Investors should pay attention to cannabis focused investment companies, such as GreenStar Biosciences Corp. (CSE: GSTR), Nabis Holdings and World High Life (NEX: LIFE)
As the cannabis market in Canada is growing, some companies have begun to organize their business models around investment in other cannabis companies and expanding to new markets. These companies present an interesting option for investors, as a carefully selected portfolio of cannabis companies, allows them to invest in the sector with less risk and only one stock.
GreenStar Biosciences Corp.
GreenStar Biosciences Corp. (CSE: GSTR) has a management team experienced on the Canadian cannabis market who decided to utilize their expertise to help smaller companies succeed. Their business strategy focuses on creating a diverse portfolio of most promising cannabis companies in North America.
GreenStar already successfully started its expansion to the US, by securing a partnership with their tenant company Cowlitz County Cannabis Cultivation Inc. in Washington state. Cowlitz is a leading producer and distributor of high quality cannabis products at low prices.
GreenStar is also an exclusive beneficiary of a new cultivation technology thanks to their joint venture with Progressive Herbs Inc. (Capri). This groundbreaking, patent-pending technology stands behind Cowlitz’s success, making it possible to produce high quality product in a much shorter time and with less resources than the competition. While most growers have a capacity of delivering three to four harvests per year, Capri’s technology has a capacity of producing up to five harvests in a year.
The results speak for themselves, by the end of 2018 Cowlitz recorded a tremendous revenue of $14.6 million in just five years of operations, and regularly brings quarterly revenue of $4 million and growing.
Nabis Holdings
Nabis Holdings recently strengthened its investment portfolio with a new investment. This is the second major acquisition by Nabis in Arizona. This acquisition underpins the dynamic growth strategy of the emerging cannabis investment company with a strong focus on high-margin investments.
The 44,000 square foot growing and processing facility is located on a 2.5 acres site in the city of Verde Valley. The new production facility will play an important strategic role in Nabis’ expansion strategy in Arizona. Both the letter of confirmation for zoning and the business license for cannabis cultivation in the city of Camp Verde are secured with the sale. Nabis is currently finalizing the transfer of licenses.
“We are very excited to acquire the Camp Verde facility in Arizona to drive our growth strategy in Arizona in order to expand our growing and manufacturing activities into next year,” said Shay Shnet, CEO and Director of Nabis. “Our new hub, strategically located in the southwest, will be designed to the highest standards of manufacturing best practices. With the completion of this investment, we continue to work within our U.S. cannabis strategy to expand our presence in those U.S. states where licenses are limited”.
The company already published a very detailed shareholder report on the activities in the projects on 21 August 2019. Within a very short period of time, management was able to initiate important agreements on substantial investments in the federal states of Arizona, California, Washington and Michigan.
The Canadian investment company is focused on investing in high quality cash-flow generating and strategic assets in various areas of the cannabis sector, particularly in US states where cannabis licenses are limited – with a roadmap for global expansion.
World High Life PLC
This Canadian company has started the execution of the plan to reach even further. World High Life PLC (NEX: LIFE) is aiming to become the world’s leading CBD and medicinal cannabis player by the acquisition of the most promising UK and European companies. Their management team is experienced in Canadian cannabis market, but plans to transfer their know-how overseas.
WHL has recently moved to acquire UK’s leading CBD company Love Hemp Ltd. in a transaction involving all shares valued at 9 million GBP. Love Hemp produces a variety of CBD products such as sprays, vapes, oils, edibles, CBD-infused beverages, and cosmetics, and sells their products in 1,200 UK high street stores. Additionally, they have agreements with big companies such as Boots, Tesco, Superdrug and Sainsbury’s.
With Love Hemp, WHL plans to expand into other European markets, starting with Germany in 2020.
Medicinal cannabis and CBD market in the UK and Europe is expected to reach 58 billion euro by 2029, and companies like World High Life PLC are set to dominate it.
