Hemp’s the New Billion Dollar Crop and Investors are Throwing Money At Newly Legal Industry
At nearly every level, the acceptance of non-psychoactive hemp-derived products is gaining increasing momentum. Last year it was the signing of the 2018 US Farm Bill that legalized the farming of hemp. This year it was both the World Health Organization (WHO) and European Parliament that advocated a whole-scale reclassification of pot — leading to a wave of interest in Europe’s market for hemp-derived products, such as oils, lotions, balms, beverages and more.
This growing popularity has led industry experts to project this current $318 million market to grow 400% through 2023. The same group is predicting that the U.S. hemp & hemp-derived product market will quickly escalate 3,556%, from around $600 million last year to $22 billion in the next three years. As these markets open up, and the transferring of hemp isolates becomes freer on the open market, companies are positioning themselves to get into the game.
Far ahead of the curve and ready for enormous-scale production at its European facilities is StillCanna (CSE:STIL) (OTC:SCNNF), which is equipped to manufacture up to 16000 kg of isolate in 2019 and up to 40000 kg in 2020 – which is 10X more than the US leader in hemp-derived products is able to provide.
While multi-billion-dollar hemp product producer Charlotte’s Web grows 300+ acres of hemp and is by far the dominant U.S. hemp-derived product makers, StillCanna’s European farm (based in Poland) is planting as many as 3,706 acres of hemp in 2019 with expectations of up to 12,500 acres in 2021.
Company CEO, Jason Dussault recently said that his company’s new hemp-flower extraction facility can make more hemp-derived product in half a day than most existing brands require in a year!
Emerging Leader in the European and Global Hemp Derived Product Marketplace
Getting out ahead of the competition, StillCanna (CSE:STIL) (OTC:SCNNF) is emerging as what could be an industry leader in Europe thanks to huge capacity figures, and extremely low costs of production. To give an idea of its standing, compare and look at other hemp companies with strong positions in the EU, and notice the growth room afforded by StillCanna’s (CSE:STIL) (OTC:SCNNF) market cap.
Having acquired 100% of legacy Polish Hemp producer, Olimax, StillCanna gained a vertically-integrated licensed cultivator, extractor, and formulator of hemp.
“This acquisition uniquely positions Stillcanna in the supply chain of wholesale hemp in Europe,” said CEO Jason Dussault, upon the acquisition. “There is global interest in sourcing a reliable flow of wholesale hemp in Europe and StillCanna is now in a position to address that global interest.”
In light of all of this, it’s little wonder that high net-worth and notable institutions just invested $24.36 million in StillCanna (CSE:STIL) (OTC:SCNNF).
The company could be a significant force in the European and North American hemp marketplace – and since its stock just started trading approximately 3 months ago, this could be a ground-floor opportunity.
IN THE NEWS
- StillCanna Enters into a Strategic Relationship with Logistics Expert for Secure Transportation of its Products Internationally
- StillCanna Signs Definitive Agreement With BioSciences Enterprises to Supply C$36 Million Worth of Hemp-based Isolate and Implements a Two-Stage Extraction Plan for Poland
- StillCanna Strengthens Board with Business and Finance Veteran Warren Robinson
Sales Contracts In Hand and Ready To Deliver In The Fall
It didn’t take long for StillCanna (CSE:STIL) (OTC:SCNNF) to secure major supply agreements with leaders in the hemp-derived product industry.
Within Europe, the UK is the market leader for hemp-derived products, making up an early $80 million market in 2018. The country is expected to remain a market leader over the medium-term.
Right from the beginning of the company’s story, it secured its anchor extraction customer Dragonfly Biosciences, LLC, based out of the UK.
Sensing a need to secure even more supplies, Dragonfly Biosciences increased its minimum monthly order of 50kg of hemp-derived isolate per month, to over 170kg per month back in March. Over the next three years, the Dragonfly deal is expected to be worth over $48 million.
StillCanna (CSE:STIL) (OTC:SCNNF) secured that deal prior to finalizing its Polish operations. Just ten days after Olimax was officially acquired, StillCanna secured its second large supply deal, this time with California-based BioScience Enterprises. As per the terms of the deal, StillCanna secured CAD$6 million in sales of hemp isolates per month for the next 6 months for a total of CAD$36 million.
Delivery on that contract is expected to begin as early as September 2019, utilizing the first Polish harvest from Olimax’s farm.
New partnerships and supply deals in the future are not unlikely given how large a quantity StillCanna’s production capacity can handle, but also due to entering a strategic relationship with hemp logistics expert, Sarah Yetman.
