1.42%)
-14.97%)
Back
4 MIN READ
2022 has been a volatile year for global markets and the cannabis sector was not immune to the weakness.
From rising tension between Russia and Ukraine to a spike in the number of people with COVID, the pressure was caused by a variety of factors. Although we are concerned with some of these risks, we believe the weakness in the cannabis sector is transitory.
During the last year, the US cannabis industry has recorded incremental growth and the opening of new medical and recreational cannabis markets has played a major role in how the industry has advanced.
Last month, we analyzed a basket of US multi-state operators (MSOs) to determine the businesses that have the most significant growth prospects and have a favorable risk-reward profile. When it comes to US cannabis operators, we are most bullish on the companies that are levered to limited license recreational cannabis markets like Nevada, Illinois and Michigan.
Body and Mind Inc. (CSE: BAMM) (OTCQB: BMMJ) is a US MSO that we identified as an underappreciated and misunderstood growth story. The company is led by a management team that has been flawlessly executing on a low-cost vertical integration expansion strategy. With leverage to five states, we believe that Body and Mind is levered to some of the most attractive markets is the US and are especially excited about its operations in California, Michigan, and Nevada.
Last week, the diversified MSO reported a major milestone and completed the first stage of its vertical expansion strategy in Michigan. We are bullish on the opportunity in Michigan and have been impressed with how the market has grown since the opening of the recreational cannabis market.
Another key milestone that was reported by Body and Mind is related to the approval to open a Body and Mind branded dispensary in Muskegon, Michigan. With the dispensary operational, we expect the company to report strong revenue growth in future quarters and expect Michigan to support the advancement of the business.
The Company, through its wholly owned subsidiary, has received all licenses and approvals and opened the Body and Mind branded dispensary on February 2, 2022 to serve medical patients and recreational customers in Muskegon, Michigan.
According to the Michigan Marijuana Regulatory Agency, the state generated $1.79 billion of cannabis sales in 2021. We are impressed with the growth when compared to 2020 and expect the state to continue to report strong revenue growth this year.
A Company with Catalysts for Growth
Body and Mind has started to execute on a previously announced two phase vertical growth strategy in Michigan. As part of the strategy, the company is constructing a fully funded 57,000 square foot cultivation and production facility. Once the facility is completed, Body and Mind will be able to bring it’s award winning cultivation experience to capture additional market share in Michigan and are bullish on this aspect of the story over the long-term.
Another important development that was recently reported by Body and Mind is related to the completion of the rebranding process for its Long Beach dispensary. The company also started to manage a fully operational dispensary in Seaside, California in late 2021 following completion of a definitive agreement, and we are favorable on this. We remain bullish on the California market and expect the company to report strong revenue growth from it.
With leverage to Nevada, California, Arkansas, Ohio and Michigan, we believe Body and Mind has substantial growth prospects and is trading at a discount to other US MSOs. We are of the opinion that the business is in the early innings of a major growth cycle and are favorable on how the management team continues to execute.
During the last year, the management has executed on previously announced growth initiatives, and we are favorable on how the story has advanced. We are of the opinion that the market is not assigning much value to the potential growth catalysts that are associated with the business and consider Body and Mind to be an operator to be aware of.
If you are interested in learning more about Body and Mind, please send an email to support@technical420.com with the subject “Body and Mind” to be added to our distribution list.
For the fastest access to data on Body and Mind, sign up for our free newsletter!
Pursuant to an agreement between StoneBridge Partners LLC and Body and Mind Inc. we have been hired for a period of 90 days beginning October 1, 2021 to publicly disseminate information about (BAMM) including on the Website and other media including Facebook and Twitter. We are being paid $5,000 per month (BAMM) for or were paid “ZERO” shares of unrestricted or restricted common shares. We plan to sell the “ZERO” shares of (BAMM) that we hold during the time the Website and/or Facebook and Twitter Information recommends that investors or visitors to the website purchase without further notice to you. We may buy or sell additional shares of (BAMM) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.
All good -- no spamming here.
Get the Latest Cannabis News & Stock Picks.
Comments