SEATTLE, WA--(Marketwired - Jun 2, 2017) - CFN Media Group ("CannabisFN"), the leading creative agency and digital media
network dedicated to legal cannabis, announces the publication of an article taking a closer look at Harvest One Cannabis Inc.'s
(TSX VENTURE: HVST) dual strategy and the resulting diversified exposure to the cannabis industry.
The global cannabis industry is rapidly gaining steam following medical and recreational legalization in Canada and
liberalization of cannabis laws elsewhere around the world. Many licensed producers (LPs) are focused on either medical or
recreational, but few companies offer exposure to both and even fewer offer exposure to the global industry rather than a
country-specific focus.
Many Different Approaches
The Canadian cannabis industry is expected to surpass C$22.6 billion over the coming years, according to Deloitte Canada, as recreational use
goes into effect next year. Not surprisingly, the rapidly growing industry has attracted billions of dollars in capital and
thousands of entrepreneurs. These companies are taking a wide range of approaches, from developing recreational brands to
studying medicinal benefits.
Licensed producers are taking the straightest approach to the industry by directly cultivating cannabis under the Access to
Cannabis for Medical Purposes Regulations (ACMPR). With only about 40 licensed producers, PI Financial analysts expect that there
will be a shortfall in supply until 2020 as they struggle to keep up with rising demand. Some licensed producers have focused on
maximizing production while others have tried to build up a niche.
These licensed producers can be generally divided into those focused on medical cannabis and those focused on recreational
usage. Medically-focused companies are focused on developing clinically-differentiated product lines designed to target specific
medical conditions, while recreationally-focused companies are largely focused on large-scale production and branding efforts in
conjunction with famous marijuana celebrities.
There's also an increasing opportunity for medical marijuana outside of Canada as a growing number of countries liberalize
their laws. For example, Prohibition Partners recently issued a report finding that Europe's
cannabis industry could reach 18 billion over the coming years. Relatively few public companies are well-positioned to capitalize
on these international markets given the underdeveloped status the industry compared to Canada or the United States.
Dual Strategy for Diversification
Some LPs have targeted both segments of the market -- such as Canopy Growth Corp. -- but their valuations tend to be on the
high end of the spectrum. Those targeting only medical cannabis may achieve near-term revenue, but they could be leaving money on
the table when it comes to the much larger recreational market.
Harvest One has developed a 'dual strategy' designed to target both markets within a single publicly-traded entity. The
company accomplishes this through two wholly-owned subsidiaries targeting each market. And unlike many competitors, these
companies are targeting more than just Canada -- they're targeting the global cannabis industry.
United Greeneries is a Canadian ACMPR licensed producer that will serve as the company's horticulture arm and recreational
brand. With current capacity for 1,000 kilograms per year, the company plans to immediately expand capacity by 7,500 kilograms
per year in 12 months and 50,000 kilograms per year onward, according to its
investor presentation. The company's Lucky Lake property with 12,000 kilograms per year of capacity is also nearing
approval.
Satipharm is a cannabis-based health products firm specializing in the development and manufacturing of medical products. In
particular, the company secured global exclusive rights to Gelpell® Microgel Capsules for cannabis applications. The company
generates near-term revenue from supplement sales in the European Union with mid-term growth from entry into regulated markets in
Canada, Australia, and elsewhere around the world.
The company's Gelpell products contain a controlled delivery system that enhances oral bioavailability. The capsules are
manufactured under Good Manufacturing Practices (GMP) in Switzerland with medical cannabis grown under Good Agricultural and
Collection Practices (GACP) in highly-controlled environments. The capsules are also tested to be completely THC-free.
Since undergoing a successful Phase I clinical trial for safety and bioavailability, the product has been approved by the
health authorities and prescribing physicians in some countries for the treatment of approved medical conditions.
Please follow the link to read the full article: http://www.cannabisfn.com/harvest-ones-dual-strategy-sets-apart-lps/
For more information, visit the company's website or
investor presentation.
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About CFN Media
CFN Media (CannabisFN) is the leading creative agency and media network dedicated to legal cannabis. We help marijuana
businesses attract investors, customers (B2B, B2C), capital, and media visibility. Private and public marijuana companies and
brands in the US and Canada rely on CFN Media to grow and succeed.
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