Cannabis One Holdings (CSE:CBIS)

Featured Company / Cannabis One Holdings

There is nothing taboo anymore about discussing or investing in so-called “pot stocks” now that the majority of the U.S., Canada and many other countries worldwide have legalized cannabis in some fashion.  In fact, if you’re not looking at the industry, you’re missing out on a still-golden opportunity.

With the market legitimized, companies still have plenty of headroom for growth, as every analyst is calling for strong increases in sales.  For example, the industry experts at Arcview Market Research and BDS Analytics say that global marijuana sales in 2018 totaled $12.7 billion, a figure they see rising to at least $31 billion by 2022.

As the cannabis space continues to emerge, the industry stalwarts are becoming household names.  Everyone in the investing business by now has heard of the likes of Canopy Growth (NYSE:CGC)(TSX:WEED), Tilray (NASDAQ:TLRY) and Aurora Cannabis (NYSE:ACB)(TSX:ACB).  With market caps still in the area of or below $10 billion, these companies have the potential to become the next $100 billion stocks on Wall Street.

There are some up-and-comers that are hitting the public markets running that could easily join the ranks of their bigger brethren in short order.  Only public for about a month and a half, Cannabis One Holdings (CSE:CBIS) has nearly doubled in value already, but still only has a market capitalization around $300 million.

From its offices in Vancouver and Denver, Cannabis One is aggregating and optimizing cannabis brands to become the premier “House of Brands” across North America.  Management isn’t wasting any time doing so either.  

In 2015, founder, chairman and CEO Jeff Mascio established Bertram Capital Finance, which remains a subsidiary of Cannabis One Holdings, as one of the first U.S-based cannabis hedge funds.  Shortly thereafter, two acquisitions of cannabis assets were rebranded under “The Joint™” moniker and the acquisition strategy was underway.  In 2016, an acquisition was completed entering the company into the nascent cannabis extraction market that serves as the basis for Cannabis One’s R&D unit.  Only two years from inception, the company was winning awards, with The Joint named by Leafly as Colorado’s top dispensary three years in a row.

At the end of 2018, brands under the company’s umbrella included The Joint, Cannabis Corp. and the INDVR suite of products that include INDVR Fire, INDVR Botanics and INDVR Strains.  Since, Cannabis One has added the award winning West Edison Concentrates and Evergreen Organix brands and isn’t showing signs of slowing down its light-speed growth pace.

Evolving from a single brand portfolio in 2015, the company continues to roll-up companies, with expectations that the portfolio will hold 16 retails brands by the end of this year.

To that end, the company said on April 10 that it executed a definitive asset purchase agreement to acquire certain assets of Washington-based Honu Enterprises.  Honu is a popular, award-winning cannabis-infused products brand whose products include edibles, cannabis dried flower and the Honu Naturals line of cannabis-infused topicals, which boast a variety of infused creams, lotions, massage oils, bath products, and lip balms.

That acquisition came only days after Cannabis One bought Fat Face Farms, the operator of a premium, branded cannabis cultivation facility in Denver.  Amongst its other accolades, Fat Face Farms was the only entrant out of 50 competitors to place in the top 10 in each ranked category – terpene, profile, potency and yield – at the 2018 Colorado Grow Off.

In addition to its own brands, Cannabis One last month inked a three-year, multi-state territorial licensing and royalty agreement for the exclusive rights to produce, market, and distribute a variety of specific cannabis products under the Cheech's Private Stash brand.  Cheech’s brand is that of iconic entertainment star Cheech Marin of Cheech and Chong fame.  The popular products are already selling in Nevada and Colorado, with Cannabis One planning to use its growing distribution channels to expand its footprint.

Last month, it was announced that the first The Joint dispensary will be opening in the lucrative California market as part of expected expansion to own 25 locations in five states by the end of 2019. 

The multi-state operator has initially centered its efforts on some of the largest and most vibrant markets in the U.S. – Colorado, California, Washington, Oregon and Nevada – and has future plans to expand into Canada and more than 30 U.S. states where cannabis is legal is one form or another.  The near-term target is for 100 dispensaries across 10 states by 2021.  At that level, the company will have access to more than 80 million potential customers, or about one-quarter of the U.S. population.

