Canada’s Cannabis Boom Could Be Taking Off Soon

May 17, 2018 - OILprice.com


Ten years ago, Netflix introduced a brand-new business model known as “streaming.”

The idea began with a modest 1,000 titles, but the site now boasts over 100 million users in more than 190 countries, consuming a massive 37 percent of all internet traffic at peak hours.

Not only has this innovative idea revolutionized the way we consume media, it has popularized the way certain aspects of the free market functions.

Now, what has become a very popular market strategy can be applied to nearly everything, including one of the fastest growing and most attention grabbing industries on the planet - marijuana.

Using a similar streaming model, one Canadian company is looking to single-handedly transform key aspects of the cannabis industry, which is expected to grow to $31.4 billion by 2021.

Despite the incredible competition in the blooming pot market, Cannabis Wheaton Income Corp. (TSX-V:CBW; OTC: CBWTF) is aiming to become the go-to financier for the entire sector, and this bold new strategy will undoubtedly set it apart from the pack.

As Canada’s push to legalize recreational marijuana quickly approaches its final hurdle, the space is ripe with opportunity. But this is no normal opportunity – it is a rare, specialized chance for entrepreneurs and investors to break ground on an entirely new industry – legalized pot.

Since Canada began permitting medical marijuana, demand has soared, and the number of patients is expected to more-than-double within the next three years.

And that’s just the medical market.

When recreational pot is legalized, consumption is expected to soar so quickly that the nation’s producers will not be able to keep up.

Canaccord Genuity estimates there will be an additional 3.8 million recreational users consuming over $6 billion of this green gold.

And to make this opportunity even more exciting, the Financial Post estimates this surge in demand will result in a severe supply squeeze, as current production would only cover approximately 7 percent of the anticipated total demand.

This is why Cannabis Wheaton has a leg up on the competition.

Not only does the world’s first cannabis streaming company have a first-mover advantage, they have an incredible team of innovators with ample experience in the field.

With their innovative financing strategy and a looming cannabis supply squeeze, Cannabis Wheaton is one of the most exciting companies in the space.

Here are five reasons investors are watching Cannabis Wheaton (TSX-V:CBW; OTC: CBWTF):

#1 Legalization on the Way

The moment Canada has been waiting for is now right around the corner. With only one more hurdle to cross, the space is buzzing with anticipation.

The final vote for legalization is scheduled to go through by August, and once that happens, the industry is set to explode as everyone tries to get a piece of the pie.

Ultimately, though, only the strong will survive.

As companies across the country rush to get into the space, competition is rampant, and it will take something special for a company to distinguish itself from the pack, and that’s exactly what Cannabis Wheaton (TSX-V:CBW; OTC: CBWTF) has going for it.

Thanks to its royalty-streaming model, an innovation that is already changing the entire sector, Cannabis Wheaton is sure to shine.

#2 ‘Streaming’ Deals Already Lined Up

This could be the ultimate opportunity for producers.

Cannabis Wheaton’s (TSX-V:CBW; OTC: CBWTF) innovative approach isn’t like anything else on the market. Through this new royalty-streaming business model, investors are able to obtain a lower risk exposure to the expected cannabis boom.

With Cannabis Wheaton, exposure isn’t just limited to a single crop: investors receive access to multiple licensed producers to take advantage of this burgeoning industry.

Taking a leaf straight out of Netflix’s playbook, Cannabis Wheaton will be funding the growth plans of licensed producers, allowing them to scale quickly in order to meet the industry’s skyrocketing demand.

The company already has partnerships with 39 clinics, with access to over 30,000 registered medical marijuana patients.

Additionally, partnership agreements have been signed with 15 cannabis producers across Canada, accounting for a combined 2.0 million effective square feet of growing space.

And with its flexibility, Cannabis Wheaton has the potential to expand quickly, enjoying a portion of equity and royalties stemming from every new producer that joins its ‘streaming’ platform.


#3 Fast Track Scale-Up

Cannabis Wheaton (TSX-V:CBW; OTC: CBWTF) is all about fast growth and capitalizing on market share.

