2022 has been a banner year for Irwin Naturals Inc. (CSE: IWIN) (OTC: IWINF) (FRA: 97X) and we expect the business to report several major developments before the end of the calendar year.
We believe Irwin Naturals represents a differentiated way to invest in the psychedelic and the cannabis sectors and consider this to be important based on the performance of these industries. Irwin brings something special to these emerging industries and that is because the brand has been a household name and best-in-class herbal supplement formulator since 1994.
Forms Strategic Partnership and Adds Human Capital to the Team
One of the most significant recent announcements by Irwin was the signing of a licensing agreement with Entourage Health Corp. (TSX-V:ENT) (OTCQX:ETRGF) (FSE:4WE), a Canadian producer and distributor of award-winning cannabis products. The exclusive arrangement will allow Irwin Naturals’ branded products to be sold in dispensaries across Canada and we are favorable on the diversity of products (from a type of cannabinoid in the formulations) that will be available to consumers. We expect the agreement to generate a significant revenue stream in 2023 and will monitor how the relationship evolves as a result of the partnership.
Another significant development for Irwin was the appointment of Adam Berk as President. Previously, we worked with Mr. Berk for several years while he was CEO of Stem Holdings and believe he is a strategic addition to the team. When compared with other executives in the cannabis and psychedelic sectors, we hold Mr. Berk in high regard and watched him execute on complex growth initiatives no matter what state of the cannabis industry was in.
We consider Irwin Naturals to be an attractive play on the cannabis and psychedelic industries. These two verticals are in the early innings of a hyper-growth cycle and are favorable on the brand awareness that Irwin already has. In 2018, the consumer packaged goods (CPG) company entered the cannabis industry through the launch of a hemp-based cannabidiol (CBD) product line and we are impressed with how the story has advanced since then.
Currently, Irwin Naturals’ portfolio of CPG products are available in more than 100,000 retail stores in North America. According to a formal company survey (sample size of 500 randomly selected adults), approx. 100 million people are aware of the Irwin Naturals brand and we consider this to be a major differentiator when compared to other cannabis and psychedelic brands on the market.
A US Expansion Story in the Making
A core growth initiative for Irwin has been the acquisition of ketamine clinics across North America. During the last year, the company has been nothing short of an execution story as it continues to add new locations to its clinic portfolio. We believe the market is assigning minimal value to this aspect of the story and want our readers to be aware of it.
Last week, Irwin completed the acquisition of a ketamine clinic in Vermont and this comes after it acquired five clinics in Florida, one in Iowa, one in New Hampshire and two in Georgia (which we will cover in detail shortly). The transaction is a testament to the management team’s ability to execute on an aggressive national clinic rollup strategy for Irwin Naturals Emergence.
A lot of effort has gone into discovering and acquiring ketamine clinics across the country and we are bullish on this vertical of the business. So far this year, Irwin has identified and vetted more than 600 independently owned and operated ketamine clinics in the US. The company is primarily interested in acquiring clinics which are profitable and demonstrate a high standard of patient care.
Earlier this month, Irwin acquired two more ketamine clinics in Georgia and continues to add to its rapidly growing national chain of psychedelic mental-health facilities. The clinics offer ketamine-assisted therapy, hydration via IV infusion, as well as NAD+. The acquisition of these clinics provides further evidence that Irwin is executing on a strategy to have a first mover advantage.
An Undervalued Growth Story
Although the market does not seem to value these advancements, we expect this dynamic to change as the management team continues to execute and drive this part of the story forward. Irwin is one of the best-known nutraceutical brands on the market and we believe the business is significantly undervalued.
Following the addition of Mr. Berk, we believe Irwin is better positioned to capitalize on core growth projects. We classify the business as an operator with significant growth catalysts and find the risk-reward profile to be attractive.
We are of the opinion that Irwin is in the early innings of a major growth cycle and are bullish on the verticals the business is leveraged to. The focus on strengthening the management team will play a key role in the success of the brand and we want our readers to be aware of a story that is flying under the radar.
If you are interested in learning about Irwin Naturals, please send an email to email@example.com with the subject “Irwin Naturals Is Flying Under The Radar” to be added to our distribution list.