The Surging Increase In Demand and Global Expansion
By Top Tier Pot Companies Has
StillCanna Inc. (CSE:STIL) (OTC:SCNNF)
Poised To Reap Big Rewards
One market that has definitely caught the eye of investors is the pot legalization boom. The green revolution has swept across North America. Savvy investors are actively seeking out potentially undervalued pot stocks as strong plays but there is so much white noise, it’s difficult to find one that stands out above the rest.Seasons
While the boat has sailed for billion-dollar industry giants like Aurora or Canopy Growth, there’s an even bigger market wave about to crest…and only a handful of companies have the potential to ride the momentum to become the next big giant.
That new wave is driven by simple math.
The pot market is limited by the fact that only about 14.6% of U.S. adults have used pot in the past year. In contrast, 100% of people want to be healthy, which is why marijuana’s federally legal cousin, hemp, is expected to dwarf pot in sales. It’s a behemoth of an industry with market forecasts expected to reach $22 billion by 2022. That’s approximately 22% of the entire U.S. nutraceuticals industry.
As Leafly.com recently put it:
“Many consumers are starting to prefer less intense products that are lower in THC and higher in the non-intoxicating compound…”
And with the edibles and beverages just beginning to ramp up and become legal in Canada, the timing couldn’t get any better for hemp farmers.
Which is why Stillcanna (CSE:STIL) (OTC:SCNNF) is poised to emerge as the leader to supply this mammoth sized industry with their 3,706 acre farm.
We’re at the cusp of an industry that is ready to reward the next multi-billion dollar company.
What will differentiate the winners from the losers in this supercharged marketplace?
Great infrastructure, top scientists, industry knowledge, huge supply and of course, a management team that can pull it all off.
Stillcanna’s Winning Formula
Stillcanna (CSE:STIL) (OTC:SCNNF) is following the footsteps of giants like Canopy Growth, Tilray and Aurora: thinking globally and investing in Europe.
Let’s review why Stillcanna (CSE:STIL) (OTC:SCNNF) stands above all of their competitors:
1. Stillcanna will be one of the largest processors of market-ready hemp-derived products in Europe in 2019.
2. Stillcanna has hemp-derived extraction contracts worth C$46 million and C$36million.
3. Stillcanna can freely move their hemp and hemp-derived products through 28 EU countries.
4. Stillcanna is only 1 of 3 companies in Europe with their own proprietary hemp seed…that means they can extract at a lower cost than the industry standard.
5. Stillcanna is already set up, operating and currently harvesting a bigger-than-expected bumper crop (increase estimated 40% higher than forecasted) in Poland, a country with no restrictions for the cultivation or use of hemp based products.
6. Stillcanna can produce Isolate cheaper than most of their competitors at USD $378 per kg.
Here’s how market specialist Fabrice Taylor on BNN Bloomberg recently summed up the under-the-radar opportunity Stillcanna (CSE:STIL) (OTC:SCNNF) represents:
“Finally, a company that’s focused, has a niche…and they have a very low-cost operation. They have their own extraction, they have their own fields, they have their own brands.”
All these market advantages put Stillcanna (CSE:STIL) (OTC:SCNNF) far ahead of the curve from their competitors. But their story actually gets a lot stronger.
Stillcanna Has More Acres Planted Than Much Larger Competitors
The dominant hemp-derived product maker in the US is Charlotte’s Web. Their market cap is 27x larger than Stillcanna (CSE:STIL) (OTC:SCNNF) but Stillcanna has more than 4x the number of acres growing hemp with 3,706 acres on their farm in Poland.
To put that into perspective, Stillcanna is growing hemp on 161,433,360 square feet of land or the size of more than 2,800 football fields.
But Stillcanna isn’t stopping there. They’ve already increased their acreage by 150% over their 2018 level, and they expect to boost it by another 233% by 2021.
Meanwhile, Stillcanna (CSE:STIL) (OTC:SCNNF) recently announced that favorable weather conditions in Poland mean they expect to exceed their harvest production goals by an anticipated 40%.
A bumper crop like that is a nice revenue booster, and Stillcanna is actually harvesting it right now as you can see in this video they released the other day:
Sales Contracts In Hand and Ready To Deliver In The Fall
Back in September 2018, Stillcanna (CSE:STIL) (OTC:SCNNF) secured its anchor extraction customer and joint venture partner: UK-based Dragonfly Biosciences, LLC.
Within Europe, the UK is the market leader for hemp-derived products, making up an early $80-million market in 2018.
