This is How Marijuana Goes Global

Business

There’s a huge investment opportunity unfolding right now, and it’s going largely unnoticed. It’s based on a global movement to essentially legalize a plant. As wild as it sounds, this plant is still criminalized in most of the world, despite its proven medical and recreational benefits. Mentioned in today’s commentary includes: THC Biomed International (OTC: THCBF), Zynerba Pharmaceuticals (NASDAQ: ZYNE), Compass Diversified Holdings (NYSE: CODI), Teva Pharmaceuticals (NYSE: TEVA), Aurora Cannabis Inc (OTC: ACBFF)

The movement began in the U.S. with a few states in what many considered an ambitious social experiment…but it was so successful, and more importantly, profitable, that Canada decided to follow suit. This was just the beginning.

Now, with Canada’s recreational marijuana legislation set in stone, one small company is turning to lucrative markets across the globe, including EuropeLatin America and the Caribbean – with 1.37 billion potential consumers.

The playbook is simple:  Scythian Biosciences Corp. (SCYB.V; SCCYF) is an investment company for pot projects in countries around the world. The company identifies, acquires and flips key businesses – netting a huge profit along the way.

They’ve taken a global ‘first mover approach’ which gives the company a unique advantage against the competition. Scythian is the world’s first global cannabis incubator, and they’re already making some game-changing deals.

After closing the sale of their projects in ColombiaJamaica and Argentina, they’ll have over $200 million in cash and stock. Despite this tremendous score, they’re still hungry for more.

Scythian is pushing to continue to diversify its strategy, growing into a key investment company in the marijuana business.

Here are five key reasons to keep watch on Scythian Biosciences Corp.developments:

#1 Canadas Cannabis Boom is Well Underway

On June 7thCanada finally approved the Trudeau administration’s landmark legislation to end cannabis prohibition in Canada. Experts estimate that legal marijuana sales in Canada will reach close to $22 billion by 2021 – more than the combined Canadian sales of beer, wine and spirits. This is why companies like Scythian Biosciences Corp. (SCYB.V; SCCYF) are poised to see huge opportunities.

Legalizing recreational marijuana could result in demand of about 400,000 kilograms of cannabis in its first full year, according to Canaccord Genuity analysts. That’s just for recreational use.

Demand for medical cannabis is also growing at a significant pace, and the total combined demand for the first year could be 575,000 kilograms.

With a population of just 36 million – Canada is dwarfed by the 1.37 billion potential cannabis consumers located in progressive, high income jurisdictions of EuropeLatin America and the Caribbean.

#2 There Will Be $57 Billion Market Up For Grabs 

Cannabis industry leaders know they can’t stop there, however. So now they’re pursuing international expansion to justify long-term market cap growth. And Scythian Biosciences Corp. (SCYB.V; SCCYF) is taking it one step further.

The company is actively identifying and pursuing cannabis startups around the world – and the potential opportunities are staggering in scale.

Germany – Europe’s largest economy with roughly 83 million people – legalized marijuana for medical use for some ailments in 2017.

Italy – with roughly 60 million people and Europe’s fourth largest economy – legalized medical marijuana for certain use-cases in 2013.

In January 2017Brazil – with a population of over 207 million people and the highest GDP in South America – issued its first license for a cannabis-based medicine.

Experts are projecting that global spending on legal cannabis will grow from its current level of just under $10 billion to a whopping $57 billion in the next ten years. Scythianis an early mover in markets including EuropeLatin America and the Caribbean – with a total population of 1.37 billion.

This year it became the first multinational to receive an Import License for CBD oil by the Argentina Ministry of Health through their soon-to-be-acquired subsidiary – ABP S.A. This deal would give Scythian access to Argentina’s network of hospitals, doctors, retail pharmacies, private health providers and public health system. And in March 2018, Jamaican authorities granted Marigold Jamaica Products Ltd., five conditional licenses to research, cultivate, process and market medical cannabis. A company in which Scythian plans to acquire a controlling stake.
Scythian is building a portfolio in the global cannabis industry that it then sells off at a healthy profit, when the targets successfully develop with Scythian’s help.

#3 Partnerships With Some Of The Biggest Companies In The Space 

In February 2018Scythian Biosciences Corp. announced the closing of a $28.7 Moffering, led by a $14 million investment from Aphria Inc.. This investment makes Aphria Inc. a major stakeholder in Scythian Biosciences Corp.

With a market cap of $2.77 billion – Aphria Inc., is one of Canada’s leading producers, suppliers and sellers of high grade, low-cost medical cannabis. This is where Scythian’s genius is truly realized.

On Tuesday, July 17th Scythian announced the sale of their Latin American and Jamaican assets to Aphria for $193,000,000 mostly in stock. Scythian originally contracted to acquire those assets for approximately 65M USD assuming a $4 CAD share price.

The transaction will turn Scythian Biosciences Corp. into Aphria‘s single largest stockholder – and leave Scythian with a war chest of over $200 million in cash and stock.

