As investors look for new entries into the cannabis space, more companies are offering exposure into portfolios of products for women cannabis consumers.

Consumers will begin making decisions based on brand preference and product reliability. As such, companies will be fighting for the attention of these consumers by any method possible – including standing out by separating themselves from established players.

As Canada moves closer to legalization of recreational cannabis, diversification into various areas of the market will be key for these companies. As a result, there’s been a rise in investor potential for companies looking to target women cannabis consumers exclusively.

Specialization is coming to the cannabis market

During a panel in June at the MJBizCon INT’L crash course day for cannabis investing, PI Financial analyst Jason Zandberg explained the Canadian cannabis market is on a path of specialization as it moves closer to adult-use legalization.

“This market is changing, is going to continue to change, it’s going to specialize,” Zandberg said.

48North Cannabis (TSXV:NRTH) is one such company looking to target female consumers exclusively. Alison Gordon, CEO of the company, told the Investing News Network (INN) women are “more interested in the extracted products and brands.”

“I believe that cannabis will be a huge part of all aspects of the health and wellness industry, and that’s really where we want to play,” Gordon said. The company made its public debut on the TSX Venture Exchange (TSXV) in June 2018.

Gordon told INN she believes cannabis will play a significant part in the emerging health and wellness industry. “[T]hat’s really where we want to play.”

Consumer research shows C$2-billion market

Fleurish, a private company also seeking to exclusively target the female market, completed a research study in 2018 with samples from over 1,500 Canadian women aged 19 to 65. The breakdown in consumers and non consumers, according to the company, was around 1000 and 500 respectively.

Michael Smith, incoming CEO of Fleurish, told the Investing News Network (INN) the study from the company shows that currently 2.2 billion Canadian women consume cannabis regularly, signalling a potential C$2 billion size market.

The executive said Fleurish will be appealing to consumers willing to spend for premium products and — similar to 48North — will be within the health and wellness market.

Fleurish obtained its status as a licensed producer in Canada for its Ontario facility in August 2018. Mary Beth Williamson, incoming chief marketing officer for the company, said Fleurish will begin production of dried flower and pre-roll products. The company plans to offer edibles and oils for vaping once regulation allows it in Canada.

When asked about the timeline on the company going public, Smith said Fleurish has its shell company ready to go and is waiting for a positive market to launch into.

“It would be either this fall if the market stays strong or when we get the sales license because then we are a full viable business,” Smith. The executive estimated the company will get a sales license in January or February 2019.

Eve & Co, (TSXV:EVE) another company exclusively focused in developing products for women cannabis consumers, has secured supply agreements with BC and Ontario. These deals guarantee the company’s products will hit shelves in the respective provinces at the start of legalization.

Ontario has announced it will be allowing companies to set up retail shops in 2019 for adult-use cannabis. Consumers will be able to purchase recreational cannabis through an online portal in the province following legalization.

“We feel our brand’s vision and ideals around female empowerment, leadership, and wellness will resonate strongly with people from our home province,” Melinda Rombouts, president and CEO of EVE, said after obtaining a deal with the Ontario Cannabis Retail Corporation (OCS).

Investor takeaway

The growth of the health and wellness sector could offer investors in the space diverse interests among the wide cannabis market. While Canada gets ready for adult-use cannabis legalization more, of these growing companies can offer investors a direct option for women cannabis consumers.

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

Lexaria Bioscience Corp. (NASDAQ:LEXX)(NASDAQ:LEXXW)(CSE:LXX) (the “Company” or “Lexaria”), a global innovator in drug delivery platforms, is pleased to announce the appointment of Mr. Al Reese, Jr., to its Board of Directors

Mr. Reese has over 40 years experience in public and private businesses including as CFO of a formerly Nasdaq-listed energy company where he arranged finance transactions totaling over $10 billion dollars during his 20-year tenure. Mr. Reese was a Director and Chairman of the Audit Committee of a community bank in Texas for ten years until such time as it was acquired by a larger banking group in 2018.

Keep reading... Show less

Mexico looks to be closer than ever to cannabis reform, with the country releasing its regulation plans to make the drug legal in medical settings.

Meanwhile, despite the financial hardships seen recently in the Canadian cannabis market, CEOs in the country are still receiving top dollar, as per a new study.

Keep reading... Show less

Not for Distribution to United States Newswire Services or for Dissemination in the United States

Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced today the pricing of its previously announced best efforts overnight marketed offering (the “Offering”) of subordinate voting shares (the “Offered Securities”) of the Company at a price of C$16.00 per share for a total gross proceeds of approximately US$125 Million. The issue price represents a 3.3% discount to the last close of the Company’s subordinate voting shares traded on the Canadian Securities Exchange as of January 14, 2021. 100% of the Offering is expected to be purchased by a total of seven new and existing institutional investors, including current shareholder, Wasatch Global Investors.

Keep reading... Show less

Wall Street Reporter, the trusted name in financial news since 1843, has published reports on the latest comments and insights from leaders at: Tilray, Inc. (NASDAQ: TLRY), Icanic Brands (OTC: ICNAF) (CSE: ICAN) Red Light Holland (OTC: TRUFF) (CSE: TRIP) and Aphria, Inc. (NASDAQ: APHA).

Investors are cheering new and expected legislation which is opening new market opportunities for both cannabis and psychedelics globally. Innovation in premium branding, growing technologies, manufacturing, with operational execution are key, in the drive towards profitability. Wall Street Reporter highlights the latest comments from industry thought leaders in cannabis and psychedelics:

Keep reading... Show less

Lexaria Bioscience Corp. (NASDAQ:LEXX)(NASDAQ:LEXXW)(CSE:LXX) (the “Company”) today announced the closing of its previously announced underwritten public offering (the “Offering”) of 1,828,571 units, each unit consisting of one share of common stock and one warrant to purchase one share of common stock at a public offering price of $5.25 per unit (all prices in US$). The warrants have an exercise price of $6.58 per share, are immediately exercisable and will expire five years following the date of issuance. In connection with the Offering, the underwriter exercised in full its option to purchase an additional 274,285 shares of common stock and additional warrants to purchase 274,285 shares of common stock. The gross proceeds from the Offering were approximately $11.04 million, before deducting underwriting discounts and estimated offering expenses. No securities were offered or sold in Canada, including through the CSE or any other trading market in Canada

H.C. Wainwright & Co. (“Wainwright”) acted as the sole book-running manager for the Offering and is a non-related party to the Company.

Keep reading... Show less