During the gold rush most people did not make their fortunes mining for gold. The real winners during the gold rush were the people, like Samuel Brannan and Levi Strauss, selling the ancillary products to the gold miners (i.e. picks, shovels, clothing, etc.). There are many ancillary businesses are trying to capitalize on the green rush in Colorado. Today we are going to highlight some of the publicly traded cannabis companies focusing on the rapidly developing ancillary industry.
Surna, Inc. (SRNA)
Surna, Inc. (SRNA) is focused on developing innovative technologies and products that monitor, control or address the resource intensive nature of indoor cannabis cultivation. SRNA’s revenue stream is based on its main product offerings – supplying industrial technology and products to commercial indoor cannabis grow facilities.
Surna was founded in February 2014 and is based out of Boulder, CO. The company is led by a strong management team with a track record. Tom Bollich is the CEO of Surna and Tom was one of the co-founders of Zynga (ZNGA: NASDAQ). Surna’s goal is to provide solutions that improve the quality, the yield and the efficiency of indoor cannabis cultivation. The company does not produce or sell marijuana.
Recent News On Surna
January 12, 2015: Surna entered into two agreements with CWNevada, LLC. Surna agreed to provide and install a water chilled cooling system in two indoor cannabis cultivation facilities for $1,061,744.
January 9, 2015: Surna signed an agreement to acquire 66% Agrisoft Development Group, LLC, for $4 million. Agrisoft is a private company which is a leading software developer of seed-to-sale tracking systems for state regulated cannabis cultivation and distribution companies. Once the deal closes, SRNA will transfer over $2 million in common stock and $2 million in the form of a promissory note. The transaction is expected to close in the first half of 2015.
Two Rivers Water & Farming Company (TURV)
Two Rivers Water & Farming Company (TURV) acquires and develops irrigated farmland and associated water rights in the Arkansas River Basin in southeastern Colorado. The company owns approximately 7,465 gross acres of irrigable farmland. In May 2014 they entered the marijuana industry through the formation of a new subsidiary, GrowCo, which provides best in class infrastructure and irrigation for licensed marijuana growers.
Recent News On Two Rivers Water and Farming
January 20, 2015: Two Rivers Water & Farming Company (TURV) announced that its subsidiary, GrowCo, Inc., completed a $4.4 million equity financing. TURV will use the funds to acquire land and water, and build a greenhouse in Colorado that has been leased to a Colorado-licensed marijuana grower.
December 29, 2014: Two Rivers Water & Farming Company (TURV) announced that its subsidiary, GrowCo, Inc., commenced construction on its first greenhouse, which is leased to a licensed marijuana grower. GrowCo raised $3.5 million to finance the construction. TURV provided $1.5 million and the other $2 million was provided by outside investors.
American Cannabis Company (AMMJ)
American Cannabis Company (AMMJ) offers end-to-end solutions to existing and aspiring participants in the cannabis industry. The company provides business planning and market assessment services, assists with state licensing procurement, creates business infrastructure and operational best practices. The company operates two vertically integrated businesses, American Cannabis Consulting and Trade Winds Inc., a group purchasing organization, which supports their clients from concept to creation to commercialization.
Recent News On American Cannabis
February 5, 2015: American Cannabis Company announced that its client was granted two cultivation and processing licenses for the medical marijuana program in Illinois. AMMJ has secured merit based licenses for clients in CT, MA, NV, and MN.
January 19, 2015: American Cannabis Company entered into the deployment phase of its engagements with its clients in Nevada. AMMJ will assist in the design and build-out of the client’s cultivation, infused products processing and dispensary facilities.