- Analysts predict that the global legal marijuana market will reach $146.4 billion in annual sales by 2025
- Nabis Holdings is building assets across the cannabis spectrum in multiple states, with visions of international expansion, to capitalize on the trending market
- Thanks primarily to acquired assets and LOI-process holdings in Michigan, Nabis anticipates a significant revenue and EBITDA jump between 2019 and 2020 as cultivation facilities come online and recreational market sales begin
The tremendous growth in a variety of cannabis-use industries capitalizing on the plant’s lifestyle-enhancing properties has opened a wide field of investment opportunity to Nabis Holdings (CSE: NAB) (OTC: INNPF) (FRA: 71P), a Canadian company intent on building a vertically integrated portfolio of assets across the cannabis space in the United States followed by international expansion.
Nabis Holdings’ most recent acquisitions include assets from PDT Technologies LLC, such as its exclusive licensing rights to Chong’s Choice brand vape cartridge products in the state of Washington, extraction and production equipment for cannabis processing and the rights to lease a current production facility in Washington.
The company also acquired a Bangor, Michigan, site that has city approvals for 10 cultivation licenses and one processing license.
The agreements reflect Nabis’ purposeful investment in high-quality cash flow opportunities across the full cannabis spectrum in states where limited licenses are granted for professional operations. Nabis anticipates its “anchor investment portfolio” in high quality assets at a proper pricing point will help it generate C$14.8 million in revenue during 2019 ahead of an exponential increase to C$167.9 million in revenue in 2020 as cultivation and harvesting begin in earnest.
The earnings before interest, tax, depreciation and amortization (EBITDA) from the asset investments are expected to reach $4.1 million in 2019 and $67.5 million in 2020.
Much of the forecast gains between 2019 and 2020 are due to strategically located assets in Michigan. The company’s acquired and LOI holdings in the state include two sites in Detroit and four in other cities, granting it the pipeline power of one cultivation facility, one processing facility and seven dispensaries in a state that has only just opened its doors to adult recreational use during the past six months. Medical marijuana dispensaries are thriving, and recreational use sales are expected to begin early next year (http://ibn.fm/tQdi1).
The company predicts gross margins of 55 percent with 30 percent adjusted EBITDA margins through the Michigan facilities, leading it to anticipate sizable growth, from $8.1 million in annual revenues in 2019 to $104.8 million in revenues in 2020 thanks to 10 cultivation licenses and one processing license.
In Arizona, Nabis is set to monetize a cannabis cultivation facility, a greenhouse and a dispensary. In Washington, it has a processing facility. The company plans to expand the Washington operations by building a new extraction clean room and lab facility with new, highly specialized equipment, including two new extraction lines, for up to 20,500 kilograms of cannabis concentrate on an annual basis.
Nabis continues to evaluate multiple “off market” vertically integrated opportunities that have arisen thanks to the “strong existing relationships of management,” which target expansion in California, Massachusetts, Nevada, Ohio, Oklahoma, Oregon, Israel and the European Union.
Despite prohibitions at the federal level in the United States, 92 percent of states have some form of cannabis legalization, ranging from CBD-only licensing in some to full medical and recreational use in others. The company’s investor information sheet notes Grand View Research’s prediction that the global, legal marijuana market will reach $146.4 billion in sales by 2025 (http://ibn.fm/3Q4PH).
For more information, visit the company’s website at www.NabisHoldings.com
NOTE TO INVESTORS: The latest news and updates relating to INNPF are available in the company’s newsroom at http://ibn.fm/INNPF
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