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A Close Look At AmeriCann Inc (OTCMKTS:ACAN)

A Close Look At AmeriCann Inc (OTCMKTS:ACAN)
Written by
Alex Carlson
Published on
November 7, 2016
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AmeriCann Inc (OTCMKTS:ACAN) has been one of the top performing cannabis stocks of 2016. ACAN had been quiet for most of 2016 and then exploded in October as investors get set for Green Rush 2.0 just around the corner. Come election day, voters in at least nine states will decide on whether to legalize either the recreational use or the medical use of marijuana. As it stands now, those states include Arizona, Arkansas, California, Florida, Maine, Massachusetts, Montana, Nevada and North Dakota.So far, 25 states have established medical marijuana programs. These states include: Alaska, Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine,Maryland, Massachusetts, Michigan, Minnesota, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oregon, Pennsylvania, Rhode Island,Vermont, and Washington. In addition, Washington, DC and Puerto Rico allow medical marijuana for patients.Additional states, while not offering comprehensive medical marijuana programs, have approved marijuana-based “low THC, high cannabidiol (CBD)” products for limited medical purposes. These states include Alabama, Florida, Georgia, Iowa, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, Oklahoma, South Carolina,Tennessee, Texas, Utah, Virginia, Wisconsin, and Wyoming.Alternatively, CBD oil products that are derived from hemp are legal to purchase and use in all 50 states without a visit to a doctor, a medical marijuana card, or paying a state enrollment fee. Made with naturally high-CBD, low-THC hemp, these products contain the same levels of CBD as those sold in medical marijuana dispensaries, but because they are sold as supplements, they are 100% legal in the U.S.AmeriCann Inc plans to develop and lease sustainable, state-of-the-art medical cannabis cultivation properties. The Company has over 1,000,000 square feet of facilities in the planning and design stages of development. The Company has designed a proprietary line of cannabis infused products which will be branded and licensed to companies in regulated markets.Americann Inc just completed its acquisition of a nearly 53-acre property from Boston Beer Company (NYSE:SAM) for $4,475,000. The Company plans to develop the property as the Massachusetts Medical Cannabis Center (the "MMCC"), one of the largest and most technologically advanced cannabis cultivation facilities in the nation.

Designs for the MMCC include the construction of sustainable greenhouse cultivation, processing, and infused product facilities that will be leased or sold to Registered Marijuana Dispensaries under the Massachusetts Medical Marijuana Program. The Company has received unanimous approval from the Town of Freetown Planning Board for the development of 977,000 square feet of cannabis cultivation and processing infrastructure on the property. In addition, AmeriCann has signed definitive agreements with a provisionally licensed organization to become the initial tenant in the planned MMCC.

When fully developed, the MMCC is projected to create over 300 jobs with an annual projected payroll of over $14 million to the local community. Construction is expected to commence in early 2017 with first cannabis produced by late 2017. AmeriCann and Freetown officials have been engaged in the approval process for over a year and the town has provided strong support for the MMCC. The Freetown planning board gave unanimous approval to the development plans in a public forum. Planning Board Chairman Kevin Desmarais closed the meeting by saying, "This has been one of the better public processes with which I've been involved."

In September, AmeriCann launched Solanna, a new comprehensive line of nutraceutical-grade cannabis infused products. The Company plans to expand the product line to include edible products, health drinks, and branded concentrates. The products are designed to allow consumers to manage dosage through micro-dosing and to improve efficacy by incorporating blends of other plants, essential oils and other supplements that enhance and compliment the benefits of cannabis.

Currently trading with a market cap of $46 million, ACAN keeps running up the charts. There are 16.6 million shares outstanding, of which just 5.4 million is in the float. While other cannabis names are fighting for market share in California, Colorado, Nevada, Washington and Oregon, ACAN has focused and positioned itself better than any other cannabis company in Massachusetts. This makes ACAN certainly one name that needs to be on every pot stock investor's radar. We will be updating our subscribers as soon as we know more. For the latest updates on ACAN, sign up below!

Disclosure: We have no position in ACAN and have not been compensated for this article.

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