Discover Why StillCanna (CSE:STIL) (OTC:SCNNF)
Could Be The Biggest Suppliers in the Hemp-derived Product Market
From Kim Kardashian actually hosting a hemp product themed baby shower to Dr. Oz and Sanjay Gupta consistently singing its praises – few things are hotter right now than hemp-derived product.
According to a feature by E! Hollywood Kim K wanted her friends & family to “zen out on a Saturday” at the event, noting the benefits of hemp-derived product to actively ease anxiety and other ailments without any psychoactive properties.
Actor Seth Rogen is so convinced of the benefits of hemp-derived product for those with Alzheimer’s that he testified before Congress on those benefits.
Golf pro Bubba Watson uses this magical chemical compound to recover after a long day of golf. He told Fox Business’s Gerri Willis, “I’m a believer in it, I’ve been using it”.
These are just a couple of the A-list celebrities and athletes on a long and growing list that are calling attention to the benefits of hemp-derived product.
In fact, hemp-derived product has gone viral and it’s only the beginning. The market is forecast to grow at a rate of 36X … from $600 million last year to $22 billion by 2022.
Enter StillCanna (CSE:STIL) (OTC:SCNNF), a new entrant in this rapidly growing market with an opening price of $1.00, just completed an oversubscribed $24.36 million private placement.
On May 7th, StillCanna, (CSE:STIL) (OTC:SCNNF) acquired 100% of Polish hemp producer, Olimax. This acquisition providers Stillcanna with a vertically integrated licensed cultivator, extractor and formulator of hemp-derived products. One of Olimax’s many core strengths is their agricultural expertise with hemp.
“This acquisition uniquely positions Stillcanna in the supply chain of wholesale hemp-derived product in Europe,” pointed out Jason Dussault, chief executive officer of StillCanna, “there is global interest in sourcing a reliable flow of wholesale hemp-derived product in Europe and StillCanna is now in a position to address that global interest.”
The founders of Olimax, Zofia Valber and Krystyna Bojeck, will oversee the day-to-day management of the company’s Polish operations. The duo have over 40 years of combined experience in hemp products and their accomplishments include a patented microelement fertilizer and the germination and registration of a European Union certified propriety varietal of high hemp-derived product content hemp.
StillCanna (CSE:STIL) (OTC:SCNNF) has already begun its agricultural initiatives of its proprietary high content hemp varietal on a massive 1,500 hectare (3,706 acres) farm in Poland.
The company has also announced plans to invest $6 million in a hemp-derived product refinement facility in Poland. The facility will have the capacity to produce up to 40,000 kg of hemp-derived product per year with their first harvest to be in early August. Production output for 2019 is expected to be 16,000 kg. What’s exciting is StillCanna’s high-tech extraction facility can produce a gram of hemp oil for as low as $0.30. There isn’t a hemp-grower in North America can come close to that production cost.
According to Hemp Benchmarks 2019 April report, the wholesale price per kilogram for hemp-derived product. Isolate in the United States was $6,077 per kg. With a production output estimated at 16,000 kg in 2019, forecasted revenue can be expected to be an impressive USD $97.23 million.
If 2020’s harvest grow as planned, and if the price of hemp-derived product. isolate remains steady, revenue could potentially exceed USD $197 million.
In light of all of this, it’s little wonder that high net-worth and notable institutions just invested $24.36 million in StillCanna (CSE:STIL) (OTC:SCNNF).
The company could be a significant force in the European and North American hemp-derived product marketplace – and since its stock just started trading approximately 6 weeks ago, and the stock is trading 20% above its opening price, this could be a ground-floor opportunity.
So let’s unpack what is happening in the hemp-derived product marketplace and why StillCanna (CSE:STIL) (OTC:SCNNF) could be one of the most exciting stocks to watch in 2019.
The Hemp Market is Absolutely Exploding
in Popularity Right Now!
There are two main reasons for this:
- Increasing demand for hemp-derived product
- The illegal status of hemp’s “cousin” pot
- The passing of the U.S. Farm Bill
It is much more difficult, right now, to obtain hemp-derived product from pot, which is still illegal to use recreationally in 40 states.
