RavenQuest BioMed: Unique, Two-Pronged Business Model Diversifies Risk
December 12th, 2017
Exclusive, News, Top News
The Canadian cannabis industry is projected to reach $22.6 billion over the coming years (Deloitte) driven by the legalization of adult-use cannabis next year. Despite more than 70 licensed producers, many experts believe that there will be a substantial shortfall in the market when adult-use legalization goes into effect. This has created a favorable environment for investors interested in capitalizing on a burgeoning new industry.
RavenQuest BioMed Inc. (CNSX: RQB) represents a unique opportunity to capitalize on the industry’s rapid growth with a two-pronged business model that diversifies risk and potentially increases long-term risk-adjusted returns. In this article, we will look at the company’s two main areas of focus and how they combine to form a unique value proposition for investors.
Consulting & Management Services
RavenQuest Technologies Inc. is focused on consulting and management services. After helping more than ten companies secure licenses, the company has become a leading end-to-end solution provider to both late-stage applicants and existing licensed producers. It is instrumental in helping clients design and build facilities, while incorporating proprietary, industry-leading growing and drying technologies.
Management believes that the industry is undergoing an important transition from ‘basement growing’ to highly-specialized operations. The company’s automated Orbital Garden 2.0 is a revolutionary innovation that enables the production of large quantities of cannabis in smaller areas by maximizing the productivity of grow space and lighting. With total production of over 300 grams per square foot, the technology more than doubles industry averages.
In addition to production benefits, the Orbital Garden 2.0 scales to hundreds of automated growing systems with remote monitoring and control of nutrient levels, acidity, CO2, water levels, water temperature, and more. The technology provides a 70% to 80% reduction in electrical costs and a 25% reduction in nutrient costs, which helps licensed producers dramatically improve their profit margins and ensure top quality product.
In addition to its innovative technologies, the company’s management team has developed relationships with indigenous peoples. The team recently announced a contract to build a 24,000 square foot facility for Fort McMurray Nation and, through its many existing relationships, plans to offer similar turnkey solutions to Indigenous populations across the country. These solutions will handle everything from securing the proper zoning to facility design to navigating the application process.
Investments and Research
RQB Capital Corp. is an investment wing focused on investing and acquiring licensed producers. The division recently acquired Alberta Green Biotech, which has a 35,500 sq. ft. production facility under construction. The facility will produce about 7,000 kilograms of cannabis per year once operational in mid- to late- next year, making it one of the industry’s leading grams per square foot cultivation facilities.
Aside from these investments, the company announced a landmark research agreement with top-ranked McGill University that paves the way for collaboration between two laboratories. The research will seek to prove out the science surrounding cultivar recognition, yield enhancement, and plant stabilization, all areas with limited industry knowledge due to cannabis’ long-time classification as a controlled substance. The research could generate tremendous long-term value in the form of a plant breeders rights or through the development of new and innovative technologies for its portfolio.
These two areas of long-term focus provide investors with potentially significant capital gains opportunities over time compared to the consulting division, which focuses upon generating near-term operational revenue.
RavenQuest BioMed Inc. (CNSX: RQB) has taken a unique, diversified approach which generates immediate revenue from its services division (which limits cash burn normally associated with early stage cannabis companies) and simultaneously invests in near-term licensed producers like Alberta Green Biotech. At the same time, it has leveraged its relationships with indigenous peoples to open the door to larger projects and invested in R&D initiatives through a partnership with McGill University.
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/.