That original order alone made Stillcanna’s Romania-based extraction facility cash flow positive and profitable. Since then, Dragonfly increased its minimum monthly order of isolate by over 300%, enabling Stillcanna to accelerate meeting their 2019 revenue targets.
Over the next three years, the Dragonfly extraction deal is expected to be worth $46 million.
Then Stillcanna (CSE:STIL) (OTC:SCNNF) acquired its Polish operations – the legacy hemp producer Olimax – and just 10 days later secured its second large supply deal, this time with US-based BioScience Enterprises, for C$6 million in sales of isolate per month with an initial term of 6 months for a total of C$36 million.
“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.
Stillcanna (CSE:STIL) (OTC:SCNNF) expects to begin delivery on that contract as early as September 2019 thanks to the first harvest from its Poland-based Olimax farm.
With their large capacity for growing hemp and producing high-quality isolate, Stillcanna is likely to attract a lot more supply deals, especially with the help of hemp logistics expert, Sarah Yetman.
Yetman has overseen the international shipment of tens of thousands of kilograms of hemp and is active in the global supply of hemp isolate products and biomass. She’ll now be connecting her existing contacts and customer base with Stillcanna’s (CSE:STIL) (OTC:SCNNF) superior products and large-scale supply capabilities.
Fully Funded With The Help of Investment From Large Investment Bank
Stillcanna has another important edge over competitors: more experience growing hemp.
When Stillcanna (CSE:STIL) (OTC:SCNNF) acquired Polish legacy hemp producer Olimax, they instantly started working with farmers that have a lot more experience growing hemp, giving them a minimum 18-month head start and first mover advantage over companies that are just getting to work in the fields now.
The founders of Olimax are now Stillcanna’s VP Operations Poland and are part of a family that’s been growing hemp for generations.
By way of comparison, the team at industry giant Canopy Growth only has over a decade of hemp farming experience.
Stillcanna also recently retaining Mateusz Bojek, a third-generation agricultural expert specializing in the harvesting, drying and storing of hemp to retain its highest isolate content.
But Stillcanna’s competitive advantages around hemp production don’t stop with their team. They’ve also had new harvesting equipment custom-built using a proprietary methodology and patented technologies.
On July 31, 2019, Stillcanna received the first of the custom harvesters that collect the hemp flower with minimal disruption to ensure maximum retention. This proprietary harvesting process gives Stillcanna the advantage of being able to store un-dried flower for up to 3 years and even enhances the extraction process.
The European Advantage
For one thing, not all hemp-derived products are created equal. As Stillcanna (CSE:STIL) (OTC:SCNNF) CEO Jason Dussault was cited saying recently, the UK’s booming cannabis industry could be invaded by toxic isolate polluted in China. In contrast, Stillcanna’s clients can know they’re getting high-quality product directly from a reliable source.
Another advantage is that Stillcanna is now uniquely positioned to help meet the global demand for a reliable flow of wholesale hemp in Europe.
The backbone of Stillcanna’s (CSE:STIL) (OTC:SCNNF) supply chain is its world-class, innovative extraction facilities in Europe:
- ORIGIN (Romania): Awaiting final stages of the licensing process as of July 22, 2019. Full, large-scale production expected within Q4 2019.
- NEXUS (Poland): Expected to begin processing Stillcanna’s 2019 harvest in Q4 to fulfill the company’s delivery contracts. The Facility is designed to initially produce 1230 kilos of pure CBD isolate per month. With the addition of a pelletizer, the system is designed to produce up to 4,000 kilos per month.
- HORIZON (Poland): Designed to be one of the most advanced, green, high-capacity facilities in the world. Full production expected as of Q4 2020 with monthly isolate output capacity estimated at 10,500 kg per month.
US Farmers Will Struggle To Compete With Stillcanna’s Low Production Costs In Eastern Europe
Stillcanna (CSE:STIL) (OTC:SCNNF) has engineered proprietary extraction equipment and methodologies that are designed to produce more isolate for less.
For example, Stillcanna (CSE:STIL) (OTC:SCNNF) has mastered the process to produce the purest isolate – for as little as USD$378 per kg.
That’s a very low cost, especially since wholesale prices for isolate in the US as recently as April 2019 were $6,077 per kg.
At the same time, Stillcanna’s (CSE:STIL) (OTC:SCNNF) high-tech extraction facility enjoys low overhead costs and labor costs – that translates into a global competitive advantage.
