Canada's largest cannabis reserves have been damaged. Aurora cannabis (WKN: A12GS7) The first trading week on the New York Stock Exchange started scaring. Roof raises (WKN: A140QA) lost more than 25% of market capitalization last week.
But there is a new cannabis fund, which has led to the storm. The result of this action is that this year Aurora, Canopy, and any other cannabis will explode.
And who is he? Origin house (SIN: A2DH0P). The offer was traded on the Canadian Stock Exchange (CSE) on October 22 and in the over-the-counter trade in the United States. Origin House is not just new.
Under the new flag
Last week House House House was renowned as CannaRoyalty. What is the reason for renaming? The company has gained a new corporate identity, which has identified the purpose of becoming a "global global brand of promotional cannabis."
CannaRoyalty told about the origin of the company. An example of a concrete business is focused on cannabis flows of rotation, which finance anti-marijuana companies from plant production or share-sharing. But the strategy of the company has changed over time.
Origin House is now targeting the spread of cannabis products in California. The US is the world's largest marijuana market. And Origin House – California Cannabis Market # 1.
Currently, the company has more than 50 branded partners. It sells over 70 branded branded brands of over 130 brands in California. Origin House also owns and sells several own brands.
Although its original home is a major player in the major California market, Canada has a door leg. In September, the company said it had purchased 180 vodka with 180 vodka dealers.
New name, new logo and new stock exchange: Origin House expects good start. Mark Lustig, CEO, said in the first half of 2018 that the state-regulated recreational cannaboo market in California was relatively difficult due to the complex market entry. But Lustig now finds the situation as "very good."
He was convinced that Originen would be effective in 2019. Technically, the company earned a profit in the second quarter. However, the positive result was the sale of assets. But Origin House now looks good on the path to sustainable profitability.
At least one expert believes next year will cost about $ 200 million, and $ 425 million in 2020. It is about $ 325 million. Origin House has no sales forecast, but the expert's assessment should be viable.
According to Lustig, currently the company accounts for about 70% of sales and 30% of its brands. Its goal is to shift the revenue from about 50:50 at the beginning of 2019. Origin House will launch this month by launching a new brand.
This is part of the Origin House three-phase long-term strategy. First, they want to expand the base as a leading cannabis supplier in California. The second stage – the use of data from sales activities to make it faster – to create brands that are brilliant and promote existing brands on the California market.
Three of the Origin House strategy can pay in the long term. The company plans to repeat California's success in other highly developed markets. Buying 180 smoke is an example of this strategy. Lustig said that the House of Homes could expand to neighboring Nebraska in the near future. Instead of entering the new market, he decides that the company will be disciplined, without the basis for it.
Better than Big Players?
As I said, Origin House easily defeats the other two largest boxes: Canopy and Aurora, including many other cannabis reserves. But Origin House is better than long-term investment in the industry? In my opinion.
The Beacon Securities investment firm considers distributors and brands to be the first league of Cannabis brands. I agree, especially with regard to the U.S. market. Origin House, in addition to its brands of partners, creates a better environment for its own brands.
Canopy Growth, Aurora Cannabis, and others work in the United States. But it is not a home. About 85% of the American global cannabis market is reminiscent of the US. Even though Canadian legalized marijuana and medical cannabis market have been allowed in the recently introduced market in Canada until 2022, the United States still sells almost a quarter of cannabis sales.
Then there is a rating. Later, the market capitalization of Canopia is about $ 8 billion, and Aurora's market capitalization is about $ 7 billion. Origin Capital's market capitalization is close to $ 300 million. By 2020, there is a potential revenue potential of $ 250 million, which is based on its real growth potential, which is very attractive in the short run. You can not talk about big cannabis reserves.
In August, I said that CannaRoyalty had the best, some unknown cannabis fund. But this is not right – now it is the origin of that honor.
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Motley offers Fool Origin House shares. Keith Speights does not have any of the resources on the list.
This article Fool.com was released on 28.10.2018. German readers were able to participate in the discussion.