27 Sep 5 Prominent Companies in the Cannabis Consulting Market
The Global legal marijuana market is likely to reach over USD 66.3 billion by the end of 2025, as per a report by Grand View Research, Inc, growing at a CAGR of 23.9%. There is a growing acceptance of the curative effects of cannabis, with some countries such as Canada and certain states of U.S legalizing the use of Marijuana for medical and recreational use. Research has time and again shown that cannabinoids (CBD), extracted from the cannabis plant, have varied medical uses with minimal side effects, making it a sought after alternative to traditional pharmaceutical options.
The U.S, where the use of cannabis has only been legalized in 33 states for medical use and 11 states for recreational use, is one of the largest untapped markets for Marijuana, with an estimated value of over USD 11.9 billion in 2018, which is likely to grow at a CAGR of 24.1% from 2019 to 2025. There have been series of mergers and acquisitions in the Cannabis space, which have seen consolidation of major players such as Aurora Cannabis, Canopy Growth, Curaleaf etc, in the anticipation of legalization of marijuana in the U.S by the end of 2019.
However the cultivation of cannabis, and a reliable supply and distribution chain, is still a major challenge that the industry at large is grappling with. The need of the hour is a consistently high quality product that is economical and cost-efficient to grow. An increasing number of players in the industry are realizing the importance of tailor made services that address the issues faced by cannabis cultivators, ranging from how to grow the best quality weed with limited resources such as water and land at their disposal to how to address the challenges in transportation and distribution to areas beyond their immediate markets.
The Cannabis industry is on a consolidation spree. Major players in the market are joining ranks, to gain strategic advantage, in case of legalization of Marijuana in newer markets such as U.S and Europe. This also offers a great opportunity for multistate, vertically integrated dispensary operators who hold extensive licenses across multiple states and hence there is increasing demands for consultancy services which will help companies navigate the regulatory hurdles efficiently.
We take a look at some companies that are making quick strides in the cannabis consultancy market
The company offers comprehensive solutions for entrants seeking a foray into the cannabis market, beginning with the acquisition of a dispensary license, cultivation support, equipment sourcing and fulfillment, branding and marketing to staffing and operational management. American Cannabis Consulting has been awarded over 37 merit-based licenses in 14 states in U.S and Canada and has built 1 million feet of cultivation space till date.
The company offers a bio-dynamic mix, inspired by True Living Organics namely SoHum Living Soils, which offers the perfect blend of micro-organisms and bacteria that enrich the soil, provide consistent quality and ensure a simplified growing process and maximize yield. In addition the company also offers The Satchel™, a child safe exit bag for use in dispensaries and Cube™, a self-contained medical grade cannabis cultivation solution and Dab Werks™, reusable vinyl graphics for point-of-sale merchandising and store decoration.
Since its inception in 2013, the company has followed a five-pronged strategy to achieve success in the regulated cannabis business space, by practicing conventional business best practices, disrupting traditional methodology, offering best-in-class equipment for cannabis cultivation, continuous innovation and establishing strategic partnerships.
Medicine Man Technologies offers cannabis consulting and turn –key solutions, ranging from assistance, securing a state-issued operating license, to offering cutting-edge low risk cultivation technology, including standard operating procedures and hands-on training. The company operates state-of-the-art dispensaries that provide customers with access to premium quality safe products for medicinal and recreational use. The company also offers standard operating procedures for dispensary facilities such as staffing and personnel training as well.
The company has ties with industry leading extraction companies such as Dixie Elixirs, Medically Correct, CanCore Concepts, and Tree Frog to name a few, who offer license service and formulation support. It offers a 360 degree approach to Cannabis, by addressing the needs in licensing and application support, dispensary operations, facility design and implementation support, consulting, cultivation support and provision of nutrients.
Medicine Man also owns a indoor gardening supplies brand named the big tomato and the ground breaking grow book by Joshua Haupt named “Three a Light”. In addition it also runs a nutrient supply brand namely “Success”.
The company is on a rapid expansion spree, acquiring cannabis operator Roots Rx for $15 million in cash and stock in September 2019. Roots has six dispensaries in Colorado Ski Mountains and an outdoor cultivation facility near Aspen. Medicine men technologies has also signed a binding term sheet agreement with Starbuds, to purchase four dispensaries in Colorado, in consideration for cash, stock and a deferred payment deal.
Furthermore, since the start of 2019, the company has been pursuing numerous acquisitions, some of which are pending, such as Colorado Harvest company, Starbuds, Los Sueños, PurpleBees, MedPharm, Medicine Man Denver, and Green Equity SAS to name a few. This will take its dispensary count to 23, upon successful closing of the acquisitions.
