AREV Shifts into High Gear

AREV Brands International (CSE: AREV) is a cannabis integrator that has parlayed its history with natural health products into an intriguing and streamlined cannabis company. Through a series of accretive acquisitions, the company has transformed into a Canadian-based cannabis operator with international ambitions.

Genetics, the Foundation of Quality and Consistency

AREV recently acquired BC Bud Depot, one of the world’s most respected and awarded breeders and marketers that features an internationally recognized brand and an extensive seed bank of hundreds of strains. Starting with 2004’s win at the High Times Cannabis Cup, the first win for a Canadian company in international competition, BC Bud Depot strains have racked up more than 40 awards from cannabis competitions.

Genetics and proprietary strains are important for both the medical and adult-use markets. In the medical arena, consistent and specific genetic traits produce consistent and specific terpene and cannabinoid profiles, thereby providing a remedy for a targeted area of health such as Anxiety, Central Nervous System, Insomnia, Libido and Pain Management. AREV has taken an indepth look at the BCBD seed bank and identified several strains that deliver a specific experience to the consumer. Due to intelligent strain selection and processing, consumers can choose how they would like to feel. They can Relax, be Energized, Create, all based on easy to understand labelling.

AREV sees both wholesale and retail potential from its seed bank. The strains could be sold outright to licensed producers, or they could be the foundation of a partnership where the LP cultivates the plant and sells it back to AREV for distribution. The cultivation risk and expense is off-loaded to the growers and AREV controls the genetics. The opportunity is not limited to North America, as the company has incorporated in Ireland and Germany to build on its international infrastructure.

The BC Bud Depot acquisition also netted a couple of other key assets. One, the company has an extensive database of over 50,000 customers and potential customers, a list that is invaluable as AREV grows its business both with cultivators and in other aspects of the industry. Two, BC Bud Depot has 10 years of pre paid advertising on the prime inside front cover of High Times magazine.

Extraction and Innovation

AREV controls 28 acres in the Southern Interior of British Columbia. It plans to leverage an ACMPR license to develop a breeding, nursery, laboratory, and extraction facility that will further expand the company’s capabilities in relation not only to cannabis but to the development of other medicinal plant-based products.

AREV cut its teeth on plant-based, scientifically derived products utilizing extracts from a variety of medicinal plants. In a joint venture with a related company, Alternative Extracts Inc., the company utilizes state of the art extraction techniques to create pure and consistent concentrates that form the foundation for nutritional and nutraceutical products. AREV recently announced that this joint venture has perfected the infusion of oil-based extracts (like the cannabinoids and terpenes from cannabis) into beverages, including beer, wine, ciders, and fruit juices. The proprietary extraction method preserves the natural characteristics of the active ingredients, including flavor.

By adjusting the terpene profiles, AREV’s CBD and THC based products can now deliver a specific experience to the consumer. This enables the company to profile the experience the consumer has while enjoying products with AREV’s ingredients. With the cannabis industry headed more toward extract-based products, both medicinally and recreationally, and away from smoked cannabis flower, a breakthrough like this could be transformative for the company. Beverages are in their infancy, and technology that can deliver all of the desirable characteristics from the flower in beverage form would certainly bring change to the beverage industry. AREV’s terpene profiling is not limited to the cannabis industry. It can be used in many food and beverage products currently sold in unregulated markets.

Products and Distribution

AREV’s COCO-MULSION products are sold in the health and wellness sector. These products come in formulations that support relaxation, brain function, and physical performance. They are Health Canada certified and distributed throughout the country. The company also has Canadian distribution rights to the Bare Topicals line of cannabis-based creams intended for pain relief and treatment of skin conditions. In the pipeline, AREV intends to launch a line of CBD sport nutrition supplements along with a CANNA-MULSION CBD with its new brand ambassador Patrick Cote, former UFC Champion. The company has also collaborated with Alternative Extracts to come up with a THC delivery system and a full line of cannabis oils and sprays.

Some of these products need the proper ACMPR licenses for distribution, while others can be offered over the counter as they derive from hemp rather than cannabis. Either way, the fact that AREV has lines of distribution in place and products currently in the market bodes well for the successful introduction of new products in the future.

Looking Ahead

There is still more to discuss with AREV, including the company’s positioning for the international market and especially Europe. As it stands, AREV appears to be covering the bases in the emerging cannabis industry from seed to sale. From proprietary strains to proprietary extraction technology, AREV looks to be solidly in the race as Canadian companies jockey for position in both the domestic market and beyond.

Disclaimer

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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.