The California cannabis market represents one of the most exciting opportunities for cannabis businesses and we have been closely monitoring the companies that are capitalizing on this burgeoning market.
Earlier this year, we published a report on Next Green Wave Holdings Inc. (CSE:NGW) (OTCQX:NXGWF), a fully licensed California cannabis company that is constructing two indoor facilities that have approx. 85,000 sq. ft. for cultivating premium cannabis. The company’s operations are completely integrated, which allows it to control the entire seed-to-sale process and we find this to be important.
Next Green Wave is in the early innings of a major expansion and plans to expand its facilities to 350,000 sq. ft., which would significantly increase production capacity and and as of recently has commenced cannabis cultivation. California is the world’s largest cannabis market and we are favorable on the company’s leverage to this opportunity.
We believe that this company has been flying under the radar and are of the opinion that this is an opportunity to be watching. Today, we have issued an update on the emerging California cannabis company after it reported several significant developments and we hope that you keep this company on your radar.
Cannabis Production In California Has Commenced
In mid-April, Next Green Wave announced that it had received its Occupancy Permit from the City of Coalinga. This is a game changer for Next Green Wave as they have immediately begun moving in over 10,000 plantlets to commence cultivation.
Upon commencement of the cultivation program, the company is expecting up to 50 yields per year. We are favorable on this as it will ensure the company is consistently generating revenue and meeting demand on a month over month basis.
The raw material and biomass grown from NGW’s facility will be used for extraction for downstream consumer products such as oils, waxes, tinctures and extracts for custom vaporizer products associated with the company’s WEARESDC partner brands and other licensed cultivators in the wholesale supply-chain.
We see this as a major catalyst for Next Green Wave, as this facility is expected to generate in excess of 9,000 pounds per year and create efficiencies across their supply chain for their partner brands.
*Actual NGW Clone Room
Major Milestone: PG&E Completes Electrical Installation
Earlier this month, Next Green Wave Holdings reported a significant development and announced that Pacific Gas & Electric (PG&E) has completed the electrical installation and connection to the transformer that is providing power to its 35,000 sq. ft. premium indoor facility as well as to the entire property.
Next Green Wave represents an emerging California cannabis company and we are favorable on the growth prospects associated with this market. One of the reasons we are excited about this opportunity is due to the amount of space it has to expand. The facility is located on a 15+ acre piece of property that is 100% owned by the company. This provides Next Green Wave with significant room to expand and to increase production capacity.
We are bullish on the growth prospects associated with this property and believe that the market underappreciates this opportunity for the company. As Next Green Wave works on increasing the size of its production footprint on this property, the value associated with this property will significantly increase and this represents a major opportunity for the company to create value.
Opportunities to be Watching
In late March, Next Green Wave launched its first pet product, Loki Love Biscuits, with a widely recognized brand partner, Loki the Wolfdog. The company’s first CBD and revenue generating product is now officially available for sale in the United States and we are favorable on this development.
During the last year, we have seen a significant increase in the number of pets that are benefiting from CBD products. We believe that this is a massive market opportunity and expect this trend to become more significant over the coming years. Loki represents a strategic partner due to the millions of followers that it has on its social media platforms and should provide significant exposure for the brand. We will monitor how Next Green Wave is able to capitalize on this opportunity and are favorable on the strategic partner that it has selected for this initiative.
This development comes only a few weeks after Next Green Wave signed a definitive agreement to acquire 100% of California-based SDC Ventures, a premium cannabis consumer products goods, manufacturing and extraction leader, having 8 leading cannabis brands with 45 CBD and THC products that have a combined global social influencer reach of over 25 million people and with 100+ million YouTube views.
The Loki Love Biscuits will be Next Green Wave’s first initiative associated with its plan bring more than 45 products to market through SD Cannabis. This represents a significant growth opportunity and we are monitoring how these products gain traction with the California market.
A Company Focused on Gaining Distribution
One of the most attractive aspects of the Next Green Wave story pertains to the amount of distribution that it already has in place. Although the company has not started selling products to the California market, it has the required infrastructure in place to do so and this is an important aspect of the story. Distribution is one of the most important areas for a company to be focused and we are favorable on the success that Next Green Wave has had when it comes to this side of the business.
