SEATTLE, Feb. 01, 2018 (GLOBE NEWSWIRE) -- CFN Media Group ("CannabisFN"), the leading creative agency and media network dedicated to legal cannabis, announces publication of an article covering RavenQuest BioMed Inc.’s (CSE:RQB) (CNSX:RQB) (RQB.CN) acquisition of Bloomera, a licensed producer of medical cannabis in Ontario with a 2,000 kilograms per year capacity. RavenQuest BioMed has taken a Four Pillar approach to the market that involves working with indigenous populations, building out its own production, providing management services, and conducting research and development. And, a new letter of intent with an existing licensed producer could help accelerate all of these initiatives in the near-term.
Canada’s cannabis industry has become one of the largest and most mature markets in the world, as the only G20 country to have legalized both medical and recreational marijuana. While investors have many different opportunities in the space, they may want to focus on diversified companies that have near-term revenue and long-term intellectual property potential. This helps deliver value now and diversify against the risk of commoditization in the future.
Rapidly Expanding Market
Canada’s cannabis industry is projected to reach C$22.6 billion over the coming years, according to Deloitte, driven by the legalization of adult-use cannabis later this year. Despite nearly 90 licensed producers, PI Financial anticipates a 187,885 kilogram shortfall in production by 2019. This creates a unique opportunity for licensed producers to ramp up production over the coming years to capitalize on the significant demand.
Licensed producers may be the most obvious way to capitalize on the market, but there are many other companies to consider in the space. Several companies are developing innovative growing and extraction technologies designed to help produce cannabis oils and enhance yields; biotech companies are developing innovative next-generation medicines; and, consulting firms are helping provide the support to grow the industry.
RavenQuest BioMed is a unique opportunity that takes advantage of many parts of the industry. In addition to its cultivation efforts, the company is engaged in research and development aimed at maximizing a metric that it feels is most relevant - grams per square foot. Its unique technologies have already demonstrated strong potential, while its consulting division is aimed at helping aspiring licensed producers get up and running.
RavenQuest’s New Acquisition
RavenQuest BioMed recently announced a binding letter of intent to acquire Bloomera, a licensed producer of medical cannabis in Ontario with a 2,000 kilograms per year capacity. Under the terms of the letter of intent, the company will acquire all of the outstanding shares of Bloomera in consideration for a cash payment of $15 million and the issuance of 10.4 million common shares of stock to existing Bloomera shareholders.
“The Bloomera acquisition accelerates our growth strategy by at least six months and opens the door to a much faster growth trajectory as we move forward,” said RavenQuest CEO George Robinson. “Markham, Ontario provides low cost access to the upcoming retail distribution network and the municipality has a large skilled workforce available … The addition of Bloomera provides us with direct access to the Greater Toronto Area - Canada’s largest cannabis market.”
In addition to Bloomera, the company owns Alberta Green Biotech, an Edmonton, Alberta-based facility with expected annual production of approximately 7,000 kilograms per year by mid-summer 2018 after it obtains approval from Health Canada. Management expects to increase annual production from the two facilities to 11,000 kilograms per year using its yield-maximization research developed in partnership with McGill.
Looking Ahead
RavenQuest BioMed Inc. (CSE:RQB) has a market capitalization of less than C$100 million despite its significant potential as a licensed producer, unique focus on indigenous populations, and its growing portfolio of growing technologies. With the potential acquisition of an existing licensed producer, the company will jumpstart its plans by immediately moving into production and implementing its yield-maximization technologies to prove their benefit.
Please follow the link to read the full article:
http://www.cannabisfn.com/ravenquest-acquires-licensed-producer-ontario/
For more information, visit the company’s website at www.rqbglobal.com.
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