One of the most exciting verticals within the legal cannabis industry has been the burgeoning cannabidiol (CBD) market and this is a trend that we expect to continue.
When it comes to CBD, we are seeing reform on a global level and this represents a significant opportunity for companies that have been focused on this market. We have been closely monitoring the CBD opportunity and have been targeting companies that have been executing on this market.
Earlier this year, we issued an update on Integrated Cannabis Company, Inc. (ICAN.CN) (ICNAF) which has been capitalizing on the burgeoning CBD market. The company has been offering premium CBD products through its X-Sprays product line and has been successful in its efforts so far.
Through strategic relationships, Integrated Cannabis Company has significantly expanded its reach and is well positioned for growth in 2019. Today, we have issued an update on emerging CBD opportunity and will be monitoring how the team executes from here.
Secures Strategic Partner to Sell CBD Products at the X Games
In late November, Integrated Cannabis Company in regard to its X-Sprays product line and made a significant announcement and partnered with New Age Brands’ (NF.CN) (NWGFF) subsidiaries (We Are Kured, and Drink Fresh Water) to bring an innovative CBD concept to the Colorado X Games in late January.
Less than one-week before this announcement was made, the City of Aspen approved the first ever CBD pop-up retail store in their city limits. Kured, Fresh Water and X-Sprays are approved to sell their products to consumers (over the age of 18) out of the Bootsy Bellows event center in the heart of Aspen, Colorado.
Demand for CBD products continues to increase, and many consumers are interested in learning about CBD based products. The companies are combining their resources for this event and will have staff available to educate tourists, locals, X-games athletes/staff and entertainers from around the globe.
This is a massive event and a great place for the company to gain exposure for its X-Sprays product line. The companies will be offering a product that is very different from other exhibitors at the event and we think this will benefit the company. Teaming up with a strategic partner like New Age Brands significantly improves Integrated Cannabis Company’s presence and resources for this event and we are monitoring how the team executes on this.
Finding Synergies Via its Relationship with Empower
Last month, Integrated Cannabis Company completed a definitive agreement to distribute X-SPRAYS products throughout the clinics and doctors’ offices of Empower Clinics (EPW.CN) (EPWCF), a leading owner and operator of medical cannabis and wellness clinics in the United States.
Integrated Cannabis has also received its initial purchase order from Empower for a selection of X-SPRAYS products. Empower has more than 25,000 patients under care across 15 locations with medical cannabis treatments in Oregon, Washington and Illinois. In addition, Empower has an historical patient database of which exceeds 120,000 in the three states.
Empower has been focused on expanding its reach and recently opened its flagship Chicago clinic. This is a strategic relationship for Integrated Cannabis Company and we are bullish on the growth prospects going forward. Both companies are laser focused on growth and we expect to see more synergies created through this relationship going forward.
Attractive Leverage to the United States
Integrated Cannabis has several catalysts for growth and we are favorable on the leverage to the Colorado market in the United States. In September, the company announced the completion of a market ready Tetrahydrocannabinol (THC)-infused spray product and has the licenses required to manufacture the product in Colorado.
This was a major milestone that comes after almost a year of hard work and we are favorable on the continued execution. Integrated Cannabis executed flawlessly on this and was able to successfully gain licensing and approvals for facilities that manufacture CBD- and THC-infused products in Colorado.
In order to gain these approvals, the company had to complete the build out of a commercial kitchen adjacent to a licensed medical and recreational extraction lab, secure a high-quality CBD and THC source from licensed suppliers, complete process validation with the Colorado Marijuana Enforcement Division (MED), receive shelf stability approval throughout the state and in Denver, and receive approval to sell CBD and THC formulated products throughout Colorado (only awaiting approval in Denver).
A Company Worth Watching
Although Integrated Cannabis Company has significantly advanced its fundamental story, the shares have been under pressure and trading lower with the market. The shares have come well off its recent highs and this is a stock worth watching.
The CBD opportunity is massive and has been gaining significant traction in countries all over the world. Integrated Cannabis Company has been laser focused on the CBD opportunity in the United States and we are favorable on the leverage to Colorado. The name of the game going forward is execution and we think the company is well positioned to do so.
With 2018 coming to a close, Integrated Cannabis Company is well positioned for growth going forward and will benefit from its strategic relationships. To learn more about this opportunity, please reach out to firstname.lastname@example.org.
Pursuant to an agreement between StoneBridge Partners LLC and Integrated Cannabis Company we have been hired for a period of 180 days beginning October 4, 2018 and ending March 4, 2019 to publicly disseminate information about (ICAN) including on the Website and other media including Facebook and Twitter. We are being paid $6,500 per month for a period of 6 months. We own zero shares of (ICAN), which we purchased in the open market. We plan to sell the “ZERO” shares of (ICAN) 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 (ICAN) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.