TSI Investor Profile: ABcann

Company: ABcann

Symbol: TSXV: ABCN | OTC: ABCCF

Country: Canada
Sector: Healthcare
Industry: Legal Cannabis
Established: 2012

ABcann

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Company Brief

Licensed since March 2014, ABcann sets itself apart from other Canadian licensed producers with its 94% customer retention rate, its focus on organic cultivation in proprietary growing chambers and its industry-leading  production yields in excess of 250 grams per sq. ft., double the industry average.

The company, which is in the process of developing its 65-acre site with a second 150K sq. ft. facility, has a research partnership with the University of Guelph and and has supplied innovative cannabis inhaler device maker Syqe Medical with its standardized cannabis.

Summary

Fiscal Year-End: December
License Renewal Month: October 2017
Licenses: 1
Licensed Capacity: 625 kilograms
Number of Patients: N/A
Headquarters: Napanee, Ontario

Financials (pro forma 09/30)

Cash on hand: $28.9mm
Fixed Investment: $5.72mm
Shareholders’ Equity: $17.8mm
Revenues – Last Quarter: N/A
Adj. Gross Margin: N/A
EPS: N/A

Capital Structure (04/23/17)

Last Financing: 12.875mm shares at $0.80
Basic Shares: 97.20mm
Warrants: 39.71mm
Options: 9.41mm
Diluted Shares: 173.83mm

 

Highlights

 

  • Focus on pharmaceutical grade plant standardization
  • 94.7% customer retention rate
  • Organic production using exclusive, computer-controlled environmental system

 

Growth Strategy

 

  • Expand existing facility and construct 2nd facility targeting 40 kg/annum production capacity
  • Pursue global initiatives in Europe, Israel and Australia
  • Active discussions to license production to U.S. operators

 

Differentiators

 

  • Production through computer-controlled environmental systems
  • Industry-leading efficiency in terms of yield per square foot
  • Research partnership with University of Guelph

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Above Industry Average Yields


ABcann’s standardized organic growing methods yield not only a higher quality product as reflected by its premium pricing but also a lower overall cost. According to PI Financial, ABcann is able to produce almost double the industry average as measured by grams per square foot.


 


Strong Advisory Board Led by
the “Father of Cannabis Medicine”


Dr. Raphael Mechoulam is an Israeli organic chemist and professor of Medicinal Chemistry at the Hebrew University of Jerusalem in Israel. Mechoulam is best known for his work (together with Y. Gaoni) in the isolation, structure elucidation and total synthesis of Δ9-tetrahydrocannabinol, the main active principle of cannabis and for the isolation and the identification of the endogenous cannabinoids anandamide from the brain and 2-arachidonoyl glycerol (2-AG) from peripheral organs together with his students, postdocs and collaborators.


Cannabis Wheaton (TSX.v: CBW) to invest $30 million in ABcann (TSX.v: ABCN) at huge Premium to Market.

Cannabis Wheaton ($CBW) reports that they have agreed to invest $30 Million with ABCann ($ABCN) to fund the construction of 50,000 square feet of cultivation space at ABcann's proposed cannabis cultivation facility to be located in Napanee, Ontario known as the Kimmett facility. Pursuant to the Agreement, Cannabis Wheaton will subscribe for $15 million of ABcann common shares at an agreed upon valuation of $2.25 per ABcann Share.