The Canadian cannabis industry has seen massive growth over the last two years and this has led to the creation of sub-industries such as licensed producers, biotechnology, patient services, big data and technology, holding companies, and more.
One of the roadblocks the global cannabis industry faces is the lack of clinical data. This issue creates a challenge for doctors to properly dose and prescribe cannabis to patients. As the industry continues to mature, the amount of data available for doctors and prescribers will increase and this data will not come cheap.
Empower Clinics Inc. (EPW.CN) (ADENF) is levered to this opportunity and we have been closely monitoring the company. The company is levered to the emerging marijuana market in the United States and has a three-pronged business model:
- Medical clinics
- Proprietary cannabinoid formulas and recipes to support unique patient conditions
- Data collection monetization (a current database of over 96,000 patients)
Collecting Valuable Data From 15 Clinics
With 15 active clinics in two states, Empower is generating valuable patient data while increasing market share in a burgeoning sector. The amount of data being generated is significant and we see value in this. We think the market significantly undervalues this data as it provides important information on what patients are taking to treat specific ailments.
As Empower continues to generate important patient data, the value of this data and the knowledge that the company has will continue to increase. Empower has initially targeted markets in Washington and Oregon. We are favorable on the leverage to these markets and the future growth as Empower continues to expand its reach.
On both the cultivation and biopharma side of the industry, there is an enormous appetite for higher-quality data. We have seen companies in Canada capitalize on these types of opportunities and we are favorable on this area of growth. The amount of revenue that can be generated on this side of the business is significant and the market is not taking this into account.
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