This Small Company Is Becoming “The Amazon of Cannabis”…And About To Make Investors A Fortune
Investors have already made BILLIONS from the fast-growing cannabis sector – but it’s only the start. Because this small company is ready to become the “Amazon of Cannabis”.
After a long and extensive research process we have identified the best positioned player to lead the growth of cannabis eCommerce. CannaOne (CSE:CNNA) (OTCMKTS:CNONF) is a Canadian company developing proprietary cannabis eCommerce tools to serve Cannabidiol (CBD), THC, and medical cannabis markets around the world. It’s not an overstatement to say that the cannabis sector is experiencing explosive growth.
The market was worth $14.3 billion in 2017 and is forecasted to grow to $63.5 billion by 2024, an annual increase of 21.1%.
Other forecasts see the market even reaching a staggering value of $148.3 billion by 2026. At the same time, eCommerce is increasingly dominating the global economy. From being literally a fringe sector a few years ago, it is now expected to generate a record-breaking $3.5 TRILLION in worldwide revenues in 2019:
Online sales for many product categories have skyrocketed, taking over in full from the retail sector:
The very same thing is about to happen to CBD and cannabis products for very simple reasons:
- Companies still face major limitations in running traditional and online cannabis-based ad campaigns on through Google or Facebook – meaning they need to build recognised online marketplaces where to showcase and sell their products.
- Consumers are experiencing the Amazon effect, meaning they want to be able to order and receive a wide range of Cannabis products easily, quickly and cheaply – just like books, electronics, or apparel.
- Medical cannabis has been sold online in Canada since 2013, while in the U.S. and EU online sales consist mostly of CBD products. Government authorities are increasingly looking to increase tax revenues, eliminate illegal sales, and protect consumers in the cannabis sector – making eCommerce marketplaces the natural solution to achieve all three goals.
CNNA’s innovative product portfolio lies exactly at the intersection of Cannabis and eCommerce – a perfect cocktail for extraordinary growth and profits. At the same time, the cannabis sector’s leaders are rushing to find a solution to profit from the rise of cannabis eCommerce.
CNNA stands to gain more than 366% in the next 6 months by providing it…
CNNA’s Enterprise Cannabis Platform – The Game-Changer of Cannabis eCommerce
CNNA’s product line is spearheaded by the game-changing Enterprise Cannabis eCommerce Solution (ECES) – a turnkey B2C platform for cannabis eCommerce, ready to be deployed anywhere in the world. ECES is a comprehensive software suite that allows cannabis businesses to create online marketplace, managing sales and product delivery through an easy-to-use interface. Designed by a team offront-end and back-end UX/UI software developers with decades of experience, it specifically fits the needs of the cannabis sector.
The competitive advantages of ECES are clear as it makes CannaOne is the only public company with proprietary technology focused on cannabis + hemp e-commerce. The main pillar of the company’s master plan is an e-commerce strategy focused on marketplaces (straight from the pages of Amazon’s world-conquering strategy). This is why:
+ The Power of Customer Reviews: Credibility is a must with unestablished brands. Customer reviews become critical as they help build brands, compare multiple products, and keep users engaged new offerings.
+ Avoiding Violation of Terms of Service: As mentioned previously, Google, Facebook, Mailchimp and the list goes on do not allow THC or CBD commerce while governments also impose strict restrictions of cannabis marketing – making marketplaces the only viable alternative.
+ A Clear Path to Success: Organic inbound marketing has to be your primary focus for long term cannabis e-commerce success
CNNA’s technology is already powering two major online CBD retailers:
Bwell Market, a multi-brand marketplace specialised in the distribution of CBD edibles, CBD oil drops, hemp extract products and other wellness products to clients in the USA. This specific niche of cannabis-based products is literally on fire – with sales of $591 million in 2018, and a potential to multiply 40-fold to an unprecedented $22 billion by 2022. BWell Market is CNNA’s first venture in cannabis ecommerce, offering:
- A refined and seamless user experience and UI design
- Optimized inbound marketing to boost traffic and conversions
- A curated and hand-picked array of products from America’s top brands – including Select CBD, Flav CBD and Elixicure, to name but a few, amongst many other high-end brands in great demand
- Exhaustive testing of ROI and connections with cannabis-friendly ad platforms
And Primo, a review-driven marketplace showing the best CBD-related accessories, merchandise and brands. In addition, CNNA has already established partnerships with another 5 countries (Canada, Mexico, Germany, the UK, and Austria) ready to deploy its ecommerce platform technology.
But that’s not all.
CNNA is quickly cementing an unrivalled market position based on its technological competitive advantages. What’s coming next for CNNA’s is exactly what will propel eCommerce into the future: Big Data.
The importance of Big Data in the cannabis market cannot be overemphasized:
- Before legalisation, data about cannabis consumers was literally non-existent. With the industry growing, companies want to know everything about their consumers preferences, buying patterns, and brand loyalties.
- Cannabis advertising options online do not exist and cannabis consumers have a very high Life-Time Value (LTV). The cost of acquiring new customers (CAC) is therefore very high – and will likely skyrocket higher as brand loyalties become stronger and consumers preferences more defined. Retaining existing customers can therefore be a matter of life or death for cannabis companies – and detailed customer data can mean the difference.
