NetworkNewsWire
Editorial Coverage: The proposed legalization of recreational
cannabis this year is expected to mean huge growth in the Canadian
cannabis sector, and companies are preparing to make the most of
it. Choom™ Holdings, Inc. (CSE: CHOO) (OTCQB: CHOOF)
(CHOOF
Profile) is creating a premium lifestyle brand backed
by an integrated supply chain, while Hiku Brands Co. Ltd.
(CSE: HIKU) (OTC: DJACF) (DJACF
Profile) is applying for the final license to sell its
handcrafted cannabis flower. Medical marijuana producer
Canopy Growth Corp. (TSX: WEED) (OTC: TWMJF) has
obtained outside funding to explore the potential of
cannabis-infused soft drinks, and Aphria, Inc. (TSX: APH)
(OTCQB: APHQF) is using a strategy of collaboration and
targeted investment to boost its cannabis production resources. For
consumers concerned about the quality of their smokes,
ABcann Global (TSX-V: ABCN) (OTCQB: ABCCF) (ABCCF
Profile) is using a specially developed technique to
ensure a consistently high-grade, premium organic cannabis.
Recreational Cannabis Coming to Canada
The imminent legalization of recreational cannabis in Canada is
expected to lead to a huge boom in the broader cannabis industry.
Even without recreational legalization, around 5 million
Canadians consumed marijuana in 2017. According to Statistics
Canada, 90 percent of the nearly $6 billion was spent for illegal,
nonmedical purposes—suggesting that when the law changes, even more
Canadians will give it a go. Canadians spend nearly as much on
cannabis as on wine, and when recreational cannabis use gets
the green light, those profits are expected to shift from criminal
gangs and street dealers to businesses and high street vendors. The
potential for profit is huge, with recreational cannabis forecast
to quickly outpace the medical market.
The activities of cultivators taking steps to expand their
production capabilities indicate faith in the massive consumer
demand for retail cannabis. While the medical market established
the roots of Canada’s cannabis industry, first-comer recreational
brands have a chance to take dominant places in this newly emerging
sector.
A Relaxing Brand for a Relaxing Industry
For many consumers, the appeal of cannabis is its relaxing
properties. This is the angle that Choom
Holdings (CSE: CHOO) (OTCQB: CHOOF) its targeting with
its carefully crafted recreational cannabis brand.
Though based in British Columbia, Choom has built its brand
around a very different part of the Americas. By evoking the spirit
of Hawaii, the company aims to tap into the ethos of surf, sand and
chilled times for which the island is known. In fact, the
organization’s name is drawn from the slang of 1970s Hawaii and the
story of a group of friends who loved to smoke weed—or “choom.”
That youthful appeal is part of Choom’s branding with deliberate
imagery designed to attract consumers with a relaxed and laidback
vibe. Recreational cannabis companies, like any company focused on
recreational products, will need to tap into the disposable incomes
of 20-somethings as both tastemakers and a source of profit. This
approach may help the brand lay claim on a solid chunk of an
expected $6 billion market.
Big Ambitions for a Big Market
Choom is going big on investment in the recreational cannabis
market, and it’s easy to see why. As cited by the Financial
Post, Canaccord Genuity forecasts that there will be an
estimated 3.8 million recreational and 500,000 medical cannabis
users in Canada by 2021. That’s more than eight times as many users
as exist in the current already profitable and purely medical
market.
This growth is predicted to create an industry significantly
larger than the $5 billion industry in spirits and almost as large
as the $7 billion wine industry. Choom’s aim is to become a leading
retailer within that industry. The company’s early start, which
includes years of planning and preparing branding, facilities and
business strategy, could put it in a strong position to reach that
goal.
Choom’s tactic is to position itself as a purely recreational
brand with a line of premium products. It will be a fully
integrated company positioned to scale up as needed. As part of
this, it intends to develop and acquire positions, brands and
products focused specifically on this market. This approach
provides contrast with competitors emerging from the medical
market.
Building a Strong Production Base
License and production assets are a critical part of this
strategy, allowing Choom to quickly grow in line with the
market.
