Investment Alert: Is ABcann Global (OTC: ABCCF) (TSX.v ABCN) the Country's Strongest Cannabis Producer?

Investment Alert: Is ABcann Global (OTC: ABCCF) (TSX.v ABCN) the Country's Strongest Cannabis Producer?
Investment Alert: Is ABcann Global (OTC: ABCCF) (TSX.v ABCN) the Country's Strongest Cannabis Producer?

Medical marijuana is the rare new industry where startups can grab millions in revenues immediately.  But while it’s easy for a licensed producer (LP) to make money in Canada, it’s hard to get in the game. Our next great investment pick, ABcann Global  (OTC: ABCCF)(TSX.v ABCN), is one of Canada’s major legal producers… and investors are finally getting a crack at it this spring.  

You won’t get hundreds more chances to cash in on Canada’s booming marijuana market at the ground floor. In fact, ABcann could be one of the few virgin opportunities left for you to go all the way with a pot company, and it's already starting out strong. 
Since 2013, more than 1,600 companies have applied to Health Canada to become a licensed producer (LP) of medical marijuana.  But only 5 companies won coveted LP status in 2013, just another 14 made the cut in 2014.
Getting an LP license is like winning the lottery. Investors already know several of those early companies very well…. And you remember how well they did, right?
Canopy Growth ( TWMJF /  ) ran 711% from its IPO.
Aphria Inc (APHQF / is another one. It has ran up 938% since it hit the public markets.
Aurora Cannabis (ACBFF / climbed 887% after its IPO.
SupremePharma (SPRWF / has soared 1364% from its IPO.
ABcann (OTC: ABCCF) (TSX.v ABCN), is NEXT - at it’s current valuation, has all the makings of joining them. 
ABcann, which won LP approval (2014!) alongside these early champions came to market in April, and it could be the biggest winner yet.
ABcann is poised to leapfrog past the market’s best marijuana stocks in 2017! It’s elementary… let me tell you why
1. ABcann’s path to growth is protected by law!

2. Barriers to entry are too high for mass competition—

Canada’s not like the “Wild West” system in some US states like Colorado where almost anyone can get in the business somehow.  Canada’s MMJ growers enjoy the next best thing to no competition! It’s that hard to break in.  Since 2013, Health Canada (think Canada's FDA) has approved less than 2% of applications to grow MMJ commercially.

In fact, MMJ supplies will probably be 25% lower than demand for years to come thanks to Canada’s tough regulatory gateway.
3. ABcann is a technology powerhouse

Here’s where ABcann stands out among Canada’s 38 legal MMJ producers—technology. Yes, it’s a low-cost producer like Aphria. Yes, it’s a high-quality producer like Tweed (Canopy). But its competence is unique! ABcann can grow every one or its 14 MMJ strains to exact specifications for precise THC and cannabidiol (CBD) balances. Every plant, every time.  And it can scale up to infinity. ABcann can replicate its proprietary growing system for any MJ strain anywhere.
4. This is the most perfect wash, rinse, repeat model in the MMJ business

ABcann’s ultimate goal is dominance. It wants to be the first company to have repeatable products in multiple continents. From its home in Ontario, ABcann plans to expand in Canada to Saskatchewan and British Columbia. It is also competing for a license in Hawaii, supplying research-grade marijuana to an Israeli pharmaceutical company, and working on prospects in Australia and Germany.  

No doubt about it—Marijuana is the world’s newest, hottest business
Canadian patient lists for MMJ are growing more than 200% a year.  But that could be just a fraction of eventual sales. The Canadian government is moving toward legalizing recreational pot as well.
ABcann has the perfect infrastructure to grow, expand, brand and commercialize its product if that happens. Everything is controlled—the soil mix, air, organic feed, humidity… Its LED lighting cycles (for intensity, timing, and duration) can mimic any natural climate and geographic location in the world where marijuana species thrive.
Canaccord Genuity put to the potential for total medical and recreational sales in Canada at $5.2 billion by 2021.[i]
[i] Canaccord Genuity report, p.7

Dundee Capital, looking farther out, puts the total at $9 billion by 2024.

Canada’s total MJ business could exceed tobacco, wine, or beer sales within five years!

ABcann’s phenomenal 30% a month sales growth—already higher than average—is due to explode…maybe as much as 20X higher in 2018!
ABcann is going public for the best reason—“rapid strategic buildout.”  
That’s why we say ABcann is about to leapfrog its way to the top of its industry in production and space—soon, too. Do you see what we see? ABcann is about to dwarf the rest.