CNNA’s solution to these challenges is BloomMachine™, a pioneering software which gathers data about consumers and uses AI algorithms to accurately forecast buyer behavior, recommend products, and track purchases.
The end result?
Cannabis companies are able to boost their customer retention, marketing ROI, and overall sales.
“A highly fragmented medical cannabis market in North America offers CannaOne a pathway to uniquely position itself to its potential partners or clients, as not only a developer and operator of an innovative marketplace and turkey platform, but also as a consolidator, manager and overseer of extremely informative and valuable cannabis user data.”
With a scalable technological platform and the power of Big Data to help cannabis companies maximise their revenues, CNNA is about to replicate the greatest business success story of the last 50 years: Amazon.com
CNNA Copies Amazon Fortune-Making Recipe
Amazon hit a market capitalisation of $1 TRILLION in September 2018. The stock passed the $2,000 mark, from a low of only $35 in 2008 – an unprecedented return of more than 5,000%. This type of stock performance happens only when a company 1) finds a business model that works and 2) scales it massively.
The simple fact is, CNNA is adopting a marketplace-focused strategy – exactly the same strategy Amazon has used to dominate online sales for almost all product categories. From being known as an online book seller, today Amazon constitutes a staggering 52.4% share of all online U.S. eCommerce sales:
CNNA is perfectly positioned to do the same for cannabis.
The key to this rise to dominance is Big Data. Amazon has invested heavily in gathering customer information while they browse to build and fine-tune its recommendation engine. In 2006 the company created Amazon Web Services (AWS), a cloud service application sorting customer data and using predictive analytics. AWS has given Amazon an unparalleled advantage in personalizing product offers for millions of customers – becoming the key to Amazon’s astonishing customer retention rates, profitability, and revenues growth.
Right now, CNNA is more or less at the same stage that Amazon was at in 2006 – before its sales grew by 35 TIMES to what they are today. Online cannabis sales growth is already clearly happening – but there is A LOT more growth about to happen. Especially if the push towards cannabis legalization opens up markets with billions of potential customers…
The Blue Sky Scenario – Cannabis Goes Legal Worldwide
The powerful growth estimates for cannabis eCommerce could end up being wildly pessimistic. That’s because they are not taking into account the incredibly powerful effects of the growing legalization of recreational marijuana and medical cannabis around the world. And despite the complete lack of media attention, these trends are well underway.
Countries like Uruguay and Canada are considered to be the leaders of the cannabis revolution. Canada legalized cannabis for medical uses in 2001, while Uruguay became the first country to legalise recreational cannabis use in 2014. The trend keeps on moving in one direction only:
- Luxembourg announced in August 2019 that it intends to legalise recreational cannabis use.
- Germany, Italy, and the Netherlands are planning to expand their existing medical cannabis programmes.
- In June 2019, Illinois became the latest U.S. state to legalise recreational marijuana use.
- An estimated 62% of Americans favour recreational cannabis legalisation.
Online recreational cannabis sales are already showing incredible potential. In Canada, the government-owned Ontario Cannabis Store received an astounding 100,000 online orders within its first 24 hours of operation. In the province of Alberta, online cannabis sales have generated more than $123 million in sales since October 2018.
Companies like Charlotte’s Web Holdings and CBDMD, major online retailers of CBD-based products are reporting financial results that leave no doubt to the power of this trend:
- Charlotte’s Web total sales grew 74% in 2018, with online sales accounting for 60% of total sales – or 5 times the overall ratio of e-commerce sales to retail sales in the U.S.
- In Q2 2019, CBDMD’s sales were up 84% YOY – with eCommerce sales constituting 70% of total revenues.
Developments like these have firmly put CNNA on the buyout radar of leading global multinationals – including Amazon itself…
The Best of Cannabis & eCommerce – CNNA As An Appetising Buyout Target
Cannabis’ leading players have already taken note of the global growth potential of online cannabis sales. A flurry of acquisitions of smaller cannabis companies has so far been the story of 2019:
- On February 20th, Canadian cannabis producer Tilray announced the acquisition of hemp foods company Manitoba Harvest for CAD $419 million.
- On May 2nd, Canopy Growth agreed to buy German cannabinoid compound firm C3 for €226 million in cash.
- On August 29th, Tilray agreed to acquire Canadian cannabis retailer Four20 for CAD$100 million in stock.
- On September 5th, Medicine Man Technologies announced it will acquire Colorado Harvest Company, an operator of two leading cannabis dispensaries, for $12.5 million in cash and stock.
And the interest in the cannabis retailers is noticeably growing – with 120 M&A transactions involving cannabis growers and retailers year-to-date, compared to only 58 for the corresponding period in 2018. At the same time, CNNA is also a potential target as an eCommerce play. Amazon has a track record of acquiring startups with innovative online retailing technologies.