Yetman has already overseen the shipment of tens of thousands of kilograms of hemp isolates into the USA and other countries. She is also active in the supply of hemp isolate products and biomass globally, which moving forward she’ll be representing StillCanna (CSE:STIL) (OTC:SCNNF) in front of her existing customer base. Given her history of establishing contracts and infrastructure, coupled with StillCanna’s superior products and large-scale supply capabilities are a perfect fit.
“We are thrilled to be working with an innovative group like StillCanna on a partnership. Having a high standard for quality product is what makes BioScience a reputable supplier, without producers like StillCanna that wouldn’t be possible.”
– Richard Parker, President of Operations, BioScience Enterprises, Inc.
Top-Tier Quality AND Quantity
When StillCanna (CSE:STIL) (OTC:SCNNF) closed the Olimax acquisition, it vaulted itself into an instant contender position, leveraging upon the expertise of the subsidiary which was founded and run by a duo with over 40 years of combined experience in hemp products.
Founders Zofia Valber and Krystyna Bojeck will continue to oversee the day-to-day management of StillCanna’s Polish operations. Over their tenure, the pair has had many successes, including the development of a patented microelement fertilizer and the germination and registration of an EU-certified proprietary high-quality hemp.
The facility is already in production, with the current capacity to produce of 16,000 kg of hemp in 2019—with the first harvest expected for early August.
That capacity is projected to increase to up to 40,000 kg of hemp annually. However, the true potential comes beyond the raw biomass, and instead with the drastically increased value that comes from isolates.
As the European and US markets both are projected to grow astronomically over the coming years, a healthy supply of hemp-derived isolates will be needed to meet demand. Growers with potential such as StillCanna (CSE:STIL) (OTC:SCNNF) are most likely to be called upon to bridge the supply gap that’s seemingly inevitable.
US Farmers Will Struggle To Compete With Europe’s Low Production Costs
Wholesale prices reported as recently as April 2019 has pegged hemp isolate in the United States at $6,077 per kg. StillCanna has mastered the production process, to produce hemp isolate for as little as CAD$500 per kg.
The company has achieved through a unique extraction process performed with proprietary equipment that’s already patented, and a methodology in the process of being patented.
StillCanna’s (CSE:STIL) (OTC:SCNNF) high-tech extraction facility is capable of producing hemp oil for as low as $0.30 per gram—an almost unheard of production cost that no North American facility can currently come close to matching.
Should the company’s increases in harvest capacity go according to projections, and if the price of hemp isolate remains steady, revenue could potentially exceed USD $197 million by 2020.
Investment From Large Investment Bank Shows Signs of Lasting Strength
StillCanna (CSE:STIL) (OTC:SCNNF) wasted no time in getting started on operations at their $6 million Poland facility, cultivating their proprietary top-quality hemp varietal on the enormous +3,700-acre farm.
As soon as the company announced its definitive agreement to acquire Olimax, it also announced a subsequent agreement with Canaccord Genuity Corp to raise CAD$20 million. The excitement over the potential of the Poland operation exceeded expectations, leading to an over 20% oversubscription on the financing, and more than $24 million in proceeds to StillCanna.
Immediately the goal for the operation was to increase Olimax’s production profile from 16 million grams in 2019, to 32 million grams in 2020, and over 60 million grams in 2021.
Judging by the rapidly increasing demand for hemp-derived products, the market will likely still be in a heavy buying mode over the next 3 years.
Innovative Management Team Built Upon Entrepreneurial Successes
The StillCanna (CSE:STIL) (OTC:SCNNF) team is built for success, beginning with the leadership and elite branding expertise of CEO Jason Dussault, who’s gained attention on Fox News, The Wall Street Journal, The New York Times, MTV, Entertainment Tonight, and the CBC. Each member of the team has had personal entrepreneurial or innovation success in their fields, from software to beverages, to currently-used proprietary extraction techniques for hemp-derived isolates.
Here’s a quick look at some of the key figures behind StillCanna (CSE:STIL) (OTC:SCNNF):
The company is led by Chief Executive Officer, Jason Dussault, who’s built a reputation as a multi-talented marketing and creativity expert. The star and producer of the City TV reality show Dussault Inc., he began his career primarily focused on mining and capital markets. His successes include ventures in diamond exploration, and lithium, as well as working with wireless, high-tech, retail and energy start-ups. Well connected and creatively gifted, Dussault along with Founder and Vice President of Corporate Development, Marc Crimeni have assembled a team in line with his aspirations for StillCanna.
