How to Invest in American Cannabis Dispensaries through the Canadian Bioceutical Corporation (CSE: BCC) (OTCBB: CBICF)
Investing in American Cannabis through a Canadian Cannabis Company
There are a lot of new cannabis markets opening up next year.
One will be in Massachusetts, where last year voters approved a measure to legalize adult-use cannabis.
While Massachusetts may not be as big as California or Colorado – two of the biggest cannabis markets in the U.S. - it actually offers a lot more opportunity if you can get in early.
You see, what makes the Massachusetts cannabis market so potentially profitable is that the state’s licensing system is incredibly restrictive.
Today, only nine dispensaries are operational in Massachusetts. There are more coming, but the Bay State plans to cap the number of dispensaries at about 75. That means, those operations that are already licensed enjoy a huge advantage over newcomers.
Now while there is no direct way for investors to play the Massachusetts cannabis market, there is a way to get a piece of this action through the back-door, by way of a Canadian cannabis company called the Canadian Bioceutical Corporation.
The Canadian Bioceutical Corporation (CSE: BCC) (OTCBB: CBICF)
The Canadian Bioceutical Corporation, through its wholly owned U.S. subsidiaries, provides management, staffing, procurement, advisory, financial, real estate rental, logistics and administrative services to two medicinal cannabis enterprises in Arizona. While the company does not directly own, possess or sell cannabis or cannabis-infused products, it does provide substantial support and exerts considerable influence over these two businesses , which are legally authorized to sell medical cannabis and derivative products.
BCC has a nice little gig going with its Arizona operations, but it was never enough to get me excited about the company as an investment. That all changed, however, when I learned that BCC signed an LOI to acquire a 51% interest in IMT, LLC, which is a Massachusetts-based cannabis company with some very healthy assets, including cultivation, production and retail dispensary licenses.
IMT also has a 40,000 square foot property that is licensed and zoned for the cultivation of cannabis and the production of derivative products, such as concentrates and edibles. The license allows for the establishment up to three dispensaries, subject to local zoning and permitting.
One permit has already been granted, and allows a dispensary use co-located with the company's cultivation and production facility currently being completed in Fall River, Massachusetts. The company also has two additional permits for dispensaries that are currently under application.
Now the way it works is that IMT is actually building a facility to lease to CannaTech Medicinals, which is a non-profit medical company that can directly cultivate, produce, own, possess and sell cannabis and cannabis-infused products.
That facility is expected to begin production in January, 2018. At full capacity, it will be able to produce about 2.25 million grams of high-end cannabis and 500,000 grams of high-margin concentrates. It also includes an on-premise dispensary.
Heading to Sin City
In addition to BCC’s exposure to the Massachusetts market, the company also recently announced that it acquired 100% interest in GreenMart of Nevada. This is a licensed cultivator and producer in Las Vegas.
With this acquisition, BCC now has access to the Las Vegas adult use market, which enjoys more than 42 million annual visitors. It’s also an excellent market for legal cannabis investors. After all, annual legal cannabis sales in Nevada are expected to grow at a compound annual growth rate of 51% to an estimated $630 million by 2020.
While BCC is a penny stock, it does have a lot of potential to do great things this year. Keep it on your radar.
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