Articles > 48North Is Setting Out To Capture The Most Underserved Consumer In The Cannabis Industry: Women
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48North Cannabis Corp. is the parent company of DelShen Therapeutics, a Licensed Producer of medical cannabis that is in the final process of being granted a sales license from Health Canada. The company’s 40,000 sq. ft. flagship cultivation facility and located in Kirkland Lake, Ontario. At full capacity, the closed-box facility can produce approx. 2,500 kilograms of premium cannabis per year.
The facility sits on 800 acres of property offering significant room to expand, which is an important aspect of the fundamental story. 48North is in the middle of a two-phase expansion plan that includes a 200,000 sq. ft. facility that can produce an additional 40,000 kilograms of premium cannabis per year.
48North is Poised to be a Leader
With operations based in Toronto, 48North is poised to become the authoritative voice in women’s health and wellness through innovative, trusted cannabis-based products, experiences and brands. We are favorable on 48North and believe that the company represents a differentiated investment opportunity that will resonate with cannabis investors. The company is unique as it is a vertically-integrated house of brands focused on women’s health and wellness.
48North will be focused on both the medical and recreational marijuana market in Canada and will offer a wide variety of premium cannabis products that are meant for the recreational user as well as for the medical patient.
Led by a Management Team that Continues to Execute
When it comes to cannabis investments, it all starts with the management team and 48North is led by a proven executive team with experience in cannabis, consumer packaged goods (CPG) and retail.
The Canadian cannabis producer has been focused on strengthening its team and over the last year, 48North has secured strategic partnerships with leading industry experts from production, extraction and CPG companies.
We are favorable on the recent additions and believe that 48North is led by a management team that is focused on creating value for shareholders. This is a very important aspect of the story and one that needs to be considered. We expect 48North to continue to make strategic additions to the team and are favorable on its shareholder first approach.
A Differentiated Opportunity that Cannot be Missed
We consider 48North to be a differentiated opportunity and are favorable on this. The company cultivates high quality cannabis with unique genetics from the Netherlands.
A future-focused cannabis company with a strategy in place to leverage intellectual property and formulations to contract manufacturer for Canadian licensed producers and to work with US/global brands. There is an opportunity to partner with well-established contract manufacturers and CPG companies to create product build remarkable brands that resonate with key segments of cannabis consumers upon legalization of adult recreation in accordance with the Canadian Cannabis Act.
48North has been importing genetics from MariPharm B.V. and has purchased 6,650 seeds, representing 19 cultivars. The company has an exclusive partnership with MariPharm B.V., the first holder of a cannabis cultivation license in the Netherlands, and we are favorable on this relationship.
MariPharm B.V. has over 25 years of experience researching the application and effects of medical cannabis and has engaged in research partnerships with governments and universities all over the world.
Vertical Integration is a Key Value Driver
One of the most important aspects of the 48North story is related to the improved margins as a result of the company’s vertical integration. While most companies record an approx. 10% gross margin, 48North expects its gross margin to be closer to 40% as the company benefits from being a vertically integrated company.
This structure allows 48North to recognize more profit as it is able to lower operating costs and retain value. This is important and very beneficial for shareholders, especially as the company scales operations and expands its reach.
Listed on the TSX Venture Exchange: NRTH
In 2018, 48North has significantly strengthened its balance sheet and closed a $16 million private placement with Eight Capital Corp. earlier this year. The Canadian cannabis producer is well capitalized and has raised more than $40 million since inception.
On Monday, June 11, 48North commenced trading on the TSX Venture Exchange under the symbol NRTH and we are keeping a close eye on this opportunity.
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