CanadaBis Capital

Vertically-Integrated Cannabis in Alberta

This CanadaBis Capital Inc. profile is part of a paid investor education campaign.*

Overview

CanadaBis Capital Inc. (TSXV:CANB) is a vertically-integrated Canadian cannabis company focused on achieving large-scale growth in the fast-emerging global cannabis market.

By targeting organic growth opportunities alongside the right-fit partners, the company remains focused on finding and capitalizing on chances to grow, diversify and become a leader in the industry.

As per the company’s cultivation strategy, CanadaBis has acquired Stigma Grow, a cannabis cultivation company currently operating out of a 66,000-square-foot craft cannabis cultivation facility in Red Deer, Alberta. Stigma is following a blueprint to construct single batch grow rooms of approximately 1,900 square-feet to mitigate any potential risk that may arise during the cultivation process. Once the facility is fully operational, it is expected to produce up to 5,000 kilograms of cannabis annually with a gross margin of up to $25 million.

The company plans on expanding further with another 66,000 square-foot facility to be constructed adjacent to the original in 2020, doubling production to 10,000 kilograms and cash flows to up to $50 million annually. Stigma Grow has strategically secured enough land to add an additional 800,000 square feet of extra cultivation or processing space. After three years of research and development, the company has also developed 42 unique, proprietary strains that offer high-quality craft product with optimal cannabinoid profiles that are mold, mildew and pest-resistant.

In preparation for the upcoming edibles market, CanadaBis has acquired Full Spectrum Labs Ltd., a private company with an extraction methodology that preserves all of the phytocannabinoids and terpenes found in cannabis by using extremely low-temperatures. The company intends to integrate Full Spectrum’s extraction equipment and intellectual property (IP) into Stigma Grow’s facility in Red Deer, allowing the company to offer a variety of value-added products and third-party toll processing services to other licensed producers.

CanadaBis has also acquired a wholly-owned retail location in Red Deer’s “Gasoline Alley” named INDICAtive Collection, with a proposed opening date of early-October 2019.

The company is committed to its strategy of diversification and is also engaging in a search for an ownership stake in a high-quality hemp processing and CBD extraction operation.

Company Highlights

  • Canadian cannabis market to generate up to $7.17 billion in sales in 2019.
  • Alberta’s recreational cannabis market to reach $1 billion per year.
  • Stigma Grow has a 66,000-square-foot craft cannabis cultivation facility in Red Deer, Alberta which is expected to produce up to 5,000 kilograms of cannabis annually with a gross margin of up to $25 million in 2020.
  • Developed 42 unique, proprietary strains that offer optimal cannabinoid profiles that are mold, mildew and pest resistant.
  • Cannabis education program partnership is in place with Olds College, allowing students to get hands-on experience in the cannabis industry.
  • CanadaBis has acquired a wholly-owned retail location in Red Deer’s “Gasoline Alley” called INDICAtive Collection.
  • Anticipated revenue generation for the store is estimated at $1.7mm annually
  • CanadaBis closed the acquisition of “Full Spectrum Labs” a cutting-edge cannabis extraction, product development and R&D company in Alberta, Canada.

The Alberta Cannabis Market

Canada’s cannabis market is expected to generate up to $7.17 billion in sales in 2019 with up to $1.68 billion coming in from western Canada. Alberta’s recreational cannabis market is expected to reach $1 billion per year. Sales are expected to increase after value-added cannabis products hit the shelves by mid-December 2019.

According to the Alberta provincial government, Alberta is ahead of the rest of the country when it comes to retail cannabis. The Alberta Gaming, Liquor and Cannabis Commission (AGLC) is responsible for the province’s wholesale and distribution for retail cannabis products as well as licensing retailers.

Alberta is one of the few provinces that allows both private and publicly-run retail cannabis stores. As of March 2019, the AGLC had granted licenses to 75 retailers. The AGLC Chief Executive Alain Maisonneuve told the Globe and Mail that he expects 250 cannabis stores to open within the first year of legal recreational cannabis in the province.

CanadaBis’ Vertically-Integrated Business Model

The company is focused on becoming a vertically-integrated cannabis company in Alberta. To realize this goal, CanadaBis has created a scalable capital allocation platform that focuses on four areas: cultivation, research and product development, retail and hemp.

Cultivation

CanadaBis is focused on becoming a leading craft cannabis grower in western Canada. The company intends to sell its products through the AGLC and is anticipating the launch of 11 products in the near term under the Stigma brand.

