ABcann Global Corp (OTCMKTS:ABCCF) Is A Growing Cannabis Player

The new year has come with tidings for the management and shareholders of ABcann Global Corp (OTCMKTS:ABCCF).This has been exhibited by the jump in their share price over the period from November 2017 to date whereby their share price rose by over 500% from lows of $.6 exhibited towards the end of November 2017 to highs of $3.23 as seen in yesterday’s closing price.Furthermore, their traded volumes have been in the millions during this period, a factor which has also led to their share price increase to the levels shown in the chart below: SYMB Daily ChartThis price surge comes in the wake of good releases from the company.During this period, the company, which is already invested in a lucrative sector, has shown their prowess in the art of the deal and harnessed their skills in obtaining some agreements with other companies, as well as with sovereigns, which will make them a great deal of money going forward.Given this, it would be easy to assume that their value proposition is solid. However, that is the assumption; we decided to test and validate it. Therefore, we have dug deeper into the company and come up with the following report.Who is ABCCF?ABcann Global Corporation was founded back in 2012 by Ken Clement. The company is based in Napanee, Ontario in Canada.They hold rights for the production and sale of cannabis from Health Canada, a body responsible for the issuance of licenses in the country. It operates mainly within the health sector with an incline towards the cannabis segment of the industry.The company prides itself on having the best technology in the market – proprietary technology centered on its growing chambers which are specially designed and environmentally controlled. This approach has been behind the high yields the company has been obtaining when compared to its counterparts in the field and has also resulted in the production of high-grade pharmaceutical cannabis products.The company has currently adopted internationalization as a strategy as they work towards venturing into other markets such as Australia, Germany, and Israel through different partnerships.The $426 million company currently has over 34 employees, and this number keeps growing over time.The Cannabis SectorThe cannabis market in Canada is growing. This growth has been accentuated by the expected federal legalization of recreational cannabis that is expected to take place in July this year.According to a report by Deloitte, this industry is expected to be worth $22.6 billion in 2022, one of the highest valuations given to the cannabis industry so far. As such, it comes as no surprise when players within this sector decide to align themselves within it to ensure that they grow.This is precisely what ABCCF has done.Recent ABCCF DevelopmentsGiven the above, it came as no surprise when the management of ABCCF decided to reinforce their agenda within the recreational and pharmaceutical cannabis segments by appointing a board of directors with vast experience within both the pharmaceutical sector as well as in the adult recreational drug use.The new board is meant to draw up a strategy that will see the company both venture into the new markets, aforementioned, as well as take advantage of the current legalization of marijuana in Canada. Half of the new board has come from the pharmaceutical sector with their new CEO, Barry Fishman having participated in this industry for over 20 years in different capacities.Furthermore, their new board chairperson, Paul Lucas has been at the helm of Glaxo Smith Kline for nearly two decades, acting as the President and CEO of the company within Canada between 1994 and 2012.This vast array of experience is expected to ensure that the company not only secures deals but also has the right team ensuring that strategies are both made and implemented by the management.It did not take long for the company to begin reaping the benefits of the new board.A few days into 2018, the company announced that Health Canada had licensed their production of cannabis oils within the country. This was a step closer to the company’s goal of selling these oils to the Canadian market which is expected to be carried out within the first quarter of 2017 after tests have been done on these oils.This was followed in quick succession by the receipt of an import license from Australia’s Federal Office of Drug Control by their subsidiary ABcann Australia Pty Ltd. The above meant that the company could now grow their dream of venturing into new markets especially now that more and more countries are legalizing marijuana.Their strategy is currently coming to force.Barry Fishman added that:

“…We view Australia as an important emerging market for medical cannabis and I look forward to meeting with our strategic partners and stakeholders in Australia later this month to further discuss opportunities there.”

Source:The company is already reaping the benefits of strategic alliances and implementation as has been exhibited by their share price. However, let us now assess their financial performance so as to understand their current standing.Financial PerformanceDespite the fall in their third-quarter revenues to $427,782 from over $1.3 million, the company’s loss position reduced significantly from over $11 million to just about $3.3 million. This exemplified their cost-cutting strategy and went to show that management is working towards a better financial position.Furthermore, during the fourth quarter, they opened and closed a $30 million debenture financing window where they raised this amount. This was meant to return 7% to their investors every year over a 36-month period.ConclusionWith the market providing such finds to the company, there must be hope that the company is on an upward path. As such, we are also quite optimistic that the upward trend will be held into the future both in the short and long run.We will be updating our subscribers as soon as we know more. For the latest updates on ABCCF, sign up below!Disclosure: We have no position in ABCCF and have not been compensated for this article.