Editor's note: This story has been edited from its original version.
The ever-evolving cannabis sector is continuing its rapid growth. For companies positioned in this space, expanding their operations is a mixture of organic growth and cooperative agreements with other companies and institutions. There is enormous potential for synergies.
One cannabis company that epitomizes this potential is Cannvas MedTech Inc. (CSE: MTEC, Frankfurt: 3CM, Forum). This Company was already introduced to the Stockhouse audience in a full-length feature article from July 3, 2018. MTEC’s focus is cannabis education and technology. It has just inked a new LOI, more on that later.
Cannvas MedTech offers an online user platform that provides a free cannabis-based education resource for both medicinal patients and adult-use consumers. The platform provides innovative tools for accessing physician-backed content overseen by certified educators. It can also be tailored for the delivery of additional cannabis-related online services.
Complementing this is a data platform dedicated to both the collection of cannabis-user data and the monetization of such data. Creating a broad user platform to provide cannabis-related information and services to a large base of users translates into a large and broad database of user information associated with cannabis.
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In turn, this information has considerable value to a wide collection of potential clients or partners, including medical practitioners, education and medical institutions, insurance companies, government agencies, and licensed producers and/or distributors of cannabis products.
In an emerging space, this may seem like a small niche in the cannabis industry to some investors. However, the opportunity for synergistic relationships and the multitude of potential partners on both sides of the cannabis industry provide enormous scope to scale up operations.
The services side of the cannabis industry is where the earliest opportunities exist for Cannvas MedTech. This means two things: establishing partnerships to enrich and expand the data collection side of MTEC’s business model, and identifying and capturing the revenue streams that exist on this side of the industry.
Highlighting this operational focus is a new letter of intent (LOI) between MedTech and Advica Health, with the goal of establishing Cannvas MedTech as the exclusive provider of cannabis information and education to the Advica Health membership base. On September 24th, 2018; the Company announced this agreement.
Who is Advica Health? That company is described as “an innovative patient-care membership program” geared at providing online services for users seeking better information and counseling with respect to both the medicinal use of cannabis as well as access to medicinal cannabis. Support for members includes access to physicians, specialists, and renowned clinics.
The Advica platform is a subscription-based business model where members desiring better information concerning medicinal cannabis use pay a monthly fee on either an individual, couples, or family plan. Advica Health also offers corporate support for businesses seeking to provide general access to these services for employees.
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The synergies here for Cannvas MedTech are clear and relate directly to the core of its business model. Assuming this LOI matures into a definitive agreement, MTEC has established a new partnership that increases in value as Advica Health scales up its own business and membership base.
More members equals more people using the Cannvas MedTech platform, and this equates to a steady expansion of its own data collection operations. It also translates into a new revenue stream for the Company. Those visiting the Advica portal will see that monthly subscription fees range from $59/month (individual) to $89/month (family).
Cannvas MedTech is in line to capture a portion of this revenue stream upon negotiation of a final deal, with the precise percentages still to be determined. For MTEC shareholders, agreements of this nature are win/win.
Such deals set the stage for larger, more numerous, and more lucrative relationships as Cannvas MedTech reaches the stage of monetizing such data. In the meantime, it’s an incremental revenue stream with a partner who addresses a large, unmet need.
As nearly a century of cannabis prohibition is finally relegated to the past, it now becomes apparent that this prohibition never served our own populations. Cannabis-as-medicine has been growing at an exponential rate for two reasons.
First, mainstream medicine is doing an increasingly dubious job of addressing the medical needs of aging populations, with new drugs being introduced into the marketplace causing nearly as many medical problems as they alleviate. In contrast, cannabinoid-based medications (the active ingredients in the cannabis plant) are safe and well-tolerated.
Second, cannabinoids are produced naturally within the human body (known as endocannabinoids). It is now widely believed they are important in promoting human health. As a rich source of plant-based cannabinoids, the cannabis plant has nearly unlimited potential as a source of medications for literally thousands of different medical ailments.
As the cannabis sector continues to grow and evolve, Cannvas MedTech is positioned to grow substantially within it.
cannvasmedtech.com
FULL DISCLOSURE: Cannvas MedTech Inc. is a paid client of Stockhouse Publishing.