Maricann: A Unique & Undervalued Licensed Producer with a Global Focus
Ryan Allway
May 29th, 2018
Exclusive, News, Top News
Canada’s cannabis industry is projected to reach C$22.6 billion over the coming years, according to Deloitte, driven by the upcoming legalization of adult-use cannabis. While there are more than 100 licensed producers approved by Health Canada, there are only a handful of companies that are really well positioned in the space with differentiated products and a focus on global export market rather than just the domestic market.
Maricann Group Inc. (CSE: MARI) has built up a global presence in both Canada and Europe with rapidly expanding production and numerous differentiating factors. Despite its rapid expansion and diversification, the company trades at a fraction of the value of other licensed producers in the space, which makes it a compelling opportunity for investors.
Optionality & Diversification
Maricann Group has built a strong presence in Canada, Germany, and Switzerland with plans to expand throughout Western Europe. For example, the company recently signed a letter of intent to acquire Medican Holdings Ltd., which is located in the Republic of Malta. The company is one of six to receive a license to import, extract, manufacture, and distribute cannabis for medical purposes within Malta and throughout the European Union.
In addition to its geographic diversification, the company operates a diverse line of businesses, including both medical and recreational cannabis (when legal in Canada), as well as nutraceuticals and inhalants. The company’s medical cannabis business is primarily driven through its partnerships with large pharmacy chains, such as Lovell Drugs Ltd., while its recreational business is being spearheaded by the former Head of Marketing for Diageo Canada, Geoff Kosar.
The nutraceuticals business is primarily focused on entering the $3 billion cannabidiol (CBD) market in Europe through its high-quality and differentiated product (www.mariplant.de). In a related push, the company’s acquisition of Haxxon in Switzerland represented a creative way to address the growing market for inhalant CBDs created using hemp, which have become a popular alternative to tobacco given the potential health benefits.
Ramping Up Production
With Canadian adult-use legalization looming, many analysts predict an initial shortfall in the market. Licensed producers have attempted to scale up their production, but the reality is that few will be ready with enough product when the new measure goes into effect. The good news is that licensed producers with enough supply will be able to satisfy the demand from the provinces and ensure repeat orders as shelf space needs to be restocked.
Maricann plans to have 25,000 kilograms of annual production capacity online by late Fall of 2018 which will place the company amongst a small group of producers with similar capabilities. Medium and long-term plans include an expansion of their facility to 942,000 square feet with the capacity to produce upwards of 95,000 kilograms per year. These figures are much higher than other licensed producers that are trading at very lofty valuations, which makes the company incredibly undervalued and provides investors a unique opportunity to capitalize on this disconnect in the market.
Unique Differentiators
Maricann Group is one of only six licensed producers with an EMA-GMP certification, which means their dried flower is deemed acceptable to be exported into the very attractive European market. Due to these high barriers to entry, prices in the EU for medicinal cannabis are 4-5 times higher than they are in Canadian market, which makes having this certification highly coveted.
In addition to its industry-leading manufacturing practices, the company owns the global rights for cannabis to a patented drug delivery technology, known as VesiSorb. The same technology is already used in about 40 percent of the world’s lipophilic (fat soluble) drugs to address the oil and water solubility issue and address problems with the onset of active ingredients. It’s technology can be used in a wide range of applications including functional beverages and topical ointments, just to name a few.
These unique differentiators set the company apart from other companies in the space that are focused exclusively on mass producing cannabis flower.
Looking Ahead
Maricann Group Inc. (CSE: MARI) represents a compelling investment opportunity within Canada’s burgeoning cannabis industry. With its large geographical footprint, diverse product lines, and rapidly scaling production levels, the company is well positioned to take advantage of rising global demand for cannabis across Canada and Europe. Investors may want to take a closer look at the stock given its many near-term catalysts and compelling valuation.
For more information, visit the company’s website or download their investor presentation.
Disclaimer
The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: https://cannabisfn.com/legal-disclaimer/
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
About Ryan Allway
Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.
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