International Cannabis Investment
Investing in the cannabis industry in 2020 is a different beast than in 2019. Internationally the Canadian multinationals suffered many set backs last year with the top 10 publically listed cannabis companies all losing money in the last quarter of 2019. The impact on the industry saw $30 Billion in market cap disappear from just those 10 companies last year.
In June of 2019, Canada’s cultivation and production looked like this:
1. Aurora Cannabis (NYSE:ACB): 662,000 kilos.
2. Canopy Growth (NYSE:CGC): 500,000 to 550,000 kilos.
3. Aphria (NYSE:APHA): 255,000 kilos.
4. CannTrust Holdings (NYSE:CTST): 200,000 to 300,000 kilos.
5. The Green Organic Dutchman (OTC:TGODF): 219,000 kilos.
6. HEXO: 150,000 kilos.
7. Aleafia Health: 138,000 kilos.
8. Zenabis Global: 131,300 kilos.
9. Cronos Group: 117,500 kilos.
10.OrganiGram Holdings: 113,000 kilos.
In February of 2020, production have changed considerably:
1. Canopy Growth: 500,000 to 550,000 kilos.
2. Flowr Corp. (OTC:FLWPF): 500,000+ kilos.
3. Aphria: 255,000 kilos.
4. Aurora Cannabis: Approximately 230,000 kilos.
5. Aleafia Health: 129,500 kilos.
The list highlights the significant changes in the 2019 market structure and leaders in the last eight months. We saw new entries and key companies disappearing from the list.
Aurora Cannabis has a significant decline and has lost enormous market CAP. The company has halted construction 1.62-million-square-foot facility in Alberta, and its 1-million-square-foot facility in Denmark.
Aurora recently put the 1-million-square-foot Exeter greenhouse on the market and now can produce around 230,000 kilos a year.
Other major cutbacks came from The Green Organic Dutchman who changed their target output from 219,000 kilos in peak output, to target only 20,000 to 22,000 kilos for the year in 2020. This is in response to claims that current stockpiles of cannabis in Canada exceed demand by over 25 times.
OrganiGram, HEXO, and Cronos, have stopped production and expansion plans and have dimensioned outputs.
Canopy Growth shares dropped dramatically and resulted in founder and CEO Bruce Linton being fired and the company appointing a corporate presence to bring the company toward profitability.
The focus now is on company’s capabilities to be agile enough to move to meet the evolving international market demands. The days of cumbersome investment in infrastructure have changed as emerging international players move into the space with lower overheads and shorter times to market.
At OrganicMarijuana.com, our philosophy has been around avoiding significant investment in expensive infrastructure and to develop instead sales channels to bring product to market. The bet has paid off and now we are working with suppliers around the world who produce to our specifications.
Currently, we are focused on organic marijuana production in Southern Europe and have increased our cultivation footprint by working with existing glasshouses on low rental arrangements based on long term occupancy. These facilities are already cultivation ready and require minimal alteration to prepare for organic marijuana cultivation.
At a time when global trends toward marijuana continue to open and embrace the growing market, investors are now looking for companies that can move the product as opposed to simply grow cannabis.
OrganicMarijuana.com’s focus on digital marketing and building a customer base around the world seeking clean organic marijuana has paid off and the company is now moving into complete seed to sale management of its product. Organic cultivation in the cannabis space is difficult to manage, as there are now recognised international regulatory bodies in the cannabis space. This allows the company to seek cultivars of the highest quality; we seek only the best of the best for our premium choice.