Canada is tightly controlling who can enter the business and how much they can grow. Companies that miss out early on this early set-up period may miss out altogether.
ABcann isn’t going to allow this window to close on its future.  Next year (2018), ABcann plans to bump up MMJ production capacity to 20,000 kilos a year…. A 20-fold leap from its current 1,000 kilos per year in 2016-2017.  
This is ambitious. Currently they have the Vanluven Road site (14,500 sq ft). It’s impressive in the industry, but tiny compared to the Kimmett Side Road expansion. ABcann will add 150,000 additional sq ft in the first phase at Kimmett—and they already own the land!
Ultimately, ABCann's Napanee operations will encompass 65 acres and potential 1.2 million sq ft of growing space.   

Capabilities now and into the future

Oh yeah, did we mention the major new deal that was just signed? 

Heads You Win, Tails I Win:

You’re not going to see opportunities like this come along often. 

What if I told you Jeff Bezos, the founder of Amazon, just announced he’s putting $1.2 billion into a new tech start-up…

Bezos cited the advanced efficiency, early leadership, and exceptionally bright future of this rapidly growing start-up as his reason for the massive investment.

Would you be interested?

Of course you would.

But what if I told you that you could also buy in at 55% less than Bezos in the exact same start-up?

It’d be a no-brainer, right?

Sure it would.

Well, that’s the kind of opportunity you’re going to see with ABcann.

Check this out.

Major Marijuana Investment Just Announced

Marijuana investors aren’t going to see an opportunity like this for a long time.

A major marijuana deal was just struck between a hot, innovative marijuana finance company and one of the fastest-growing marijuana producers in North America.

What does that mean?

The conclusion here is really simple:

The leading marijuana finance company is paying above top dollar merely for the right to finance one of the most effective Canadian marijuana growers in hopes of being allowed to put up all the money for half the profits on a project down the line.

What a deal right?

Well, it is.

But getting to that conclusion isn’t so simple for many investors.
That will change though.

And by the the time they do put it all together, this opportunity will have passed you by.

Don’t let it.

Just follow the breakdown of this major marijuana deal below you’ll be able to get in on the big winner resulting from it all.

Major Marijuana Investment Just Announced

Marijuana investors aren’t going to see an opportunity like this for a long time.

A major marijuana deal was just struck between two leading major marijuana companies.

On one side is ABcann Global (OTC: ABCCF) (TSXV:ABCN), a well-funded, fully licensed Canadian marijuana producer with huge growth targets, market-leading production efficiency, and is valued at a price that makes it the cheapest Canadian marijuana stock on the market today.  

On the other side is Cannabis Wheaton (TSXV:CBW / OTCBB:KWFLF), an innovative marijuana financing company headed by the early leaders in the Canadian marijuana industry and is the process of completing an $80 million capital raise for itself.

The two have struck a deal which provides funding to accelerate the growth for ABcann, will eventually give Cannabis Wheaton a large stream of marijuana production, and gives early investors an opportunity to get in it all at 55% below the price paid by Cannabis Wheaton.

The Seed Investor’s breakdown of the deal below goes over the details of the deal and how you can benefit from it all. 

ABcann Global and Cannabis Wheaton Strike Major Marijuana Deal

ABcann and Cannabis Wheaton got together to announce a major deal that’s going to set them both on a much more rapid growth trajectory than anyone previously expected.

The structure of the deal is a bit complicated, but if you take a look at the individual parts, there’s a clear way you can profit from it all.

Below is a breakdown of the key parts of the announcement and which company gets what and what it means for the futures of these two rising marijuana powerhouses.

What ABcann Gets:

Equity Investment (Stage 1):

On the date that is the earlier of 10 days of the final closing of Cannabis Wheaton's previously announced financing or by June 30, 2017, Cannabis Wheaton will subscribe for $15-million of ABcann common shares at an agreed-upon valuation of $2.25 per ABcann share.

What it means:

ABcann, which closed Monday at 88 cents per share, is getting financed for $15 million at $2.25 a share.

That’s a 134% premium to the market price.

Investors who bought are paying less than half of what Cannabis Wheaton is getting in at.

That alone makes ABcann, at it’s current price, a virtual steal right there.

Equity Investment (Stage 2):

On the date that is the earlier of 10 days of Cannabis Wheaton raising an aggregate of $150-million or March 31, 2018, Cannabis Wheaton will subscribe for an additional $15-million at a price per ABcann share equal to the greater of two times the 10-day volume-weighted average trading price of the ABcann shares at the relevant time or $2.25.

