IONIC Brands Signs LOI to Acquire Licensed Cannabis Volatile Extraction and Manufacturing Assets of Kavry Managment LLC
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Auszug:
We can break the investment thesis for Ionic Brands (CSE: IONC) into the following key points:
1. As the supply chain of cannabis matures, the segment least likely to see price suppression will be brands.
2. Brands successful in the most challenging states are more than likely to transfer that success to nascent states rolling into adult-use (full rec).
3. Ionic Brands has several of the most successful cannabis brands in the Northwest, with economies of scale and proven operations.
4. As more states introduce full recreational laws proven operators with great brands will have a key advantage for winning shelf space.
5. Ionic Brands also an interesting coffee patent for CBD that could create massive cash flow for shareholders
As of late, The Deep Dive has focused on two key concepts when it comes to analyzing the cannabis sector. The first, undoubtedly, is that of branding. Like any other sector, branding is key to performing well over the long term. Do you want a cola soda, or do you want a Coke? Do you need a tissue, or are you in need of a Kleenex?
When it comes to cannabis, the sector is no different in this regard. Unfortunately, this is also where most Canadian licensed producers are lacking, and thus why we believe they will have a negligible impact within the US marketplace. Canadian brands simply are not strong enough to compete in the US market.
The second concept that we have placed a focus on is the success the company has seen in terms of marketshare, particularly in mature states where cannabis has been legal for a period of time. In this respect, we look at the states of Washington, Oregon, and Colorado, with a growing focus on the states of Nevada and California as well. The theory here is simple. If a cannabis entity can find success in a state with growing market saturation and fragmentation, then they should be able to easily replicate that success in emerging markets within the US.
One firm that ticks both of these boxes, is that of Ionic Brands, a Washington based operation focused on the luxury vaporizer segment of the cannabis sector. Founded in 2012, Ionic has spent the last seven years developing the number one vape brand within the state.
Now, it has morphed into a multi state operator that has revenue projections of US$48.6mm for 2019, double the system wide revenue it did in 2018 of US$21mm. While the Ionic Premium Vape Pens brand is present in Washington, Oregon, and California, Ionic Brands has a handful of acquisitions in waiting that will increase the firms footprint to a total of six states over the course of 2019.
Wertung | Antworten | Thema | Verfasser | letzter Verfasser | letzter Beitrag | |
9 | IONIC BRANDS - Cannabis-Holding-Unternehmen | DigitalOne | Dr. Green | 24.11.21 19:47 | ||
16 | Ionic Brands - Hemp Player | bradetti | bodohans123 | 25.04.21 01:07 | ||
IONIC BRANDS CORP (5 Mio cap) | Nanostox | 24.04.21 23:50 |