- The U.S. cannabis market is racing along at a 25 percent CAGR
- Nabis Holdings recently issued a letter to shareholders
- The company has appointed an independent director
Based in Vancouver, Canada, Nabis Holdings Inc. (CSE: NAB) (OTC: NABIF) (FRA: 71P) is targeting positive cash flow and strategic assets in the cannabis space, both in the United States and abroad. Nabis already has investments in Arizona, California, Michigan and Washington and is looking to expand its portfolio to include four to five more states in the next three to four months.
Nabis is headed by two industry veterans who exited another firm after receiving one of the largest takeover offers in the North American industry. The team seems set for a repeat performance in the burgeoning legal cannabis market, which is expected to grow at a CAGR of 24.9 percent from 2017 to 2025 (http://cnw.fm/qxWj1). Such growth would swell the market to around $50 billion by 2025.
Nabis is headed by Shay Shnet and Mark Krytiuk, two executives with a proven pedigree in the cannabis space. The pair are co-founders of MPX Bioceutical Corporation, which merged with iAnthus Capital Holdings Inc. (OTCQX: ITHUF) in a deal that valued MPX at C$835 million. Shnet brings 20 years of business experience to Nabis, where he serves as CEO. At MPX Bioceutical, he was vice president of operations and helped build MPX’s portfolio of international cannabis assets. Shnet is adept at sourcing unique opportunities that deal directly with the development, branding, importing, consumer packaging and distribution of a variety of product lines.
Mark Krytiuk is chairman and president of Nabis. Krytiuk garnered five years of experience as the vice president of grow operations for MPX – a position from which he oversaw the production of medical marijuana and pharma-grade products across North America. Krytiuk has been directly involved in the rapid expansion and growth of nine facilities in three different countries, including projects that involved budgets of up to $30 million.
Recently, Nabis issued a letter to shareholders providing a detailed update on the company’s progress and its outlook for the remainder of 2019 and beyond (http://cnw.fm/Z4dFE). In Arizona, Nabis has entered into a definitive agreement to acquire 100 percent of the membership units of a fully integrated medical marijuana business licensed under the Arizona Medical Marijuana Act. The acquisition includes a currently operational dispensary that serves 132,000 patients in the Phoenix (Maricopa County) area. This asset has audited 2018 financials of $8.7 million in revenue with gross margins in excess of 50 percent, as well as an estimated $9.0 million in revenue for 2019.
In California, Nabis’ planned acquisition of the Desert Springs dispensary is expected to close in September. This is a positive cash-flow asset that had sales of $5.7 million in 2018 with 47 percent gross margins, and it’s on track for a similar performance in 2019. The city of Desert Hot Springs has approved retail expansion from the current 2,076 square feet to almost double that at 3,977 square feet, resulting in a retail space and production and distribution areas that are all under one roof.
Nabis’ Michigan operations include four retail locations, with two more under definitive agreements set to close in Q4 2019. This retail network will be partially supplied by Nabis’ permitted production and cultivation facility, which will be located in Bangor City, where the company has closed on 22 acres of land. The facility has been granted one production license and 10 cultivation licenses.
In Washington, Nabis has purchased extraction and production equipment in Port Townsend. The company plans to expand the facility to include highly specialized equipment, two new extraction lines, an extraction clean room and a lab facility. As part of that deal, the company acquired licensing rights within Washington state for ‘Chong’s Choice’ brand products, a widely recognized brand in the cannabis space.
In addition, Nabis recently strengthened its board with the appointment of Emmanuel Paul as an independent director (http://cnw.fm/dw0LN). Paul currently serves as CEO of IndusCann Research, a company focused on the research and commercialization of medical cannabis in India. Prior to that, he was the founding partner of Spartan Wellness Corporation, a unique, veteran-focused, health care service provider specializing in prescribing medical cannabis, as well as providing education and ongoing care.
For more information, visit the company’s website at www.NabisHoldings.com
NOTE TO INVESTORS: The latest news and updates relating to NABIF are available in the company’s newsroom at http://cnw.fm/NABIF
CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.
To receive instant SMS alerts, text CANNABIS to 21000 (U.S. Mobile Phones Only)
For more information please visit https://www.CannabisNewsWire.com
Do you have a questions or are you interested in working with CNW? Ask our Editor