LOS ANGELES, December 21, 2017 /PRNewswire/ --
USA News Group - As investor excitement continues to climb in Canada over the upcoming legalization of cannabis on July 1, 2018, major Canadian companies are already setting their sights on the next big legal cannabis market-Australia.
Big players in the Canadian cannabis space already have started to stake claims "Down Under" where medical cannabis is beginning to take hold.
These companies include Aurora Cannabis (TSX: ACB), Canopy Growth Inc. (TSX: WEED) (OTC: TWMJF), CannTrust Holdings Inc. (CSE: TRST) (OTC: CNTTF), MedReleaf Corp. (TSX: LEAF) (OTC: MEDFF), and MYM Nutraceuticals Inc. (CSE: MYM) (OTC: MYMMF).
Australian consumers are already undergoing a very quick renaissance into the cannabis market, with several developments happening in the past few months.
After Australia's federal decision that low-THC hemp seeds were fit for human consumption, almost instantly hemp beer and other related products hit the market.
Australian-listed companies are already starting to see major gains, as the country's first corporate cannabis production is set to begin in 2018.
Stock prices on several Australian companies are beginning to take off, as the reality of Australia as a viable cannabis market for years to come, sets in.
With construction set to begin on its 1.2 million square foot automated greenhouse in New South Wales, Australia-dubbed the Northern Rivers Project-MYM and its joint-venture partners are set to embark on building the Southern Hemisphere's largest purpose-built cannabis greenhouse.
But with a head start of many months, and with market caps from hundreds of millions to even billions, investors are seeking the Canadian advantage for companies that'll also hold operations in Australia, including Aurora Cannabis (TSX: ACB), Canopy Growth Inc. (TSX: WEED) (OTC: TWMJF), CannTrust Holdings Inc. (CSE: TRST) (OTC: CNTTF), MedReleaf Corp. (TSX: LEAF) (OTC: MEDFF), and MYM Nutraceuticals Inc. (CSE: MYM) (OTC: MYMMF).
DOWN UNDER DEALING
Among the majors that have positioned themselves ahead of the curve in the Australian market, one of the more recent expansions has come from Aurora Cannabis, which expanded its stake in Australia-based Cann Group to 22.9% from 19.9%.
Not to be left out of the Australia rush, the world's largest cannabis company, Canopy Growth Inc. (TSX: WEED) (OTC: TWMJF), signed an agreement with AusCann Group Holdings to be its exclusive supplier of medical cannabis for the Australian market, back in September.
It's likely that Canopy's supply injection will help bridge AusCann's development for its own Australian production set for early 2018.
Canada's MedReleaf Corp. also announced that its JV project in Australia was granted its federal license to cultivate and produce medical cannabis back in November 2017-The license was set to commence one year after it was granted, in November 2018, to allow time to complete the infrastructure for the facility.
And sales and shipments to Australia from CannTrust Holdings Inc. were announced to have commenced in the company's Q3 2017 highlights, in November.
THE ADVENT OF MEGA-GREENHOUSES
With a 35% stake in its massive Northern Rivers Project, MYM is partnered on the construction and operation of the Southern Hemisphere's largest purpose-built cannabis greenhouse.
The contractors have been selected for the construction, and the joint-venture partnership has already filed for a Medical Research License in collaboration with Western Sydney University.
Engineered and designed by renowned Dutch greenhouse builder, KUBO, the Northern Rivers Project is destined to be a technical marvel, and industry masterpiece.
The facility is poised to deliver more combined automation, efficiency, good manufacturing practices and sustainability features under one roof than any other existing greenhouse on the planet.
Upon completion, the facility will provide an estimated production capacity of over 100,000 kg of cannabis, and create 300 jobs in the Northern Rivers Region of New South Wales-With many opportunities for downstream businesses.
The project has become the Australian cousin of MYM's other massive mega-greenhouse, located in Weedon, Quebec, Canada, in which the company has a much larger stake.
The dream of the Weedon Project comes with the embedded mission of making the city of Weedon the cannabis capital of Canada. With a whopping 1.5 million square feet of greenhouse infrastructure projected upon completion, and state-of-the-art facilities that include a cannabis university to develop further advancements in the industry, MYM has proven it likes to do things big-Really big.