During the last year, the management team has been laser focused on the distribution opportunity in California and we find this to be significant. The company plans to sell its products throughout the state and to contract with high quality licensed producers and processors that do not have a distribution license to package, market, transport and sell their respective products through its wholesale and retail network.
Next Green Wave is led by a management team that has had its finger on the pulse of the cannabis industry and we are favorable on the accomplishments to date. When looking at the California cannabis opportunity, we believe that the company is well positioned to be successful and this could prove to be a major growth driver for the long-term story.
Colombia Represents an Emerging Opportunity for NGW
One of the ways that Next Green Wave has been able to differentiate itself from the competition is through its focus on strategic markets. The company is one of the few cannabis businesses to have legitimate leverage to opportunities in both North and South America and we are favorable on this.
Earlier this year, Next Green Wave reported a significant development and announced a memorandum of understanding to make a strategic investment in Organic Medical Growth OMG3 Inc. (OMG), a Canadian based company with a wholly owned subsidiary, Proymed S.A.S., that is focused on the Colombian cannabis market. We are favorable on the Colombian cannabis market due to the attractive economics associated with cultivating cannabis in this region. This is a significant relationship and we are favorable on the leverage to the Colombian cannabis market. We will monitor how the company is able to execute on this opportunity and we are bullish on the growth prospects associated with it.
OMG is positioning itself to become one of the lowest cost producers of premium cannabis in Colombia and we are excited about this opportunity. Proymed is a medical cannabis company that is focused on producing and commercializing non-psychoactive CBD products derived from cannabis. Proymed is also finalizing its transformation and psychoactive licenses for THC products in Colombia as well as finalizing international distribution agreements. We are favorable on the growth prospects associated with this relationship and believe that it could prove to be a major value driver for Next Green Wave.
We believe that the investment could prove to be of significant value to Next Green Wave as OMG is actively pursuing an initial public offering (IPO) and is focusing on becoming a leading Colombian cannabis company. OMG has a defined strategic roadmap with a highly experienced management team. Key highlights from OMG’s unique offering include the following:
- Through Proymed, OMG has an exclusive offtake agreement to purchase the entire cannabis production of the Asomiravalle Norte Association. This association of 28 producers is located in the state of Valle Del Cauca. The association’s activities span across 100 hectares of land with the option to expand the production to 1000 hectares over the next 10 years.
- OMG has an exclusive distribution agreement with SALUTTI S.A.S. who owns 100% of ORTIX S.A.S., which gives OMG exclusive distribution to 7,000+ pharmacies in Colombia
- OMG is developing its distribution channels to export cannabis products to other international markets including Germany
An Opportunity that is Flying Under the Radar
2019 has already proven to be a banner year for Next Green Wave and we have just entered the second calendar quarter. We are excited about the recent developments and believe that the company has significant catalysts for growth. With PG&E completing the power installation at the California facility, Next Green Wave is one step closer to being able to sell products to the California market and this represents a major opportunity.
Although Next Green Wave has been a strong performer so far this year, the shares have come off its 2019 highs and this is an opportunity that investors should be watching. We are bullish on the California cannabis market and believe that the company has significant leverage to this market. We are also favorable on the recent expansion into Colombia and are excited about the Latin American cannabis market.
Over the next year, we expect to see Next Green Wave further advance its fundamental story and find the valuation to be very attractive when compared to its peers. We believe that the company is flying under the radar and that the market does not fully appreciate the growth prospects associated with this opportunity.
We believe that Next Green Wave has several avenues for growth and we are closely following this opportunity. To learn more about the company, please contact firstname.lastname@example.org.
Pursuant to an agreement between StoneBridge Partners LLC and Next Green Wave Holdings Inc. we have been hired for a period of 180 days beginning May 1, 2019 and ending November 1, 2019 to publicly disseminate information about (NGW) including on the Website and other media including Facebook and Twitter. We are being paid $7,000 per month (NGW) for or were paid “ZERO” shares of unrestricted or restricted common shares. We own zero (0) shares of (NGW), which we purchased in the open market. We plan to sell the “ZERO” shares of (NGW) 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 (NGW) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.