RavenQuest BioMed CEO Outlines Progress in Exclusive CFN Interview
May 9th, 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 legalization of adult-use cannabis nationwide. While there are over 100 licensed producers planning to have over 700,000 kilograms of production capacity online by the end of the year, Marijuana Policy Group estimates that demand could exceed 900,000 kilograms and there could be a shortfall in supply.
Investors looking to capitalize on these supply and demand economics have many options, but the best opportunities are companies with strong management teams focused on a niche market that won’t be eroded by the commoditization of the industry over time.
RavenQuest BioMed Inc. (CSE: RQB) began as a management and consulting firm that helped nearly 60 clients become licensed producers of medical cannabis under Health Canada’s ACMPR program. After taking the time to understand their problems, the company partnered with McGill University and began researching technology solutions and began pursuing partnerships that leverage its public company status to finance projects.
CFN Media recently sat down with CEO George Robinson to discuss the company’s approach to the market and why investors may want to take note:
Four Pillar Approach
RavenQuest BioMed’s experience helping companies become licensed producers helped form the four pillar approach that guides its current business. The company began by looking at some of the Good Manufacturing Processes, or GMP, issues facing their consulting clients. From there, they started asking if they could help out with the cultivation side of the business. Breaking down these problems led to the realization that many clients wanted bundled solutions.
CEO George Robinson outlines these four pillars as questions in the interview:
- How could we be a company that consulted to generate immediate revenue?
- How could we work with companies from a targeted acquisition standpoint?
- How could we work using our unique approach to R&D with McGill University to understand how to grow better and use growing technologies better?
- How do we take this whole approach and bring it to the indigenous people?
From an investor standpoint, the four pillar approach is unique in that it generates near-term revenue through consulting agreements and builds long-term value through research and development with an industry-leading institution. Management’s approach of working with indigenous peoples also translates to a unique niche market that is actively seeking turnkey solutions to produce and sell cannabis on sovereign land.
Advancing Its Projects
RavenQuest BioMed’s MOU with Fort McMurray #468 to develop, operate, and finance a purpose-built facility for the production of cannabis marks a key turning point. Under the terms of the agreement, the company will receive a 30 percent ownership stake in the 24,000 sq. ft. facility, which will be rapidly expanded to a maximum of 250,000 sq. ft. The facility could produce upwards of 50,000 kilograms per year, netting the company 15,000 kilograms per year.
At the same time, the company announced an MOU to acquire late-stage ACMPR applicant, Western AgriPharm Ltd., which has a 125,000 sq. ft. grow space in development. The company also signed a lease for space in downtown Edmonton, where it aims to open its first retail recreational cannabis store. The retail space is strategically located near the city’s downtown area and features a unique retail experience dedicated to education and awareness.
In addition to proving out the four pillar approach, these projects could become a valuable proof-of-concept for future indigenous peoples partnerships and other consulting arrangements. Under its indigenous programs, the company would provide sovereign nations with its technical know-how, staff resources, and financing opportunities in exchange for a percentage ownership in the facilities and potential production through offtake agreements.
The company and its shareholders benefit from steady recurring revenue that’s tied to the production and sale of cannabis without the risks associated with growing. At the same time, the company could be working with multiple indigenous peoples groups, which provides an added level of diversification for shareholders. These attributes could translate to higher risk-adjusted returns than investing in traditional licensed producers.
RavenQuest BioMed Inc. (CSE: RQB) represents a compelling investment opportunity in Canada’s cannabis industry. In addition to generating near-term consulting revenue, the company’s MOU with Fort McMurray #468 paves the way to revenue from the cultivation and sale of cannabis. Meanwhile, management’s partnership with McGill University is looking at technologies that could fill out a valuable intellectual property portfolio.
Investors looking for diversified exposure to Canada’s rapidly growing cannabis industry may want to take a closer look at the stock. For more information, visit the company’s website or download their investor presentation.
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://www.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.
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