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Modern Green Rush: GrowLife Emerges in Growing Medical Cannabis Markets

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Modern Green Rush: GrowLife Emerges in Growing Medical Cannabis Markets

Recent developments in the medical cannabis industry have made it one of the most exciting stories of the last half-decade. The increasing number of states and countries approving the use of cannabis for its medical use has helped to drive the demand that is now being seen in the broader market.  Further, the growing interest within the medical community is rising, as scientific researchers now have better access to the resources required to make better development practices possible.

Relative to these advancements, it is no surprise that the cultivation of the cannabis plant itself is also benefiting from new innovations.  As a result, a wider array of technologies are available which focus on sustainable practices in agriculture and water management.  Additionally, greater focus on the improvement of soil quality through the development of various organic fertilizers has helped to maximize the ways cannabinoids can makes lives easier for patients.

Innovators in Cannabis Cultivation

GrowLife Inc. is making a name for itself in this field. GrowLife is a publicly-traded holding company that specializes in soil technology, cultivation equipment, and other related products.  The company’s stock trades under the ticker symbol PHOT in the OTC market, and includes various subsidiary and divisions that have helped to drive company growth. 

Key examples here influde GrowLife Hydroponics which sells various equipment through an online e-commerce platform, GrowLife Commerical which specializes in consulting and installation services for commercial growers, GrowLife Retail which holds the company’s retail locations including the company’s flagship Canadian store in Calgary Canada, and FreeFit Flooring within its GrowLife innovations subsidiary, which is an eco-friendly, non-toxic building materials manufacturer, among others. GrowLife provides essential products and services like soil and plant nutrients, media and hydroponic systems.

Product Selections

Just recently, GrowLife Inc.’s organic peat mix (GrowLife HP soil) was studied and chosen for exclusive use by the largest U.S. state-sanctioned cultivation facility in Colorado (Green Man Cannabis).  According to the Green Man, the GrowLife HP soil was chosen because it allows for superior results in cannabis production levels.

Chief Cultivation Officer and GreenMan Cannabis Partner Corey Buffkin explained, “After months of testing and production, we are confident in our decision to use GrowLife HP Soil as it meets our quality and pricing needs. This high-porosity organic mix allows us to feed our plants more often, which means increased yields.”

Biotech Stock Prices
Biotech Stock Prices

Aside from their operations in Colorado, Green Man has started using the product in its cannabis cultivation facilities in other areas (Oregon, and Las Vegas) under the brand name Greenway Medical.

Growth Rates in Medical Cannabis Companies

In other news, GrowLife Inc. also just announced the completion of retail locations in Canada built to accommodate expanding market demand for the indoor cultivation of medical cannabis products.  This essentially amounts to a retail base ranging from $4.9 billion to $8.7 billion, depending on which expert survey is used for the analysis.  These are massive numbers and this suggests excellent opportunities are available for investors that are able to establish asset exposure to the main innovators in these markets.

Medical Marijuana Statistics
Medical Marijuana Statistics

Many experts now believe that these are exciting times for the emerging industry.  Medical cannabis cultivation techniques have been studied more in the last five years than at any time in history, and this is unlocking potential benefits for patients that were previously unknown.  As medical cannabis becomes more accepted and is legalized in other U.S. states, the industry is expected to expand solidly through 2025.  This will propel the industry even further as companies gain more money to invest in technology and innovation.

Medical Marijuana Statistics
Medical Marijuana Statistics

For GrowLife and other members of the medical cannabis community, the uniform goal for everyone is to drive down the cost of products paid by patients in need.  A large part of the process will be fueled by the development and adoption of new agriculture technologies. As consumer-driven technology advances, the innovation surge is pushed even further.  

GrowLife and other industry innovators still remain attractive in terms of their potential value for both shareholders and patients.  As the “pick and shovels” play in this modern-day Green Rush, stocks like PHOT stand to gain over time.  This is a largely untapped industry, and so the potential for growth is massive when compared to most other areas within the financial markets.

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Medical Marijuana: Positive Growth Prospects and Investment Opportunities

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Medical Marijuana: Positive Growth Prospects and Investment Opportunities

Medical Marijuana Inc (OTC: MJNA) is the first cannabis company to be publicly traded in the United States. It is a diversified holding company that operates the industrial hemp sector and the legal medical cannabis industry.  It was incorporated in 2009 and is comprised of a well-positioned portfolio of cannabis brands that continues to expand and flourish.  

From a broader investment perspective, the market capitalization of MJNA now stands at $207 million — and this represents a massive discount to the company’s strong net asset values.  As an undervalued company in a growing industry, MJNA is in a place to move higher over the next several years, while other areas of the stock market remain inflated and vulnerable to potential downside.

