Next Green Wave

Seed to Consumer Premium Cannabis Products

This Next Green Wave profile is part of a paid investor education campaign.*

Overview

Next Green Wave Holdings Inc. (CSE:NGW,OTCQX:NXGWF) is a vertically-integrated seed-to-consumer producer and reseller of cannabis products. The company is building a premium portfolio of brands in California. Led by a multiple Cannabis Cup winner for producing seeds and hybrids, and a team of seasoned executives, Next Green Wave strives to distinguish itself as a dominant cannabis products and services provider.

next green wave cannabis buds

In January 2018, Proposition 64 came into effect, allowing adults aged 21 years or older in California to possess and use cannabis for recreational purposes. California is the fifth-largest economy in the world and provides legal cannabis companies a unique opportunity. In 2017, cannabis sales in California were estimated at US$2.76 billion and the forecast is expected to more than double to US$6.3 billion by 2021, according to Statista. Next Green Wave could be well-positioned to take advantage of the growth of a fragmented cannabis industry that is moving from the grey market to the legal market.

As of August 2018, Next Green Wave has raised nearly C$27 million through investments from Canada, the US, Europe and Australia to fund the development of the company. The investment has aided Next Green Wave in the acquisition of cannabis-zoned development land, phase one construction, equipment and building acquisitions, branding and marketing as well as potential corporate expansion.

Next Green Wave’s Company Highlights

  • Fully licensed for medicinal and recreational cannabis operations
  • 100 percent owned, 15-acre cannabis-zoned property
  • Up to 350,000 square feet of operational capacity in the company’s cultivation facility which commenced production in Q2 2019.
  • Premium product: award-winning seeds and plants
  • Currently holds over 120 cultivars in its genetic archive
  • Agreement with Colombian medical cannabis company, OMG3
  • Launching products through newly acquired major California brand developer SDC
  • Signed agreement with global biotech company Intrexon 
  • Building out research and innovation facility, licensed for nursery and extraction
  • Internationally experienced management team with a focus on brand development

Next Green Wave has secured multiple licenses for both recreational and medicinal cannabis operations in Coalinga, California, which are fully compliant with the Medical Marijuana Regulation and Safety Act (MMRSA). The company has acquired a license for nursery, cultivation, volatile and non-volatile extraction and distribution. Possessing multiple licenses in California is uncommon and can vary from municipality to municipality. Together, the licenses allow Next Green Wave to provide its services from production to distribution throughout California to fulfill the seed-to-consumer experience.

Next Green Wave has entered into a strategic licensing agreement with Intrexon Corporation (NASDAQ:XON) to use Intrexon’s Botticelli™ next-generation plant propagation platform to enable rapid production of Next Green Wave’s proprietary cannabis cultivars. Phase 1 of the agreement began in Q1 2019 and includes optimizing the Botticelli™ tissue culture technology to Next Green Wave-specific cannabis cultivars to show this platform offers cost-effective cannabis plantlet production compared to traditional cloning. The company completed the installation and activation of the R&D laboratory in September 2019.

“This program enables Next Green Wave to improve its library of award-winning premium genetics through a next-generation tissue culture platform, Botticelli™, and serves two vital functions for our company,” said Next Green Wave CEO Mike Jennings. “First, it is a step toward ensuring that all of our flowering facilities are filled with the highest quality of nursery stock resulting in higher yields and overall cannabinoid content than traditional clones. Second, it offers the potential that our nursery will have state of the art top quality nursery stock to sell to other commercial growers, providing a long-term pathway to increase market share and revenue on a statewide scale.”

growing cannabis plant

Next Green Wave has invested in Organic Medical Growth OMG3 Inc. (OMG), a Canadian-based company focused on producing and commercializing CBD products derived in Colombia. The agreement facilitates Next Green Wave’s entrance into Colombia’s medical cannabis market, which serves approximately six million patients. OMG has a distribution channel that services 7,300 pharmacies.

Next Green Wave has acquired SDC Venture LLC, which owns eight leading cannabis brands with 45 CBD and THC products. The company also has over 25 million followers on its social media accounts and has over 100 million views on YouTube. SDC has a growing network of retail and online sales channels including 700 Zumiez (NASDAQ:ZUMZ) stores.

