Latter stage ACMPR license applicant with a market cap of <$8.2MIllion
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By William Weady
Feel free to follow me on twitter @Weady28
293
Maricann Group Inc. has been cultivating dried cannabis at its 100 acre Langton, Ontario site since 2014. They have been awarded licenses to sell their dried and extract products in January 2015 and October 2016, respectively. Although the company has kept a relatively low profile in the investment community, they have inked several acquisitions and partnerships since going public in April 2017. This could prove to be the foundation for tremendous future growth.
The company has a very ambitious 3 phase expansion plan for its Langton, Ontario greenhouse operations. With expected completion of phase 1 in the second calendar quarter of 2018, the company will have capacity to grow 22,500kg on an annual basis. If completed on schedule, this will allow Maricann to have significant capacity to serve the adult use market which is expected to come online in the summer of 2018. Phases 2 and 3 are expected to commence in the summer of 2018 which will bring Maricann’s total capacity to 95,000kg on an annual basis.
In recent months it seems that most licensed producers are boasting the ability to be a future low cost producer, without real substance behind those claims. Maricann is uniquely qualified to make such claims. They are located in the heart of Ontario’s tobacco farming region, and have their own cogeneration plant on site to significantly reduce electricity costs. What’s more, is that the company recently announced that they had entered into a partnership (Connected Enterprise Solution) with NYSE listed Rockwell Automation (ROK). The objective is to develop a scalable, plant-wide platform to connect key functions of their operations to produce consistent, high-yield crops. By streamlining all aspects of their operations and introducing Rockwell-developed highly automated systems, Maricann expects to replace labour intensive jobs with high skilled technically advanced operators. The company is projecting that these changes will result in a cost per gram of approximately $0.60 once phase 3 is completed. This will make Maricann one of the lowest cost producers in Canada.
Maricann has also taken great strides towards solidifying their Canadian medical supply chain. The company has aligned themselves with McKesson Canada Retail Banner Group to provide education and awareness for medical cannabis patients across Canada (LOI McKesson Retail). It’s important to note that McKesson Canada makes up 20% of all Canadian pharmacies, so a further collaboration between the two companies could prove to be transformational for Maricann. What’s more, is that on December 12, 2017, the company signed an exclusive agreement with Lovell Drugs (Lovell Drugs), to be the sole provider of medical cannabis to its pharmacies.
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MARICANN GROUP INC.
CSE:MARI OTC:MRRCF
As At February 5, 2018
Shares Outstanding: 92,386,723 (www.tmxmoney.com)
Share Price: $2.51 Market Cap: 231,890,675
CORPORATE PRESENTATION