Currently with a 75% stake (that goes up to 90% upon completion), MYM has the controlling interest in the Weedon Project, which has the potential to not only be the biggest cannabis growing facility in North America, but also possibly one of the most profitable too.
The province of Quebec has many economic incentives that other provinces in Canada do not have, including low energy rates, affordable labour, and several tax incentives and subsidies.
Taxes on investment in Quebec are not only the lowest in Canada, but are lower than the average of the US, and the G7 and OECD countries. The Francophone province offers a highly-competitive investment tax credit, covering up to 24% of the cost of newly purchased manufacturing and processing equipment- It even reimburses sales tax on capital goods.
None of the current billion-dollar cannabis companies, Aphria (Ontario), Aurora Cannabis (Alberta), Canopy (Ontario, Netherlands), have their major projects in Quebec.
But with Weedon and Northern Rivers, MYM is seriously looking to make a big splash on two continents, with its mega-greenhouses that total 2.7 million square feet in growing space between them.
Having developed a multinational presence with a pair of mega projects, MYM is positioning itself to potentially be yet another billion-dollar Canadian cannabis company, that bet wisely on producing in the largest new market in generations.
Aurora Cannabis (TSX: ACB)
Aurora Cannabis boasts the second highest square footage approved for cannabis production in Canada. Together with its subsidiaries, Aurora produces and distributes medical marijuana products in Canada. The company's products consist of dried cannabis and cannabis oil.
Aurora is the only cannabis producer located in the province of Alberta, giving the company a cost advantage through its free use of fresh mountain-fed water used on site, and housed under the lowest corporate tax rates and power rates in Canada. Capitalizing on numerous farm credit programs provided by the province, Aurora has positioned itself as arguably the lowest cost-per-gram licensed producer in Canada. Aurora became a licensed producer in 2015, and is based in Edmonton, Alberta.
Canopy Growth Inc. (TSX: WEED) (OTC: TWMJF)
Formerly known as Tweed Marijuana Inc., Canopy Growth is a multi-licensed, geographically diverse marijuana producer, described as "one of the world's - and Canada's first - premier exporters of marijuana" by the Financial Post in 2016. Canopy is the parent company of licensed cannabis producers, Tweed Inc., Tweed Farms Inc., Bedrocan Canada Inc., as well as newly acquired Mettrum Health Corp. Canopy currently has a combined growing platform of over 665,000 sq. ft. of production space. It was also the first federally regulated, publicly traded cannabis producer in North America, and the first billion-dollar cannabis corporation. Canopy Growth was founded in 2014, and is based in Smith Falls, Ontario.
CannTrust Holdings Inc. (CSE: TRST) (OTC: CNTTF)
CannTrust Holdings Inc. produces and distributes pharmaceutical-grade medical cannabis for patients. The company sells medicinal cannabis under the MMPR name. CannTrust Holdings Inc. was incorporated in 2015 and is headquartered in Vaughan, Canada, where it currently operates a 50,000 square foot state-of-the-art hydroponic facility. CannTrust recently began shipping to Australia, which was the first of many markets the Company is expecting to supply, with anticipation of shipping shortly to Germany, Denmark, and Brazil.
MedReleaf Corp. (TSX: LEAF) (OTC: MEDFF)
MedReleaf produces and sells cannabis-based pharmaceutical products in Canada. It offers dried cannabis, cannabis oils, and cannabis oil capsules; and various accessories, including grinders, vaporizers, and lockable containers. MedReleaf was Canada's first and only ISO 9001 and ICH-GMP certified producer of medical cannabis. It recently announced a joint venture with an Australian partner for cultivation and production of medical cannabis in Australia. The company was incorporated in 2013 and is headquartered in Markham, Canada.
For a more in-depth look into MYM Nutraceuticals you can view the in-depth report at American News Group: http://usanewsgroup.com/2017/12/04/like-it-or-not-the-cannabis-sector-is-unstoppable-and-its-just-getting-bigger/
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