- Icon
plans to operate in both medical and recreational cannabis markets
- Preparation
of 40,000-square-foot resource in Brantford, Ontario, underway
- Recreational
marijuana market forecast to record CAGR of 77.9 percent from 2018 to
reach $3 billion in 2021
What may be a tough call in horseracing is much easier in
Canada’s cannabis market. The odds of choosing both the winner and the
second-place finisher in any race – an exacta – are never good, but, for Icon
Exploration Inc. (TSX.V: IEX.H), the probability of picking winners in Canada’s
cannabis market is decidedly better. In what is a win-win situation for Icon,
the company has placed bets on both recreational and medical cannabis. This
legal market is growing at double-digit rates, and, capitalizing on that
growth, Icon is aiming to create a well-diversified company that produces
long-term returns for shareholders. To do so, it intends to be a leading
purveyor of medicinal and recreational cannabis, while, at the same time,
providing the most comprehensive and customer-centric user experience for both
patients and consumers.
It has already embarked on that enlightened mission. Icon’s
strategy has begun with a foray into medical cannabis, and it plans to capture
and market that theme of wellness and good health garnered from marketing
medicinal marijuana as it sets about its recreational cannabis operations. The
company is finalizing its acquisition of City View Green (“CVG”), a vertically
integrated cannabis company. CVG has submitted an application to Health Canada
for a producer license under Access to Cannabis for Medical Purposes
Regulations (ACMPR), which is currently in the in-depth review stage.
CVG is in the process of preparing a 40,000-square-foot
resource in Brantford, Ontario, about half of which will be converted into a
modern greenhouse. Pending receipt of the license, this facility will produce
pharmaceutical-grade cannabis. CVG has engaged experienced contractors with
extensive experience in the pharmaceutical and medical cannabis space to manage
the process. The grow area will have state-of-the-art LED lighting, HVAC and
dehumidification systems and automation technologies designed to optimize the
quality, safety and consistency of cannabis production. A 4,000-square-foot
extraction laboratory is also on the drawing board; initially, it will employ
an ultra-efficient CO2 supercritical extraction process and, subsequently,
ethanol extraction technology.
Production will be marketed through an associated
distribution channel that CVG is in the process of setting up. The company has
signed an agreement with a retailer that has applied for 37 cannabis licenses
in Alberta. The agreement provides that, on closing, each company will receive
an equity interest equal to 19.99 percent of the other. The deal essentially
creates a vertically integrated entity, with guaranteed supplies for retailing
and a ready market to which production can be dispatched.
CVG believes that it has assembled an experienced team that
can deliver on its business plan. The company has secured a master grower with
cannabis-industry experience to attend to indoor grow operations and has
identified both a quality assurance manager and head of security. CVG has also
retained an extraction expert from the Seattle, Washington, cannabis market,
who has amassed significant expertise in developing and launching new products
from extractions. In addition, the company plans hires with strong experience
in the alcohol and beverage industry.
Winning in the Canadian cannabis market should be a piece of
cake. The Canadian government projects that 450,000 customers a day will
participate in the cannabis market, making recreational cannabis in Canada a
$900 million industry. It expects initial market demand to be 100,000 kg, and
users are projected to grow by more than a half million within the first three
years of legal cannabis sales in the country. Adult-use spending is expected to
record a rapid CAGR of 77.9 percent from 2018, reaching $3 billion in 2021.
For more information, visit the company’s website at www.IconExploration.net
About QualityStocks
QualityStocks is
committed to connecting subscribers with companies that have huge potential to
succeed in the short and long-term future. It is part of our mission statement
to help the investment community discover emerging companies that offer
excellent growth potential. We offer several ways for investors to learn more
about investing in these companies as well as find and evaluate them.
QualityStocks (QS)
Scottsdale, Arizona
www.QualityStocks.com
480.374.1336 Office
Editor@QualityStocks.com
Scottsdale, Arizona
www.QualityStocks.com
480.374.1336 Office
Editor@QualityStocks.com
Please see full terms of use and disclaimers on the
QualityStocks website applicable to all content provided by QS, wherever
published or re-republished: http://www.qualitystocks.net/disclaimer.php
No comments:
Post a Comment