Maple Leaf: Capitalize on Legal Cannabis in the U.S. and Canada
February 22nd, 2017
News, Top News
The North American cannabis industry is expected to exceed $20 billion in size by 2020, according to Research and Markets, representing a nearly 30% compound annual growth rate. There are many different opportunities for investors on both sides of the U.S.-Canadian border, but few companies offer investors all-in-one exposure to the best segments of both markets, particularly with pure-play exposure to cannabis cultivation and harvesting.
In this article, we will take a look at Maple Leaf Green World Inc. (TSX.V: MGW) (OTCQB: MGWFF) and its presence in three of the largest medical and recreational cannabis markets throughout North America where it has established cultivation operations.
Presence in Top U.S. Markets
The United States’ cannabis industry received a significant boost in November 2016 when voters in several states voted to legalize recreational marijuana – including California and Nevada. In addition to being an estimated $7 billion market for the drug, California’s move to legalize recreational use of the drug could mark the beginning of the end of federal prohibition by forcing the government to deal with issues like banking access.
Maple Leaf Green World operates a joint venture with a non-profit co-op collective located near Palm Springs, CA. The company built two greenhouses on a 20 acre property that it purchased and currently harvests between 100 and 150 pounds of medical marijuana six times per year in a continuous cycle. With enough space for 100 greenhouses, the company has ample opportunities to expand with recreational legalization in the works.
Nevada voters also voted to legalize recreational marijuana in one of the most promising tourism markets in the country. With over 40 million tourists per year, Las Vegas has become a popular destination for both Americans and international tourists. The state’s reciprocity laws already enable out-of-state medical marijuana card holders to access the drug, but recreational legalization could make the state a top-3 consumer.
Maple Leaf Green World is in the process of acquiring a cultivation license in Nevada through its acquisition of BioNeva Innovations of Henderson LLC, which owns and operates a 33,500 square foot cultivation facility that’s pending approval in Henderson – just 15 minutes from Las Vegas. The move could provide the company with a valuable footprint in the Nevada market that’s in close proximity to Las Vegas’ significant tourist economy.
Near-term Canadian Approval
Canada legalized the cultivation of medical cannabis on a national level back in July 2013 with the Marihuana for Medical Purposes Regulations (MMPR). Since then, the government has approved nearly 40 licensed producers and amended the rules to become the Access to Cannabis for Medical Purposes Regulations (ACMPR). Prime Minister Justin Trudeau’s election also set forth the path to recreational legalization over the coming year or two.
Maple Leaf Green World is in the last stage of approval (Stage 5) to become a licensed producer under the ACMPR program. With an 80,000 square foot facility under construction, the company could become one of the largest licensed producers in the market. The company also has the potential to build up to 300,000 square foot of greenhouses on properties that it has under its control if expansion makes sense down the road.
Section 35 of the ACMPR regulations provides that: “[T]he Minister must, after examining the information and documents required under section 33 [ACMPR Application Guidelines] and after all of the security clearances required by section 34 [Security Clearance Stage] have been granted under section 112, issue to the applicant a producer’s license.” This means that a license appears imminent if it’s able to pass the final inspection.
With many licensed producers trading with market capitalizations ranging from C$100 million to C$2 billion, the company’s modest C$82 million market capitalization makes it a compelling value in the licensed producer space. This is especially true considering the company has operations in California and Nevada that provide access to the rapidly growing U.S. market in addition to the federally-legal Canadian market.
Maple Leaf Green World Inc. (TSX.V: MGW) (OTCQB: MGWFF) represents an intriguing investment opportunity in the North American cannabis industry. With a presence in both U.S. and Canadian markets, the company provides diversified exposure to the cultivation side of the industry, while its modest C$82 million market capitalization makes it a potential value.
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/.