ABcann Medicinals: Low Cost, Pharmaceutical Grade, Standardized Licensed Producer Poised to Go Public
Canada’s legal cannabis industry could generate $22.6 billion in annual revenue, which has created significant opportunities for investors in the space. With only 38 licensed producers to meet rising demand, investors may want to pay especially close attention to publicly-traded licensed producers that enjoy exclusive rights to grow, harvest, and distribute medical and soon recreational cannabis to consumers and patients throughout the country.
In this article, we will take a look at ABcann Medicinals Inc., which is set to become the next publicly-traded licensed producer, as well as its key competitive advantages and growth plans over the coming years.
Canada’s Burgeoning Market
Canada’s legal cannabis industry could generate $22.6 billion in annual revenue, according to Deloitte, which is higher than the combined sales of beer, wine, and spirits. The analyst firm believes that the base retail market will generate $8.7 billion in annual revenue, while ancillary markets like security and testing labs would make up the remainder of the revenue. This has created many opportunities for investors to capitalize on the newly minted industry.
With only 38 licensed producers, Deloitte believes that there will be a shortfall in production over the short- to medium-term as consumer demand grows to 600,000 kilograms per year. These dynamics have helped propel publicly-traded licensed producers to lofty levels. In fact, Canopy Growth Corp. (TSX: WEED) (OTC: TWMJF) – the largest licensed producer in the space – became the first cannabis ‘unicorn’ with a market capitalization of nearly C$2 billion.
Continue reading this article at CannabisFN.com
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