WHITEFISH, MT / May 21, 2014 / Abattis Bioceuticals (OTC: ATTBF) (CSE: ATT) has put together a full-spectrum platform approach to the rapidly evolving North American medical/recreational marijuana space, from standalone production systems and raw material sourcing via licensed producers (including making use of leaf/stem waste streams) to proprietary next-gen extraction and refinement techniques, as well as product formulation and even a comprehensive sales strategy that maximizes end-market engagement. This overall platform has widespread traction across the pharmaceutical and nutraceutical sectors, in addition to growing side markets like flavorings, functional foods and supplements; even cosmetics and animal nutrition become natural endpoints. The "GDERS" (Grow, Dry, Extract, Refine, Sales/Science/Sustainability) engine grants ATTBF spin-up momentum and staying power when it comes to capitalizing on the continued trend towards marijuana legalization across the U.S. and for medicinal use in Canada.
An information graphic outlining the Abattis GDERS Model can be accessed here:
Starting with the proprietary Controlled Cultivation Environment™ (CCE) capabilities of ATTBF's wholly-owned Biocube Green Grow Systems Corp. subsidiary, where the company has engineered a growing environment that enables 24-7-365 growing anywhere in the world. The unique mass plant cultivation systems are scalable, as well as stackable and are ideally suited to maximizing yields and quality in an indoor pharma-grade production environment, with the added benefit that they can also be licensed to companies that join ATTBF's North American supplier network. The fully automated CCE systems are also perfect for boutique-packaged, pesticide-free organic herbs, fruits and vegetables, featuring touch screen/software-based air-flow, irrigation, lighting and sensors. Such systems allow small producers to ramp up their logistics and generate revenue ahead of regional momentum on legalization, spurring the industry forward. These attributes could help commercial growing operations, like Creative Edge Nutrition Inc. (OTC: FITX) or Tweed Marijuana Inc. (CVE: TWD), improve their yield.
The CCE technology dovetails exceptionally well with ATTBF's supply aggregation strategy and the recent 25% share exchange between Northern Vine Canada, Inc., the company's subsidiary focused on processing, testing, packaging and shipment of pharmaceutical grade drugs (including cannabis and cannabis-derived products), and Experion Biotechnologies Inc. opens up a considerable supply line on its own. Experion almost has their hands on the Marijuana for Medical Purposes Regulations (MMPR) license from Health Canada (currently licensed under MMAR Medical Access Regulations) and this deal also makes available to Northern Vine a portion of Experion's 10-acre site in Mission, B.C. for expanding their cultivation and processing needs. Similarly, MMPR license applicant, iJuana Cannabis, Inc., in Squamish, B.C. is also on board to fill a Licensed Producer (LP) role for the company's supply line.
Northern Vine has only two remaining items left before they get their Controlled Substance License (CSL) with Health Canada, which will provide them with the ability to import, export and handle controlled substances. Further strengthening this position, Abattis's recent acquisition of a 51% controlling membership interest in Phytalytics, LLC, which set the standard for Good Laboratory Practice in the cannabis testing space, opens up a strong secondary revenue stream via Certificate of Analysis testing services for LPs. Phytalytics' PhytaLab has a forthcoming license under Washington State Liquor Control Board (WSLCB) that will allow for government-mandated cannabis and derivatives testing (as per the 2012 Washington Marijuana Legalization and Regulation, Initiative 502) to be rolled out in conjunction with the building of a broader network of suppliers and dispensaries in the U.S. Northern Vine's ability to act as a lab and compounding pharmacy is further enhanced by their library of patented compositions, as well as Natural Health Product licenses targeting the nutraceutical space, and the subsidiary will continue to advance an evolving lineup of patentable creams, sprays and tinctures as well.
At the core of the entire ATTBF infrastructure is a $13M, 20k square foot, pharmaceutical-grade gCMP/FDA botanical drug facility leased by wholly-owned subsidiary, BioCell Labs, Inc., for which an MMPR application has already been filed. This facility already has all the water extraction and freeze drying hardware needed for production and currently produces a supra-molecular phytocompound complex of pigments, proteins and lipids (using organic baby spinach as source biomass) used in an extract with powerful anti-inflammatory properties (PUR0110). The facility is currently active doing botanical drug science, as well as distribution of pharma-grade ingredients and finished products, making it a perfect place for the company to set up shop. Northern Vine's CSL and sub lease at the facility leased by Biocell Labs will allow a sub contractor relationship, with water extraction and FFE services provided by Biocell.
BioCell currently houses 13 proprietary formulations that can be out-licensed, as well as a series of key domain names and mobile apps that will speed the roll out of their products, including bioceuticals and services. A key component of the ATTBF strategy is to also collect LP waste streams (leaves and stems) and use their proprietary processing techniques to create a batter that is then turned into standardized wet and dry ingredients, as well as a bulk sale material for tea (stems). This strategic component has premium economic upside and long-term growth potential, giving the company capacity to generate saleable products and nutraceuticals from what is generally discarded by the cultivation industry. Ultimately, these products could provide upside similar to other companies in the medical space, like GW Pharmaceuticals plc (NASDAQ: GWPH).
The company's overall supply line aggregation strategy is focused on capturing more and more exposure to LPs throughout North America and this huge, rapidly growing cultivation vector is anticipated by Health Canada to reach $1.3B in the next ten years for the MMPR LPs alone. A key play here is the company's wholly-owned retail arm for Canada and Washington State, North American Bioextracts, Inc. (NABE), which is poised to supply the expansive vaporizer cartridge refill markets, is an obvious endpoint for the company's cannabis and cannabis derivatives.
ATTBF has devised an intelligent approach to capturing as much of the cannabis market as possible, with a back-end payment processing solution that could also become the minimum standard for dispensaries worldwide, appealing to all parties, from dispensaries and patients, to regulators. The recent 34% acquisition (option to acquire 50%) of Instant Payment Systems, LLC sets ATTBF up for deploying a branded card and mobile app-enabled system that is secure and functions much like a gas card. Loadable cards remove the risk for dispensaries of having cash on hand, while also allowing for comprehensive digital analysis of per-patient quantities dispensed, eliminating concerns over medical marijuana patients reselling cannabis into the black market and also giving ATTBF access to a rich data mining target that can be resold. Easy for the consumer to use, such a card and app-driven solution is beneficial to the consumer from an ease of use standpoint, but also gives regulators a comprehensive model that they can latch onto, further accelerating the already dominant trend in the U.S. of marijuana legalization for medical, as well as recreational use.
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Except for the historical information presented herein, matters discussed in this release contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Emerging Growth LLC may be compensated for its services in the form of cash-based compensation or equity securities in the companies it writes about, or a combination of the two. For full disclosure please visit: http://www.cannabisfn.com/legal-disclaimer/
SOURCE: Emerging Growth LLC
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