PotStockNews caught up with Vancouver-based, US-facing cannabis investment company Chemistree Technology Inc. (CSE:CHM) (OTCQB:CHMJF) to get some insight into what the company is all about and why investors should be watching.
Click below to watch the Chemistree Technology Inc. introduction video.
Originally focused primarily on the market in Washinton state, Chemistree Technology has begun expanding through California and beyond. The company has a clear approach when it comes to investment opportunities by helping clients with cannabis brand recognition and is always seeking unique investment opportunities in the cannabis industry in the US.
"We have been focused on Washington state primarily with a cultivation facility that we own the assets of," explains Chemistree President and CEO Karl Kottmeier. "We have also expanded now into California. Northern California initially with a processing facility that we are partners in and we have now moved into southern California where we are developing a large cultivation facility."
Chemistree Technology's Sugarleaf Brand
As mentioned, Chemistree Technology is continually expanding its brand portfolio through strategic acquisitions. Sugarleaf is one of the brands the company acquired when it moved into Washingtom state.
"It's got a beautiful look, it's got a great name," said Kottmeier. But that's not all Sugarleaf has to offer. It also has 14 different strains of premium cannabis for sale across Washington state. Chemistree Technology is currently in the process of expanding the brand into the California market.
The company has been granted a conditional use permit by the City of Desert Hot Springs for its 9.55-acre property, which encompasses cultivation in two massive greenhouses that total 128,000 square feet and includes an additional 40,000 square foot facility for processing, manufacturing, and distribution of cannabis goods.
"Sugarleaf is going to migrate from Washington into the California market, so we will be a multi-state operator," said Chief Cannabis Officer Sheldon Aberman. "In the California market, we are building a monstrosity of a greenhouse down there. 68,000 square feet phase one, 68,000 square feet phase two and then a manufacturing and distribution center all on one vertically integrated property. So, what you'll see is Sugarleaf entering the California market on a very large scale, with statewide distribution."
The company also recently announced that it has signed a letter of intent to partner with New Jersey-based medical retail dispensary applicant, Applied Cannabis Sciences of New Jersey. The upcoming New Jersey round of Request for Applications (RFA) is anticipated in 2020.
Chemistree Technology's stock reacted favorably to the announcement, reaching a 52-week high of $0.72 CAD on the Canadian Securities Exchange on Monday, April 15, 2019, following the news.
Expanding into the CBD Market
Chemistree Technology also alluded to breaking into the growing CBD market in the US, which is expected to reach $16 billion USD by 2025. In fact, the company plans on developing a proprietary CBD-focused line of products, although Kottmeier seems to be keeping those initiatives under wraps for the time being.
"We have focused on analyzing the CBD market extensively across the United States. There are a number of points where you can enter it. We have dialed it down to about two places that we like and we have a number of things we're working on in the CBD space right now," Kottmeier said.
"One thing I want people to know about Chemistree is that we are a very serious and well-run company. We are fully financed, we've got a great structure. It's a great entry point for people who want to be exposed to the US cannabis market," he added.
For more information about Chemistree Technology investors are encouraged to visit their website.
Transcript:
Karl Kottmeier: Chemistree is a Vancouver-based US-facing a cannabis company. We've focused on Washington state primarily, with a cultivation facility that we own the assets of. And we've also expanded now into California, in Northern California initially, with a processing facility that we're partners in, and we've now moved into Southern California, where we're developing a large cultivation facility.
KK: Sugarleaf is a brand that we acquired when we moved into Washington State. It's got a beautiful look, it's got a great name, it's a flower and a pre-roll product right now in Washington State that we're expanding into California.
Sheldon Aberman: Sugarleaf's going to migrate from Washington into the California market. So we'll be a multi-state operator with a contiguous brand across multiple states. In the California market, we're building a monstrosity of a greenhouse down there, 68,000 square feet, phase one, 68,000 square feet, phase two, and then a manufacturing and distribution center all on one vertically integrated property. So what you'll see is Sugarleaf entering the California market in a very large scale, with state-wide distribution.
KK: We're a expansion and focused company through acquisition and partnership, were currently very focused on the Midwest of the United States, and moving into the Eastern seaboard, but we think there's a huge amount of opportunity in California as well. We've focused on analyzing the CBD market quite extensively across the United States; there's a number of points where you can enter it. We've dialled it down to about two places that we like, and we have a number of things we're working on in the CBD space right now.
KK: One thing I want people to know about Chemistree is that this is a very seriously and well-run company. We're fully financed, we've got a great structure, but it's a great entry point for people that wanna be exposed to the US cannabis market. We really welcome people and our shareholders and prospective shareholders getting in touch with the company. I'm always happy to talk to somebody, be it over the phone or via email. So I would certainly direct everybody to our website, chemistree.ca.
