NetworkNewsWire
Coverage: Canada leads the global trend to legalize and
regulate medical and recreational cannabis, and some of the biggest
players in the space are listed on Canadian stock exchanges. One of
the public companies attracting attention in the sector is
DOJA Cannabis Company Ltd. (CSE: DOJA) (OTC: DJACF)
(DOJA
Profile), which grows high-quality,
hand-crafted cannabis, operates one retail store in Kelowna,
British Columbia and is focused building the premier cannabis
lifestyle brand in the industry. To bolster its retail ambitions
and brand focus, DOJA recently announced a merger with fellow
leading lifestyle cannabis brand company Tokyo Smoke and also
announced a concurrent strategic investment of $10 million from
Aphria, Inc. (OTCQB: APHQF), (TSX: APH) (http://nnw.fm/jML2w). The combined company resulting
from the merger will use the name "Hiku Brands Company Ltd." to
refer to the brand house containing premium cannabis brands DOJA,
Tokyo Smoke, and Van der Pop. The Merger will create a uniquely
positioned cannabis company combining a best-in-class craft
cannabis producer with an award-winning lifestyle brand and
retail-focused cannabis company. Other companies vying for
increased retail recognition in the marijuana marketplace include
Canopy Growth Corp. (TSX: WEED) (OTC: TWMJF),
Emblem Corp. (TSX.V: EMC) (OTC: EMMBF), Golden Leaf
Holdings Ltd. (CSE: GLH) (OTCQB: GLDFF) and The
Supreme Cannabis Company, Inc. (formerly Supreme
Pharmaceuticals) (TSX.V: FIRE) (OTC: SPRWF).
The Canadian cannabis market reaching new
highs
While the United States wallows in legal disunity, Canada is now
the largest regulated cannabis producer in the world. Medical
cannabis is already a multi-million-dollar industry in Canada and,
with the legalization of recreational use slated to begin July 1,
2018, licensed producers are ramping up production and positioning
for retail recognition in advance of the adult use market opening
up.
Total market value of recreational marijuana in Canada
worth up to $22.6 billion
The retail market value of recreational marijuana in Canada is
expected to reach $8.7 billion annually. Add in ancillary services
such as testing labs, lighting and security systems, and Deloitte
projects total market size could reach $22.6 billion (http://nnw.fm/6Rj9w). Market size could far exceed
expectations when taxes, licensing fees, and marijuana-related
tourism are factored in. Deloitte also estimates that fulfilling
the demand for recreational marijuana will mean producing over
600,000 kilograms of marijuana annually, far more than existing
licensed producers grow for medicinal purposes.
Branding, marketing and quality will be the
differentiators
The Canadian marijuana market remains fragmented as licensed
producers prepare for the expected tsunami of recreational demand.
Retail distribution is almost an afterthought for the majority of
cannabis companies that have a “grow it and they will come”
attitude. DOJA
Cannabis Company Ltd. (CSE: DOJA) (OTC: DJACF) has
distinguished itself from its peers by combining a best-in-class
craft cannabis producer with a retail-focused cannabis
company that has a substantial national retail footprint and offers
a portfolio of premium cannabis lifestyle brands.
Experience and expertise matter
DOJA is led by branding wizard, founder and CEO Trent Kitsch. A
successful and experienced entrepreneur, Kitsch founded SAXX
Underwear Co. in 2007 and built the company into a fast-growing
globally recognized brand. He sold the company in 2016. Known for
his hustle, audacity and branding prowess, Kitsch founded DOJA in
2014 with the vision of creating a premium cannabis lifestyle brand
for Canada’s legal marijuana market. An MBA graduate of the Richard
Ivey School of Business with a major in entrepreneurship, Kitsch
was recently selected as one of 10 Ivey Ambassadors for
Entrepreneurship.
Partnerships and positioning set the stage
Retail positioning is imperative to capture an out-sized share
of the nascent multi-billion-dollar marijuana market. DOJA’s
recently announced binding Letter of Intent to merge with Tokyo
Smoke creates a rapidly expanding nationwide retail footprint
featuring a portfolio of visionary cannabis brands. The merger,
scheduled for completion by March 2018, will create Canada's first
nationwide retail and brand-focused cannabis producer. With
award-winning cannabis accessory stores and locations across the
country, Tokyo Smoke owns two well-recognized premium cannabis
brands and is the recipient of the 2017 Canadian Cannabis Brand of
the Year Award. The transaction also brings together industry
leading management teams with decades of experience from Google,
Samsung, Bain & Company, Barneys New York, Lululemon, Cronos
Group, and Marley's Natural among others.
In a testament to the viability of the merger, Aphria Inc. (TSX:
APH) (OTC: APHQF), one of Canada’s premier established producers,
announced plans to invest more than $10 million in the merged
company to gain leverage in the recreational marijuana market
(http://nnw.fm/J2hV6).
Strategic Capital Partners are Essential
On Jan. 9, DOJA, in conjunction with Aphria, announced the
closing of the $12.5 million strategic equity investment by Aphria
(http://nnw.fm/PfyF0). Aphria recently raised
$100 million for use in financing cannabis production facilities at
home and abroad, and $12.5 million of it was ear-marked as a
strategic investment in DOJA through the purchase of convertible
subscription receipts. With a market capitalization of nearly $2.5
billion, Aphria is also the exclusive supplier to Shoppers Drug
Mart, Canada’s largest retail pharmacy chain.
Upon completion of the merger, it’s expected the newly formed
company will use the name Hiku Brands Company Ltd. With the capital
infusion by Aphria, Hiku will have a cash balance over $31 million
and be well positioned to increase its cannabis production
capacity, enlarge its retail footprint and add select brands to its
portfolio through accretive and synergistic acquisitions.
