Developing High-Quality CBD Nutraceuticals for the Global Marijuana Market
This profile is part of a paid investor education campaign.*
MYM Nutraceuticals Inc. (CSE:MYM, OTC:MYMMF) is focused on driving the global growth of the cannabis and CBD-rich hemp markets. To this aim, MYM Nutraceuticals is establishing CBD-rich hemp and cannabis cultivation facilities across the globe and is working towards becoming a leading global supplier of CBD-rich isolate. MYM Nutraceuticals currently has four hemp cultivation and extraction projects, two medical cannabis projects and three distribution offices.
In order to become a leading supplier of cannabis and hemp-based CBD products, MYM Nutraceuticals has established cultivation facilities in Canada, Colombia and the US. In Canada, MYM Nutraceuticals is awaiting its cultivation licenses for its 37,000-square-foot grow facility in Laval, Quebec and 1.5 million-square-foot greenhouse facility near Weedon, Quebec. The Weedon facility is expected to be one of the largest cultivation projects in Canada, with over 160,000 kilograms of cannabis projected to be produced annually once the facility is operational.
MYM Nutraceuticals has received an equity investment of up to $25 million from Alumina Partners LLC that will be drawn down in tranches over a two-year period. The company intends to use the money to build out its facilities in Weedon and Laval, Quebec as well as for working capital.
MYM Nutraceuticals has also partnered with BioHemp Naturals, a licensed hemp cultivator and distributor in Saskatchewan with exportation capabilities. The two companies intend to offer hemp toll processing services to Canadian licensed producers, which can significantly increase future profit margins. BioHemp expects to generate over $30 million in revenue, of which MYM Nutraceuticals would receive $13.9 million, from its 2019 harvest.
In the US, MYM Nutraceuticals has partnered with Elite Ventures Group to grow 120-acres of CBD-rich hemp in Nevada. The company has also partnered with Aqueous Sciences to cultivate, extract and distribute CBD-rich hemp on 3,000 acres of Navajo Nation land located near the four corners area of Colorado, Arizona, Utah and New Mexico.
In Colombia, MYM Nutraceuticals secured a first-mover advantage through its 80 percent interest in Colombia Organica, a manufacturer of pharmaceutical products, medicinal chemical substances and botanical products. Colombia Organica holds three licenses for the production of cannabis, including exportation. From Colombia Organica’s property, MYM Nutraceuticals expects to generate $4.8 million in gross profit in 2020.
MYM Nutraceuticals’ production facilities are expected to provide its distribution offices with the product needed to make a mark in emerging cannabis and hemp markets in Europe, Latin America and the Asia-Pacific region. By locating offices in these areas, the company is establishing a strong foothold to capitalize on new markets with its brands and products.
MYM Nutraceuticals is in active discussions related to further acquisitions of complementary 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 start-ups and expertise in navigating emerging markets. The Quebec-based cannabis production team has over 30 years of growing experience and the skills to produce high-quality cannabis products.
- MYM Nutraceuticals has four hemp cultivation and extraction projects, two medical cannabis projects and three distribution offices across the globe.
- The company is currently awaiting its cultivation licenses for its cannabis cultivation facilities in Quebec, Canada.
- Once operational, the Weedon facility expected to be one of the largest cultivation projects in Canada, which is projected to produce over 160,000 kilograms of cannabis annually produced.
- MYM Nutraceuticals has secured up to $25 million in financing from Alumina Partners for the build out of the Laval and Weedon facilities.
- MYM Nutraceuticals expects to generate $13.9 million from BioHemp’s 2019 harvest.
- The company has partnered with Elite Ventures Group and Aqueous Sciences to cultivate, extract and distribute CBD-rich hemp in Nevada.
- MYM Nutraceuticals expects to generate $4.8 million in gross profit through its 80 percent stake in Colombia Organica in 2020.
- The company has distribution offices located in Europe, Latin America and Australia.
- Solid management team with more than over 40 years of medical marijuana experience that is unmatched in the industry.
