WHITEFISH, MT / May 29, 2014 / The cannabis industry is a highly fragmented space right now, with companies like GW Pharmaceuticals plc (NASDAQ: GWPH) studying CBD’s clinical potential, companies like Tauriga Sciences, Inc. (OTC: TAUG) exploring currently-legal topical medicinal products, companies like GreenGro Technologies Inc. (OTC: GRNH) focused on ancillary markets, and companies like Tweed Inc. (TWD:TSV) selling medical marijuana under Canada’s new Marihuana for Medical Purposes Regulations ("MMPR").
Given the regulatory uncertainty and early-stage nature of the
industry, many investors are looking for diversified investments that
might be less risk. Canadian MMPR growers face the risk of greater
competition that could lower prices, while any companies in the U.S.
industry run the risk of regulatory crackdowns, given that cannabis
remains a Schedule 1 Controlled Substance under federal law.
In this article, we’ll take a look at a diversified company called Affinor Growers Inc. (OTC: RSSFF) (AFI:CNX) that
could mitigate some cannabis-related risk with its commercial crop
production focused on eco-friendly agriculture. The company’s
cutting-edge vertical farming technology is ideally suited for
mass-producing foods with the highest quality - including both cannabis
and more traditional crops.
Exposure to Cannabis
Health Canada estimates that the number of consumers with medical
cannabis licenses will increase almost ten-fold over the next decade to
about 309,000 as greater evidence supporting its efficacy drives doctors
to write prescriptions. These dynamics could drive the legal cannabis
supply industry to $1.3 billion per year by 2024, according to the
government organization’s estimates.
Affinor Growers set out to "consolidate fragmented [cannabis] growers and work with dispensaries" to obtain MMPR licenses in April of 2014. These efforts resulted in the May 9th acquisition
of a private company that’s in the “final stages” of becoming a
Licensed Producer under Canada’s MMPR. Notably, the equity deal is
largely contingent on the company successfully acquiring an MMPR
In a recent CannabisFN interview, Affinor Growers Chairman Nick
Brusatore provided a corporate overview, discussing both the cannabis
and the food production opportunities in front of the company.
CannabisFN Executive Interview | Nick Brusatore / Chairman of Affinor Growers from TDM Financial on Vimeo. https://vimeo.com/96610321
With its proprietary technology and connected management team, the
company is uniquely positioned to capitalize on the burgeoning cannabis
market. Management believes that the Canadian market will eventually
trend towards recreational legalization and legalized exporting, which
could open the door to significantly greater market opportunities over
the coming years.
Not Just Cannabis
Affinor Growers sets itself apart from other aspiring Canadian MMPR-focused firms, like Creative Edge Nutrition Inc. (OTC:FITX) and Medican Enterprises Inc. (OTC:MDCN),
with its plans to grow other crops like strawberries and lettuce.
Leveraging its experience and vertical farming technology, the company’s
management believes it will be able to produce the crops at a
competitive price and quality.
The company’s proprietary vertical farming technologies control
precise combinations of light, temperature, water, and nutrients to
create specific growing conditions that result in optimum crop
production, product quality, and shelf life. Management believes that no
current growing methods compare to its software-driven automation
technology, including its mechanically pollinated strawberries.
The market for strawberries, lettuce, and other crops is even larger
and growing, with a lack of domestic suppliers. According to the
co-authors of the 100-Mile Diet, the average meal travels 1,500
miles from producer to plate. Canada may be home to some of the best
organic berry-growing conditions in the world, but its short growing
season has created a strong demand for vertical farming technology.
Affinor Growers has an experienced management team consisting of
medical and business professionals led by CEO Sebastien Plouffe, as well
as a strong executive team, Board of Directors, and Advisory Board. The
team has been very successful in the past with the ability to execute
on vertical farming and agricultural business, while its advisory board
has significant scientific experience in the area.
Tegan Adams joined the team as COO with over ten years of experience
teaching topics like operational and producer sustainability and helping
Canadian municipalities integrate different control mechanisms. Greg
Dennison joined the team as CFO during the same month after leading the
financial side of many business ventures in the vertical farming
Nick Brusatore started on the company’s Advisory Board as a top
designer and leader in vertical farming technology with over 14 years of
experience in AGRI Designs, plant physiology, and organic chemistry to
the company. He has recently been appointed the Executive Chairman of
the Board of Directors.
Mitigating the Risk
Affinor Growers intends to leverage its unique expertise and industry
connections to capitalize on both of these market opportunities. As a
result, investors benefit from exposure to the burgeoning cannabis
industry without as much direct risk given that revenue could be derived
from its other divisions. The diversification could deliver preferable
risk-adjusted returns if management executes on its plans.
To learn more about Affinor Growers and receive ongoing updates, please visit:
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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