Demand will Outpace Supply :) $$$$Demand Outpacing Supply as Canadian Cannabis Legalization Looms NetworkNewsWire Editorial Coverage News provided by NetworkNewsWire Oct 03, 2017, 08:30 ET Share this article NEW YORK, October 3, 2017 /PRNewswire/ -- The Canadian government's plan to push through legalization of marijuana for recreational purposes by mid-2018 figures to deal a serious blow to the existing black market. However, industry analysts are increasingly skeptical of the ability of the country's Licensed Producers to keep pace with this forecast spike in demand. As noted in a recent article published by CBC, "Unless something changes quickly, the supply of available pot come legalization next July, will be inadequate, and the black market will continue to thrive." ABcann Global Corp. (OTC: ABCCF) (TSX-V: ABCN) (ABCCF Profile), with its healthy cash position and aggressive expansion plans, is one company seeking to address these supply concerns, particularly in the medicinal market. Joined in the space by Canopy Growth Corp. (OTC: TWMJF) (TSX: WEED), Aurora Cannabis, Inc. (OTC: ACBFF) (TSX: ACB), Aphria, Inc. (OTC: APHQF) (TSX: APH) and Medical Marijuana, Inc. (OTC: MJNA), ABcann's relatively low market cap and beefy portfolio of pharmaceutical-grade IP have it on the radar of investors looking to capitalize on Canada's much-anticipated "green" revolution. Mere months out from its initial public offering, ABcann Global Corp. (OTCQB: ABCCF) (TSX.V: ABCN) has already shown tremendous potential in setting itself apart from other Canadian growers. The backbone of the company's operations, which focus on the development of consistent pharmaceutical-grade products that are organically grown and pesticide-free, is its proprietary growing technology. As noted on its website, ABcann's products are always free of chemicals and produced in small batches to ensure high quality standards. This commitment to quality has helped ABcann steer clear of the recent wave of product recalls in the Canadian cannabis market that has affected many of the industry's biggest names. Scaling these operations has become a major focus for ABcann's management team in recent months, as highlighted by the company's latest strategic moves. In mid-September, ABcann announced its reception of $11.9 million in total proceeds from the exercise of warrants. When combined with an earlier investment from cannabis streaming company Cannabis Wheaton Income Corp., the infusion brought ABcann's cash position to approximately $45 million. As Aaron Keay, director of ABcann, noted in that news release, "The Company's main focus in the coming months will be on the deployment of capital towards the expansion of [its] existing Vanluven facility and development and construction of the new Kimmett facility, as well as the pursuit of [its] international expansion plans." These facilities mark another upside of ABcann's business model, as the company owns the land it intends to use for these expansion projects, eliminating potentially costly leasing expenses. Supported by a strong management team and guided by an experienced advisory board featuring the "Father of Cannabis Research" Dr. Raphael Mechoulam, ABcann's favorable production yields place it at the forefront of an extremely competitive market. In its corporate presentation, ABcann compares its yields with industry averages based on PI Financial estimates. Cannabis industry mainstay Canopy Growth Corp.'s (OTC: TWMJF) (TSX: WEED.TO) indoor yield per square foot is estimated at roughly 100 grams. Comparatively, ABcann's indoor yield clocks in at nearly 350 grams per square foot, and the company is targeting further refinements that could support yields in excess of 425 grams per square foot in the near future, far outpacing industry averages. PI Financial, in a May 2017 report, provided some insight into the potential upside offered by ABcann's proprietary growing techniques as the Canadian cannabis market enters its latest boom period. The analyst firm notes that ABcann is currently on course to reach breakeven as soon as the second quarter of 2018, with a ramp up in sales to $74.2 million forecast for fiscal 2019. These projections came alongside a 'Buy' rating and a 12-month price target of C$2.25 for ABcann's Canada-listed shares, which were trading at C$0.96 as of close of market on September 29. Promising research reports aside, ABcann's recent efforts to address the expected shortfall in Canadian cannabis supply place it at the forefront of the blossoming industry. Its strong cash position is being used to both expand its fully-operational Vanluven facility and continue construction of its 150,000-square-foot Kimmett facility. As noted in a July news release, ABcann expects first cultivation from the Kimmett facility in the fourth quarter of 2018, with the project reaching full production capacity by the first quarter of 2019. With this expansion, the company will look to expand on its position in the Canadian market while pursuing a number of global initiatives in Europe, Israel and Australia. "We expect that the increase in production capacity will enable ABcann to increase the sales of our premium, organically grown, pesticide free cannabis products in the current domestic market and position the Company for global distribution in the emerging markets we have targeted," Keay noted in an August update. "Further, the ability to serve larger and broader markets as a result of the production increase positions ABcann extremely well for the anticipated adult consumer market in July 2018."