ABcann Global Corp (OTCMKTS:ABCCF) has been surging as one of the new and emerging leadership plays in the Canadian cannabis patch, a market segment so recently reinforced in its ascendancy by wavering in the dependability of US marijuana legislation compliments of Jeff Sessions, the US Attorney General.
Ceasing on this momentum, the company just announced that it has been licensed by Health Canada to produce medical cannabis oils. According to the release, once ABcann has saleable extracted finished products, Health Canada will conduct a final inspection to approve the sale of cannabis oils by the Company. The company notes that this step is expected in the first quarter of 2018.
ABcann Global Corp (OTCMKTS:ABCCF) trumpets itself as one of the first companies to obtain a production license under the Marijuana for Medical Purposes Regulations, which it received on March 21, 2014. It also obtained a sales licence on December 31, 2015.
Situated in Napanee, Ont., ABcann has spent the last two years focused on changing the face of medical cannabis.
ABcann intends to be the first company to have repeatable products in multiple continents and to provide standardized medical cannabis to the world. Its flagship facility contains proprietary plant-growing technology, combining the concepts, systems and components to produce high yielding plants, which, in turn, can generate high-quality products that are consistent from batch to batch.
According to company materials, “ABcann was one of the first companies to obtain a production license under the Marijuana for Medical Purposes Regulations, which it received in March 2014. The Company obtained its sales license in December 2015. ABcann’s flagship facility in Napanee, Ontario contains proprietary plant-growing technology, including environmentally-controlled chambers capable of monitoring and regulating all variables in the growing process. This approach and the systems in place allow ABcann to produce organically grown and pesticide-free, high-yielding plants, which, in turn, can generate high-quality products that are consistent from batch to batch. ABcann is able to control environmental and nutrient demands, tailor-made for a particular strain of cannabis, without the variation that is typical when producing large quantities in less-controlled, larger rooms and greenhouse-type structures. ABcann’s modular approach to systems technology eliminates scale-up risk and enables ABcann to expand anywhere in the world and maintain consistency and quality of product. ABcann is expanding capacity in its current facility to approximately 30,000 sq ft and concurrently undertaking its expansion into a new 150,000 sq ft facility in Napanee. ABcann is pursuing opportunities in Germany, Australia, Israel and other jurisdictions as well as exploring the development of multiple delivery vehicles.”
Find out when $ABCCF reaches critical levels. Subscribe to OracleDispatch.com Right Now by entering your Email in the box below.
As noted above, this stock has been on fire, ripping nearly 50% higher since mid-December, and its announcement of licensing permission only serves to reinforce that momentum as investment capital surges into the Canadian cannabis space. The latest move higher by the stock represents a clear technical breakout over the $1.35 resistance level that had capped the action during its consolidation in November and early December.
“Receipt of the license to produce cannabis oils is a major milestone in our pursuit to provide our medical cannabis patients with additional product formats that can be precisely dosed,” commented Barry Fishman, CEO of ABcann. “The expansion and innovation of our product lines are a top priority for the Company as we continue to serve the needs of our customers, and we anticipate strong demand for our cannabis oil products.”
At this time, carrying a capital value in the market of $272.4M, ABCCF has a significant war chest ($43.4M) of cash on the books, which must be weighed relative to virtually no total current liabilities. ABCCF is pulling in trailing 12-month revenues of $453K. However, the company is seeing recent declines on the top-line on a sequential quarterly basis, with revenues falling at -32.8% as of its latest reporting period. This may be a very interesting story and we will look forward to updating it again soon. Sign-up for continuing coverage on shares of $ABCCF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $ABCCF, either long or short, and we have not been compensated for this article.