Abba Medix Builds a Diversified Business
July 8th, 2015
News, Top Story
Health Canada expects the country’s medical marijuana market to dramatically expand over the coming years, growing from 22,000 patients in 2012 to more than 450,000 by 2024, representing a nearly 30% compounded annual growth rate. In dollar terms, the federal agency expects the market to reach approximately $1.2 billion in size, as the market moves from primarily home-growing to industrialized growers approved under the MMPR.
Investors looking to capitalize on these dynamics have many different options, including established producers, like Tweed Marijuana Inc. (TSX-V: TWD) (OTC: TWMJF) and OrganiGram Holdings Inc. (TSX-V: OGI) (OTC: OGRMF), along with many more aspiring licensed producers and ancillary product or service providers, like Abattis Bioceuticals Corp. (CSE: ATT) (OTC: ATTBF) and Calyx Bio-Ventures Inc. (CSE: CYX), among others.
In this article, we’ll take a look at Abba Medix Group Inc. (CSNX: ABA) (OTC: SARSF) and its diversified play within the country’s hottest new market.
Established MMPR Licensed Producer
Abba Medix Group made a big entry into Canada’s medical marijuana market with the acquisition of RedeCan Pharm in May 2015. As a licensed producer of medical marijuana under Canada’s MMPR program, Redecan Pharm is one of only seventeen producers focused on developing premium quality medical marijuana products for Canadian patients in a fully secured 15,000 square foot greenhouse facility located in Niagara, Ontario.
With Canada’s medical marijuana patient population set to expand to more than 450,000 individuals by 2024, the company is well positioned to capture a large number of early customers as one of just 17 authorized companies in the space. These advantages could become increasingly apparent over the coming quarters as the regulatory environment surrounding the country’s medical marijuana industry becomes a lot clearer.
The company also appears to be trading at a favorable valuation based on this business segment alone. According to TMX Money, the stock trades with a market capitalization of just C$28.2 million, which is substantially less than many other publicly traded MMPR licensed producers. Tweed Marijuana trades with a market capitalization of C$91.7 million, for example, which is more than double the company’s valuation, despite the similarities.
Diversification into Vaporizers
Abba’s acquisition of Blow Vapor back in April 2015 has provided shareholders with exposure to much more than just the cannabis industry. Blow Vapor is a leading manufacturer, marketer, and distributor of electronic cigarettes, e-liquids, and vaporizers, which provide exposure to the U.S. marketplace via a U.S.-based subsidiary, while opening new channels with its nicotine-based products, and its electronic hookah patent.
According to Technavio, the North American e-cigarette market is expected to reach nearly $3 billion by 2018, representing a 25.41% compound annual growth rate. Blow Vapor’s focus on developing truly unique products – rather than clones of existing products in the market – create a very real opportunity to capture a significant part of that market. Notably, the patents covering these products also create valuable intellectual property in the space.
Publicly-traded vaporizer companies, like Vapor Corp. (NASDAQ: VPCO) and Electronic Cigarettes International Group Ltd. (OTC: ECIG), are trading independently with market capitalization of around $20 million. Of course, many competitors in the space are focused primarily on replicating existing products with the hopes of competing against larger tobacco brands rather than trying to develop new and innovative products in the space.
Abba Medix represents a compelling investment opportunity within the cannabis industry given its already-approved MMPR business and its high-potential vaporizer business. With existing MMPR licensed producers trading for upwards of C$90 million and vaporizer stocks trading at around $20 million, the company’s modest C$28.2 million market capitalization could represent a true bargain that remains undiscovered by many investors.
Investors in both the Canadian MMPR space and the vaporizer space may want to take a closer look at the stock. As the market begins to realize this potential, the stock could see significant upside from its current levels as revenue gains begin to be recorded.
For more information, visit the company’s website at www.abbamedix.com.
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.
Follow Us on Social Media
About CFN Media Group
CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.
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. CFN Media Group, 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. CFN Media Group, 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. CFN Media Group, 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: https://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. CFN Media Group, 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. CFN Media Group, 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. CFN Media Group, 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: https://www.cannabisfn.com/legal-disclaimer/.