NEW YORK, NY / ACCESSWIRE / January 9, 2019 / Stock Market Press (SMP) looks back at 2018 and the massive shift towards increased cannabis growing facilities and highlights Metrospaces, Inc. (OTC PINK: MSPC) which is rapidly moving forward with its revenue producing cannabis cultivation acquisition. Demand for cannabis is set to increase exponentially as both medicinal and recreational cannabis use spreads across the USA, Canada and other countries. Cultivation will be the key driving force over the next year as companies like GW Pharmaceuticals receiving FDA approval for a cannabis based drug, Cronos' (CRON) production deal with Ginkgo, and Tilray's (TLRY) innovation license approval.
About Metrospaces acquisition target: ''The facility is located in the city of Adelanto, California and consists of a 12,000 ft2 canopy facility licensed for cultivation, manufacture and distribution of approximately 300 lbs of monthly cannabis production. This production currently generates approximately $7.2 million in annual revenue with an operating profit of approximately $4.5 million per year. Additionally, the site is set on a 6.5 acres site which allows us to build another (already licensed) 8,000 ft2 canopy. The acquisition also includes a non-operating retail operation.''
Land and facility acquisitions continue in the cannabis space. Just this week Tilray's wholly owned subsidiary High Park received processing license to allow for further innovation, increased capacity and additional finished products. High Park's focus on new products such as edibles like beverages and confectioneries, concentrates, and topicals will require increased production. Metrospaces understands the real estate market and more specifically the increase in demand for viable cannabis production facilities.
The cannabis industry is just beginning to 'stretch its legs' as legalization on a global scale is emerging. The opportunities for a company as agile as Metrospaces to acquire key real estate properties ahead of this global shift are virtually unlimited. Mr Brito's move to acquire an existing grower facility at this juncture is putting Metrospaces at the forefront of this shift.
As previously noted, Canadian growers were caught off guard by the massive demand when recreational use was legalized last year. This has prompted a rapid increase in license requests to switch farms to cannabis growing and increased demand for production facility construction, both good for the local economies. Adelanto, California, where Metrospaces acquisition is located, has seen a near exponential increase in license requests, both retail/dispensary and grower, prompting the area to be labeled the 'Silicon Valley' of cannabis. The acquisition facility is already in production as seen in the revenue numbers above and includes a non-operating retail facility, a 'perfect storm' setup.
Cronos' partnership with Ginko is just 1 of many production heavy deals in the works. Taken from their presentation (https://thecronosgroup.com/wp-content/uploads/2018/09/Ginkgo_Deal_Announcement_Presentation.pdf): ''Gingko Bioworks' platform could enable Cronos Group to produce the cannabinoids (ingredients) that are essential for product development at a fraction of the cost, at commercial scale and at higher purity than what is currently available.'' Further confirmation that supply needs are where the money is, something that Mr Brito is well aware of, stating 'Our background in real estate, combined with the knowledge of our JV Partner, is allowing us to better locate prime properties and facilities that will meet this increase in demand. The Adelanto acquisition is just the first of many acquisitions we have planned.''
Now that the FDA has approved the 1st cannabis based drug, pressure on the cannabis growers is only going to increase. GW Pharmaceuticals is looking at additional cannabis based drugs, as are many other biotech and pharmaceutical companies. Securing grower facilities, as Metrospaces is doing, will net rapid ROI and solid returns to investors.
SMP continues to highlight the massive pent up demand in the cannabis marketplace which Metrospaces is exploiting with their plans to increase production for the existing Adelanto facility along with additional acquisitions.
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SOURCE: Stock Market Press