Along with brand partner Loki the Wolfdog, Next Green Wave  has two revenue-generating CBD pet products, Loki Naturals Love Biscuits and Loki Naturals CBD Tincture. The biscuits contain 100 percent natural and locally-sourced ingredients and are free of preservatives and fillers. The CBD tincture contains a Colorado-grown, single-origin cannabidiol formula free of GMOs and rich in essential fatty acids.

Next Green Wave’s management team is headed by Mike Jennings, who has worked in the cannabis industry for 20 years. He is the co-founder of the highly acclaimed Loud Seeds breeding and cultivation company. Loud Seeds has won the High Time Cannabis Cup five years in a row and has been named one of the top 40 seed banks of all time by High Times magazine. On top of this, Jennings has extensive experience within the cannabis industry, which provides Next Green Wave with access to multiple commercial and retail channels to sell and distribute its products. Showing their investment in the company, management also notably holds 45 percent of the company’s shares.

next green wave california market

Next Green Wave’s Business Model

As of August 2018, Next Green Wave has raised over $21 million dollars. The company used part of this financing for the construction of Facility A, including the purchase and installation of equipment and utilities, and intends to apply the remaining resources to the retrofit of Facility C and the acquisition of Facility D. The company also plans to use the funds to finalize the supply chain of seed-to-sale and to ensure it complies with existing licenses and California’s legal framework as well as for the execution of brand and marketing strategies.

Next Green Wave has been granted licenses for:

  1. Nursery
    1. Next Green Wave has a library of award-winning seeds and clones to utilize. The company is focused on developing new strains and in acquiring exclusive premium seed varieties from other seed banks.
    2. The nursery is expected to be capable of cultivating hybrid strains and be a supplier of clones, seeds and seedlings to retail and wholesale markets.
    3. The company has recently acquired an additional 112 cultivars to add to its genetic nursery archive, further executing on its strategy to build a world-class nursery.
  2. Cultivation
    1. Producing premium, pesticide-free cannabis flower
    2. Next Green Wave aims to be an industry leader with its state-of-the-art fertigation, integrated pest management and cultivation techniques.
  3. Extraction
    1. This license allows Next Green Wave to manufacture both volatile and non-volatile cannabis products.
    2. The company is also permitted to produce and infuse THC and CBD into finished products, such as edibles, topical products and vaporizers.
    3. The company is capable of processing its own inventory as well as third party biomass into oils, waxes, shatter, terpenes, distillates and finished products.
  4. Distribution
    1. Transportation and distribution capabilities make Next Green Wave one of a few companies with a license for distribution. This allows the company to sell products to licensed retail stores and act as an intermediary for products from other companies that require distribution.
    2. Next Green Wave now offers a direct delivery service in San Diego, bringing the company’s distribution network to over 35 access points across 13 states.

Next Green Wave’s Facility Projects

Facility A (Completed)

Facility A is 35,000 square feet in size and is Next Green Wave’s main indoor growing operation as well as the company’s operational headquarters in California. The building is equipped with 14 climate-controlled flowering rooms which are expected to produce an average of 9,150 pounds of cannabis flower annually.

In April 2019, Next Green Wave obtained its occupancy permit from the city of Coalinga, authorizing licensed cannabis production at Facility A. The company has commenced its first cannabis production with 10,000 plantlets to house “a perpetual harvest cycle” of approximately 50 yields per year. The raw material produced at the facility can be used for downstream consumer products such as oils, waxes, tinctures and extracts for custom vaporizer products associated with Next Green Wave’s partner brands and other licensed cultivators in the wholesale supply chain.

In October 2019, Next Green Wave processed its third cannabis harvest. Each of the harvests has passed strict category three testing and meet all premium standards for the California market.

