Trade Winds Ventures Inc

Published : September 15th, 2015

Tweed Looks to Control Nearly Half of Canadian Cannabis Market

( 0 vote, 0/5 ) Print article
  Article Comments Comment this article Rating Follow Company  
0
Send
0
comment
Keywords :   Canada | Growth | Market |

Tweed Looks to Control Nearly Half of Canadian Cannabis Market

SEATTLE, WA / ACCESSWIRE / September 15, 2015 / The Canadian medical cannabis industry is expected to reach $1.3 billion in size by 2024, according to Health Canada, with over 400,000 patients joining over the next nine years. With about 16 licensed producers under the new MMPR program, the market has been heating up following the Canadian Supreme Court's ruling that cleared away at least some of the concerns related to the program and opened the door to wide-scale production and sales activity.

Tweed Marijuana Inc. (TSX Venture: TWD) (TWMJF) became the first publicly-traded, federally-regulated cannabis company in North America after becoming a licensed producer under the MMPR. With a 180,000 sq. ft. facility in Smith Falls, Ontario and a second 350,000 sq. ft. facility in Niagara-on-the-Lake, Ontario, the company has been licensed to produce up to 3,500 kg of medical marijuana per year, although it is only starting to realize that potential.

The company began shipping product to customers in May of 2014 from the Smith Falls facility. It is currently charging $6-12 per gram and operating at 40% of its anticipated peak capacity at that location. The larger Tweed Farm operation located in Niagara-on-the-Lake began shipping product in December of 2014, but operates at just 10% of its anticipated peak capacity as the company works to ramp up its operations.

During the first quarter of 2015, the company reported revenue that increased 39% over last quarter to $1,710,157, driven by a 29.56% increase in production and a 6.76% increase in the average price per gram. Net income came in at just over $1 million, or $0.02 per share, driven by gains on the changes in fair value of biological assets, while the company reported cash and equivalents of over $15 million, as of June 30, 2015.

In a recent interview, CannabisFN's Mike Elliott met with CEO Bruce Linton to discuss the company's background and what sets it apart from the competition, as well as the company's acquisition of Bedrocan Canada. Mr. Linton was kind enough to join us from Tweed's in-house lab where the sterile surfaces and instruments may have caused some slight audio issues.

Court Decisions Should Drive Demand

The Supreme Court's temporary injunction that permits previous MMAR participants to grow and consume cannabis outside of the MMPR dealt a mild setback to the newly created industry, since a portion of the 40,000 or so existing patients wouldn't be required to purchase medical marijuana from licensed producers. However, all future patients must go through licensed producers and the Federal Government is appealing the decision.

In June 2015, the Supreme Court separately ruled that restrictions on the use of non-dried forms of marijuana violate the rights to liberty and security of individuals, opening the door to edibles and synthetic marijuana. Licensed producers could benefit handsomely from this decision, since it will allow them to broaden their product offerings and potentially attract an increased number of patients and prescribing doctors who desire more options than just dried marijuana.

Tweed received its license to produce cannabis extracts following the Supreme Court's edibles ruling on August 20th in its state-of-the-art Smith Falls facility. With seven new precision climate-controlled drying rooms, a dedicated trimming room, extraction room, and processing room, all approved by Health Canada, the company is well positioned to capitalize on the increase in edibles demand with a commercial-scale operation.

In early September, the company announced the acquisition of MedCannAccess that provides both a network of community engagement centers in Ontario and a 33% stake in CannScience Innovations, a drug development company based out of the MaRS Centre in Toronto working collaboratively with the University Health Network to develop cannabis extracts. These extracts incorporate Generex's RapidMist(TM) drug delivery technology, setting it apart from competition.

The impact of these court decisions is a mixed bag over the near-term, but clearly a positive development over the long-term. While the MMAR decision slowed the initial revenue potential of licensed producers, it protected the market for future patients that is expected to grow to over 400,000 people by 2024. The ruling on non-dried forms of marijuana also opened the door to a significantly greater number of patients and prescribing doctors.

Bedrocan Acquisition Boosts Market Share

Tweed received one of the earliest MMPR licenses from Health Canada and has grown into the industry's largest player. Over the coming months, the company's domination of the market could grow even greater following its acquisition of Bedrocan Cannabis Corp. (CVE:BED) (OTC:BNRDF) - a major player in the space - for $61 million. The combined entity could capture between 25% and 40% of the market, according to analysts covering the stock.