The company leverages its extensive knowledge and experience in the operations of cannabis industry such as engineered facilities, security, regulatory compliance, genetics, cultivation, good manufacturing practices (GMP), proprietary extraction methods, branding, retail operations (SOP), marketing and wholesale distribution, to offer consultancy service through a team of experienced industry leaders.
United Cannabis offers comprehensive consultancy services that encompass acquiring a business license, training on efficient cultivation methods, financial tax planning, establishing standard operating procedures for retail operations, undertaking personnel and sales training, connecting with reliable vendors, managing investor relations and compliance audits.
In addition, it also has a biotechnology business that develops cannabinoid-based therapeutics for the treatment of rheumatoid arthritis and brain cancer, under the Prana Bio brand name. The company has patent protection until October 21, 2035 for its proprietary cannabinoid compositions covering liquid formulations with or without certain terpenes/flavonoids, including formulations infused in a medium chain triglyceride (MCT). The company also runs a advanced cannabinoid therapy service named A.C.T Now, which offers personalized plans for customizing cannabinoid medication and dedicated services of a professional, who will create a customized plan and monitor patient progress.
In September 2019, The company has announced a partnership agreement with Releaf Global Pty Ltd, an Australian corporation for the commercialization of Prana Bio Nutrient Medicinal, cannabis-centric products and technologies in Australia and other territories. United Cannabis will grant an exclusive, royalty-bearing license to the company, besides providing assistance with cultivation, production and wholesale operations
MedPharm offers a broad range of consulting services, assisting companies from start to finish, in setting up their operations in any state where marijuana is legalized. In case a company only requires help in specific areas of the process, then MedPharm offers customized “pick and choose” services, to cater to their specific needs. The company’s consultancy team consists of industry experts, chemists, pharmacists, formulation experts, lawyers, and people with political acumen and experience.
MedPharm offers a range of solutions such as application support, facility design, cultivation support, extraction support, development of unique formulations, packaging solutions, licensing support, data analysis, research and development, compliance and process optimization. The company has three brands namely Aliviar that sells various vape, tincture, topical lotions and tablets; become, a line of cannabis blends created specifically for women and Batch, which is hand-crafted, small batch cannabis for the connoisseurs.
In September 2019, the company received a notification from the Drug Enforcement Administration (DEA) that it is one of the first applicants to be selected to receive a license to grow federally legal cannabis, according to the new policy statement. The intention is to use this facility to grow legal cannabis for medical cannabis research, through its 15,000-square-foot manufacturing, research and development laboratory and cannabis processing facility in Denver, Colorado.
The company uses its proprietary Lipophilic Enhanced Absorption Formulation (L.E.A.F.™) technology to offer services related to research of oil analytics and dosage forms and creation of formulations including pre-formulation, formulation development, small scale commercial manufacturing, analytical method development and validation, routine quality control analysis and stability studies using Good Manufacturing Practices (GMP).
MedPharm has been granted a Cannabis Research License by the state of Colorado, using which it can offer cannabis study medication, including placebos for Randomized-Controlled Trials (RCTs). The company has signed a binding term sheet through which it will be acquired by Medicine Man Technologies.
AmeriCann builds and owns state-of-the-art cultivation and processing facilities, besides procuring real-estate suited for the production of cannabis. Additionally it also provides licensing facilities, infused products and consulting services to the entrants in the cannabis market. The company follows a multi-market growth strategy and is currently developing over 1,000,000 square feet of sustainable cannabis infrastructure.
The company is aiming to develop sustainable and easy to scale cultivation practices in the production of cannabis and related products. Unlike the conventional indoor, warehouse cultivation methods, the company is leveraging the expertise of its team to build greenhouses that use minimal energy, water and other resources. AmeriCann is exploring the best practices offered by traditional agricultural practices such as use of solar power, geothermal heating and cooling and alternative sources of energy like electricity, thermal heat and water recycling.
The company’s latest project is the Massachusetts Cannabis Center, which it is developing to encompass sustainable greenhouse cultivation, processing, and infused product facilities, to be leased out to Registered Marijuana Dispensaries under the Massachusetts Medical Marijuana Program. The facility will also include a testing laboratory, a research facility, a training center and corporate offices.
The primary focus is on creating an industry standard for energy efficiency, cost control, clean cultivation practices, and the production of Neutraceutical-grade infused products for the patients of Massachusetts as per the company. The goal of the company is to create the leading cannabis facility in the world and emerge as the future standard of cultivation practices in the industry.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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