Commenting on the deal, Aphria CEO Vic Neufeld stated, “This
transaction has the twofold benefit of providing us access to
strong brands, through Tokyo Smoke and DOJA, and craft-cultivated
British Columbia bud, through DOJA. Quality product and
recognizable consumer brands will be key differentiators for
patients and consumers, and we're looking forward to continuing our
work with Hiku to create premium cannabis brands in Canada."
Location, location, location
As Deloitte noted in its report, marijuana-related tourism is
expected to be no small factor in the $22 billion-plus Canadian
cannabis market. DOJA’s wholly owned subsidiary, is situated in the
heart of British Columbia’s Okanagan Valley, known as the
picturesque “Napa of the North.”
The Kelowna area attracted nearly 2 million visitors in 2016 and
that number is expected to grow with the advent of marijuana
tourism. Located on Kelowna's busiest street, DOJA operates the
Culture Café, which serves as a cannabis information center
generating brand awareness right in the middle of the tourist
district.
Commenting on production at the facility, DOJA CEO Trent Kitsch
stated, “I’m extremely proud of our cultivation team, they have
delivered on all levels, the quality of our flower is impressive,
and the yields exceeded our expectations. Post-harvest, our flowers
were expertly hand-trimmed, hang-dried and artisanally cured. Our
handcrafted approach is aimed at producing the finest cannabis with
exceptional aroma, flavor and effects.”
DOJA expects to deliver more than 5,000 kg of artisanal bud
annually with its planned new facility (http://nnw.fm/JNn8l). Initial cannabis harvests have
already been completed and DOJA awaits Health Canada pre-sales
inspection for retail to commence.
Others positioning for greater retail recognition in the
coming cannabis bonanza
The grandfather of Canadian cannabis production, Canopy
Growth (TSX: WEED) (OTC: TWMJF) was the first federally
regulated, publicly traded cannabis producer in North America.
Canopy, through its wholly owned subsidiaries, operates numerous
production facilities with over 700,000 square feet of licensed
production, over 500,000 square feet of which is GMP-certified.
With a focus on educating healthcare practitioners, conducting
clinical research, and furthering the public cannabis education,
Canopy and its affiliates have plans to develop a production
platform that would represent 3.2 million square feet of indoor and
greenhouse production capacity. The company has established
partnerships in Canada and abroad, with interests and operations
spanning four continents.
The Supreme Cannabis Company (formerly Supreme
Pharmaceuticals) (TSX.V: FIRE) (OTC: SPRWF) aims
to become a leading cultivator and distributor of affordable
sun-grown cannabis by applying commercial agriculture practices to
cannabis production. Its wholly owned 7ACRES subsidiary is a
Canadian federally licensed producer of cannabis operating inside a
342,000-square-foot Hybrid Greenhouse facility. The Hybrid
Greenhouse combines the technology of indoor production with the
efficiencies and sustainability of a greenhouse in a single
large-format production footprint. Supreme currently has a retail
footing in oils via a partnership with Aurora Cannabis.
Emblem (TSX.V: EMC) (OTC: EMMBF) is an
integrated licensed producer and distributor of medical cannabis
and cannabis derivatives in Canada under the ACMPR (Access to
Cannabis for Medical Purposes Regulations). Emblem has a strategy
across three verticals: cannabis production, patient education
centers and pharmaceutical dosage form development. Like others,
Emblem is vying for position within Canada’s large and growing
medical and recreational marijuana industry. The company currently
has over 8,500 square feet of flowering capacity at its closed box
facility in Paris, Ontario. A recent land acquisition for expansion
of its greenhouse facilities would increase Emblem’s total
production capacity to upwards of 17,000 kgs. of dried flower per
annum.
Canada-based Golden Leaf Holdings (CSE: GLH) (OTCQB:
GLDFF), with operations in Portland, Ore., is one of the
largest cannabis oil and solution providers in North America and
has several recognized brands. Golden Leaf cultivates, extracts,
manufactures and distributes its products through its branded
Chalice Farm retail dispensaries, as well as through third party
dispensaries. Golden Leaf believes its advanced research techniques
enhance the extraction, refining, marketing and selling of high
quality cannabis oils.
Be selective and focus on brand
differentiation
There’s little doubt the advent of legalized recreational
marijuana in Canada will present immense opportunities as well as
some logistical challenges. Companies that establish a dynamic
retail presence with recognized national consumer brands could
out-pace the competition and potentially deliver exceptional
relative returns - savvy investors should take notice of the
cannabis companies focused on brand differentiation.
For more information on DOJA Cannabis Company, visit DOJA Cannabis
Company Ltd. (CSE: DOJA) (OTC: DJACF).
For a more in-depth look into DOJA Cannabis (CSE: DOJA) (OTC:
DJACF), view the full report on Microsmallcap.com.
About NetworkNewsWire
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.
NetworkNewsWire (NNW)
New York, New York
www.NetworkNewsWire.com
212.418.1217 Office
Editor@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. The
commentary, views and opinions expressed in this release by NNW are
solely those of NNW. Readers of this Article and content agree that
they cannot and will not seek to hold liable NNW for any investment
decisions by their readers or subscribers. NNW 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, 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 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 undertake no
obligation to update such statements.
Source:
NetworkNewsWire
Contact:
NetworkNewsWire (NNW)
New York, New York
www.NetworkNewsWire.com
212.418.1217 Office
Editor@NetworkNewsWire.com
Grafico Azioni Golden Leaf (CSE:GLH)
Storico
Da Ago 2024 a Set 2024
Grafico Azioni Golden Leaf (CSE:GLH)
Storico
Da Set 2023 a Set 2024