ABcann Goes from RTO to $43 Million in Cash in 3 Months
August 03, 2017 09:00 ET
SEATTLE, WA--(Marketwired - Aug 3, 2017) - CFN Media Group ("CannabisFN"), the leading creative agency and digital media network dedicated to legal cannabis, announces the publication of an article discussing ABcann Global Corporation's (TSX VENTURE: ABCN) (OTCQB: ABCCF) tremendous progress from its reverse takeover transaction in May to having $43 million in cash now (with a market cap of about $90 million), and where the company is headed over the coming quarters.
High Quality Product
ABcann has spent considerable resources on developing consistent pharmaceutical-grade products that are organically grown without pesticides. This avoids many of the recall issues that other licensed producers have experienced involving the use of banned pesticides. At the same time, the company's $1.5 million, three-year investment in research and development has helped it double industry average yields to cultivate products at a very low cost per gram.
In a recent conversation ABcann CEO Aaron Keay said, "We have spent years mastering our proprietary growing techniques to avoid the use of pesticides. This has led to a repeatable, standardized product the public can trust. Not only that, as our reputation grows in the patients' eyes the word has spread to where we will be expanding our business -- globally. Our dedication to provide a pesticide free, organic, standardized product has resulted in inquiries from industry leaders, competitors, celebrities, and governments."
The high yields of pesticide free, standardized product are especially important when comparing various licensed producers. Production capacity is of course an important metric, and ABcann's proprietary growing methods mean that the company can get much more product out of much less space. Additionally, sizable recalls due to pesticides have impacted several producers' bottom lines, but ABcann removes that possibility by using no pesticides at all.
Rapid Expansion Strategy
ABcann is investing the cash on its balance sheet into an ambitious expansion strategy, which should limit shareholder dilution and accelerate its growth rates. With its proprietary growing technique, the company is in a great position to deploy capital and production knowledge on a massive scale, while competing on both price and quality.
On July 26, the company confirmed that plans to commence construction at its Kimmett facility in the third quarter remain on track and the previously announced plans for a 71,000 sq. ft. Phase I plan have been expanded to 100,000 sq. ft. The company also announced an immediately expansion and construction effort at its production facility in Vanluven to double production capacity and serve its growing patient base on an expedited timeline.
The company believes that its $43 million cash position will be sufficient to complete both the Phase I 100,000 sq. ft. Kimmett facility and the expansion at Vanluven. The Vanluven expansion should begin producing results in Q1'18, while the Kimmett facility should come online by Q4'18. The near-term revenue from these expansion efforts should be sufficient for financing future expansion efforts as recreational legalization goes into effect next year.
Please follow the link to see the interview and read the full article: http://www.cannabisfn.com/abcann-goes-rto-43-million-cash-3-months/
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