Following are the business units and subsidiaries of MJNA:

STRONG FINANCIAL OUTLOOK:

Revenue Growth & Drivers:

  • The Gross Revenue of MJNA has grown by 230% from $1.7 million in Q2 2016 to $5.7 million in Q2 2017. This year has been positive for MJNA as it did see some revenue declines in the past two years.
  • For the entire year of 2016, they had revenue of $8 million. In Q1 2017 they had revenues of $3 million while in Q2 2017 they grew to $5 million. Thus the company has been growing at an exponential rate.
  • There are strong indications of the revenue increasing much more in the next two reporting quarters for 2017 as Mexico has legalized medical marijuana.  MJNA has subsidiaries in Mexico and so they can look forward to increases its sales from that market.
  • There is significant interest income ($1.6 million in Q2 2017) that MJNA is paying for its debts which is having an adverse impact on its profitability. However, if MJNA’s keeps improving on its revenue on subsequent quarters, the interest expense would not matter as much and the company can bring itself into a consistently profitable phase.

Performance of its subsidiary: Kannaway Inc:

    • Kannaway’s revenue has grown 25 times from March 2016 to August 2017 (with exponential growth seen in the CBD hemp oil industry).
    • Since March 2016, the company has grown its customer base by 500 percent, leading to increases in overall revenues of roughly 1,100 percent.

BLE REASONS FOR INVESTMENT:

Geographic Penetration:

  • Mexico: MJNA is expanding its footprint in Mexico as it is the first company with CBD (Cannabidiol) products approved by the Mexican Government. HempMeds, subsidiary of MJNA produces a cannabis product that is the only legally approved product and the first to receive a COFEPRIS approval to import cannabis products.
  • Latin America: MJNA has found lot of success in the Latin American market, (especially in Brazil and Paraguay).  The company’s Real Scientific Hemp Oil has already been granted 12 medical registrations in Puerto Rico.  In April 2014, the Brazilian government approved the importation of a drug produced by MJNA (Real Scientific Hemp Oil), which is a CBD Hemp Oil. HempMeds Brazil has received approval for its first three indications (Parkinson’s disease, chronic pain and epilepsy).

CBD Pharmaceutical Applications:

MJNA and its subsidiaries are focused on devising treatments for several serious illnesses where there are currently no treatments. Research studies have shown that cannabinoids (THC, CBN, CBC, THCV, CBD, CBG) have a positive impact on the wellness and health of those with cancer or other debilitating ailments.   

Growth Outlook:

Over the last two years, shares of MJNA have moved lower in line with the many of the small cap stocks within the industry.  The company has continued to implement strategies on initiatives, build its brand, and enter new markets. The diversification of the company’s subsidiaries and associates helps in increasing the revenues of the company and thus improving its market share profoundly over the next several years.

Strong Initiatives by Subsidiaries:

The subsidiaries of the company have diversified their footprints in the cannabis market. Following are some initiatives in this regard:

      1. MPSI: MPSI is the first logistics and security company serving the cannabis industry. As more and more states in the US look toward legalizing cannabis products, MPSI looks toward expanding its services.
      2. AXIM: AXIM Biotechnologies entered into an exclusive agreement to introduce  a new medical product to market, MedChew RX. It has access to intellectual property that will innovate how cannabis-based medicines are manufactured and purchased by patients.
      3. Wellness Managed Services: Wellness Managed Services has provided services to 150 dispensaries in Colorado, Arizona, Nevada, and California. The combination and standardization of its services has allowed the company to be the first to offer a franchise-like opportunity to proprietors in the dispensary or collective industry in the states where medical marijuana is legal.
  • Kannalife: Kannalife is currently using its licenses to develop novel therapeutic drugs to treat CTE and hepatic encephalopathy (HE). While CBD from marijuana is tightly restricted, CBD found naturally in hemp is legal in all 50 states.
    1. Kannaway: It is the first hemp lifestyle marketing company, with more than 2,000 brand ambassadors to offer cannabidiol hemp botanical products. Kannaway offers several high-quality CBD hemp oil products.

Strong Management Team:

Medical Marijuana, Inc. is led by a management team that is structured in a way that can create strategic value for its shareholders and also continues to execute on its initiatives. The company’s CEO, Dr. Stuart Titus, is a Fellow with both the American Association of Integrative Medicine and the American Academy of Pain Management and was a former clinician holding a Ph.D. in Physiotherapeutics. Blake Schroeder manages company operations and has a capable background after his tenure in nutritional company, which developed an Acai-based nutraceutical and promoted its health benefits throughout the world.

Medical Marijuana Inc. is comprised of a diversified portfolio of companies and brands that continue to flourish as new markets open and existing markets continue to develop.  The current market capitalization of $207 million creates a massive discount when viewed alongside the company’s net asset value of roughly $428.5 million, according to Q2 filings.  As an undervalued company in a growing industry, MJNA stock is in a place to move higher over the next several years.