MYM Nutraceuticals’ Hemp
Hemp received a boost in December 2018, when the US Congress passed the Farm Bill. The bill removed hemp from the US’s controlled substances list, creating a CBD-driven market. According to the Brightfield Group, the US CBD market is expected to reach US$23 billion by 2023. CBD does not provide users with the same psychoactive side effects as THC does, making it an ideal additive to a variety of health, wellness and recreational products.
MYM Nutraceuticals has a 50 percent interest in BioHemp Naturals, a licensed hemp cultivator and distributor in Canada. BioHemp has developed its own unique harvesting methods and standard operating procedures (SOPs) that meet all of Health Canada’s testing requirements for hemp. BioHemp is currently supplying hemp to Canadian licensed producers including Aphria (TSX:APHA,NYSE:APHA), Tilray (NASDAQ:TLRY) and Broken Coast Cannabis. The company is also capable of producing CBD isolate, formulate CBD products and export globally.
In 2019, BioHemp intends to cultivate 450 acres of hemp at its property in Saskatchewan, Canada. The harvest is expected to generate over $30 million in revenue, of which MYM Nutraceuticals would receive $13.9 million. The company intends to expand its cultivation footprint to 3,000 acres of certified organic hemp in 2020. BioHemp expects to generate up to $225 million from its 2020 crop, of which MYM Nutraceuticals would receive $70.8 million. Together, the two companies intend to toll-process the hemp through MYM Nutraceuticals’ planned extraction plant, which could significantly increase revenues for both harvesting seasons.
Since joining forces, BioHemp has signed a purchase agreement, worth C$650,000, for 163,000 pounds of CBD-rich hemp currently being grown at its farm.
Nevada Production Facilities
In partnership with Elite Ventures Group, MYM Nutraceuticals intends to grow 120-acres of CBD-rich hemp in Nevada. Under the terms of the agreement, MYM Nutraceuticals will obtain the rights to 50 percent of the 120 acres of land for a cash consideration of US$500,000. In return, Elite is expected to provide the necessary capital and consumable supplies to plant, grow and harvest plants as well as arrange for the processing and sale of biomass.
Based on Elite’s success on other similarly sized properties in Nevada, MYM Nutraceuticals’ portion of the land is estimated to produce 120,000 pounds of hemp per harvest with CBD levels between 10 percent and 19 percent. From these estimates, the company expects to generate $7.1 million in revenue and $5.4 million in gross profits in 2019.
MYM Nutraceuticals has also formed its subsidiary, MYM One World LLC, in Nevada to facilitate its multi-year cooperative agreement with Aqueous Sciences, a subsidiary of One World Ventures Inc. (OTCMKTS:OWVI). Through the subsidiary, MYM Nutraceuticals intends to cultivate, extract and distribute CBD-rich hemp. The cultivation facility resides on 3,000 acres of Navajo Nation land located near the four corners area of Colorado, Arizona, Utah and New Mexico.
MYM Nutraceuticals has secured a first-mover advantage in Colombia through Colombia Organica, a manufacturer of pharmaceutical products, medicinal chemical substances and botanical products, of which the company holds an 80 percent stake. Colombia Organica holds three licenses for the production of cannabis derivatives, cultivation of psychoactive cannabis and cultivation of non-psychoactive cannabis. The three licenses also include the capacity to export any products that it makes. To increase its product base, Colombia Organica has applied to certify cannabis seeds for commercialization.
Aside from its products and licenses, Colombia Organica also holds a lease for a 36-acre property located 44 kilometers from Medellin, Colombia. MYM Nutraceuticals and Colombia Organica are currently building a production facility at the site that will house cannabis cultivation and processing facilities. The climate in Colombia is ideal for cultivating cannabis as the country offers year-round growing seasons, allowing up to three harvests each year.
The company expects to cultivate 25-acres worth of CBD-rich hemp from the property for an expected annual production of 79,366 pounds of biomass and 3,564 pounds of CBD isolate. In total, MYM Nutraceuticals expects to generate $4.8 million in gross profit in 2020 from the property.
To increase its production capacity, Colombia Organica has signed agreements to cultivate THC and CBD-rich cannabis with independent farmers for an initial five acres. The independent farmers are considered to be licensees under Colombia Organica’s existing cannabis cultivation licenses for a period of five years. However, the farmers will be responsible for all the costs associated with cultivation from seed-to-sale. The company intends to purchase the harvested biomass from the farmers.
