Abattis Looks to Leverage Crypto for Cannabis M&A
February 13th, 2018
Exclusive, News, Top News
Cryptocurrencies have taken the financial world by storm over the past several months. While the market has certainly been volatile, there is no doubt that blockchain technology and cryptocurrencies are here to stay as a broader concept. Many cryptocurrencies are targeting the cannabis industry given its need for reliable transaction records and payment processing outside of the traditional banking system.
PotCoin was one the earliest cannabis-focused cryptocurrencies launched in early 2014 with a market cap of about $66 million. CannabisCoin followed later that year with a market cap of about $25 million. Several other cryptocurrencies launched in the aftermath of their success, including DopeCoin ($23 million), HempCoin ($127 million), and CannaCoin ($2 million).
Abattis Bioceuticals Corp. (CSE: ATT) (OTCQB: ATTBF) recently announced an investment in another upcoming cannabis-focused cryptocurrency that has yet to undergo an initial coin offering (ICO). Investors may want to take a closer look at the stock given this potential.
Cryptocurrencies and Cannabis
Initial coin offerings, or ICOs, are the process of selling a new cryptocurrency in exchange for a more established cryptocurrency or fiat currency. For example, Storj-X raised $30 million in less than a week after announcing a platform that aims to provide cloud storage. The tokens serve as the currency by which users can purchase or rent out hard drive space. ICOs have become extremely popular throughout 2017 and moving into 2018.
There are a few cannabis-focused coins out there currently. According to coinmarketcap.com, HempCoin, with an approximately $40 million market cap, and PotCoin, with an approximately $35 million market cap, are the two largest. As the cannabis industry matures on both sides of the border, the marriage between cryptocurrency and cannabis has the potential to grow significantly.
Abattis Acquires CannaNUMUS
Abattis Bioceuticals recently announced an investment agreement to acquire a 49 percent stake in CannaNUMUS Blockchain Inc., which is developing a cryptocurrency targeting the burgeoning cannabis industry. The company hopes to enable frictionless peer-to-peer transactions that marry the benefits of blockchain with the enforceability of legal contracts, which could be an attractive proposition for cannabis companies facing banking issues.
“With a 49% equity stake in this blockchain platform, Abattis could see a significant upside from any CannaNUMUS liquidity event, including a reverse takeover of CannaNUMUS or an ICO,” said Abattis CEO Rob Abenante. “With both companies being actively engaged in M&A in the cannabis space, we anticipate that the partnership will be synergistic, creating opportunities for collaboration, growth, and a mutual deepening of expertise.”
Under the terms of the deal, Abattis will make an initial investment into CannaNUMUS and then has incentivized them with milestone bonus payments. The milestones include a definitive agreement with a company engaged in the cannabis economy to use the coin as a medium of exchange; the successful ICO of the coin; and a second definitive agreement being entered into with a company engaged in the cannabis economy using the coin as a medium of exchange.
First Milestone Met
Abattis has already announced the closing of the 49% acquisition, along with the achievement of the first investment milestone. CannaNUMUS reached an agreement with Active Health Projects Ltd., a Vancouver Island-based licensed producer applicant. Under the terms of the agreement, CannaNUMUS will invest in Active Health while Active Health commits to buying CannaNUMUS coins with a percentage of the company’s revenues.
The CannaNUMUS/Active Health deal adds instant validation to the business model and could pave the way for similar agreements with other Canadian cannabis companies in the future. Abattis believes that its investment in CannaNUMUS will appreciate significantly in value as CannaNUMUS gets closer to an ICO and signs agreements with other licensed producers and late stage applicants.
Abattis Bioceuticals Corp. (CSE: ATT) (OTCQB: ATTBF) represents an attractive investment opportunity that marries both the cryptocurrency and cannabis industries. With a nearly 50% stake in a new cannabis cryptocurrency, the company is well positioned to take advantage of the upcoming initial coin offering and generate value for its shareholders.
These coins could have a significant value as a transaction currency of choice among cannabis companies. In fact, Abattis itself could benefit by tying the cryptocurrency into its own expanding menu of business initiatives. The company offers cannabis lab testing and product development services, recently bought a cannabis accessories company, and has an agreement to develop a cannabinoid-infused beer with a Vancouver craft brewer.
For more information, visit the company’s website at www.abattis.com.
Follow Us on Social Media
About CFN Media
CFN Media (CannabisFN) is the leading creative agency and media network dedicated to legal cannabis. We help marijuana businesses attract investors, customers (B2B, B2C), capital, and media visibility. Private and public marijuana companies and brands in the US and Canada rely on CFN Media to grow and succeed.
CFN launched in June of 2013 to initially serve the growing universe of publicly traded marijuana companies across North America. Today, CFN Media is also the digital media choice for the emerging brands in the space.
Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: http://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: http://www.cannabisfn.com/legal-disclaimer/.