When you bring it all together, if Stillcanna’s (CSE:STIL) (OTC:SCNNF) harvest capacity expansions go as planned, and the price of isolate remains steady, their revenue could potentially exceed USD$197 million by 2020, further adding to their ability to expand.
Seasoned Management Team Built Upon Entrepreneurial Successes
Stillcanna (CSE:STIL) (OTC:SCNNF) has done an outstanding job of building a solid team where each member has entrepreneurial or innovation success in their fields, with a strong emphasis on hemp extraction and proprietary product development.
Here’s a quick look at some of the key figures behind Stillcanna (CSE:STIL) (OTC:SCNNF):
CEO Jason Dussault represents the rare strengths of marketing expert and multi-talented creativity, having gained attention on Fox News, The Wall Street Journal, The New York Times, MTV, Entertainment Tonight and the CBC. He began his career focused on mining and capital markets with successes across ventures in diamond exploration and lithium, and has contributed to start-ups in the wireless, high-tech, retail and energy sectors.
Shae De Jaray is Vice President, Chief Operating Officer. He founded Deep Cove Brewers and Distillers, a successful Vancouver brewery and distillery. The knowledge and expertise he gained along the way in Mechanical Engineering and Fluid Dynamics will be invaluable while overseeing the installation and operation of Stillcanna Inc’s (CSE:STIL) (OTC:SCNNF) multiple European extraction facilities.
Dr. Brian Martin recently joined the team to lead Stillcanna’s (CSE:STIL) (OTC:SCNNF) consumer, Nutraceutical and Cosmeceutical product formulations. A celebrated Naturopathic Physician of 25 years, and former President of the College of Naturopathic Physicians of British Columbia, Dr. Martin brings a wealth of knowledge in the formulation of innovative natural health products and expertise in Optimal Aging from the American Academy of Anti-Aging Medicine.
The company recently appointed Warren Robinson, CEO of Atlas Capital Inc., to its Board of Directors. Robinson will be assisting Stillcanna (CSE:STIL) (OTC:SCNNF) in its capital markets activities as well as in identifying global expansion initiatives. Among the highlights in Robinson’s career in institutional finance are advising SAF Group, a Private Equity firm with over $1.5 billion in active investments, and acting as Managing Director from 2009 to 2014 at investment dealer Haywood Securities.
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. Varga will be joining operations at Stillcanna’s (CSE:STIL) (OTC:SCNNF) European facilities.
StillCanna (CSE:STIL) (OTC:SCNNF) Could Dominate The $22 Billion Hemp Industry
MORE ACRES PLANTED THAN MUCH LARGER COMPETITORS
Armed with a proprietary registered high-content strain of hemp, StillCanna (CSE:STIL) (OTC:SCNNF) has more than 4x the number of acres growing hemp than the dominant US hemp-derived product maker, Charlotte’s Web. Better yet, the bumper crop they’re harvesting right now is expected to exceed production goals by 40%.
STRATEGIC PARTNERSHIPS AND SUPPLY DEALS IN PLACE
Between an extraction deal with UK-based Dragonfly Biosciences expected to be worth C$46 million, a supply deal with US-based BioScience Enterprises for another C$36 million, and strategic help of hemp logistics expert Sarah Yetman, StillCanna (CSE:STIL) (OTC:SCNNF) has the funding and connections needed to march toward further production and sales
LOW PRODUCTION COSTS US-BASED PRODUCERS CAN’T COMPETE WITH
StillCanna‘s (CSE:STIL) (OTC:SCNNF) proprietary extraction equipment, methodologies and low cost labor are designed to produce isolate for as little as USD$378 per kg and hemp oil for as low as USD$0.38 per gram, an almost unheard-of low-cost production rate that translates into a global competitive advantage.
FULLY FUNDED FOR CURRENT PRODUCTION & EXPANSION
StillCanna (CSE:STIL) (OTC:SCNNF) recently gained large institutional investors, led by one of the top investment banks in Canada, Canaccord Genuity Corp, resulting in a round of financing that raised more than $24.3 million through an oversubscribed offering..
WEALTH OF TEAM EXPERIENCE FROM MULTIPLE RELEVANT SECTORS
Led by elite branding expert CEO Jason Dussault, the StillCanna (CSE:STIL) (OTC:SCNNF) team is comprised of proven innovators, successful entrepreneurs and hemp growing experts. From capital markets to product formulation, mechanical engineering, farming, and extraction, this is a solid and well-rounded group that’s dedicated to hitting the company’s targets.