With its ground-breaking royalty-streaming model, the company is free from single-crop limitations.

Already, five million Canadians use pot recreationally, almost all of it acquired illegally. That’s a huge potential market for Canadian legal distributors. And with a looming supply squeeze, producers will need to scale quickly.
The domestic market, according to one Toronto-based investor, “is simply way bigger than a lot of people believe.” And that’s only the beginning.

If other countries follow in Canada’s footsteps, the global demand could increase exponentially, and thanks to Cannabis Wheaton’s streaming structure, it should be able to raise capital and produce product necessary to meet greater demand.


Cannabis Wheaton could very well be a go-to distributor in the next phase of marijuana retail, with the potential to dip into online orders and home delivery, cutting out the middle-men from the equation.

#4 Canada’s Pot Problem: Very Tight Supply

Canada has a pot problem.

Cannabis supply is already running low. With only 100 licensed producers and only 39 producers with authorization to sell, the liberal Canadian government has even had to streamline the approval process for growers as demand has tripled in the past year.

And that’s just medical marijuana. When recreational use becomes legal, Deloitte estimates direct sales alone being close to $8 billion and total economic impact of the industry will soar to $22.6 billion annually. That is more than sales of beer, wine, and spirits combined, and with that kind of demand, it will be impossible for producers to keep up without a dramatic change in operations.

Cannabis Wheaton (TSX-V:CBW; OTC: CBWTF) has positioned itself ahead of the pack. With its potential to scale upwards and help producers do the same, the company is poised to be a vital piece of the puzzle.

“There is a segment of the marketplace where people are trying to get their facilities built and they don’t have access to capital at all,” Hugo Alves, President and Director of Cannabis Wheaton, states.

#5 Canada’s Pot Solution: Cannabis Wheaton

Canada’s pot producers are struggling to grow with the industry. Despite the massive market share potential, many growers are having a difficult time securing the funding necessary to keep up with demand. And because the industry is still young, many investors aren’t exactly rushing to throw money into the space.

This is where Cannabis Wheaton’s (TSX-V:CBW; OTC: CBWTF) genius truly shines.

Not only will producers still maintain control over their product, they will be able to secure the financing and expertise they need to scale quickly and efficiently. It also provides an opportunity for investors to join the boom in an entirely new way. Cannabis Wheaton is the full package.

Cannabis Wheaton has discovered how to take this growing industry to the next stage in its evolution. And the best part? Cannabis Wheaton is sure to enjoy a steady stream of royalties along the way.

This is the Cannabis Market 2.0, and Cannabis Wheaton not only has first-mover advantage, but so far it has only-mover advantage, with the expertise to back it up. And once Canada is secured, this model could be looking to set up with first-mover advantage internationally.

Other players looking to take advantage of the marijuana boom:

The Supreme Cannabis Company, Inc. (TSXV:FIRE): Supreme Cannabis is engaged in production and sale of medical marijuana. The company is a cultivator and distributor of sun-grown cannabis through its wholly-owned subsidiary 7ACRES. The Company is focused on the wholesale sector of the medical cannabis market in Canada and operates an approximately 342,000 square foot greenhouse facility located in Kincardine, Ontario.

Supreme had its license term extended for an additional two years and license now permits the company to store up to $150 million of cannabis products at any given time. The company is expected to produce 10,000 grams of cannabis in 2017 with an estimated value of $35 million.

MedReleaf Corp (TSX:LEAF): As a licensed producer of cannabis-based pharmaceutical products, MedReleaf Corp has a head start on the coming boom in Canada. Early July has seen a bounce in the stock price, and investors may look to ride it upward from here. Med Releaf could become Canada’s second biggest medical marijuana company after Canopy Growth Cooperation as many analysts expect the ‘legal weed’ industry to grow 25% on an annual basis over the next 10 years.

MedReleaf has seen its share price fall since June, but has steadied out in recent months and could be poised for gains as the expected legalization of recreational marijuana materializes.