“Since opening our flagship facility, we have completed three harvests of premium quality, high THC cannabis, as well as fully-scaled the entire space. As such, the facility is now in a perpetual harvest cycle in which roughly 14 percent of the flowering space is being processed every 10 to 14 days. We are now cultivating at full capacity,” said Jennings.

next green wave facility a

Facility B

Construction of this facility is expected to commence in the near term. This facility is expected to cover up to 50,000 square feet and accommodate the expansion of the nursery, cultivation and distribution as Facility A reaches capacity.

next green wave facility

Facility C

A 3,240-square-foot nursery, extraction and distribution operation under a joint venture with an NYSE-listed biotech company. This facility is expected to accommodate the research and development of new cannabis strain technology. Next Green Wave recently received city approval for its conditional use permits for the facility, allowing for the acceleration of its seed and seedling production program.

Facility D

A proposed 250,000-square-foot mixed-light, deprivation greenhouse for which Next Green Wave is currently developing a site plan.

Organic Medical Growth OMG3 Inc.

Next Green Wave made a strategic investment in OMG, a Canadian-based company focused on producing and commercializing CBD products derived in Colombia. The agreement allows Next Green Wave to access Colombia’s medical cannabis market, which is home to approximately six million patients. Through OMG’s distribution channel that services 7,300 pharmacies, Next Green Wave is expected to license its brand and products in the Colombian market.

OMG has signed a joint venture agreement with Cannabolland Cluster SAS, a vertical biotech cluster that groups companies with cannabis licenses together to consolidate licenses and provide technical knowledge and infrastructure. Under the terms of the agreement, OMG is expected to gain access to 5,000 hectares with the option to expand up to 12,000 acres. The six companies within Cannabolland include 2,500 associated growers with three THC licenses, three CBD licenses and two extraction licenses.

OMG also intends to launch nine cannabis-based topical products under the OMG brand in Colombia. The first two products in OMG’s topical line are expected to be in distribution in the near term.

“To see how quickly OMG is growing their business opportunities in Colombia is exciting for Next Green Wave,” said former CEO Leigh Hughes. “As OMG grow their distribution channels, it opens up the platform for our brands outside of California and gives us scope to do more in a low-cost, high-margin environment in Colombia.”

SD Cannabis

In March 2019, Next Green Wave acquired California-based consumer products goods and extraction leader, SDC Venture LLC.  SD Cannabis owns eight leading cannabis brands with 45 CBD and THC products. The company also has over 25 million followers on its social media accounts and has over 100 million views on YouTube. SDC has a growing network of retail and online sales channels including 700 Zumiez stores.

next green wave loki

The HartLuck Brand 

In August 2019, Next Green Wave launched its all-natural CBD line HartLuck in partnership with Carey Hart, a former professional motocross competitor and celebrated pop-culture icon. The full-spectrum CBD products include tinctures, salves and gel capsules that are now available at select specialty stores throughout California and the HartLuck website.

SDC’s product lines and partnerships

SDC has secured strategic partnerships with important cultural influencers for the development of branded product lines for the adult cannabis market.

King Louie THC products

SDC has an exclusive partnership with Grammy-nominated hip hop star King Louie who plans to launch premium flower THC products and concentrates during his new ‘Life of Louie’ album world-tour as well as appearances at select dispensaries in southern California.

Junkyard cannabis oils and apparel

SDC is launching an exclusive cannabis product line with influential illustrator and street artist Junkyard. The first product to market is expected to be an oil extraction with limited release collectible packaging designed by the artist, with apparel to follow.

Lurking Class oils

SDC has partnered with California artist Sketchy Tank and his apparel brand Lurking Class to launch a line of select cannabis oils featuring limited collectible packaging with his artwork. Sketchy Tank’s artwork and clothing are sold at more than 700 stores across the US, including the leading specialty retailer Zumiez, and several multinational brands such as Vans have featured his artwork.

NoJumper

SDC has partnered with the iconic NoJumper brand and podcast host Adam22 as NoJumper rolls out its latest premium exotic flower strains. On a monthly basis, the products are to be featured on NoJumper’s podcast, which reaches 45 million viewers per stream, as well as through Next Green Wave’s brand house SDC.

no jumper product launch advertisement

Next Green Wave’s Management Team

Mike Jennings — CEO, Head of Research and Innovation and Director

Mike Jennings is a Californian native from the Central Valley that has been working in the cannabis industry for 20 years. Aside from focusing on multiple large-scale cultivation projects, he has specialized in owning and operating dispensaries and medical offices specializing in cannabis.

