Today, Rich returns to one of his favorite cannabis companies. Though based in Canada, StillCanna Inc. (CSE:STIL) (OTCPK:SCNNF) is dedicated to large-scale CBD extraction in Europe.
Over the last few months, the company has been making incredible strides towards reaching its goal of being a global CBD supplier. In addition to key acquisitions that place it in a highly enviable position, StillCanna’s cultivation and extraction techniques are unrivaled in the CBD industry.
“StiillCanna is a company that’s very, very close to revenue. They are harvesting right now and they are extracting right now as well,” says Rich. “They have new extracting technology that nobody has.”
StillCanna to Supply Hemp Biomass to Sequoya
On Friday, StillCanna announced that it signed a definitive agreement to supply Sequoya Cannabis with $850,000 CAD worth of hemp biomass. The supply will consist of dried flower with a cannabinoid content of 5 percent or above and will be third-party tested to ensure that it’s of the highest quality.
StillCanna will derive the hemp biomass from its Polish farms. Of the company’s entire 2019 harvest, this supply will constitute about 3.5 percent, leaving plenty more hemp to be sold in future deals.
StillCanna CEO Jason Dussault, who Rich interviewed in July, had this to say about the Sequoya deal:
“This initial biomass agreement is in-line with the Company’s sales strategy. The more we speak with the principals of Sequoya the more we learn about the synergy of our Companies and the many ways we can work together beyond this initial agreement. From cooperative marketing, research, and product development we feel there are multiple benefits for our firms to work together in the European market.”
Rich notes how beneficial it can be for a Canadian company to focus on the European market.
“The Euro is so much higher than the Canadian dollar,” he says. “So when you’re generating sales in Europe, and then you’re converting those sales into Canadian dollars, you’re making a huge spread right off the bat. So from that perspective, I see huge opportunity here.”
More StillCanna News Worth Celebrating
In the last month alone, StillCanna has passed some huge milestones. On July 31, it accepted delivery of its first custom-built harvesters designed specifically for hemp. Within a week, these harvesters were put to work collecting the cannabis flower with minimal disruption to the cannabinoid crystals. This process ensures that the harvested product retains maximum CBD content.
On August 12, the company released key information regarding its state-of-the-art extraction facility in Poland. Termed Nexus, the facility is designed for a production capacity that exceeds 1,000 kgs of isolate a month and is on track to be operational by Q4 2019.
On top of its impressive Polish holdings, StillCanna also has a JV facility in Romania with Dragonfly Biosciences that is in the final stages of being licensed.
Even more than its farms and facilities, the company has reason to be proud of its cultivation and extraction methods. Its ethanol extraction method can create large quantities of high-quality CBD at a remarkably low cost. On top of that, its proprietary hemp strain has a gestation period of just 45 days. This means that, starting next year, StillCanna can plant and harvest two crops every season.
“I cannot wait to see the revenue growth for this company,” Rich says. “I believe it’s going to be exponential and they are going to be a huge success.”
StillCanna Presents a Unique Buying Opportunity
At its IPO, the company’s stock price was just $0.025. Since then it has shot up to a high of $1.64 and now sits at $0.59. This presents investors with a rare chance to buy into an early-stage company in an incredibly lucrative market.
“To be able to get into a CBD company when it’s about to start selling—and it’s under $0.60 in Canada—this is an amazing opportunity,” says Rich.
According to the Brightfield Group, the CBD market in Europe was worth $318 million in 2018, and by 2023 will grow by 400 percent. CBD is just starting to explode in Europe, and StillCanna is incredibly well-positioned to meet this fast-growing demand.
What do you think? Will CBD be the next big play for cannabis investors? Let us know your opinions in the comments below.
Featured image: Canva