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MYM Nutraceuticals Inc. (CSE:MYM) is an emerging cannabis grower and nutraceuticals manufacturing and distribution company focused on Canadian and Australian medical marijuana markets. The company’s aggressive strategy for success is based on a commitment to superior growing technology, well-crafted branding and innovative distribution strategies.
This strategy coupled with strategic partners and sales revenue from multiple brands places MYM Nutraceuticals squarely on the path to becoming a fully-integrated cannabis company.
Through its subsidiary, Sublime Culture Inc., MYM Nutraceuticals is in the last stages of obtaining License Producer status under Health Canada’s Access to Cannabis for Medical Purposes Regulations (ACMPR), and anticipates completing the first harvest at its Quebec-based operation by the end of 2017.
Over the course of 2017, MYM has expanded its operations in both Quebec, Canada and Australia. In Quebec, the company is in the first phase of construction for a 36,000-square-foot facility in Laval and in the design phase of a 1.5 million-square-foot greenhouse facility in Weedon. In Australia, MYM has partnered with PUF Ventures Inc (CSE:PUF) on the development of a 1.2 million-square-foot cultivation facility in the northern region of New South Wales.
MYM Nutraceuticals is currently generating revenue through sales of its HempMed, Joshua Tree, and Dr. Furbaby cannabidiol (CBD) nutraceutical product lines, a key differentiator between the company and other late-stage ACMPR applicants. The company is well on its way to positioning itself as a leader in the CBD market in Canada and is also working to expand its reach into the United States.
High-margin CBD nutraceuticals is one of the fasted growing sectors in the medical cannabis industry and is expected to capture an early majority share of the global cannabis market. A recent Forbes magazine article estimated that the CBD market will grow to $2.1 billion market by 2020 on the back of booming consumer demand for non-psychoactive cannabis products in the treatment of a wide raged of conditions. Clinical research studies have demonstrated that CBD nutraceuticals have the potential to treat arthritis, MS, chronic pain, PTSD, depression, epilepsy and a myriad of other illnesses and disorders.
MYM Nutraceuticals’ is in active discussions related to further acquisitions of complimentary businesses and assets in the technology, nutraceuticals and CBD sectors to build a strong presence within the cannabis industry. The company is led by an experienced management team with a track record of successful startups and expertise in navigating emerging markets. The Quebec-based cannabis production team has more than 30 years of growing experience and the skills to produce high-quality cannabis products.
- Goal to become a leading vertically-integrated provider of high-quality CBD nutraceuticals products to the growing global cannabis markets.
- Market Potential: High-margin CBD nutraceuticals, one of the fasted growing sectors in the medical cannabis industry, is expected to reach $2.1 billion by 2020.
- Phase 1 of Laval facility to be completed in Q1 2018.
- In design phase for 1.5 million-square-foot facility in Weedon, Quebec
- Partnered with PUF Ventures for build of 1.2 million-square-foot facility in New South Wales, Australia
- Established medical client base with access to 3,000 patients
- Strategic Partnerships with TheraCann Canada; Mohawk indigenous communities.
- Building strong brand recognition and robust network of global distribution channels.
- Raised $13 million in financing in 12 months ending January 2018.
- Solid management team with more than over 40 years of medical marijuana experience that is unmatched in the industry.
Quebec Production Facilities
Sublime Culture is the production wing of MYM Nutraceuticals and is a late-stage applicant to Health Canada’s ACMPR with a 10,000-square foot grow facility located in near Montreal in the city of Laval, Quebec. At build out, the facility is expected to produce approximately 3,000 kilograms of cannabis flower, generating an estimate annual revenue of $25 million.
Phase 2 of development expansion will include a roof-top greenhouse and a state-of-the-art extraction and processing department. The company intends to produce high-quality CBD products as well as Indica and Sativa cannabis strains for its patient-clients.
MYM’s subsidiary, CannaCanada Inc, has also partnered with the City of Weedon, in Quebec on the Weedon project, which will see the construction of a 1.5 million-square-foot greenhouse facility. Expected to be one of the largest production facilities in the world, the greenhouse has been approved by the municipal government and a license application is pending with Health Canada.
To date, the engineering land studies for the property have been completed and the project is progressing through its Health Canada application. The processing, packaging and distribution plant design has been completed and the final implementation on the greenhouse design for the first phase of 300,000 square feet is on track. By full capacity in 2020, the company expects to produce up to 150,000 kilograms of cannabis per year.
“MYM is working to open up cannabis distribution channels globally to accelerate our growth,” said MYM CEO Rob Gietl. “Our Weedon project alone has 329 acres to expand production on. As recreational cannabis opens in more markets and as global markets expand, we plan on being ahead of the curve and have supply chains ready.”
Expanding their international reach, MYM has also entered into a partnership with Solaris Nutraceuticals Inc. for the construction of a 1.2 million square-foot greenhouse facility in New South Wales, Australia. The project, named Northern Rivers, is a partnership with the Richmond Valley Council and will see the construction of a large-scale, manufacturing, processing and office facilities focused on cultivation, production and manufacturing of medical cannabis. MYM owns 35 percent of the project and the company plans to cover 300,000 square feet in the first phase of construction. At full scale, the facility will have the capacity to support annual production of 100,000 kilograms of high-quality cannabis.
