2018 brought us legal recreational marijuana throughout Canada, legalization of medical cannabis in New Zealand, de-scheduling of industrial hemp in the U.S. via the Farm Bill, more U.S. states legalizing medical (now 33 in total plus D.C.) and recreational (10 states plus D.C.) cannabis and much more that further legitimized the industry. According to the latest Gallup Poll, two in three Americans now supports legalizing marijuana, the highest level ever for advocacy.
It seems that the tailwinds for the industry continue to blow mightily. With this rapid growth, companies worldwide are looking to get a piece of the burgeoning market. As many have found out in recent years, though, it isn’t as simple as just putting some seeds in a row of planters. It’s big business that will get much, much bigger and it takes a great deal of knowledge and experience to avoid what could be disastrous pitfalls to upstarts.
From its headquarters in Denver, Colorado, Medicine Man Technologies (OTCQX: MDCL) is there to provide consult for companies across a full menu of topics. A la cart or comprehensive services are offered depending on exactly what the client needs, covering everything from obtaining a license to standard operating procedure for handling a retail customer and everywhere in between. For some, the company has come in and effectively turned-around a stumbling grow operation with its program called “Cultivation MAX.” With this program, the company looks to replicate its own grow success, showing the client the intricacies necessary to have a repeatable, successful harvests.
To help with that matter, the company offers Success Nutrients®, a nine-product nutrient line with the needed ingredients to simultaneously maximize per-foot flower yield and growth of the highest quality flowers.
The company has deep experience throughout the entire supply chain, including parent company, Medicine Man Denver, being the largest cultivation/retail facility in Colorado. The parent company has been operating in the cannabis industry for a number of years, amassing the intellectual property, technology and experience to help others achieve success. To that end, Medicine Man Technologies operates in several capacities, namely licensing its technology and operating as a cannabis consulting outfit, with investors, legal and licensed commercial cultivation and dispensary operators and new companies looking to participate in the cannabis industry.
The company works with, or has worked with, clients in California, Iowa, Oregon, Colorado, Nevada, Illinois, Michigan, Arkansas, Pennsylvania, Florida, Ohio, Maryland, New York, Oklahoma, Massachusetts, Puerto Rico, Canada, Australia, Germany, and South Africa. Last summer, Medicine Man Technologies granted Canada House Wellness Group (CSE: CHV) exclusive licensing rights to its IP and products lines (Three a Light® and Success Nutrients®) for the Canadian marketplace, along with assignment of an existing Cultvation MAX agreement to Canada House in exchange for an initial payment of C$4.65 million in cash and stock and future fees based on revenue in Canada.
The Master License Agreement was a boon to the company’s financial performance in the quarter ended September 30, 2018 and for the year-to-date figures, with total income from January through September totaling $9.92 million and net profit coming in at $5.16 million, or 19 cents per share. It’s worth noting that while the license agreement certainly was material, organic growth was strong also. For the nine-month period, organic revenue was $3.78 million, up from $2.49 million in the year prior period.
These developments, along with a new Chief Operating Officer, Joe Puglise – the former President of New York properties for iHeartMedia – and what looks to be a general revitalization of so-called pot stocks recently, should have the investment community watching for what the market has to offer in 2019 and the continued evolution of Medicine Man Technologies.
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