Well connected and creatively gifted Dussault is joined by Vice President, Chief Operating Officer, Shae De Jaray, who specializes in Mechanical Engineering, and Fluid Dynamics, in particular in the field of distilling and brewing technologies. Over his career he’s globally engineered and overseen the installation of high-pressure distillation and brewing systems, having founded Deep Cove Brewers and Distillers, a successful Vancouver brewery and distillery. While working alongside fellow hemp sector experts, De Jaray engineered Borganic’s proprietary ethanol extraction technology. He’ll be integral for the company’s European operations, overseeing the installation and operation of the EU extraction facility.
The StillCanna (CSE:STIL) (OTC:SCNNF) team was recently joined by celebrated Naturopathic Physician Dr. Brian Martin. Former President of the College of Naturopathic Physicians of British Columbia, Dr. Martin brings 25 years practicing Naturopathic Medicine and a wealth of knowledge and experience in the formulation of innovative natural health products, and expertise in Optimal Aging from the American Academy of Anti-Aging Medicine. Dr. Martin will be leading the company’s consumer and Nutraceutical and Cosmeceutical product formulations with the goal of enhancing the natural capabilities of hemp-derived products such as terpenes and other organic compounds.
The company recently announced the appointment of Warren Robinson, CEO of Atlas Capital Inc., to its Board of Directors. Robinson has spent his career in institutional finance including advising, SAF Group, a Private Equity firm with over $1.5 billion in active investments. From 2009 to 2014 Mr. Robinson was Managing Director at Haywood Securities, an investment dealer. Prior to working at Haywood, Mr. Robinson was a Partner at Tristone Capital, a Calgary based energy boutique, that was acquired by Macquarie Capital in 2009. Robinson will be assisting StillCanna (CSE:STIL) (OTC:SCNNF) in its capital markets activities as well as in identifying global expansion initiatives.
Production Manager, Tom Varga rounds out the team’s expertise in extraction, having been in the business for the past 5 years. Varga has been responsible for the extraction and formulation of over 55 products that are currently available in dispensaries across Canada. Along with De Jaray, Varga was also instrumental in the practical design-work of Borganica’s extraction facility, and will be joining operations at StillCanna’s European facility.
StillCanna (CSE:STIL) (OTC:SCNNF) Is Set To Potentially Become A Major Player In The Hemp Isolate Scene
QUALITY AND QUANTITY
Armed with a proprietary registered high-content strain of hemp, StillCanna (CSE:STIL) (OTC:SCNNF) is poised to make a major splash in the European market. With its proprietary extraction technology, the company is set to be capable of producing up to 40 million grams of hemp-derived product by 2020.
STRATEGIC PARTNERSHIPS AND SUPPLY DEALS IN PLACE
StillCanna has secured deals with partners for supply agreements, as well as logistics and international transport experts for global sales. With UK-based Dragonfly Biosciences, the company has partnered with Europe’s leading brand of hemp-derived extracts in a deal worth $48 million over the next three years. StillCanna (CSE:STIL) (OTC:SCNNF) followed that up with a supply deal with California-based BioScience Enterprises for another CAD$36 million. Now with a strategic relationship in place with hemp-derived products logistics expert Sarah Yetman, the company can be expected to have many more international arrangements to come.
PROFIT MARGINS US PRODUCERS CAN’T COMPETE WITH
Since hemp has been legal in the EU for the past 5 years, Stillcanna’s (CSE:STIL) (OTC:SCNNF) Polish subsidiary Olimax has been able to fully develop a product line that’s ready for the retail market. Upon its current portfolio, the company can legally put as many as 5,000 hectares under hemp, and using their own proprietary hemp varietal they could plant 2 crops per year. This impressive capability led to StillCanna gaining large institutional investors, leading to a round of financing that raised more than $24.3 million through an oversubscribed offering
WELL-FUNDED AND READY FOR PRODUCTION
Since hemp has been legal in the EU for the past 5 years, StillCanna (CSE:STIL) (OTC:SCNNF) has been able to fully develop a product line that’s ready for the retail market. Upon its current portfolio, the company can legally put as many as 5,000 hectares under hemp, with an average of two crops per year—which is up to 100x the capacity of leading US producers. This impressive capability led to StillCanna gaining large institutional investors, leading to a round of financing that raised more than $24.3 million through an oversubscribed offering.
WEALTH OF EXPERIENCE FROM VARIOUS RELEVANT SECTORS
Led by celebrity CEO Jason Dussault, the StillCanna (CSE:STIL) (OTC:SCNNF) team is comprised of innovators and entrepreneurs with a proven track record. Dussault has gained attention as a business leader and marketing wizard, and has been featured by Fox News, The Wall Street Journal, The New York Times, MTV, Entertainment Tonight, and the CBC. Joining him are industry experts with wins in the software, beverages, and hemp-derived product sectors.