Solaris Nutraceuticals Inc. has recently applied to the Australian Office of Drug Control for a medical cannabis license and a cannabis research license in collaboration with the National Institute of Complimentary Medicine (NICM). The company plans to conduct medical research at their Australian cultivation facility.
Processes and Brands
Establishing the “Gold Standard” in Quality Assurance Testing of Cannabis Products
Government health agencies are tightening regulations in terms of consistency and potency in cannabis products; and prescribing healthcare specialists need assurance of the safety and efficacy of the medical cannabis products they are prescribing. Health Canada announced in February 2017 that the agency “will begin conducting random testing of medical cannabis products by licensed producers” to ensure Canadian medical cannabis consumers “are receiving safe, quality-controlled product.”
MYM Nutraceuticals is dedicated to first-in-class R&D in developing the highest quality cannabis-based nutraceuticals. The company’s planned extraction and processing department will also house a cannabis product testing and research laboratory in partnership with TheraCann Canada. Along with its ISO 17025(2005)- compliance services, TheraCann is also providing MYM with TheraCannSYSTEM software to directly capture all testing and analysis data for more streamlined regulatory compliance and preparations for future Health Canada audits.
“MYM is looking to build the industry standard in all-inclusive cannabis facilities to meet the demands of the Canadian consumer. With the anticipated start of recreational legalization coming online in the summer of 2018, MYM will be positioned to provide the safest products in the market,” said Rob Gietl, CEO
HempMed Revenue Generation through CBD Nutraceutical sales
MYM Nutraceuticals’ HempMed line features custom-made cannabis products with tailored CBD chemistries to treat specific medical conditions and symptoms. Toronto-based HempMed uses proprietary technology to develop high quality and consistent hemp-based CBD extracts and oil-infused nutraceuticals. Its more than 20 products—including tinctures, concentrates and oils, edibles, vape products and pet care products (considered the ‘growth category to watch’ in 2017) — are carried by 74 retailers across Canada and are also available online. MYM Nutraceuticals is planning to launch several additional products over the next year.
As of May 2017, HempMed gross profits were up 47 percent over last year’s average and CBD sales for 2017 are now expected to exceed all previous one-year forecasts. Over the 12-month period beginning April 2017, sales are expected to total in excess of $1.4 million. MYM Nutraceuticals is funding inventory buildup and currently constructing a large-scale production facility to increase annual sales capacity to more than $10 million. Alongside these efforts, the company is working to rebrand the entire line of HempMed products and refine the online retail strategy with a focus on worldwide expansion into major markets.
MYM acquired the Joshua Tree product line in late June 2017. The brand is designed for the mainstream health market and will have 28 products, including concentrates, oils, nasal sprays, edibles and e-juices.
The Dr. Furbaby line of products is specifically created for pets and will be launched in Canada and the USA. This is a market that is growing rapidly and is highly profitable and MYM expects the line to do over $300,000 in sales within the first year.
Rob Gietl— CEO
Rob Gietl is well known for his ability to exponentially grow businesses including the west-coast franchise expansion of Domino’s Pizza, where he consistently grew the annual business to achieve 300+% increases year-over-year. Mr. Gietl is a seasoned Business Development and Operations executive with a diverse track record of leading change across all areas of concept creation, brand re-positioning, market penetration, fiscal accountability and efficient execution of business plans. He has grown business effectiveness in an array of sectors and circumstances throughout Canada, consistently aligned with stakeholders’ goals and values.
Erick Factor—Executive Chairman
Erick Factor is a well-known expert in the MMJ industry and has 20 years of experience in cultivating medical marijuana and manufacturing cannabis by-products, and has provided medical marijuana to thousands of patients over the past two decades. He has extensive experience working with Health Canada, from whom he has obtained MMAR and MMPR licenses for hundreds of patients, and has managed and operated grow facilities to produce for those patients. Mr. Factor has also gained invaluable experience over the past three years in ACMPR licensing regulations and applications.
Ian Ramage —Director
Ian Ramage holds a B.A.Sc. in Computer Engineering from Simon Fraser University and J.D. and LL.M. degrees from the University of British Columbia. He practiced law in the Bay Area for eight years for a variety of biotech and high-tech clients before returning to Vancouver in 2009 to continue to build his corporate and securities practice. Mr. Ramage is an expert in Canadian and U.S securities and corporate law; copyright and trademark acquisition and enforcement; patent, copyright, and trade secret litigation.
Mark Forster —CFO
Mark Forster will be responsible for the preparation of financial statements, continuing disclosure of the Resulting Issuer and the management of internal control procedures. He has over 25 years of financial accounting experience in banking, manufacturing of beer, wine, and spirits, the oil and gas industry and in the mining sector. He has been a director and the CFO of Teletouch Services Inc., a private technology company, since December 2004. He was a manager of Bearingpoint LLP, a management and technology company, from January 1996 to December 2006. Mark G. Forster was granted a CGA designation by the Certified General Accountant’s Association, BC in 1992.