A NEW Strategy for the U.S. Cannabis Market (From Stockhouse)

Dear Seed Investors, 

As you know, The Seed Investor likes to find companies that are currently undervalued and have the potential to breakout, and share those companies with our readers. 

Especially if those companies fill a need in an explosive sector of the Marijuana industry. 

We’ve been watching one of those companies for a little while now, as they are focused in the often overlooked sector of Medical Cannabis Clinics. 

There has been a focus on new possibilities in the recreational marijuana industry, we can’t forget about the unmet needs in the medical industry. 

One of these unmet needs is quality medical advice for cannabis treatments. 

Empower Clinics Inc. (CSE: EPW, OTCQB: ADENF, Forum) has been focused on this medical need for years, providing services to over 27,000 active patients in over 15 current clinics, have a strong foothold in the legal US districts of Washington and Oregon already, and are poised to expand.

Stockhouse.com just posted a great overview of their business model that we think Seed Investors looking for the next win should read. 

Excerpt from Stockhouse.com: 

Cannabis has come to North America. There is no news there. Medicinal cannabis has been available across Canada for some time and the vast majority of the U.S. population also have access to this emerging form of healthcare therapy.

There are similarities between the Canadian and U.S. cannabis medical markets. In Canada, medicinal cannabis has already been accepted as a complimentary addition to our healthcare system. In the United States, opposition towards the medicinal use of cannabis has eroded across most demographics (92% support). This provides a clear path to penetrating the enormous healthcare sector and (more particularly) the pharmaceutical industry.

As the management team of Empower Clinics Inc. (CSE: EPW, OTCQB: ADENF, Forum) surveyed the U.S. landscape, they reached an important conclusion four years ago. Exclusively targeting the medicinal cannabis industry would provide the greatest level of certainty and sustainability – for investors, for the cannabis companies themselves, and for the players in capital markets whose support is necessary to help fund these companies.

This was the easy part of the decision-making process as Empower devised its business model. The more intricate element of the Company’s strategy was in choosing a particular focus.

In general terms, the cannabis sector is seen as having two components. There are the cultivation companies who produce (and sell) this commodity. And there are the biopharma/research companies whose operations encompass genetics research, nutraceutical and cosmeceutical product development, product testing, and even clinical trials to produce/develop bona fide licensed pharmaceutical products.

There are also additional cannabis sub-sectors. One of those sub-sectors is cannabis clinics. In a conference call with Stockhouse Editorial, CEO Craig Snyder laid out the reasoning for Empower’s focus on U.S. cannabis clinics.

“There is unmet medical patient demand. Empower provides real medical advice for those wanting alternatives to pharmaceutical prescriptions. Opiate-based drugs are a key example, where patients are seeking natural pain prescriptions instead of synthetic options.” 

Opiates?

Most people are now aware of “the opiate crisis” that may be the single, most acute health issue at this moment. In social terms, this is a huge problem. But in economic terms, it can also be a huge opportunity (estimated at US$4.4 to $4.9 billion). Stockhouse readers should stay tuned for a related full-length feature: How Cannabinoids Can Solve The Opiate Crisis.

Empower has a three-pronged business model:

• Medical clinics
• Proprietary cannabinoid formulas and recipes to support unique patient conditions
• Data collection monetization (a current database of over 96,000 patients)

Read more at Stockhouse.com

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