WestCann brings THC & CBD hemp cigarettes to the U.S. and Canadian markets
October 21st, 2021
News, Top Story
The global cannabis industry is projected to reach nearly $20 billion in value this year and grow at a 27% compound annual growth rate through 2030, according to Quince Market Insights. But rather than focusing on industry giants, investors may want to take a closer look at niche corners of the market where innovators could unlock significant value.
For example, WestCann has developed tobacco and nicotine-free cigarettes in the U.S. and THC cigarettes in Canada. The business model combines tobacco alternatives, like the products produced by TAAT Global Alternatives Inc. (CSE:TAAT), which has a ~$320 million market capitalization, with Canada’s recreational cannabis momentum.
Let’s take a look at WestCann’s fresh approach to the market, why it’s uniquely qualified to execute on its vision, and how you can invest now (if you are an accredited investor) or when it goes public on the Canadian Securities Exchange (CSE) in Q1 2022.
Smoking Cessation & Recreation
The global market for smoking cessation and nicotine de-addiction products is forecast to reach nearly $40 billion by 2027, according to iHealthcareAnalyst, representing a 15.6% compound annual growth rate. Yet, despite a growing number of smoking cessation products, relapse rates remain depressingly high even after five years of abstinence.
WestCann is a pioneer in developing CBD cigarettes in the U.S., providing a better alternative for those looking to quit tobacco. Its LAIKA brand tobacco- and nicotine-free hemp cigarettes closely replicate the sensory elements of tobacco cigarettes, providing a pleasant and satisfying consumer experience without the harmful additives.
Across the border, WestCann aims to leverage the same underlying product to deliver next-generation recreational cannabis products. The company’s wholly-owned Saskatchewan subsidiary has a Health Canada license enabling it to produce hemp cigarettes containing THC – one of the hottest segments of the recreational cannabis industry.
Homogenized & Cost Effective
Based on proven tobacco technology, WestCann and its technology partners have designed and built a homogenization process for cannabis and hemp that reconstitutes and standardizes the plant material for fully automated high-speed manufacturing and packaging. The process separates the ingredients from the traditional horticultural cannabis crop cycles and completely commoditizes the supply chain, enabling any combination of strain flavors and THC/CBD profiles.
More importantly, the process creates significant cost advantages over conventional pre-roll production. These efficiencies will enable aggressive pricing to capture market share during early stages while providing attractive profit margins over the long term. As a result, the WestCann could quickly become a leader in the pre-rolled marijuana segment in Canada.
The company believes that its initial manufacturing line at its Yorkton, SK facility could produce approximately three million 10-packs of cannabis rolls each year in a single-shift operation. As all ingredients of WestCann’s products are fully commoditized, the company can rapidly scale up production by adding second or third shifts or more production lines and potentially even white-label products for others.
Experienced Management Team
Most early-stage, pre-revenue companies rely heavily on their management team and Board of Directors to provide credibility. After all, investors are contributing capital on a promise to build out a vision rather than looking at existing cash flow. Fortunately, WestCann has a very seasoned management team with direct industry experience.
CEO Andreas Gedeon has been a pioneer in the medical, pharmaceutical, and recreational cannabis industry since 2010. Before starting WestCann in August 2018, he was Managing Director of Australia’s first publicly traded cannabis company, MMJ Phytotech (ASX:MMJ), and founding CEO of Harvest One Cannabis (TSXV:HVT).
COO Nicholas Muellem has deep connections in big tobacco, having worked as the CEO of one of the industry’s leading equipment manufacturers. And General Manager Kelly Godlien has over 20 years of senior and executive management experience in finance and accounting, having worked with Tweet Grassland and Canopy Growth in the past.
With the US product line expected to launch by November 2021 and the Company’s Yorkton, SK facility being operational by January 2022, management is currently negotiating marketing and distribution agreements with several large industry players and is expecting a steady stream of milestone achievements coming up over the next couple of months.
Retail investors will see a public CSE listing in Q1 next year, while accredited investors may participate in the company’s current convertible debenture offering at 12% interest and a 20% conversion discount to the listing price. Contact [email protected] for more information or to join in the pre-public capital raise.
In the meantime, visit the company’s websites at www.WestCann.com and www.TryLaika.com, sign up to download the company’s investor presentation and receive a going public alert, so you don’t miss the opportunity!
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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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.
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