Tweed and Bedrocan already have a combined 5,600 active registered customers, but the unique strengths of each brand could dramatically expand those figures over the coming quarters. Tweed has built an impressive medical brand with the first accredited CME program for doctors and the most doctor visits in the industry, while Bedrocan has a 14-year track record of standardization and international expansion opportunities.

Capturing just 20% of the to-be $1.3 billion industry, could equate to revenue of $260 million in just nine years. With a market capitalization of just C$138 million now, the company's valuation could grow to over a half billion dollars, assuming a modest price-sales ratio of just 3x. The tobacco industry, by comparison, has a ratio above 5x. These dynamics make the stock very attractive on a discounted cash flow basis at its current levels.

The company also compares favorably to others within the growing industry:

Company

Market Cap

Revenue (Annualized)

Growth Rate (QoQ)

Tweed Marijuana Inc. (TWD / TWMJF)

C$138 Million

C$6,840,628

39%

Mettrum Health Corp. (MT / MQTRF)

C$45M

C$4,996,684

-59%

OrganiGram Holdings Inc. (OGI / OGRMF)

C$14M

C$920,212*

238%*

* Latest quarter not yet available.

Looking Ahead

Tweed is well positioned to capitalize on Canada's burgeoning medical marijuana market as a premier licensed producer. With its acquisition of Bedrocan, the company will secure an even greater portion of the market moving forward. The Supreme Court's recent ruling on edibles, combined with the potential for a successful appeal of the MMAR ruling, creates numerous catalysts that could boost the industry's long-term potential.

The company's recent acquisition of MedCannAccess provides it with a unique in-person client services division and a network of existing community engagement centers, making the firm the largest licensed producer to offer in-person services in the industry. With its heavy focus on customer service, the company believes that these centers could significantly enhance the customer experience and further drive revenues over the long-term.

Over the coming quarters, the company will continue to grow its business through efforts like its collaboration with Canabo Medical Corporation to study marijuana for medical use and present the findings to healthcare practitioners. The company also continues to build up its intellectual property portfolio with agreements like its pilot program with Indoor Harvest Corp. to develop an aeroponic system to better grow medical marijuana.

For more information, visit the company's website at www.tweed.com.

Legal Disclaimer:

Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Important factors that could cause these differences include, but are not limited to, the demand for the company's services, governmental regulation of the cannabis industry, and the company's ability to execute its business plan. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claim to provide investment advice or recommendations to readers of this release. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and may increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, has been compensated for its services in the form of cash and equity securities by DigiPath. For full disclosure please visit: http://www.cannabisfn.com/legal-disclaimer/.

SOURCE: Cannabis Financial Network

Read the rest of the article at finance.yahoo.com
Data and Statistics for these countries : Canada | All
Gold and Silver Prices for these countries : Canada | All

Trade Winds Ventures Inc

EXPLORATION STAGE
CODE : TWD.V
Follow and Invest
Add to watch list Add to your portfolio Add or edit a note
Add Alert Add to Watchlists Add to Portfolio Add Note
ProfileMarket
Indicators
VALUE :
Projects & res.
Press
releases
Annual
report
RISK :
Asset profile
Contact Cpy

Trade Winds is a gold and copper exploration company based in Canada.

Trade Winds holds various exploration projects in Canada and in China.

Its main exploration properties are DETOUR LAKE, BIRCH LAKE, GOWEST, TURNER LAKE PROPERTY, TREASURE MOUNTAIN, BLOCK A and DARDANELLES in Canada and SILU and TUOLE in China.

Trade Winds is listed in Canada and in United States of America. Its market capitalisation is CA$ 168.8 millions as of today (US$ 127.4 millions, € 113.7 millions).

Its stock quote reached its lowest recent point on October 24, 2008 at CA$ 0.01, and its highest recent level on April 04, 2014 at CA$ 4.75.

Trade Winds has 93 240 000 shares outstanding.

