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Addressing Cannabis' Energy Problem

HENDERSON, NV / ACCESSWIRE / March 11, 2019 / From the beginning of the year (YTD) to March 9, 2019, the first tradable cannabis ETF, the Horizons Marijuana Life Sciences Index ETF, was up over 50%. Unfortunately, it also implies that many pot stocks are now far too pricey to consider for investment purposes compared to their price levels in the beginning of 2019.

One company that is not included in the cannabis index as on date, but has been positioning itself as a cannabis industry player is CleanSpark, Inc. (CLSK). CLSK, a microgrid company, provides proprietary energy management custom power solutions to various industries including to cannabis producers. Cannabis production process is highly energy intensive due to the requirements of 24-hours indoor lighting rigs, heating, ventilation, and air-conditioning at production facilities. CLSK foresees significant potential from cannabis sector to contribute in its revenue share. In its assessment of 15 microgrid controlled vendors conducted for Q1 2018, Navigant Research has ranked the company among the top 10 micro-grids vendors. In its latest press release on March 8, 2019, the company's management stated that "(The company) is currently focusing our marketing efforts on the largest users in the cannabis market, the agricultural (grow) facilities." In the press release the company further stated, "we believe that the opportunity in the cannabis market is unprecedented due to the high energy usage of these facilities in both the US and Canada. In many cases our solution is capable of virtually eliminating the demand charges that can account for almost 50% of the utility charges for such a facility." Considering the company's claim to reduce power consumption in cannabis production, investors could look into the stock to research further.

Today we are highlighting: CleanSpark, Inc. (CLSK), Terra Tech Corp. (TRTC), OrganiGram Holdings (OGRMF), The Green Organic Dutchman Holdings Ltd. (TGODF), and CV Sciences Inc. (CVSI), Cronos Group, Inc. (CRON), Aurora Cannabis, Inc. (ACB) and KushCo Holdings, Inc. (OTCQB: KSHB).

CleanSpark, Inc. (CLSK) (Market Cap: $166.792M, Share Price: $4.02, OTC) has released a shareholder update on March 8, 2019.

Highlights from CLSK's latest update include:

  • Closing a $5 million round of funding
  • Engaging an advisory firm to pursue the company's listing on a national exchange
  • Announced the near completion of a $0.9M contract to install a CLSK microgrid at a U.S. Marine Corps Base
  • Continued progress on its $18.3 million deal with NYSE company, MAC
  • Closing of an acquisition of certain assets of Pioneer Critical Power IncInc. (PCPI) that is expected to add approximately $3.6 million in gross sales during the first 2 quarters of 2019

CLSK's CEO, S. Matthew Schultz, further stated that "an extended outage can even cause a full loss (of the farmer's yield), especially when the facility is growing a medically-certified crop. Energy resiliency is critical for these operations."

As cannabis players continue to strive for energy efficiency in the production process, CLSK could be an interesting play to keep a watch on.

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Terra Tech Corp. (TRTC) (Market Cap: $107.098M, Share Price: $1.1525, OTC) on March 4, 2019 announced that it completed the renovation of its cultivation facility located on West Grand Avenue, Oakland, in California. The company plans to use the facility to research and develop various cultivation techniques to optimize efficiencies and crop yields. In the news release, TRTC stated that it plans to plant the new crops later this week and all cannabis cultivated at the facility would be sold under the company's premium IVXX™ brand to California's medical and adult-use markets.

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OrganiGram Holdings (OGRMF) (Market Cap: $855.039M, Share Price: $6.60, OTC) has issued a press release to update about the appointment of Helen Martin as Corporate Secretary on March 4, 2019. OGRMF also announced that it has filed a notice for leave to appeal the certification of the class action brought against it. For further information on this class action, please refer to the January 21, 2019 news release and the company's other disclosures.

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Green Organic Dutchman Holdings Ltd. (TGODF) (Market Cap: $858.525M, Share Price: $3.18) announced on March 5, 2019 that its cultivation facility in Hamilton received organic certification from Pro-cert Organic Systems, a certifying body in North America. TGOD's CEO and Director, Brian Athaide, said, "Certified-Organic provides consumers with the best cannabis experience, and the entire TGOD organization is committed to that standard. The certification from Pro-Cert, along with the earlier certification from ECOCERT means that both leading organic certification bodies have approved our process. This is testimony to the work of David Bernard-Perron, Vice President, Growing Operations, and the entire cultivation and Operations team in Hamilton."

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CV Sciences Inc. (CVSI) (Market Cap: $476.581M, Share Price: $4.93, OTC) has announced on January 3, 2019, receipt of certification from the U.S. Hemp Authority, an industry group responsible for the U.S. Hemp Authority Certification Program. The press release further stated that "as one of the first companies to meet the stringent self-regulatory standards and passing a third-party audit, the company is now licensed to use the Certified Seal of the US Hemp Authority™ in its product labeling, marketing, and advertising of PlusCBD Oil products".

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Cronos Group, Inc. (CRON) (Market Cap: $3.247B; Share Price: $22.31) will exit its investment in medical marijuana company, Whistler Medical Marijuana, and sell its 19% stake to Aurora Cannabis, Inc. (ACB) (Market Cap: $7.428B; Share Price: $7.75). ACB will pay about C$175 million for the stake with Cronos receiving about 2.5 million Aurora common shares worth an aggregate value of about C$24.6 million and another C$7.6 million upon reaching certain milestones.

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KushCo Holdings, Inc. (KSHB) (Market Cap: $492.866M; Share Price: $5.60), the parent company of several cannabis industry companies including Kush Supply Co., Kush Energy, The Hybrid Creative, and Koleto Innovations, announced recently that it had added Danny Moses, a private investor and entrepreneur best known for his role as a trader navigating the global financial crisis as chronicled in Michael Lewis's best-selling novel "The Big Short" and Adam McKay's Oscar-winning movie of the same name, and Tim Seymour, Chief Investment Officer of Seymour Asset Management, and best known as the co-host of CNBC's Fast Money, to the Company's Advisory Board.

Legal Disclaimer:

This article was written by Regal Consulting, LLC ("Regal Consulting"). Regal Consulting has agreed to a three-month term consulting agreement with CLSK dated 9/12/18. The agreement calls for $10,000 in cash, and 30,000 restricted 144 shares of CLSK per month. Regal and CLSK have signed an amendment to extend the contract for twelve months starting 10/10/18, and increased the cash component to $20,000 per month. CLSK has paid an additional $12,000 for services provided in November. CLSK has paid an additional $88,000 for services provided in December. CLSK has paid an additional $100,000 for services for January. CLSK has paid an additional $80,000 for services for February. Regal was paid an additional $30,000 for March services and possibly compensated more for March services in the future, at which time Regal will update this disclaimer. All payments were made directly by Clean Spark, Inc. to Regal Consulting, LLC. to provide investor relations services, of which this article is a part of. Regal Consulting also paid one thousand dollars cash to microcapspeculators.com to distribute this article. Regal Consulting may have a position in the securities mentioned in this article at the time of publication, and may increase or decrease its position without notice. This article is based on public information and the opinions of Regal Consulting. CLSK was given an opportunity to edit this article. This article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any results predicted herein. Regal Consulting is not registered with any financial or securities regulatory authority, and does not provide or claim to provide investment advice.

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