One Marijuana Stock Flipping The Cannabis Industry On Its Head
FeaturedUncategorized April 15, 2019 MJ Shareholders
The tables are turning and the once-dormant marijuana industry could explode with opportunity at any moment. The cannabis sector, a global economy changer of our lifetime, has fought back claims of prohibition since the era of the Gold Rush. That was the past, and now we are seeing the green rush take over. Institutions are investing millions to get a piece of the action and governments are fighting with blood to reap the massive tax benefits.
With over 35 million cannabis users across the nation, the recent market expansion is just the beginning. The marijuana industry is massive with many moving parts, from transport to cultivation, extractions, etc. All of these new segments have caused a huge need for consolidation, and streaming of the entire spectrum.
Even though marijuana is still a Schedule I narcotic in the eyes of the Federal Government, millions of Americans are pushing their representatives to support laws in favor of marijuana legalization. In the State of California, one of the biggest cannabis markets in the country, over $300 million in tax revenue was generated by Marijuana companies in 2018, according to the California Department of Tax and Fee Administration.
Surprisingly, while most investors pay attention to cannabis companies that produce the flower, this completely overlooks companies with ancillary functions like packaging, online resources, etc. Some of the top marijuana stocks represent vertically integrated companies putting everything under one roof; which could mean major mergers and astronomical acquisitions.
Innovative Properties Inc. (dba Nabis Holdings) (CSE: NAB) (OTC: INNPF) Has What It Takes To Go The Distance
Haven’t heard of Nabis? Well, listen closely because this company has finalized some of the biggest agreements of the legal cannabis industry. There’s a saying, “talent wins games, but teamwork and intelligence wins championships,” and Nabis’ elite management team of industry experts is leading the company into the future.
These industry-leading operators co-founded MPX Bioceutical (CSE: MPX), a Company who merged with iAnthus for $835M CAD. Shay Shnet and Mark Krytiuk, are now at the helm of Innovative Properties Inc. (dba Nabis Holdings) (CSE: NAB) (OTC: INNPF) and have no intention of slowing down.
The two titans of the marijuana industry have decades of experience in operational management and are known for planting tiny seeds of companies and growing them into industry-leading corporations. Innovative Properties Inc. (dba Nabis Holdings) (CSE: NAB) (OTC: INNPF) management team knows the nuts and bolts of running a successful Marijuana Company, including everything from product sales to cultivation, to manufacturing, all of which has cemented Nabis as an industry powerhouse.
Innovative Properties Inc. (dba Nabis Holdings) (CSE: NAB) (OTC: INNPF) is laser-focused on making key investments in high-quality cash flowing assets across all aspects of the Cannabis Sector, mainly in U.S. limited license states. The company has a keen sense for identifying and acquiring a majority stake in cannabis brands and assets to generate high-quality cash flows.
As a result, Innovative Properties Inc. (dba Nabis Holdings) (CSE: NAB) (OTC: INNPF)is strategically poised to capitalize on budding markets and companies in need of extra capital, thus giving Nabis a first-mover advantage.
Strong Leadership Is Priceless
When investing in marijuana stocks, it’s important to remember to not just invest in a company, but invest in good management. Innovative Properties Inc. (dba Nabis Holdings) (CSE: NAB) (OTC: INNPF)executive leadership team is anything but traditional because they are actively involved in the day-to-day operations of the Company. The strength of their leadership is backed by an advisory board full of industry veterans who can stake claim to billions of dollars in successful deals. Aaron Salz is the Principal and founder of Stoic Advisory. This firm has advised on more than $1.5 billion of cannabis M&A transactions since its inception.
Prior to his work with Innovative Properties Inc. (dba Nabis Holdings) (CSE: NAB) (OTC: INNPF), Mr. Salz championed the idea of analyzing the cannabis industry and is well-respected by industry peers. Mr. Salz was an Investment Analyst at Interward Asset Management and spent over four years at Dundee Capital Markets (now Eight Capital) covering medical & recreational cannabis companies as an analyst.
No company is complete without a methodical adversarial presence and Jade Green of Jade Green Consulting brings her extensive background to the Nabis table. Her company is a best-in-market cannabis consulting firm with a client sheet packed with companies valued at over $6 billion USD. As an added plus, Ms. Green’s biomedical background is crucial as Innovative Properties Inc. (dba Nabis Holdings) (CSE: NAB) (OTC: INNPF) continues to focus on cross-industry asset buying.
Innovative Properties Inc. (dba Nabis Holdings) (CSE: NAB) (OTC: INNPF) Has Capital to Play With
In order to grow a portfolio through mergers and acquisitions, a company needs strong cash-flow available to make such strategic investments. Earlier this month Innovative Properties Inc. (dba Nabis Holdings) (CSE: NAB) (OTC: INNPF) announced that it had entered into a revised agreement, co-led by Canaccord Genuity Corp. and Eventus Capital Corp., to increase the size of its previously announced amended brokered private placement (February 28, 2019) of debenture units to raise gross proceeds of up to C$35 million.
