Ag Tech Innovation utilizing cutting edge technology
ASX Ag-Tech Acquisition Provides Vantage Position in C$7.2B Canadian Weed Market
The nimble ASX junior on our radar today is redefining the future of agriculture through cannabis tech innovation, and it’s doing so at a time and in a country where pot is now fully legal.
Its mission? To generate socially responsible, sustainable and profitable revenue by growing cannabis and perishable foods using cutting-edge technology solutions, while lessening the environmental impact of traditional farming.
The company’s expectations of what it can achieve have been substantially boosted lately, following its strategic acquisition of a company that already holds a Health Canada issued cannabis Dealer’s Licence. This acquisition could position today’s company as a global leader in the cultivation of both cannabis and perishable foods.
Last month, Canada became the second country in the world — and the first industrialised nation — to legalise recreational weed. This historic decision also opens up a direct pathway for what’s expected to be a highly lucrative market.
Total Canadian legal pot sales are expected to exceed $7.0 billion by 2019, according Deloitte — that’s more than the $5.1 billion Canadians spent on spirits in 2017 and on par with wine sales.
Today’s company has impeccable timing. Its acquisition, in turn, gives it a distinct advantage over both its Canadian and Australian pot-stock peers.
Now, through this acquisition, today’s featured company has the ability to legally produce its own pot products in Canada’s newly opened recreational cannabis market, positioning it as a triple threat in the rapidly expanding ASX pot-stock corridor, where many local companies have to meet the challenges of clinical trials and strict TGA (Therapeutic Goods Administration) requirements to take a product to market.
Threat two is its patented stackable hydroponic rotary garden technology replete with its own proprietary software, iGrow. This system produces multiples more yield per square metre than traditional flatbed growing.
The third threat is a specialised water treatment and nutrient management agribusiness that’s incorporated in the state of Nevada — another place where recreational pot use is legal.
In a nutshell, what separates this fast-moving company from its peers is its holistic approach. It’s providing streamlined solutions from concept to harvest, integrating both design and growing expertise.
Underlying this strategy are three key business verticals:
- Leading technology and SaaS (Software as Service), including its patented rotational hydroponic garden system and proprietary automatic growing management iGrow software.
- Growing management and licence ownership.
- Agricultural services – fertigation delivery system, tissue culture innovation, life-cycle nutrient management planning, and organic perishables and nutraceuticals.
Within this framework, the company has astutely focused on both the buzzing Canadian and US markets — which is strategic, to say the least. That’s two hefty slices of the global cannabis pie, which is expected to exceed US$60 billion by 2024.
On top of the specs we’ve mentioned for Canada, legal cannabis sales in the US are expected to double from $10 billion in 2017 to more than $20 billion by 2021.