It is clear that Cannabis One is effectively executing on a business model that will allow it to cross-pollinate its portfolio of products across North America.  Moreover, because of its breadth across five states, the company is using big data to compile information as to what products are most desired by consumers to best target its R&D, acquisition and marketing initiatives.

Through its manufacturing-licensed partners that operate nearly 100,000 square feet of manufacturing facilities in Colorado, Nevada, and Washington, Cannabis One has the production capacity to generate nearly $1 billion in annual revenue, based on current market prices.

As it grows towards that goal, the company has tasked itself to generate substantial system-wide revenue goals of $116 million for 2019, which it expects to reach $289 million in 2020 and $561 million in 2021.

To put that in perspective, analysts are currently forecasting Canopy Growth Corp. to generate revenue of $83.0 million this quarter (and a net loss of $0.18 per share).  That extrapolates to $332 million in revenue for the year.  CGC has a market capitalization of $14.6 billion, or about 42x sales.  The consensus revenue this quarter for Tilray is $21.1 million (net loss of $0.28 per share).  That’s $84.4 million in estimated pro-forma revenue for the year.  TLRY has a market capitalization of $5.8 billion, or 69x revenue.

If it hits its goal of $116 million for 2019, at the current market cap of $305 million, CBIS is trading at less than 3x revenue.  That is something to think about.

Corporate Snapshot:
Cannabis One Holdings
Stock Symbol: CBIS:CNX
Stock Exchange: CSE
Sector: Healthcare
52 Week High: $4.3000
52 Week Low: $1.9800

Current Stock Quote / Chart / News: Click here

Information as of April 17, 2019

There is nothing taboo anymore about discussing or investing in so-called “pot stocks” now that the majority of the U.S., Canada and many other countries worldwide have legalized cannabis in some fashion.  In fact, if you’re not looking at the industry, you’re missing out on a still-golden opportunity.

With the market legitimized, companies still have plenty of headroom for growth, as every analyst is calling for strong increases in sales.  For example, the industry experts at Arcview Market Research and BDS Analytics say that global marijuana sales in 2018 totaled $12.7 billion, a figure they see rising to at least $31 billion by 2022.

As the cannabis space continues to emerge, the industry stalwarts are becoming household names.  Everyone in the investing business by now has heard of the likes of Canopy Growth (NYSE:CGC)(TSX:WEED), Tilray (NASDAQ:TLRY) and Aurora Cannabis (NYSE:ACB)(TSX:ACB).  With market caps still in the area of or below $10 billion, these companies have the potential to become the next $100 billion stocks on Wall Street.

There are some up-and-comers that are hitting the public markets running that could easily join the ranks of their bigger brethren in short order.  Only public for about a month and a half, Cannabis One Holdings (CSE:CBIS) has nearly doubled in value already, but still only has a market capitalization around $300 million.

From its offices in Vancouver and Denver, Cannabis One is aggregating and optimizing cannabis brands to become the premier “House of Brands” across North America.  Management isn’t wasting any time doing so either.  

In 2015, founder, chairman and CEO Jeff Mascio established Bertram Capital Finance, which remains a subsidiary of Cannabis One Holdings, as one of the first U.S-based cannabis hedge funds.  Shortly thereafter, two acquisitions of cannabis assets were rebranded under “The Joint™” moniker and the acquisition strategy was underway.  In 2016, an acquisition was completed entering the company into the nascent cannabis extraction market that serves as the basis for Cannabis One’s R&D unit.  Only two years from inception, the company was winning awards, with The Joint named by Leafly as Colorado’s top dispensary three years in a row.

At the end of 2018, brands under the company’s umbrella included The Joint, Cannabis Corp. and the INDVR suite of products that include INDVR Fire, INDVR Botanics and INDVR Strains.  Since, Cannabis One has added the award winning West Edison Concentrates and Evergreen Organix brands and isn’t showing signs of slowing down its light-speed growth pace.

Evolving from a single brand portfolio in 2015, the company continues to roll-up companies, with expectations that the portfolio will hold 16 retails brands by the end of this year.

To that end, the company said on April 10 that it executed a definitive asset purchase agreement to acquire certain assets of Washington-based Honu Enterprises.  Honu is a popular, award-winning cannabis-infused products brand whose products include edibles, cannabis dried flower and the Honu Naturals line of cannabis-infused topicals, which boast a variety of infused creams, lotions, massage oils, bath products, and lip balms.