Your feedback is appreciated, please leave a comment or rate this article.
Rate : Average note :0 (0 vote) View Top rated
 
Annual reports of Trade Winds Ventures Inc
2007 Annual Report
Project news of Trade Winds Ventures Inc
8/22/2011(Block A)Intersects 3.08 g/t gold over 20.8 metres on Block A
7/14/2011(Block A)Intersects 4.18 g/t gold over 18.4 metres on Block A
5/5/2011(Block A)Trade Winds Ventures Completes Preliminary Metallurgical St...
3/31/2011(Block A)Announces Initial Results of 2011 Drilling on Block A
2/16/2011(Block A)Files Updated NI 43-101 Technical Report for Block A on SED...
2/3/2011(Block A)Reports Assays from Previously Unsampled Core from its Drill...
7/7/2010(Block A)Announces Preliminary Metallurgical Study
1/19/2010(Block A)Begins 2010 Drill Program on Block ARecieved:
12/15/2009(Block A) Plans 2010 Drilling On Block A Recieved:
5/28/2009(Block A)Completes Updated Mineral Resource EstimateRecieved:
5/27/2009(Detour Lake)Executes Joint Venture With Detour GoldRecieved:
9/19/2008Files NI 43-101 Report for Silu Lead-Zinc Property in China
7/22/2008(Detour Lake)Proceeds with NI 43-101
10/2/2007Intersects High Grade Gold, 120.83 grams/tonne over 1.50 met...
Corporate news of Trade Winds Ventures Inc
9/22/2015BEDROCAN CANADA AND TWEED ANNOUNCE MULTI-CENTRE LONGITUDINAL...
9/17/2015Bedrocan Canada and Tweed announce multi-centre longitudinal...
9/15/2015Tweed Looks to Control Nearly Half of Canadian Cannabis Mark...
9/4/2015Tweed Launches Community Engagement Centres and Acquires Int...
8/31/2015Tweed Marijuana Inc. Completes Acquisition of bedrocan Canna...
8/28/2015Tweed Quarterly Conference Call Details
8/27/2015Bedrocan Receives Additional License Capacity from Health Ca...
8/24/2015Bedrocan Announces Shareholder Approval of Plan of Arrangeme...
8/24/2015Bedrocan Domestic Production Facility Is Fully-Licensed by H...
8/20/2015Tweed Commences Cannabis Extraction, Provides Corporate Upda...
7/28/2015Bedrocan Receives Health Canada Approval to Sell Domesticall...
7/8/2015Tweed Updates Oil Extraction Efforts and Latest Product Offe...
7/8/2015Abba Medix Builds a Diversified Business
4/8/2015Testing the Limits: DigiPath Labs Targets Booming Nevada MMJ...
4/2/2015Tweed Marijuana grants stock options
4/1/2015April 1 Alert: Tweed R&D Discovers Exciting Genetic Mutation
3/25/2015Tweed Marijuana Inc. Announces Partial Exercise of Over-Allo...
3/17/2015Tweed Marijuana Inc. Closes $20 Million Bought Deal Financin...
2/26/2015Tweed Marijuana Inc. Releases Full Q4 Financials and Provide...
2/23/2015Canadian regulators warn on medical marijuana disclosures
2/20/2015Tweed Installs Aeroponics Pilot Project with Indoor Harvest
2/18/2015Tweed Marijuana releases key fourth quarter summary and prov...
2/10/2015Tweed and Canabo Medical Corporation Launch Collaborative Re...
1/26/2015Cannabix Provides Alternative to Costly Drug Detection Tacti...
1/5/2015Tweed Marijuana Inc. announces second license renewal and ma...
12/12/2014Canadian medical marijuana company PharmaCan to go public ne...
12/11/2014Tweed Provides Support to The Canadian AIDS Society
11/26/2014Tweed Marijuana Inc. Q3 Results and Operational Highlights
11/20/2014Enertopia Provides Footage of Planned MMPR Facility
11/19/2014Tweed announces license renewal
8/16/2011(Block A)Begins 20,000 Metre Drill Program on Block A
7/29/2011Analysis on Trade Winds Ventures TWD: TSX.V - TWDIF: OTC fro...
5/2/2011(Block A)Completes Preliminary Metallurgical Study on Block A
2/21/2011(Block A)Named to 2011 TSX Venture Top 50 Companies - Ranked 9th in M...
11/21/2008' Thanks You for Attending Online Presentation
8/12/2008Company Update
7/16/2008To Begin Exploration on BC Projects
Comments closed
 
