February 5, 2019 MJ Shareholders
February 5th, 2019
Exclusive, News, Top News
Canada’s cannabis industry is projected to reach C$22.6 billion over the coming years, according to Deloitte, driven by the legalization of adult-use cannabis last year. The upcoming legalization of edibles and other forms of cannabis could further accelerate growth as Health Canada works through a large and growing backlog of licensed producer applicants—each of whom require top-tier security services to obtain and maintain their license.
3 Sixty Secure Corp. (CSE: SAFE) provides cannabis security consulting, guarding, and secure transport services to more than 500 customers—including more than 60 licensed cannabis producers. With a staff of over 250 employees and a fleet of 60 vehicles, the company has become a leader in the cannabis security space with a footprint of approximately 30 million square feet of patrolled area.
In this article, we will take a look at the Canopy Growth agreement and how it underscores the company’s leadership position in a rapidly growing market.
Canopy Growth Agreement
3 Sixty Secure recently announced a three-year master services agreement with Canopy Growth Corp. (TSX: WEED) (NYSE: CGC)—the largest licensed producer of cannabis in the world—to provide security services at its facilities across Canada. Under the terms of the agreement, the company will provide 24/7 guarding and other security services to all of the licensed producer’s facilities spanning millions of square feet of production space.
“Reaching an agreement that extends and expands security services provided to Canopy Growth marks another important milestone for 3Sixty as we continue to assert ourselves as leaders in cannabis security,” says 3Sixty Founder and CEO Thomas Gerstenecker. “I believe that our selection by Canopy Growth, a world class cannabis company, reaffirms the quality of our protective service offerings and supports our position as a leader in security services.”
Canopy Growth is the largest licensed producer of cannabis in the world with operations in 12 countries across five continents, including ten licensed cannabis production sites with over 4.3 million square feet of production capacity. The company’s C$18.7 billion market capitalization exceeds other cannabis companies by a wide margin, while its partnership with Constellation Brands Inc. (NYSE: STZ) helps position it as an international leader.
Broadening Cannabis Work
3 Sixty Secure has also made progress in expanding the scope of its work within the cannabis industry following its merger.
The company helped 48North Cannabis Corp. (TSXV: NRTH) develop an evidence package for a 100-acre outdoor farm in Brant County, Ontario. The evidence package was recently submitted to Health Canada as a pre-licensing requirement. The evidence confirms that 48North has successfully built out security provisions on its farm, including fencing, cameras, and intrusion and access controls.
In addition, the company recently announced that it signed a multi-year agreement with the Ontario Cannabis Store—the province’s government run cannabis retailer—to provide secure transport services within the OCS distribution e-commerce network. Given its significant size, the OCS agreement is expected to contribute to significant growth at 3 Sixty Secure. It also marks an expansion beyond typical agreements with licensed producers.
Becoming an Industry Leader
3 Sixty Secure has become a leader in cannabis security with clients like Canopy Growth, The Ontario Cannabis Store, and The BC Liquor Distribution Branch. Canopy Growth’s decision to extend their contract underscores the company’s high quality of service and its ability to scale to meet the demands of a rapidly growing industry. It’s also a testimonial that could tip other licensed producers to sign up for similar security agreements.
“Our sales pipeline is robust, and we are engaged with numerous companies seeking leading security solutions tailored to the cannabis industry and within non-core industries that require a full-spectrum of security services,” says Mr. Gerstenecker.
In addition to drawing in new clients, the company has been expanding its product and service offerings to derive more revenue per client. The company’s full suite of services includes security consulting, off-site monitoring, on-site security, secure transport, corporate security, and retail security. The acquisition of Total Cannabis Security Solutions Inc./ David Hyde and Associates, a leading cannabis consulting firm, reinforced these ambitious goals.
3 Sixty Secure Corp. (CSE: SAFE) represents a unique investment opportunity in the ancillary cannabis industry. While it does not cultivate marijuana directly, the company benefits from the industry’s robust growth and need for security and compliance services. The company’s existing leadership position—and long-term agreement with Canopy Growth—puts it in a great position to capitalize on these dynamics over the coming years.
For more information, visit the company’s website at www.3sixtysecure.com.
The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/
About Ryan Allway
Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.
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