The company recently announced a definitive agreement to acquire
Specialty Medijuana Products, Inc., which has submitted its
evidence package as part of the Affirmation of Readiness to Health
Canada. Upon successful review of this final stage, the company may
expect to receive an ACMPR license to cultivate cannabis, which
could be a significant value inflection point for the company.
This makes for a total of three ACMPR applicants to Choom’s
already dynamic strategy.
The company continues to develop its two other facilities for
cultivation, which will also provide the company with the potential
to expand to meet market needs.
The first facility, located in Vernon, B.C., has 6,800 square
feet of space. When working at full capacity, this facility is
anticipated to produce revenue reaching $6.6 million, excluding
income from oils. A second phase of building, slated for completion
by the end of 2018, could increase this potential to $15
million.
A facility at Chemainus on Vancouver Island provides a second
source of cannabis. With 4,500 square feet of space, this location
is expected to provide revenue up to $4.5 million, not counting
oils. Like the Vernon facility, it is undergoing a refit and should
be ready for production for legalization in 2018; a second phase of
building is planned for completion by early next year. This
expansion could increase this facility’s potential revenue to $9
million.
Product and Placement
One of the pillars of Choom’s strategy is ensuring that it has
the right product and position to sell to its specific market. To
this end, the company has been working on its retail program to put
Choom-branded stores onto Canadian streets.
The look of the stores is cool and stylish in keeping with Choom’s
modern, young brand. Its custom-designed retail environment
combines wood paneling with clean, white shelving and sofas where
customers can relax to bring the Choom brand to life. Fitting with
the aesthetic of popular modern brands, the stores will create a
comfortable, familiar space for customers. The stores will also
allow Choom to appeal to both existing cannabis users as well as
those curious to try the product once it becomes legal.
With a complete and carefully branded supply chain that runs
from cultivation to retail, Choom has laid the foundation for its
goal to be a leader in the recreational-use cannabis industry.
Several other companies are also set to make the most of
legalization through consumer brands and expansion strategies.
Hiku
Brands (CSE: HIKU) (OTC: DJACF) is another cannabis
lifestyle brand, with a focus on premium products in the form of
its high-quality handcrafted cannabis flower. Hiku has a wholly
owned subsidiary licensed to produce cannabis, which has requested
a Pre-Sales License Inspection — the last step before licensing to
sell cannabis under the ACMPR. Hiku recently closed on a $10
million strategic equity investment from Aphria (TSX: APH)
(OTCQB: APHQF) to expand its product offering ahead of the
recreational market.
As an established Canadian cultivator with a background in
medical marijuana, Aphria continues to increase its production
capabilities for the American cannabis market. The company recently
received a license amendment under the ACMPR from Health Canada
that will more than triple the company's production capacity of
medical cannabis from 9,000 kg annually to 30,000 kg annually.
Canopy Growth’s (TSX: WEED) (OTC: TWMJF)
experience in developing and cultivating cannabis strains has set
it up to produce for the newly expanding market. The company
recently received a financial boost through a $191 million
investment by Constellation Brands. This money from the company
behind Corona, Modelo and Svedka will provide the money needed to
develop cannabis-infused drinks, bringing the markets of the two
companies together. This investment from a major player in the
drinks industry shows the faith being placed in Canada’s
recreational cannabis sector.
ABcann
Global (TSX-V: ABCN) (OTCQB: ABCCF) is a cultivator of
premium quality organic cannabis. Its ABcann Advantage technique is
a best-in-class standardized approach to growing cannabis that uses
computer monitoring and the omission of pesticides to minimize the
risks of variance in its yields and ensure a consistently
high-quality product. This has led to a 4.7 percent customer
retention rate and 30 percent month-over-month customer growth.
The Canadian recreational cannabis industry is heading to the
starting line with a strong pack of recreational brands and
cultivators geared up to meet rising product demand. And as the
sector grows, these companies could take a substantial share of a
market worth billions.
For more information on Choom Holdings, please
visit Choom
Holdings (CSE: CHOO) (OTCQB: CHOOF)
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
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 is 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 undertakes 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
Hiku Brands Comapny (CSE:HIKU)
Historical Stock Chart
From Nov 2024 to Dec 2024
Hiku Brands Comapny (CSE:HIKU)
Historical Stock Chart
From Dec 2023 to Dec 2024