Stigma Grow

CanadaBis has acquired Stigma Grow. The company has recently received its cultivation and processing licenses from Health Canada and has applied for a sales license.

Stigma Grow has also developed a 66,000-square-foot craft cannabis cultivation facility in Red Deer, Alberta. The company is building modular grow rooms of approximately 1900 square-feet to allow for easy cultivation, care and maintenance of each individual crop. Stigma Grow has spent three years developing 42 proprietary strains that were hand-selected over three years of R&D based on varying levels of THC, CBD content and terpene profiles. Stigma has found these strains to be mold, mildew and pest resistant.

The facility is being built out in three phases. Phase one of construction is complete, resulting in 22,000 square-feet of ready-to-use cannabis cultivation and processing space. Phase two is expected to add an additional 44,000 square feet of space.

In the third phase, Stigma Grow intends to build a second identical 66,000 square-foot facility in 2020, which is expected to double the company’s gross margins. The company also has the right of first refusal on 20 acres of adjacent land which is equivalent to approximately 800,000 square feet of additional cultivation or processing space making future expansion straight forward. Once operational, the two facilities are expected to collectively produce up to 10,000 kilograms of cannabis annually with a gross margin of $50 million.

Stigma Grow harvested its first crop in May 2019 and its second harvest in early-July. With the successful testing of its second crop, Stigma Grow now intends to apply for an amendment to its existing license to include dried flower and oils.

Stigma Grow has launched an educational cannabis production program through Olds College. The program allows students to get hands-on training and experience in a cannabis work environment. Students are expected to complete four online courses before they are allowed to complete their field study at Stigma Grow’s facility in Red Deer County.

“We look forward to working in conjunction with Olds College to provide our industry the proper environment to develop skilled workers. We are proud of this facility and the ability we have to provide a training establishment while working closely with our community. Olds College has always been an excellent place to receive an education, and we are honoured to partner with them in this program,” said CanadaBis President and CEO Travis McIntyre.

Goldstream

CanadaBis has acquired a 95 percent interest in Goldstream Cannabis Inc. in British Columbia. Goldstream has leased 13 acres of land in British Columbia that is zoned for outdoor cannabis cultivation and can potentially access an additional 300 acres.

Full Spectrum Labs

CanadaBis has acquired Full Spectrum Labs Ltd., a private company with an extraction methodology that preserves all of the phytocannabinoids and terpenes found in cannabis by using extremely low-temperatures. The company intends to use the process to produce a variety of unique finished goods such as tinctures, vapes and oils. CanadaBis intends to incorporate Full Spectrum’s processes and IP at Stigma Grow’s facility to create a clear concentrate. The acquisition is expected to allow the company to offer third-party toll processing to other licensed producers.

“The acquisition of Full Spectrum Labs allows Stigma Grow to manufacture unique, clean and clear products for consumers that will be among the highest quality and potency in the market,” said McIntyre. “Stigma intends to leverage this technology, and the insight provided by our skilled and experienced staff, to target consumers that are looking for high-quality product variations. The company also believes the addition of this IP showcases our continued focus on products that will lead the industry in both innovation and quality. The difference is clear; we are preparing for the future of cannabis.”

Research and Product Development

CanadaBis closed the acquisition of “Full Spectrum Labs” a cutting-edge cannabis extraction, product development and R&D company in Alberta, Canada. The company is focused on clean extraction and distillation, scientific research and product development in the areas of nano-emulsion and softgel encapsulation.

Retail

CanadaBis also intends to offer cannabis consumers a high-end consumer experience through luxury department store-styled cannabis retail locations. The store layout will be sleek, sophisticated and cater to everyone.

To this aim, the company has acquired a private retail company with a location in Red Deer’s “Gasoline Alley.” The location consists of a 2,800-square-foot store in a high traffic area outside Red Deer on Highway 2 and is expected to operate under the name Indicative Collective. CanadaBis expects to generate $2 million in annual revenue, once the company receives its retail sales license from the AGLC.

Hemp

CanadaBis is engaged in preliminary discussions with a variety of hemp providers regarding potential joint ventures. The partnerships are expected to ensure that the company has ongoing access to large quantities of quality hemp for its CBD production needs.