Aphria Inc (TSX:APH): Aphria Inc is engaged in the production and selling of medicinal marijuana, and while the stock has trended downward since April, the constant profits here suggest there is a lot of upside. The recent pro-marijuana legislation from the Canadian government is sure to boost companies with the reputation of Aphria Inc.

Aphria’s $137 million expansion project is well underway to ramp up output to 70,000 kg. If Aphria successfully ramps up production, we believe its share price could go much higher.

Emerald Health Therapeutics Inc (TSXV:EMH) is another producer and distributer of medical marijuana. Based in British Columbia, Emerald Health is fully licensed by Access to Cannabis for Medical Purposes Regulations (ACMPR) and provides high quality medicine of different varieties. The company’s approach to research is what really sets the company apart from the competition. With the incredible emphasis placed on isolating the most important qualities in each strain and creating new products for patients, it is no wonder their medicine is so popular.

Additionally, Emerald Health has an incredibly talented administration. With over 30 years in the life sciences field, CEO Dr. Bin Huang is leading the company to greatness.

Hydropothecary Corp (TSXV:THCX) is a another heavy hitter in Canada’s cannabis scene. With former BC Health Minister Dr. Terry Lake as the VP of Corporate Social Responsibility, and the well-versed Ed Chaplin, who has raised millions for his previous ventures, as the Chief Financial Officer, the company is sure to have a bright future ahead.

With 4 primary products, including Canada’s only peppermint flavored medical cannabis oil sublingual mist, Hydropothecary has chosen quality over quantity. Offering patients the ability to administer their medication in a smoke-free format provides users with an option that is not available just anywhere.

**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**

FORWARD-LOOKING STATEMENT. Statements in this communication which are not purely historical are forward-looking statements and include statements regarding beliefs, plans, intent, predictions or other statements of future tense. Forward looking statements in this article include: that the Canadian government will fully legalize and regulate cannabis this year; that the Canadian medical and recreational markets combined will be worth $8 billion in gross sales in the year after legalization; that Cannabis Wheaton Income Corp. (“Cannabis Wheaton”) can raise funds and partner quickly with new firms looking to get into the Cannabis industry and access the expertise of Cannabis Wheaton’s management team and non-dilutive capital; that there will likely be a supply shortage; that, if cannabis markets open up in other industrialized countries, the global cannabis market could expand exponentially; That Cannabis Wheaton’s production costs will be low. Forward-looking information is based on the opinions and estimates of Cannabis Wheaton at the date the information is made, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Forward looking statements involve known and unknown risks and uncertainties which may not prove to be accurate. Actual results and outcomes may differ materially from what is expressed or forecasted in these forward-looking statements. Matters that may affect the outcome of these forward looking statements include: that Cannabis may not be legalized on the timeline as expected or at all; that markets may not materialize as expected; that cannabis may not turn out to have as large a market as thought or be as lucrative as thought as a result of competition or other factors; that Cannabis Wheaton may not be as able to diversify or scale up as thought because of potential lack of capital, lack of facilities, regulatory compliance requirements in Canada or outside of Canada or lack of suitable employees, partners or suppliers; that Cannabis Wheaton may not be able to raise funds and offer better conditions to potential partners than competitors in the cannabis industry; that partners of Cannabis Wheaton may not be granted licenses or additional capacity under existing or newly applied for licenses for them to grow for the cannabis market; that foreign governments may not allow Cannabis Wheaton to operate in their countries; that actual operating performance of the facilities affiliated with Cannabis Wheaton do not meet expectations; that competition quickly develops; that Cannabis Wheaton may not be able to retain key employees, partners and suppliers; costs may be higher than expected and profits therefore lower; competitors may capture most or all of the increased market demand; and other risks affecting the Company in particular and the cannabis industry generally, including without limitation risks related to most agricultural crops, including crop failure. The forward-looking statements in this document are made as of the date hereof and the Company disclaims any intent or obligation to update such forward-looking statements except as required by applicable securities laws.

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