The legal cannabis train has left the station and countries have been jumping on the bandwagon. We are favorable on this trend and expect it to become even more significant over the next few years.
Over the last year, we have seen several cannabis companies expand operations and enter new markets. This is an exciting trend and we do not expect it to end anytime soon. Today, we have highlighted a new opportunity that investors should be aware of.
Chemesis: A Multi-Faceted Growth Opportunity
Earlier this week, Chemesis International Inc. (CSE:CSI) was approved to list on the Canadian Stock Exchange (CSE). We expect the shares to commence trading soon and are monitoring this new issue. Chemesis represents a differentiated opportunity and we will keep an eye on this one.
Chemesis is a licensed producer and manufacturer of medical and recreational cannabis in California and Puerto Rico, currently operating a 20,000 square foot, expandable state-of-the-art manufacturing facility in Cathedral City, California. The company also operates a 120,000 square foot cultivation and manufacturing facility in Puerto Rico and is focused on becoming a global cannabis player.
Chemesis is a multi-faceted growth opportunity that is focused the most profitable aspects of the cannabis industry. We are favorable on this aspect of the story as well as business structure since each division will be able to create value for each other.
Focused on Growth and Execution
Chemesis is in the middle of a major growth cycle and is focused on cultivating premium cannabis, manufacturing cannabis extract products, distributing products, and retailing. We are favorable on the vertically integrated model as it will create new revenue opportunities, cut costs, improve margins, and improve the bottom-line.
The manufacturing side of the business is very important and is an area where Chemesis excels. The company has a firm understanding of this side of the business and is able to offer its clients all types of extractions, formulations, and products. This provides Chemesis with a competitive advantage and is a testament to the team of experts that they have in-place.
Chemesis produces high-quality cannabis products and specializes in conduction multiple types of extraction (BHO Extraction, Alcohol extraction, Co2 Extraction, and more). Currently, the company can process more than 2,000 pounds of raw material on a daily basis. This is a significant opportunity for Chemesis and expect to see the company expand and increase production capacity over the next year.
When it comes to distribution, Chemesis is well positioned due the existing long-established relationships with distributors all over the world. The relationships have made Chemesis a leader in Puerto Rico and will enable them to become a leading opportunity in California.
The retail side of the cannabis industry is very profitable, and we are favorable on the opportunities here. Currently. Chemesis is retailing exclusive products in seven medical marijuana dispensaries in Puerto Rico and is actively looking at the California market. The company has a strong position in Puerto Rico and the potential in California represents a possible catalyst.
A Company to Watch
We are most excited by Chemesis’ leverage to the California marijuana market and consider this to be the biggest potential growth driver. The company is led by a management team with a proven track record of success and we are monitoring how the team continues to execute and create value for shareholders.
We are monitoring how the team continues to execute in Puerto Rico through its Natural Ventures division. The company has strategic partnerships with several leading brands and plans to bring these brands to Puerto Rico and add to its product portfolio.
Over the next year, we expect Chemesis to significantly advance its fundamental story and are monitoring this early stage opportunity. If the management team is able to deliver on the previously announced plans and estimates, we think this could be a very attractive cannabis company.