NEW YORK, August 16, 2017 /PRNewswire/ --
Canada is the mecca of the North American cannabis market, boasting legalization in every province and an array of investment opportunities, such as ABcann Global Corporation (TSX.V: ABCN) (OTC: ABCCF), (ABcann PROFILE) a Canadian grower of medical marijuana. ABcann recently acquired ABcann Medicinals and boasts a recent IPO, appointment of a new medical consultant, and major expansion plans. As one of Canada's most dominant growers of medical marijuana and one of the growers to meet the Canadian government's stringent licensing requirements, ABcann could be positioned to see the post-IPO success achieved by Supreme Pharmaceuticals, Inc. (OTC: SPRWF) (TSX.V: FIRE), Emblem Corp. (OTC: EMMBF) (TSX.V: EMC), Canopy Growth (OTC: TWMJF) (TSX: WEED) and Aurora Cannabis (OTC: ACBFF) (TSX: ACB) - all of which showcased astounding post-IPO gains in the favorable North American cannabis sector.
Ontario-based ABcann Global Corporation (TSX.V: ABCN) (OTCQB: ABCCF) made its debut on the public market in May 2017 with an IPO priced at $0.80 per share and ambitious plans to foster domestic production facilities and international opportunities. PI Financial analyst Jason Zandberg was quick to initiate coverage of ABcann with a one-year price target of $2.25, which, as of August 15, represents a 160% premium over the company's stock price of $0.68.
Despite its relative infancy as a publicly traded security, ABcann is one Canada's dominant medical growers, recognized for using proprietary growing technology to produce organically grown, pesticide-free medicinal-grade marijuana.
The company's low current market cap offers an obvious opportunity for investors, as ABcann compares well with other companies in an industry that Arcview Market Research expects to top $20 billion by 2021 (http://nnw.fm/4oqBD).
A look at some of ABcann's peers demonstrates the potential of this market. Among them is Supreme Pharmaceuticals, Inc. (OTC: SPRWF) (TSX.V: FIRE), which soared more than 1,600% after its IPO and currently trades at $0.87 per share. As of August 15, Supreme's market cap is $250 million. Another Canadian cannabis play, Emblem Corp. (OTC: EMMBF) (TSX.V: EMC) has the same size growing facility as ABcann and is valued at $200 million, trading at $1.45 per share. Aurora Cannabis (OTC: ACBFF) (TSX: ACB.TO), which surged nearly 900% after its initial offering, trading at $1.97, is valued at $723 million.
Canopy Growth (OTC: TWMJF) (TSX: WEED.TO), one of the largest fully-licensed Canadian marijuana growers, saw share prices skyrocket by more than 700% in the months following its IPO. As the heavyweight of the group, Canopy is trading at $6.94 per share with a market cap of $1.17 billion.
As noted by analyst Zandberg, part of ABcann's potential for such a performance is its ability to achieve high yields of its medicinal-grade marijuana through a scalable, computer-controlled growing environment that enables monitoring and control to ensure optimal plant growth while avoiding disease and other plight. ABcann's expansion plans are ramping up, and a new chamber is planned for the company's current facility in Napanee, Ontario, which currently produces 1,000 kilograms annually.
The sweet spot of ABcann's growing position is that it owns the land to be occupied by a new 71,000-square-foot facility with a production capacity of 20,000 kilograms per year - 20 times ABcann's current production. In further plans, a 65-acre property for a planned 1.2 million square-foot growing facility is ready for development.
Additionally, ABcann was one of the first companies to obtain a production license under Canadian Marijuana for Medical Purposes Regulation, putting it among only 3% of companies that make it through the extensive six-step application process, which requires a comprehensive background check and prior investment in a growing facility.
In July, ABcann announced its inclusion in the Horizons Medical Marijuana Life Sciences ETF. The ETF index selects companies with operations in biopharmaceuticals, medical manufacturing, distribution, and other marijuana industry services.
Though ABcann as a public company is only three months old, it occupies a unique position with $43 million in cash to fulfill its expansion plans. Earlier this month, as part of a $30 million financing, Cannabis Wheaton Income Corp. made an initial $15 million investment in ABcann to fund additional build-out at the company's second production facility. The remaining $15 million will fund an additional production expansion with ABcann. Notably, Cannabis Wheaton's valuation of ABcann matches Zandberg's price target of $2.25 per ABcann share.
For more information on ABcann Global please visit: ABcann Global (TSX.V: ABCN) (OTCQB: ABCCF)
NetworkNewsWire (NNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) NetworkNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company 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. NNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. 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.
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.
Media Contact e-mail:
FN Media Group, LLC