As of March 26,2019, the private placement offering of debenture units at the issue price of C$1,000 per Debenture Unit has been completed for gross proceeds of C$35,088,000. With over C$35 million in the bank, Innovative Properties Inc. (dba Nabis Holdings) (CSE: NAB) (OTC: INNPF) can push forward on several of its strategic investment initiatives and targets.
Major Milestones Secure Future In U.S. Markets
According to research gathered by BDS Analytics, over the course of the next 10 years, spending on legal cannabis is projected to hit $57 billion by 2027[3]. Amid all that spending, the recreational market will cover nearly 70% of the money spent on cannabis. In affirmation of these projections, Innovative Properties Inc. (dba Nabis Holdings) (CSE: NAB) (OTC: INNPF)has taken the industry by storm in 2019 by entering several agreements to expand its reach in this nascent industry.
Earlier this year, voters in the State of Michigan unanimously approved Proposition 1 to legalize and regulate adult-use cannabis under state legislation[4], having originally passed the Michigan Marijuana Act in 2008. Surprising no one, Innovative Properties Inc. (dba Nabis Holdings) (CSE: NAB) (OTC: INNPF) had the intuition to predict the future of the Michigan market.
The company has signed a binding LOI which would permit the purchase of a facility that already has municipal approvals for 10 cultivation licenses and 1 processing licenselocated in Bangor, Michigan. This strategic investment would take the Innovative Properties Inc. (dba Nabis Holdings) (CSE: NAB) (OTC: INNPF) total to 8 licensed facilities in the state, assuming they are able to close the 5 previously announced properties acquired in January.
In addition to its Bangor deal, Nabis completed its investments in strategically located properties that have municipal approvals for provisioning centers in Battle Creek and Constantine. In addition, Innovative Properties Inc. (dba Nabis Holdings) (CSE: NAB) (OTC: INNPF)is currently evaluating ten to fifteen additional municipally-approved locations in Michigan which will substantially increase the Company’s overall presence in the U.S. cannabis space. The closing of these two investments marks another important milestone for Nabis and their North American growth strategy.
Innovative Properties Inc. (dba Nabis Holdings) (CSE: NAB) (OTC: INNPF) expansion into the lucrative Washington state market includes a binding Letter of Intent LOI to purchase assets from PDT Technologies LLC, which include extraction & production equipment and rights to lease the current production facility in Port Townsend, WA as well as the licensing rights to produce Chong’s Choice Brand CO2 Vape Cartridges, a leading and well-known cannabis brand.
The acquisition of Bloombox and their revolutionary identity platform can create a dominating presence in the U.S. market for Innovative Properties Inc. (dba Nabis Holdings) (CSE: NAB) (OTC: INNPF). Integrated systems for menus, ordering, product content, consumer marketing, loyalty programs, and more, will drive success with both existing and new customers.
The company announced signing a binding term sheet to acquire 100% of the membership units of Organica Patient Group Inc., and RDF Management Group in the State of Arizona.In Innovative Properties Inc. (dba Nabis Holdings) (CSE: NAB) (OTC: INNPF) press release regarding the transaction, the Company stated:
“Expect Organica to generate upwards of USD $22 million annual revenues in 2019 with approximate 55% gross margins, and 35% adjusted EBITDA margins, with the assumption of completing certain renovations, expansions and assuming the price for cannabis and related products in Arizona will remain consistent with current pricing, strong consumer, retention of key employees and management, no changes to the State and/or municipal regulations of retail operations and no changes to government regulations generally with respect to the sale of cannabis…”
The Future Could Be Lucrative
It’s clear that the once-frowned-upon cannabis industry is here to stay and investors looking for potential opportunities need to be paying attention right now. In terms of domestic markets, U.S. state legislators are pushing Congress to move forward on passing federal legislation to federally decriminalize marijuana.
On a state-level, 92% of states have some form of legalized cannabis usage. As we move into the coming months of 2019, the normalization of cannabis use coupled with public support and legislation will advance the Cannabis Sector further.
Generally speaking, most cannabis companies emphasize the importance of strong leadership, but there are few companies who possess a proven executive team and are largely focused on profitable growth. Innovative Properties Inc. (dba Nabis Holdings) (CSE: NAB) (OTC: INNPF) is one such company that is raring and ready to deploy serious capital for new projects. With their eyes set on buying high-quality cash-flow assets and over CAD $35 million in the bank, Innovative Properties Inc. (dba Nabis Holdings) (CSE: NAB) (OTC: INNPF) has what it takes to lead the Marijuana Industry into the future.
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