc. (TSX: ACB) (OTC: ACBFF) has established itself as an industry heavyweight in recent years by leveraging a vigorous growth strategy to rapidly expand its cultivation capacity. Following its acquisition of 71 acres of land in Alberta, Aurora is on track to yield in excess of 430,000 kg of cannabis per year at some point in the future. Add on Aurora's acquisition of Saskatchewan-based CanniMed Therapeutics, which was noted as the 'most expensive pot buyout in history', and it's clear that an aggressive approach to M&A is a key growth driver throughout the cannabis industry.

Much like Choom, Aurora has also placed focus on addressing the flourishing retail sector of Canada's recreational cannabis market. In February, the company announced its completion of a strategic investment in Liquor Stores N.A. Ltd. aimed at establishing and launching a leading brand of cannabis retail outlets. Through this blended approach to cultivation and retail, Aurora has achieved considerable PPS growth. The company's Canada-listed shares rose from C$3.08 in November 2017 to a high of C$14.79 by mid-January.

Namaste Technologies Inc. (CSE: N) is taking a similar approach to growth through acquisitions, aiming to execute on a vision of becoming an all-inclusive online cannabis marketplace. Through wholly owned subsidiary Cannmart Inc., Namaste received an ACMPR production license on March 19 (http://nnw.fm/g04sV), just under two months after the company announced its reception of a Health Canada Confirmation of Readiness ("COR"). Following news of Cannmart's ACMPR approval, Namaste's Canadian shares rose to C$2.31, up from C$1.60 in late February.

Prior to receiving ACMPR approval, Cannmart entered a definitive supply agreement through which it committed to purchase, in 2018, 1,000 kg of medical cannabis from Supreme Cannabis Company, Inc. (TSX-V: FIRE) (OTC: SPRWF) subsidiary 7ACRES. John Fowler, CEO of Supreme, noted the importance of supply agreements such as these in a news release (http://nnw.fm/QPth6). "As a cultivation focused Licensed Producer we rely on strong retail partners to provide us access to consumers and favorable brand positioning," Fowler stated. Diverging from the integrated strategy of Choom Holdings, Namaste, through Cannmart, is positioning itself as a "sales-only" entity.

While many in the Canadian cannabis market look toward new construction and acquisition for growth capacity, some industry players are taking other approaches. Emerald Health Therapeutics, Inc. (TSX-V: EMH) (OTC: EMHTF), for example, is partnering with British Columbia-based Village Farms to increase production capacity while simultaneously bolstering the margins of traditional greenhouse farms (http://nnw.fm/sX9BP). This approach, utilizing established agricultural producers to expand capacity, is typically cheaper and faster than the construction of new facilities, as well as providing the opportunity, in many cases, to work with experienced growers and farm staff.

On the Clock

With the legalization of recreational cannabis in Canada expected to occur in a matter of months, the future of what Deloitte has forecast could be a $22.6 billion industry is already taking shape (http://nnw.fm/1iYFF ). Companies with the foresight to position themselves in both the cultivation and retail markets figure to benefit most from the rising tide of cannabis spending throughout Canada. With that in mind, it should come as no surprise that industry upstarts like Choom Holdings, with its four late-stage licensed producer applicants and detailed retail strategy, are urging the investment community to 'Say Hello' to the next big thing (http://nnw.fm/H6AnE).

For more information on Choom Holdings, Inc., please visit Choom Holdings, Inc. (OTCQB: CHOOF) (CSE: CHOO).

About NetworkNewsWire
NetworkNewsWire (NNW) is a financial news and content distribution company that provides (1) access to a network of wire services via NetworkWire to reach all target markets, industries and demographics in the most effective manner possible, (2) article and editorial syndication to 5,000+ news outlets (3), enhanced press release services to ensure maximum impact, (4) social media distribution via the Investor Brand Network (IBN) to nearly 2 million followers, (5) a full array of corporate communications solutions, and (6) a total news coverage solution with NNW Prime. As a multifaceted organization with an extensive team of contributing journalists and writers, NNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. By cutting through the overload of information in today's market, NNW brings its clients unparalleled visibility, recognition and brand awareness. NNW is where news, content and information converge. For more information, please visit https://www.NetworkNewsWire.com.