#4 A World Class Management Team

CEO – Rob Reid

Mr. Reid is a leading business figure in Europe’s legal cannabis industry. He is co-founder of Prohibition Partners, a company that provides market data and intelligence to investors, entrepreneurs and regulators. He is also co-founder of Cannabis Europa, a conference series that will focus on the science and policy required to shape the future of Europe’s medical cannabis industry.

Chief Medical Officer – Michael Barnes

Professor Barnes MD FRCP is a leading world authority in neurological rehabilitation and has emerged as an influential voice in medical cannabis policy in Europe. Professor Barnes is a clinical neurologist and consultant in rehabilitation medicine.

He is the Honorary Professor of Neurological Rehabilitation at the University of Newcastle, and Founder and President of the World Federation of Neurological Rehabilitation.  Notably, he was the first doctor in the United Kingdom to be granted the ability to issue a medical prescription for cannabis to a child with an ailment.

#5 The Best Playbook In The Game 

The sale of Scythian Biosciences Corp. (SCYB.VSCCYF) LATAM and Jamaican assets for $193 million is company making news – but it’s not the end of the story. Management is already planning the proceeds for new acquisitions.

Scythian just announced it granted to Aphria a right to purchase up to 90% of the issued and outstanding common shares of an entity in Brazil which Scythian is currently seeking to acquire at terms to be agreed. The playbook in Brazil looks identical to ArgentinaJamaica and Colombia.

The divestiture of Scythian’s LATAM assets clearly demonstrates its ability to identify, acquire and flip profitable projects – and LATAM was accomplished all within a six-month timeframe. For this reason, Scythian has proven it can profit from a new global industry.

The Top 7 Jurisdictions Likely to Legalize Marijuana in 2018

Society

The tide has turned with regard to public perception of marijuana use and the movement toward legalizing pot is moving in a wave. Seven jurisdictions are most likely to approve legal use of cannabis in 2018.

Some of the leading cannabis companies already preparing for the onslaught of new demand include Supreme Pharmaceuticals Inc. (TSX-V: FIRE) (OTC: SPRWF), MedReleaf Corp. (OTC: MEDFF), GW Pharmaceuticals (NASDAQ: GWPH), and MYM Nutraceuticals Inc. (CSE: MYM) (OTC: MYMMF).

It’s evident that the tide has turned with regard to public perception of marijuana use.

CBS News conducted a poll in 1979 that found only 27% support for a nationwide legalization of recreational pot in the U.S. In April of this year, it conducted the same poll and found that support for nationwide legalization had more than doubled to an all-time record of 61% in favor.

It’s not known which, if any, jurisdictions will ratify their mandate to legalize use, but 7 leading contenders hold the most promise for legalization.

Markets are rewarding companies that could benefit from the move to legal cannabis in these areas. Some prominent companies have already taken initiative by expanding capacity as like Supreme Pharmaceuticals Inc. (TSX-V: FIRE) (OTC: SPRWF), and others focusing on medicinal applications and therapies using cannabis, such as MedReleaf Corp. (OTC: MEDFF), and GW Pharmaceuticals(NASDAQ: GWPH).

A select number of companies are looking to support their efforts in developing formulations, extracts and supplying marijuana based on their Licensed Producer status. Among these, MYM Nutraceuticals Inc.(CSE: MYM) (OTC: MYMMF) tops the list. The company has announced it is developing some of the world’s largest cannabis greenhouses, as well as diversified interests in cannabis derivatives, formulations and most recently, producing cannabis in Australia for that burgeoning market.

All of these companies will be bolstered by government efforts to adopt the legal use of cannabis.

Top 7 Jurisdictions Likely To Legalize Marijuana

Depending on the jurisdiction’s laws, legalization could occur either through a referendum or a state’s legislature. More jurisdictions and their lawmakers will likely seek to legalize recreational use of cannabis, especially if they are located in an area surrounded by other states that have been generating revenue already.

1 Canada – It appears that Canada is fortifying its efforts to become the first developed country to legalize recreational cannabis. In April, Prime Minister Justin Trudeau introduced legislation that would legalize recreational marijuana for adults ages 18 and up by as early July 1, 2018. The Canadian government has estimated that legalizing recreational cannabis would result in $5 billion to $7 billion in added revenue each year, and it would be a strong complement to Canada’s rapidly growing medical-cannabis industry.

2. Arizona – In 2018, Arizona voters will possibly vote on an initiative to legalize marijuana for recreational use. An organization called “Safer Arizona” is collecting signatures for the initiative.

3. Vermont – The state has nearly become the first state to legalize recreational marijuana through the state legislature rather than ballot initiative. But every bill that’s been passed ended up getting vetoed by the state’s governor. After the most recent veto, the governor sent the bill back to the legislature. It’s currently being reworked.