That acquisition came only days after Cannabis One bought Fat Face Farms, the operator of a premium, branded cannabis cultivation facility in Denver.  Amongst its other accolades, Fat Face Farms was the only entrant out of 50 competitors to place in the top 10 in each ranked category – terpene, profile, potency and yield – at the 2018 Colorado Grow Off.

In addition to its own brands, Cannabis One last month inked a three-year, multi-state territorial licensing and royalty agreement for the exclusive rights to produce, market, and distribute a variety of specific cannabis products under the Cheech's Private Stash brand.  Cheech’s brand is that of iconic entertainment star Cheech Marin of Cheech and Chong fame.  The popular products are already selling in Nevada and Colorado, with Cannabis One planning to use its growing distribution channels to expand its footprint.

Last month, it was announced that the first The Joint dispensary will be opening in the lucrative California market as part of expected expansion to own 25 locations in five states by the end of 2019. 

The multi-state operator has initially centered its efforts on some of the largest and most vibrant markets in the U.S. – Colorado, California, Washington, Oregon and Nevada – and has future plans to expand into Canada and more than 30 U.S. states where cannabis is legal is one form or another.  The near-term target is for 100 dispensaries across 10 states by 2021.  At that level, the company will have access to more than 80 million potential customers, or about one-quarter of the U.S. population.

It is clear that Cannabis One is effectively executing on a business model that will allow it to cross-pollinate its portfolio of products across North America.  Moreover, because of its breadth across five states, the company is using big data to compile information as to what products are most desired by consumers to best target its R&D, acquisition and marketing initiatives.

Through its manufacturing-licensed partners that operate nearly 100,000 square feet of manufacturing facilities in Colorado, Nevada, and Washington, Cannabis One has the production capacity to generate nearly $1 billion in annual revenue, based on current market prices.

As it grows towards that goal, the company has tasked itself to generate substantial system-wide revenue goals of $116 million for 2019, which it expects to reach $289 million in 2020 and $561 million in 2021.

To put that in perspective, analysts are currently forecasting Canopy Growth Corp. to generate revenue of $83.0 million this quarter (and a net loss of $0.18 per share).  That extrapolates to $332 million in revenue for the year.  CGC has a market capitalization of $14.6 billion, or about 42x sales.  The consensus revenue this quarter for Tilray is $21.1 million (net loss of $0.28 per share).  That’s $84.4 million in estimated pro-forma revenue for the year.  TLRY has a market capitalization of $5.8 billion, or 69x revenue.

If it hits its goal of $116 million for 2019, at the current market cap of $305 million, CBIS is trading at less than 3x revenue.  That is something to think about.


Forward Looking Statements

This report includes forward-looking statements that reflect current expectations about its future results, performance, prospects and opportunities. Cannabis One Holdings has tried to identify these forward-looking statements by using words and phrases such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "plan," "should," "typical," "preliminary," "we are confident" or similar expressions. These forward-looking statements are based on information currently available and are subject to a number of risks, uncertainties and other factors that could cause Cannabis One Holdings's actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation, the Company's growth expectations and ongoing funding requirements, and specifically, the Company's growth prospects with scalable customers, and those outlined above. Other risks include the Company's limited operating history, the Company's history of operating losses, consumers' acceptance, the Company's use of licensed technologies, risk of increased competition, the potential need for additional financing, the terms and conditions of any financing that is consummated, the limited trading market for the Company's securities, the possible volatility of the Company's stock price, the concentration of ownership, and the potential fluctuation in the Company's operating results.

Disclaimer

AllPennyStocks.com feature stock reports are intended to be stock ideas, NOT recommendations. Please do your own research before investing. It is crucial that you at least look at current SEC filings and read the latest press releases. Information contained in this report was extracted from current documents filed with the SEC, the company web site and other publicly available sources deemed reliable. For more information see our disclaimer section, a link of which can be found on our web site. This document contains forward-looking statements, particularly as related to the business plans of the Company, within the meaning of Section 27A of the Securities Act of 1933 and Sections 21E of the Securities Exchange Act of 1934, and are subject to the safe harbor created by these sections. Actual results may differ materially from the Company's expectations and estimates. This is an advertisement for Cannabis One Holdings The purpose of this advertisement, like any advertising, is to provide coverage and awareness for the company. The information provided in this advertisement is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject us to any registration requirement within such jurisdiction or country.

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