Please see full terms of use and disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or re-published: http://NNW.fm/Disclaimer

DISCLAIMER: NetworkNewsWire (NNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. FN Media Group (FNM) is a third-party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated with NNW or any company mentioned herein. The commentary, views and opinions expressed in this release by NNW are solely those of NNW and are not shared by and do not reflect in any manner the views or opinions of FNM. Readers of this Article and content agree that they cannot and will not seek to hold liable NNW and FNM for any investment decisions by their readers or subscribers. NNW and FNM and their respective affiliated companies are a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, NNW, FNM, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer's filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer's securities, including, but not limited to, the complete loss of your investment.

NNW & FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and NNW and FNM undertake no obligation to update such statements.

NetworkNewsWire (NNW) is affiliated with the Investor Brand Network (IBN).

About IBN
Over the past 10+ years we have consistently introduced new network brands, each specifically designed to fulfil the unique needs of our growing client base and services. Today, we continue to expand our branded network of highly influential properties, leveraging the knowledge and energy of specialized teams of experts to serve our increasingly diversified list of clients.

Please feel free to visit the Investor Brand Network (IBN) http://www.InvestorBrandNetwork.com

Corporate Communications Contact:
NetworkNewsWire (NNW)
New York, New York
http://www.NetworkNewsWire.com  
+212-418-1217 Office
Editor@NetworkNewsWire.com

Media Contact:
FN Media Group, LLC
NNW@FinancialNewsMedia.com  
+1-(954)345-0611

Modal title

Also from this source

Breaking Through: Systemic Genetic Medicines for Hard-to-Treat Cancers

Breaking Through: Systemic Genetic Medicines for Hard-to-Treat Cancers

Each year, approximately 20 million people are diagnosed with cancer, and nearly 10 million lives are lost to the disease worldwide, a toll that is...

Precision Genetic Medicine Platform Could Disrupt Standard of Care in Metastatic Cancer, Other Indications of Unmet Needs

Precision Genetic Medicine Platform Could Disrupt Standard of Care in Metastatic Cancer, Other Indications of Unmet Needs

An estimated 20 million people are diagnosed annually with cancer, while cancer kills almost 10 million people a year worldwide...

More Releases From This Source

Explore

Health Care & Hospitals

Health Care & Hospitals

Medical Pharmaceuticals

Medical Pharmaceuticals

Cannabis

Cannabis

Investments Opinions

Investments Opinions

News Releases in Similar Topics

Contact PR Newswire

  • +44 (0)20 7454 5110
    from 8 AM - 5:30 PM GMT
  • General Enquiries
  • Media Enquiries
  • Partnerships

Products

  • Content Distribution
  • Multimedia Services
  • Disclosure Services
  • Cision Communications Cloud®

About

  • About PR Newswire
  • About Cision
  • Partnering Opportunities
  • Careers
  • Accessibility Statement
  • APAC
  • APAC - Simplified Chinese
  • APAC - Traditional Chinese
  • Brazil
  • Canada
  • Czech
  • Denmark
  • Finland
  • France
  • Germany
  • India
  • Indonesia
  • Israel
  • Japan
  • Korea
  • Mexico
  • Middle East
  • Middle East - Arabic
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Russia
  • Slovakia
  • Spain
  • Sweden
  • United States
  • Vietnam

My Services

  • All News Releases
  • Customer Portal
  • Resources
  • Blog
  • Journalists
  • Data Privacy

Do not sell or share my personal information:

  • Submit via Privacy@cision.com 
  • Call Privacy toll-free: 877-297-8921

Contact PR Newswire

Products

About

My Services
  • All News Releases
  • Customer Portal
  • Resources
  • Blog
  • Journalists
+44 (0)20 7454 5110
from 8 AM - 5:30 PM GMT
  • Terms of Use
  • Privacy Policy
  • Information Security Policy
  • Site Map
  • RSS
  • Cookie Settings
Copyright © 2025 PR Newswire Europe Limited. All Rights Reserved. A Cision company.