MYM Nutraceuticals’ Cannabis
In October 2018, Canada became the first G7 country to legalize recreational cannabis use. Canada’s change in legislation offered cannabis companies a first-mover advantage and has sparked legislation changes in countries across the globe.
MYM Nutraceuticals intends to capitalize on its first mover advantage and has established two cannabis cultivation facilities in Quebec, Canada. The company’s facilities benefit from their location in Quebec as the province offers some of the lowest energy costs in the country and has a strong pool of land, labor and technical expertise.
MYM Nutraceuticals’ facilities are designed to produce super premium, high-quality cannabis for Quebec’s medicinal market.
MYM Nutraceuticals is a late-stage ACMPR applicant with a 37,000-square-foot grow facility located near Laval, Quebec. The facility will be responsible for producing craft cannabis and premium seeds once building is complete. The facility is expected to have mothering and cloning capabilities that allow for genetic development and archiving.
The facility is being built out in 10,000-square-foot phases. Phase One is complete and pending its license from Health Canada. In November 2018, MYM Nutraceuticals migrated over to Health Canada’s cannabis tracking and licensing system, which allows companies to apply for new licenses as well as request for amendments and license renewals online.
MYM Nutraceuticals has also partnered with the City of Weedon to construct a 1.5 million-square-foot greenhouse facility. The facility is expected to be one of the largest production facilities in the Canada and currently has a license application is pending with Health Canada. The company intends to submit its evidence package to Health Canada before the end of 2019.
At full capacity, the company expects the facility to be operational by Q2 2020, producing up to 160,000 kilograms of cannabis per year. The Weedon project sits upon 329 acres of land, offering the company with the opportunity to expand its production capacity.
MYM Nutraceuticals’ Distribution Strategy
MYM Nutraceuticals is working on establishing strategic partnerships around the world to secure a prime position to take advantage of economical distribution channels. By establishing distribution channels in each corner of the globe, the company hopes to ensure that every region has access to cannabis products.
MYM Nutraceuticals has incorporated MYM Australia Pty Ltd. with the goal of becoming one of the largest distributors of bulk CBD isolate in the southern hemisphere. The company intends to leverage its position in Australia as a launching point for the Asia-Pacific cannabis market. MYM Nutraceuticals is currently negotiating bulk distribution agreements and is importing proprietary hemp and cannabis products into Australia.
According to a report by Prohibition Partners, the combined Australia-New Zealand cannabis market could reach US$8.7 billion by 2028. As more Oceanic countries adopt medical cannabis programs in the region, the area could offer companies like MYM Nutraceuticals, a first-mover advantage.
MYM Nutraceuticals has incorporated MYM Nutraceuticals Mexico S.A. de C.V. and built a well-connected team in Mexico to secure a first-mover advantage in the Mexican cannabis industry. The company intends to import and distribute hemp-derived CBD products in the country once cannabis legislation is passed by the federal government. The changes in legislation are expected to make cannabis products, like hemp-derived CBD, available in general retailers across the country.
MYM Nutraceuticals is currently in negotiations to secured bulk distribution deals for importing hemp and cannabis products in Mexico.
Latin America is home to approximately 620 million people and has a potential medical cannabis patient pool of 68 million, making it an attractive market for cannabis companies. According to a report by New Frontier Data, the Latin American market could be worth US$9.8 billion. After Brazil, Mexico is considered to be one of the biggest markets in the region as the country has a population of approximately 123.5 million people and access to nearly 11.7 million patients. Many industry leaders, including those at New Frontier Data, expect Mexico to legalize recreational cannabis use within the near term.
MYM Nutraceuticals is currently exploring distribution opportunities in Europe. The company intends to incorporate a new subsidiary, MYM Europe, in London, England to head the company’s bulk CBD isolate sales. The company is in negotiations for bulk distribution deals that focus on importing proprietary hemp and cannabis products into Europe.
According to a report by the Prohibition Partners, Europe is home to over 740 million people and is set to become one of the world’s largest cannabis markets in the next five years. The research firm expects the cannabis market there to be worth up to 123 billion euros by 2028.
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