October 5, 2018 MJ Shareholders
October 5th, 2018
News, Top News
Canada is set become the first G7 nation to legalize recreational cannabis and international beverage brands are salivating at the possibilities. Constellation Brands Inc. (NYSE: STZ) doubled down on its investment in Canopy Growth Corp. (NYSE: CGC) (TSX: WEED), Molson Coors Brewing Co. (NYSE: TAP) signed a joint venture with The Hydropothecary Corp. (TSE: HEXO), and even Coca-Cola Co. (NYSE: KO) has taken an interest in the space.
CNBC has ramped up its coverage of the space ahead of Canada’s recreational legalization in less than a month. On September 21, the go-to news source for investors profiled the industry both online and on television. The television producers chose to focus on FSD Pharma Inc. (CSE: HUGE) ( OTCQB: FSDDF) (FRA: 0K9) and visited its Cobourg plant. The location and personnel were featured four times during the day, each with a different area of focus.
In this article, we will take a closer look at the company, its recent CNBC coverage, and where it’s headed over the coming quarters.
Becoming an Industry Leader
FSD Pharma’s renovated 70-acre Kraft facility could become the world’s largest hydroponic cannabis farm, located just one hour east of Toronto. The current 25,000 sq. ft. facility has an annual production capacity of 4,000 kilograms, but management plans to expand to nearly 3.9 million sq. ft. in a two-stage expansion. This would put it just behind behind Canopy Growth and Aurora Cannabis in terms of square footage—at a fraction of their valuation.
Management plans to focus on the medical market as soon as they obtain a sellers’ license, saying that there could be a shortage as other licensed producers move into the recreational market where demand is projected to be initially higher. These dynamics could put a significant premium on medical versus recreational products. Margins from greenhouse strains are also expected to outpace outdoor cannabis products.
CNBC Coverage Raises Profile
The first of the four segments introduces the upcoming Canadian cannabis legalization milestone and features a brief walkthrough of FSD Pharma’s facility. The second segment features an interview with Director Anthony Durkacz. The third segment features a further walkthrough of its facility in Ontario. And, the fourth segment features an extended interview with Anthony on CNBC’s widely watched Power Lunch segment.
The live CNBC coverage bolsters the company’s credibility in the space, particular given the rising number of development-stage licensed producers that can make it challenging for investors to sort true opportunities from hype. Often times, companies featured on CNBC experience higher-than-average trading volume and may be added to important investor watchlists as credible opportunities in the space.
FSD Pharma Inc. (CSE: HUGE) ( OTCQB: FSDDF) (FRA: 0K9) represents a compelling investment opportunity in Canada’s burgeoning cannabis sector. In addition to its massive indoor facility, the company’s strategic investments and partnerships across the industry are paving the way for research, development, and distribution throughout the country and around the world.
When asked whether cannabis stocks were in a bubble, Mr. Durkacz drew a comparison to the Internet bubble, telling CNBC, “We are in a bubble — but we were in an internet bubble in 1998 that continued for another few years — if you did not make an investment in 1998, you missed a lion’s share of what could be earned in terms of return on investment.”
Investors that want to buy into the cannabis industry at an early stage may want to take a closer look at the company given its exposure on CNBC, it’s existing license and production capacity, and its unique focus on the medical market.
For more information, visit the company’s website at www.fsdpharma.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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