In June 2018, Amazon announced the acquisition of PillPack, an online pharmaceutical retailing startup, for $753 million. Amazon’s aim was to gain an immediate foothold in a booming niche where Amazon was completely absent. In other words, Amazon acquired an existing technology company , at a very high valuation (10x multiple of revenues) to access a growing market niche. The conclusion is perfectly clear: CNNA would represent the perfect acquisition target for Amazon’s future in cannabis eCommerce.
While market participants gradually come to this conclusion, CNNA is rapidly moving forward and executing all its strategic plans for the rest of 2019…
CNNA’s Major Strategic Moves Of 2019 – With The Biggest Ones Ready To Happen…
CNNA has made a series of major strategic moves in the last months:
- On February 15th, the company announced the launch of Primo, an online retailer of cannabis-related apparel and accessories targeted to millennials owned by Primo Networks.
- On March 19th, the company announced it had signed an agreement with Mexico’s Manna Health Services to develop the country’s leading online CBD marketplace. A few months prior, in November 2018, the government of Mexico had approved the importation and sale of cannabis products. Manna distributes wellness products to a wide network of retail outlets and pharmacies across the country.
- On April 2nd, CNNA announced that it had entered into a formal agreement with Real Health Science to create, facilitate and operate an online CBD product purchase and delivery marketplace in the United States.
- On July 2nd, the company announced the launch of the BWell CBD online marketplace. The platform launched ahead of schedule and received over 11,000 customer sign-ups seeking access to purchase almost 100 individual CBD products.
- On September 4th, CNNA announced its intention to purchase a 100% interest in Real Life Sciences Inc., acquiring in the process the remaining 75.1% of the BWell online CBD marketplace.
- On September 25th, CNNA announced it entered a joint venture with the UK’s LevelOut to service the British CBD market – already worth £300 million a year today, with the potential of ballooning to £1 billion by 2025
These positive developments, however, are only the prelude to what could happen in the rest of 2019. CNNA is presently:
- Planning the joint development and launch of proprietary online marketplaces for multiple countries in Asia and Europe.
- Conducting financial due diligence on potential purchase targets in the CBD market sector to access distribution networks and boost revenue growth.
- Negotiating with cannabis and eCommerce industry experts interested in joining CNNA as Board members or Strategic Advisors.
These positive market catalysts will inevitably put CNNA under the market’s spotlight – generating a large inflow of investment dollars. The simple fact is, cannabis stocks have provided investors with staggering returns:
These price runs are even more impressive when considering how fast they can happen:
Were CNNA to replicate the more modest performance of Cronos (NASDAQ: CRON), for example, it would rise from the current price of CAD $0.83 to $3.87 – a very significant 366% profit. And this may not take a long time – Aurora (NYSE: ACB) made investors a 386% profit in barely 3 MONTHS.
Such large gains are possible in such short periods of time due to a simple reason – market size. Cannabis stocks have a total market capitalisation of only $64 billion. It would take a fraction of the $8.6 TRILLION invested in American equity funds to cause an upwards price surge in the entire sector – and in CNNA stock. At the current price of only CAD $0.83, the stock is trading well below its spring 2019 prices:
Returning only to the May 2019 highs would pocket investors a significant 69% gain. At this price, there is a small window of opportunity to act quickly. It may not stay open for long – especially if the ongoing cannabis M&A boom finds CNNA…
The Cannabis M&A Frenzy Puts CNNA In Play
As mentioned earlier, major players are looking for startups in niche cannabis markets. When they identify an attractive target, the same thing always happens – an acquisition of the smaller company by the larger one. In the cannabis sector this is more than evident, with M&A activity significantly heating up. A total of 321 cannabis companies worldwide were targets for mergers and acquisitions in 2018, a massive 109.8% increase from 153 in 2017. As of August 2019, the total number of cannabis M&A deals is a record-breaking 259, compared to 206 in 2018 as a whole:
Leading cannabis companies are hunting for targets, and CNNA could be next. The main point to remember is that acquisitions in the cannabis sector ALWAYS happen at valuations in the millions if not billions of dollars:
CNNA, with a market cap of only $18 million and at the earliest stages of its growth path, could soon become an appetising target – with a profitable result for its shareholders.
CNNA: A Unique Cannabis eCommerce Play With Excellent Upside
Having completed its IPO only in November 2018, CNNA is relatively new to the market – which means many investors are still learning about it. As knowledge of the company’s unique capabilities spreads, it meanwhile continues to explore opportunities to expand its grip on the Cannabis eCommerce sector. The moment the market realises that eCommerce sales are bound to rise for years, and that CNNA has first-mover advantage in its niche, investors will quickly turn their attention to CNNA shares. When major eCommerce and cannabis companies do the same, CNNA will be fully in play as a takeover target.
The many examples of cannabis stocks and eCommerce stocks generating triple-digit returns in a matter months can be an indicator of what CNNA could do for the rest of 2019. The price has taken a brief pause during the summer months, and could be building the base for a long-term price uptrend. With game-changing technology, a focus on Big Data, and a first-mover advantage, CNNA is in a highly attractive position to cater to a market potentially worth $100 billion+ a few years from now. These advantages could soon be worth hundreds of millions of dollars to both global multinationals and astute investors.
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