WHITEFISH, MT / May 29, 2014 / The U.S. medical and recreational cannabis industry is expected to
become a multi-billion dollar market over the coming years. With medical
legalization in over 20 states and recreational legalization in two
states, the U.S. is leading the world in liberalization of cannabis laws
to lower crime and increase tax revenue. These trends are quickly
catching the attention of investors in the space.
Interactive Health Network Inc. (OTC: IGRW) develops high quality nutraceuticals and lifestyle products with a focus on the medical cannabis market. Through Here We Grow Stores and BIOTEL,
the company has become a national leader in the retail of horticulture
supplies and cannabis services with locations in states like Colorado
and an e-commerce platform that enables it to sell nationwide and
Investors may want to take a closer look at the stock given its
unique fully integrated approach and existing revenue base. In the
rapidly growing cannabis industry, Interactive Health Network offers an
alternative to pharmaceutical plays like GW Pharmaceuticals plc (NASDAQ: GWPH), or to companies targeting cultivation, either under Canada’s new MMPR licenses, like Creative Edge Nutrition Inc. (OTC: FITX), or in select U.S. locations, like Terra Tech Corp. (OTC: TRTC).
HWG & BIOTEL Acquisitions
Interactive Health Network began its foray into the cannabis industry with the acquisition of Here We Grow Stores
in April 2014. With approximately $750,000 in annual revenues, the
hydroponics retailer has developed a store concept that demonstrates the
equipment, nutrition, and techniques used in growing medical and
recreational cannabis plants both at home and commercially.
The existing revenue sets the company apart from others in the
industry trying to target the same hydroponics retail space. For
instance, Greengro Technologies Inc. (OTC: GRNH) announced the opening
of its first and second brick-and-mortar retail locations under the Vertical Hydrogarden brand name, which it anticipates will serve as proof-of-concept for a larger scale rollout in the future.
In a recent CannabisFN interview, Interactive Health Network EVP
of Marketing Cesar Vazquez discusses the company’s integrated approach
in the emerging legal cannabis sector.
CannabisFN Executive Interview | Cesar Vasquez, Executive Vice President of Marketing for Interactive Health Network (IGRW) from TDM Financial on Vimeo. https://vimeo.com/96695314
In May 2014, the company announced the acquisition
of BIOTEL, a managed service provider in the legal cannabis market that
is expected to generate about $1 million in annual revenue beginning in
2014. As its second acquisition in the cannabis space, the move helps
expand its footprint and establish itself as a product and services
provider to the medical and recreational cannabis markets.
These two businesses combine to provide exposure to both the products
and services needed within the medical and recreational cannabis
industry. With over 1,000 customers and 100 medical cannabis stores
signed up with HWG, the company has a unique opportunity to leverage the
synergies between these businesses to unlock long-term value for
shareholders over time.
The businesses also supplement the company’s existing nutraceuticals
business, focused on advances in health and anti-aging supplements. With
a product line-up created by UCLA scientists with over 20 years of
research, the company’s Wellness Builder division
focuses on fucoidan-based formulas that are intended to address the
needs of individuals suffering from degenerative diseases syndrome.
Growth Potential Ahead
Interactive Health Network plans to grow revenue
by expanding its brick-and-mortar footprint, building out its
e-commerce presence, and introducing new products into the market. After
building a retail showroom and becoming a top five Colorado retailer in
2013, management has been successful in executing its business plans to
The company recently established an e-commerce website at http://www.herewegrowstore.com/
to sell its products throughout the U.S. and internationally, while
establishing EBay and Amazon stores to broaden its distribution. Social
media and other advertising will help expand sales through these
distribution channels over time.
In the near future, management also plans to expand its locations
into the City of Aurora near Denver, Colorado, as well as in other
states like Arizona, Michigan, and Washington State. The company’s
turnkey 2,000 to 3,000 square foot locations make expansion a relatively
simple process after establishing its initial show room in Colorado
that served as a critical proof of concept.
Finally, management plans to grow its store brands by establishing
its own product lines that are manufactured in China and imported into
the U.S. These products are anticipated to include things like hoods,
ballasts, fans, bulbs, nutrient lines, and other components commonly
used in hydroponics. By establishing its own brands, the firm hopes to
realize higher margins and customer loyalty long-term.
Interactive Health Network has made significant progress in improving
its financial condition and transparency. In May, the company announced
that it was undergoing an audit to become a fully reporting company on
the OTCQB by the fourth quarter of its fiscal year ended September 30,
2014. The move to become more transparent should help improve
shareholder value by reducing risk and uncertainty.
Soon after, the company announced
that it also canceled 1.25 billion shares of stock, reducing its shares
outstanding by more than 23%. Management indicated that the
cancellation would be the first of three large cancellations of common
stock that would be returned to the treasury. The cancellation of stock
helps improve shareholder value by reducing dilution and increasing
To learn more about Interactive Health Network 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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