Cannabis Companies to Benefit from 2019 Developments
HENDERSON, NV / ACCESSWIRE / January 7, 2019 / In 2018 the cannabis industry gained major validation with Canada legalizing recreational weed, and a handful of U.S. states and other foreign countries giving the green light to cannabis use in some capacity. What had once been a taboo industry has become a legitimate means to make money in a number of key markets. Cannabis stocks, however, were down on the year in part because of a larger market wide slump and some uncertainty over the way the US will treat this growing industry.
In 2019, however, companies growing cannabis as well as the companies supplying and powering that cultivation are set for rapid growth. We've highlighted a few companies set to benefit below.
One way to play cannabis without full exposure to the industry uncertainty, that we like, Clean Spark, Inc. (CLSK). CLSK has the best in class microgrid solution for the cannabis industry. CLSK is also one of the top microgrid companies in the entire world, currently working with NYSE company MAC on a potential $18 million project. If you are just learning about CLSK start your due diligence immediately because when the street finds out about the company it could trend much higher.
Today we are highlighting: CleanSpark, Inc. (CLSK), Cronos Group, Inc. (CRON), Aurora Cannabis, Inc. (ACB), Innovative Industrial Properties, Inc. (IIPR), and Origin House (ORHOF).
The $3.5bn cannabis industry is one of the nation's most energy intensive, often demanding 24-hour indoor lighting rigs, heating, ventilation and air-conditioning systems at multiplying grow sites. Legal cannabis cultivation in the U.S. consumes an estimated 1.1 terawatt-hours of electricity a year, according to the 2018 Cannabis Energy Report, published by Scale Microgrid Solutions along with New Frontier Data and the Resource Innovation Institute. Companies managing these solutions are great ways to diversify your cannabis industry risk.
Indoor growers are looking to cut spiraling electricity consumption with custom-built microgrids in U.S. states where cannabis cultivation is legal.
A company that seems to be in the right place at the right time to capitalize on this huge market inefficiency is CleanSpark, Inc. (CLSK) (Market Cap: $81.507M, Share Price: $2.23).
CLSK has a unique microgrid solution for the cannabis industry. Their mPulse software reduces the monthly electricity bill of indoor grow-houses by up to 82%! They do this by virtually eliminating the demand charges that can account for almost 50% of the utility charges for such a facility.
Pressure is mounting on the cannabis industry to improve its margins after a lackluster 3rd quarter, companies like CLSK can help do just that.
CLSK also just released an impressive letter to shareholders highlighting: an agreement for an $18.3 million 'Zero Net Energy' Microgrid with an S&P 500 Member Real Estate Investment Trust (REIT), near completion on a $900,000 contract to install a 'turn-key advanced microgrid system' at the U.S. Marine Corps Base Camp Pendleton, they have been awarded 2 patents, and they updated an acquisition that could be a huge boost to the company's year-end revenues.
CLSK's acquisition, Pioneer Custom Electrical Products, has delivered $32 million in products since 2016 and has $5 million in backlog. They have also received a $2.4 million equipment order as part of a contract for the new U.S. Embassy in Beirut, Lebanon which should end up on CLSK's balance sheet.
A cannabinoid-based biotech firm recently receiving major investment dollars, Cronos Group, Inc. (CRON) (Market Cap: $2.124B, Share Price: $11.78) has received over $14 billion from Altria for a 45% stake in the company.
Aurora Cannabis, Inc. (ACB) (Market Cap: $5.251B, Share Price: $5.22), recently announced an agreement to invest $10 million by way of a brokered private placement in High Tide Inc., a privately held, Alberta-based, retail-focused cannabis and lifestyle accessories company.
A company standing to benefit from Cannabis growth while not directly involved in its production like CLSK, is Innovative Industrial Properties, Inc. (IIPR) (Market Cap: $452.62M, Share Price: $46.30) a real estate investment trust that specializes in the medical marijuana industry. A REIT allows investors to pool their money to own real estate properties and it has a unique distinction that provides some safety for investors: REITs are required to distribute at least 90% of taxable income to shareholders as dividends.
Origin House (ORHOF) (Market Cap: $333.193M, Share Price: $5.17), a North American cannabis products and brands company, announced the results of the early exercise of its outstanding warrants and provided shareholders with an update on its investment in Alternative Medical Enterprises LLC.
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 $18,000 for services provided in December and Regal is expecting to be compensated an additional $70,000 for services in December. 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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