Latest comment posted for this article
Be the first to comment
Add your comment
TSX-V (TWD.V)Other OTC (TWDIF)
1.81-1.09%0.400+8.11%
TSX-V
CA$ 1.81
09/21 15:59 -0.020
-1.09%
Prev close Open
1.83 1.90
Low High
1.80 1.90
Year l/h YTD var.
 -  -
52 week l/h 52 week var.
- -  1.81 -%
Volume 1 month var.
203,340 -%
24hGold TrendPower© : -11
Produces
Develops
Explores for Copper - Gold
 
 
 
Analyse
Interactive chart Add to compare
Interactive
chart
Print Compare Export
Last updated on : 1/23/2010
You must be logged in to use the porfolio and watchlists (free)
Top Newsreleases
MOST READ
Annual variation
DateVariationHighLow
 
5 years chart
 
3 months chart
 
3 months volume chart
 
 
Mining Company News
Plymouth Minerals LTDPLH.AX
Plymouth Minerals Intersects Further High Grade Potash in Drilling at Banio Potash Project - Plannin
AU$ 0.12-8.00%Trend Power :
Santos(Ngas-Oil)STO.AX
announces expected non-cash impairment
AU$ 7.70-0.84%Trend Power :
Oceana Gold(Au)OGC.AX
RELEASES NEW TECHNICAL REPORT FOR THE HAILE GOLD MINE
AU$ 2.20+0.00%Trend Power :
Western Areas NL(Au-Ni-Pl)WSA.AX
Advance Notice - Full Year Results Conference Call
AU$ 3.86+0.00%Trend Power :
Canadian Zinc(Ag-Au-Cu)CZN.TO
Reports Financial Results for Q2 and Provides Project Updates
CA$ 0.12+4.55%Trend Power :
Stornoway Diamond(Gems-Au-Ur)SWY.TO
Second Quarter Results
CA$ 0.02+100.00%Trend Power :
McEwen Mining(Cu-Le-Zn)MUX
TO ACQUIRE BLACK FOX FROM PRIMERO=C2=A0
US$ 11.04-1.95%Trend Power :
Rentech(Coal-Ngas)RTK
Rentech Announces Results for Second Quarter 2017
US$ 0.20-12.28%Trend Power :
KEFIKEFI.L
Reduced Funding Requirement
GBX 0.56-3.12%Trend Power :
Lupaka Gold Corp.LPK.V
Lupaka Gold Receives First Tranche Under Amended Invicta Financing Agreement
CA$ 0.06+0.00%Trend Power :
Imperial(Ag-Au-Cu)III.TO
Closes Bridge Loan Financing
CA$ 2.44-2.01%Trend Power :
Guyana Goldfields(Cu-Zn-Pa)GUY.TO
Reports Second Quarter 2017 Results and Maintains Production Guidance
CA$ 1.84+0.00%Trend Power :
Lundin Mining(Ag-Au-Cu)LUN.TO
d Share Capital and Voting Rights for Lundin Mining
CA$ 15.23-1.17%Trend Power :
Canarc Res.(Au)CCM.TO
Canarc Reports High Grade Gold in Surface Rock Samples at Fondaway Canyon, Nevada
CA$ 0.23-4.17%Trend Power :
Havilah(Cu-Le-Zn)HAV.AX
Q A April 2017 Quarterly Report
AU$ 0.19-2.56%Trend Power :
Uranium Res.(Ur)URRE
Commences Lithium Exploration Drilling at the Columbus Basin Project
US$ 6.80-2.86%Trend Power :
Platinum Group Metals(Au-Cu-Gems)PTM.TO
Platinum Group Metals Ltd. Operational and Strategic Process ...
CA$ 1.76+2.03%Trend Power :
Devon Energy(Ngas-Oil)DVN
Announces $340 Million of Non-Core Asset Sales
US$ 52.18-0.95%Trend Power :
Precision Drilling(Oil)PD-UN.TO
Announces 2017Second Quarter Financial Results
CA$ 8.66-0.35%Trend Power :
Terramin(Ag-Au-Cu)TZN.AX
2nd Quarter Report
AU$ 0.03-2.94%Trend Power :