ABcann Medicinals (TSXV: ABCN) Eyes Growing Role on Canadian Marijuana Market, Extends Agreement with MMJ Pioneer
One of the most dominant and experienced growers of quality medical marijuana on the Canadian market, ABcann Medicinals (TSXV: ABCN), has entered a stage of aggressive growth after launching its first initial public offering (IPO) on the TSX Venture Exchange earlier this month. Recently acquired by ABcann Global Corporation, an acquisition that came with a $26.8 million capital raise to help expand production, the company is already licensed to sell to the entire Canadian market and plans to significantly expand production to reach this goal. In addition, ABcann also plans to sign partnerships to sell to the U.S. market, as well as in Europe and Australia, in the near future.
The company expects significant profit from the IPO launch, and given the market’s reaction to other Canadian marijuana companies that have taken this step in the past, success seems all but guaranteed (http://nnw.fm/miQ8F). ABcann aims to raise $8 million from the IPO and to use the funding primarily to build a second production facility, four times larger than its current one. With both facilities running, the company expects to have the capacity to produce over 20 tons of marijuana per year. This would allow ABcann to successfully meet rising demand for its products, which has been rising by 30 percent every month since hitting the market last June.
ABcann was one of the first companies to obtain a license to grow marijuana in Canada, which is a difficult process that involves extensive background checks and a six-step program that requires applicants to have all their investments and facilities ready before being granted a license. Typically, only 3 percent of applicants are granted a license. The company obtained its license in 2014 and since then, it has been focusing its efforts and resources into research and development so as to perfect its marijuana growing process. These efforts have certainly paid off, as ABcann now offers a clean and standardized product of consistent quality, through an environmental growing system in which every step is controlled and closely monitored by computer.
The company’s innovative growing methods are largely due to its highly experienced medical and scientific advisory teams, which include medical cannabis pioneer Raphael Mechoulam. A professor at the Hebrew University of Jerusalem’s Medical faculty and a leading organic chemist, Mechoulam is widely regarded as the ‘Father of Cannabis Research’ and was also nominated for the Nobel Prize. With over five decades of cannabis research behind him, Mechoulam’s experience is one of ABcann’s most invaluable assets in this growth stage. The company will continue to benefit from his expertise in the future, as Mechoulam has just decided to extend his role as an advisor to the company, according to a company press release (http://nnw.fm/2DNd2).
With Mechoulam’s experience and the expertise of all its other team members, along with its new visibility and expected growing investments as a result of going public, ABcann looks set to become a leader on the cannabis market. The company expects even more business opportunities in the future, as Canada recently announced plans to legalize recreational marijuana as well starting next June.
For more information about ABcann Medicinals, visit the company online at https://abcann.ca
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