Management

Travis McIntyre — President, CEO and Chairman

Travis McIntyre has over 21 years of experience in Canada’s oil and gas civil construction sector and has a deep knowledge of Alberta’s safety codes and regulations. He is currently maintaining his COR, ABSA and CWB certifications. Over the past three years, he has been actively involved in various cannabinoid research and profile development initiatives. He is the company’s Senior Responsible Person In Charge (SRPIC).

Kim McIntyre — VP Marketing

Kim McIntyre, in addition to being Responsible Person In Charge (RPIC), leverages over 20 years of experience in start-ups and business management to oversee all marketing and operations. Her responsibilities include building company policies and procedures, initiating and building safety programs, staff training, working as a direct HR contact for employees, setting up, operating and maintaining accounting programs, as well as managing advertising and marketing decisions.

Shawn Ryan — CFO

Shawn Ryan holds a Chartered Professional Accountant designation and has over 15 years of accounting, finance and tax experience primarily in the oil and gas industry. Before joining CanadaBis, he served as the controller for a private oil and gas company in Calgary, Alberta. Ryan holds a Bachelor of Business Administration degree from the University of Regina.

Mike Hicke — VP Retail and Sales

Mike Hicke has over 17 years of experience in the oil and gas industry. His experience covers construction and design through to marketing, sales and production. He has extensive knowledge of the MMPR and AMCPR regulations. He is a hydroponic, automation and plant propagation specialist. Hicke graduated from the University of Alberta where he majored in mechanical engineering.

Chad Hason – Director of Marketing

Chad Hason brings over 20 years of marketing, communications and public relations experience to the table, including over five years within the cannabis industry. As Founder of HHW, a full-service agency with unmatched experience bringing cannabis licensed producer, retail and product brands to life. Equipped with an impressive work portfolio and growing list of cannabis experts within his collective, his willingness to come in-house as the strategist for the company’s family of brands ensures CanadaBis has the experience and savvy required to deliver effective messaging and engagement across all pillars of business.

Charlotte Murray — Quality Assurance Manager

Charlotte Murray is the manager of quality assurance and RPIC for CanadaBis. She is a registered technologist with the Canadian Society of Medical Laboratory Technology, allowing her to conduct onsite laboratory testing and a familiarity writing standard of practice documents. She holds a B.Sc. in medical laboratory science and a B.Ed. with distinction in adult education.

Barbara O’Neill — Corporate Secretary and Director

Barbara O’Neill has been a corporate secretary for a number of TSX and TSXV-listed companies primarily in the mining industry for 25 years. She has extensive experience with public offerings, public listings, exchange matters, share and asset acquisitions and dispositions.

Scott Reeves — Director

Scott Reeves is currently a partner at Tingle Merrett LLP. His areas of expertise include securities, corporate finance and commercial transactions. Reeves has advised numerous private and public companies in a wide range of business matters, including access to capital markets, corporate governance and operational issues. He graduated with a commerce and law degree from the University of Alberta while serving as editor and chief of the Alberta Law Review.

Alex Michaud — Director

Alex Michaud is currently the managing partner at Runaway Developments. He is an expert negotiator of land and developments and has over 50 years of experience. He was the owner of Transcontinental Oilfield Industries and a managing partner at Ninth Street Properties.

Gregory Smith — Director

Gregory Smith is a Chartered Professional Accountant and is currently the president of Oakridge Financial Management. He is also a director and CFO of Maglin Site Furniture. He holds a bachelor of commerce from the University of Calgary.

Donald Cowie – Director

Donald Cowie has been an independent businessman since January 2018. Prior thereto, he was the founding Partner of JOG Capital Inc., a private equity partnership established in 2002 focused on public and private junior oil and gas companies in Western Canada. He has over 35 years of experience in finance and the oil and gas industry. From 1992 to 2002, Cowie was the head of corporate and investment banking for the Bank of America. Prior to 2002, he served in officer and director roles for several junior oil and gas companies and financial companies with a focus on the oil and gas sector. He has a Bachelor of Commerce degree, with a major in finance from McGill University. He has served as a director for a number of private companies and public companies listed on either the TSX or TSXV.


*Disclaimer: This profile is sponsored by CanadaBis Capital Inc. (TSXV:CANB). This profile provides information which was sourced by the Investing News Network (INN) and approved by CanadaBis Capital Inc., in order to help investors learn more about the company. CanadaBis Capital Inc. is a client of INN. The company’s campaign fees pay for INN to create and update this profile.

INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled. 

The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with CanadaBis Capital Inc. and seek advice from a qualified investment advisor.