What it means:

Again, ABcann gets funded at $2.25 per share.

That’s more than double the current market price.

It’s a great funding source with far less dilution for shareholders.

Advanced Expansion Project:

Upon completion of the $30-million investment and upon accepting ABcann's construction budget and timeline for the construction of the expansion production area, Cannabis Wheaton will provide all necessary financing to complete the construction of the expansion production area.
This expansion will be in addition to ABcann's current 100,000-square-foot facility that is commencing construction imminently.

What it means:

ABcann gets $30 million up front at way-above-market price to fund the rapid build out of its 100,000 square foot, state-of-the-art marijuana production facility.

The $30 million investment goes right into that.

And here’s the real key: Cannabis Wheaton gets no part of that expansion.

At this point, Cannabis Wheaton is a regular shareholder just like you or anyone else who bought into ABcann while it’s still valued at a fraction of its peers.

ABcann has the right people in the right place 

We don’t usually fawn over company bios—because the business should speak for itself. But with MMJ, reputation is indispensable, and experience is priceless.
No one with a questionable background can get through the Canadian approval process. But that’s not enough… Because all the companies in this business are new; they are all in competition to stand out from the pack.
ABcann has tapped world leaders in cannabis research in its advisory board. Dr. Ralph Mechoulam of Hebrew University in Jerusalem was the first scientist to isolate cannabidiol in 1963. The following year he and his research team were first to isolate and synthesize THC (the psychoactive component). 

Dr. Mike Dixon of the University of Guelph is the world’s leading researcher in plant and microbial interactions. He knows more about indoor growing than anyone in the business. He took an active role in designing ABcann’s super-clean, organic growth system. Other well-connected board members include Dr. Paul Lucas, former CEO of GlaxoSmithKline in Canada; Darryl Kramp a former MP; and Dr. Michael Shannon who retired from the Canadian Forces as Deputy Surgeon General of Canada.
ABcann production potential due to grow as much as 20-fold in the next year.

Market valuations likely to triple over the next few years

Privileged companies holding a coveted LP licenses will very likely attract buyout offers from tobacco or pharmaceutical companies.

Money flowing in! 

1,000 kg/year production potential in 2018 X median price $10/gram = $10,000,000 million per year gross sales
An opportunity you’d be crazy to miss! 
Today, ABcann has about the same space in production as Emerald Health, which has a $112 million market cap.

In two years, it will have more space than Aurora Cannabis, now with a market cap at $555 million[i]. 
That’s nearly a 400% spread…. About what we think you could reap in the next year as ABcann ramps up production.
[i] updated values from MarketWatch. Differ from company PP presentation slide 26.

Like we said. An opportunity you’d be crazy to miss. 

ABcann’s precision grown strains—so dependable a doctor can write a prescription for exactly
the right components, to match the medical condition being treated.

Valuations are Growing, Opportunities are Closing!

In the next five years, we believe Canada’s MMJ industry will be divided among the leaders emerging now. At that point, new entries will be forbidding—unless aspirants want to buy a company like ABcann, at a steep premium.
We look for rapid valuation improvements to turbo-charge MMJ share prices as the companies grow.  
It’s a natural progress, but for MMJ it’s happening at warp speed. Investors tend to award low valuations to business groups with low margins, heavy capital investment, and dubious futures. Today’s MMJ commercial licensing just started in 2013. But already we know how fast a company can recover its buildout costs, how completely supportive the Canadian government is. 
Bottom line: MMJ stocks should rise from 2X EV/Revenues, where Dundee Research places them… and the likely landing spot is somewhere between drug companies and tobacco and liquor businesses. That means market caps about 5-6X annual sales per share.

What This Means for You, Investor

Everything is lining up for a 10-bagger with a little patience. Or a fast double or triple if you’re in a hurry.

Check out ABCN's News
ABCann Medicinals CEO Aaron Keay talks to Cantech Letter

These three Canadian marijuana LPs could become important exporters, says PI

ABcann: Going Public with Standardized Pharma-Grade Cannabis

The NEXT Big Name in Canadian Cannabis

Thumbnail Photo Credit: N/A by N/A is licensed under N/A N/A
[1] Canadian Cannabis Industry Overview. Report from Canaccord Genuity Equity Research, Nov. 28, 2016, p 5.
[1] Canaccord Genuity report, p.7
[1] updated values from MarketWatch. Differ from company PP presentation slide 26.
Images from ABcann Corp. Presentation

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