Jennings is the co-founder of Loud Seeds, a multiple High Times Cannabis Cup winning cannabis breeding and cultivation company. He has been involved in cannabis cultivation, breeding and marketing for more than 15 years and has established multiple brands in both the United States and Europe. The development of these brands and their position in the industry has enabled Jennings to develop close business relationships with the leading cannabis seed breeders, distributors and collectors providing unparalleled access to cannabis genetics.

The company, Loud Seeds, has been named one of the top 40 seed banks of all time by High Times magazine and has been inducted into the Seed Bank Hall of Fame by High Times magazine. Loud Seeds has also appeared in multiple articles and features in High Times magazine, including The Million Dollar Grow Room, America’s Next Pot Kings and Top Ten Strains of the Year.

Paul Chow — Co-Founder and Director

For over 18 years, Paul has provided business-advisory services for both public and private companies. He has founder, acted as a senior officer and director, and provided strategic planning for various companies in the cannabis, mining, oil & gas and technology sectors during his career. Chow’s experience working with the Canadian equities market will provide great assistance to the IPO and the business development of Next Green Wave.

Ryan Lange — Co-founder, CMO and Director

Ryan Lange is an entrepreneur known for his digital work with recording artists like Kanye West, U2, Migos and more. His work has been featured on the Today Show, US Weekly, People Magazine, Dr. Oz, Forbes and GQ among many others. He has collaborated on and launched major branding campaigns for some of the most successful corporations in the country including Nike, Apple Music, Harmless Harvest, Carhartt and Home Depot. Lange’s unique vision and background in legal cannabis operations took root in a lifetime living at the intersection of art, music, cannabis culture that allow him to bring a voice and leadership to SDC driving the future growth and business development.

Matthew Jewell, CPA, CA — CFO

Matthew has spent the last several years assisting companies in emerging industries scale and grow from a financial reporting, treasury, HR, legal and operational perspective. Before joining NGW, Matt was involved with numerous technology companies in various sizes and in international locations including California. Matt spent the first several years of career at KPMG where he gathered his base knowledge of financial reporting, tax, compliance, process and control implementation.

Caroline Klukowski – VP Corporate Development

Caroline Klukowski has over 17 years of experience in IR and corporate development across diverse sectors such as mining and natural resources, blockchain and environmental technologies. She specializes in digital business strategies and data analytics and has successfully implemented international campaigns that gained exposure and engagement value for both public and private companies. She has also been involved with numerous start-ups which shaped her strong focus in compliance and quantitative project management.

Monita Faris – Corporate Secretary

Monita Faris was educated at the University of Central Florida where she obtained her B.A. in English. Based in Vancouver, she has worked as a consultant for the past 17 years providing corporate and securities compliance services to private and public companies. Faris actively attends securities programs and courses offered by the BC Securities Commission, the Continuing Legal Education Society of BC and the TSX. She is currently responsible for the corporate and regulatory compliance aspects for private, OTCBB, TSXV and CSE-listed companies.

Glen Harder — Director

Glen Harder is a corporate finance and securities lawyer, actively practicing and headquartered in Vancouver, BC. He has over 30 years of experience advising and assisting venture and emerging companies with global operations that conduct business in many different sectors of the economy. Along with years of transactional, strategic and negotiating expertise, Glen will offer legal guidance, corporate governance assistance and strategic advice to the board. Glen also serves as an independent board and board committee member for other public companies that are listed on CSE and TSXV.


 

*Disclaimer: This profile is sponsored by Next Green Wave Holdings Inc. (CSE:NGW,OTCQX:NXGWF). This profile provides information which was sourced by the Investing News Network (INN) and approved by Next Green Wave Holdings Inc., in order to help investors learn more about the company. Next Green Wave Holdings 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 Next Green Wave Holdings Inc. and seek advice from a qualified investment advisor.