4. Michigan – Marijuana advocacy groups in Michigan have tried to get recreational use on the ballot for years, but failed. This year may be very different. Ballot initiatives need to collect 252,523 signatures within a 180-day window to be considered. A recent ballot initiative for recreational marijuana reached 100,000 signatures ahead of the advocacy group’s schedule meaning 2018 may be the year Michiganlegalizes recreational marijuana.

5. Connecticut – Connecticut’s had multiple attempts to legalize marijuana for recreational use that did not pass. But the support is present there. The state is also facing budget problems that marijuana revenue could help offset.

6. Missouri – The state of Missouri allowed marijuana advocacy groups to begin collecting signatures last spring for a bill that would both legalize recreational use of cannabis and also expand the state’s current medicinal program. Advocacy groups have until May 2018 to produce enough signatures to qualify for the November 2018 elections.

7. Illinois – Marijuana has often been proposed as a possible revenue generator for the state, but it’s been shot down, mainly due to Republican Governor Bruce Rauner. Experts believe Rauner is facing an uphill battle for re-election in 2018, which means a new Democratic governor who may be more open to marijuana could be the difference.

Legalization Means Added Demand

Legalization has a very direct and immediate impact on the demand for cannabis.

According to a recently released report from Marijuana Business Daily titled “Marijuana Business Factbook 2017,” the U.S. legal cannabis industry is expected to grow by about 30% in 2017, 45% the following year, and an aggregate of 300% between 2016 and 2021.

For Canada, the numbers look even better: the annual retail marijuana market there could be at least $4.9 billion, but possibly as high as $8.7 billion considering ancillary markets.

At this point, there’s a legitimate concern that supply would be unable to meet demand given that some leading producers already export some of their dried-cannabis production to foreign markets.

And while all of the leading cannabis companies are taking on massive capacity expansion projects, many of them could be pushing the deadline to be ready to handle the added demand for cannabis by 2018.

This has given rise to a race to create more product, and fast.

One of the up and comers in this space is MYM Nutraceuticals. Their aggressive strategy is based on a commitment to superior growing technology, well-crafted branding and innovative distribution strategies.

Through its majority-owned subsidiary CannCanada, MYM signed an exclusive deal with the Quebecmunicipality of Weedon to build a 1.5 million square foot facility. At completion, Weedon will be one of the largest greenhouse facilities dedicated to marijuana growth in the world, expected to produce over 150,000 kg of cannabis per year.

MYM has also announced two more production facilities; a smaller facility in Laval, Quebec which it expects to have online in by the end of 2017, and the other in Australia that’s a co-venture with local government. That facility in New South Wales will house a 1 million square foot growing space slated to start in 2018.

The prospect of added demand coupled with solid news of governmental support has sent shares of the major cannabis producers and medical companies soaring higher. And adding new legal jurisdictions can only serve to add fuel to the fire.

Several states and Canada appear to be willing to take the initiative to legalize marijuana. And the cannabis companies appear to be moving hand-in-hand with each new initiative.

Critics expect that 2018 will be a pivotal year in the shift towards a new legal cannabis landscape.

Potential Comparables

Supreme Pharmaceuticals Inc. (TSXV: FIRE) (OTC: SPRWF),

Supreme Pharmaceuticals, through its wholly owned subsidiary, 7ACRES, is one of the first 40 federally licensed Canadian producers of medical cannabis pursuant to the ACMPR. The company operates inside a 342,000 sq. ft. Hybrid Greenhouse facility located in Kincardine, Ontario. It is the largest facility of its kind to grow with advanced HVAC and C02 enrichment using the full-spectrum sun. The company has commenced its first sales of dried cannabis to Aurora Cannabis, possibly the largest and most trusted retail brand in the Canadian industry.

MedReleaf Corp. (OTC: MEDFF)

MedReleaf sets The Medical Grade Standard for cannabis in Canada and around the world. The first and only ISO 9001 certified cannabis producer in North America, MedReleaf is a R&D-driven company dedicated to patient care, scientific innovation, research and advancing the understanding of the therapeutic benefits of cannabis. Sourced from around the world and perfected in one of two state of the art facilities in Ontario, MedReleaf delivers a variety of premium products to patients seeking safe, consistent and effective medical cannabis.

GW Pharmaceuticals (NASDAQ: GWPH)

GW has established a world leading position in the development of plant-derived cannabinoid therapeutics through its proven drug discovery and development processes, intellectual property portfolio and regulatory and manufacturing expertise. Their lead product candidate is Epidiolex® (cannabidiol) for certain rare and severe early-onset, drug-resistant epilepsy syndromes. GW successfully developed the world’s first prescription medicine derived from the cannabis plant, Sativex®, now approved in over 29 countries outside of the United States for the treatment of spasticity due to Multiple Sclerosis. The company has a deep pipeline of additional clinical stage cannabinoid product candidates for both orphan and non-orphan indications with a particular focus on neurological conditions.