Companies eager to produce hemp-derived and hemp-infused products have turned to the hemp industry and to companies like StillCanna (CSE:STIL) (OTC:SCNNF).
Hemp is legal across the U.S. and Europe!
This escalating demand for hemp-derived product is why industry analysts the Brightfield Group are predicting that the U.S. hemp & hemp-derived product market will quickly escalate 3,556%, from around $600 million last year to $22 billion in the next three years.
Dr. Oz and Sanjay Gupta have also been busy drawing attention to the benefits of hemp-derived product.
As Dr. Oz and Sanjay explain, hemp-derived product products are a non-intoxicating derivative from hemp plants that can produce a wide range of benefits and can be used in a wide variety of products from beverages to healthcare and beauty.
Growing Demand, Limited Supply
Walgreens announced that they’re going to sell hemp-derived products in 1,500 stores in March and other large retailers such as CVS, Vitamin Shoppes, Ulta and Macy’s have also started selling hemp-derived products.
Now there is news that both Coke and Pepsi also want in on the action by offering hemp-derived product infused drinks.
So How Serious is the Potential Hemp Shortage in the U.S.?
With about 6% of the U.S. market, Green Roads sells its hemp-infused products, such as tinctures, gummies, balms, and pet-focused hemp-derived products online, and in 6,000 stores and 2,000 doctors’ offices. It has about 100 employees and estimated annual revenues of around $45 million.
Last December, Green Roads co-founder, Arby Barroso, told Inc. magazine,
“I don’t know if there’s enough product in the country to fulfill demand.”
And look what’s coming in the future:
- Global luxury-brand powerhouse Neiman Marcus plans to sell hemp-infused beauty creams.
- More than 9,800 CVS (NYSE: CVS) stores are set to dedicate significant shelf space to hemp-infused creams, sprays, and lotions.
- Walgreens (NYSE: WBA) has similar plans for at least 1,500 of its stores.
- Rite Aid (NYSE: RAD) is set to sell hemp-infused beauty products in 200 stores.
- More than 700 Vitamin Shoppes (NYSE: VSI) are stocking hemp-derived soft gels.
- 240 Urban Outfitter (NASDAQ: URBN) stores are selling hemp-derived tincture.
- More than 1,000 Ulta Beauty (NASDAQ: ULTA) locations are selling hemp-infused beauty creams and locations.
- Green Growth Brands Seventh Sense is being carried in American Eagle Outfitters and 500+ stores from discount retailer DSW (NYSE: DSW).
To manufacture all of these hemp-related products companies are going to require large quantities of hemp-derived product isolate – and that’s where StillCanna (CSE:STIL) (OTC:SCNNF) comes in.
The main question in the hemp-derived product market has become – with domestic demand at critical levels, which suppliers are up to the task of feeding the sudden and insatiable desire for hemp-derived products?
The answer to that question is StillCanna (CSE:STIL) (OTC:SCNNF), which will become a hemp-derived product provider with huge – and reliable – extraction facilities.
As mentioned earlier, StillCanna (CSE:STIL) (OTC:SCNNF) is investing $6 million in a hemp-derived product processing facility in Poland. The facility is initially designed to produce 40,000 kilograms of hemp-derived product per year.
StillCanna’s (CSE:STIL) (OTC:SCNNF) is completing its Romanian extraction facility to produce hemp-derived product for the dominant player in Europe’s legal hemp-derived product market – DragonFly Biosciences.
An extraction contract between Stillcanna and DragonFly is worth $48 million over the next three years. StillCanna also just entered into a letter of intent with BioScience Enterprises of California to supply $36 million worth of hemp-derived product isolate from its fields in Poland.
The 36 million only represents 30% of the company’s potential 2019 revenue, giving StillCanna (CSE:STIL) (OTC:SCNNF) plenty of room to wholesale to other retailers.
The company’s forecast, based on a price of $6000 per kilo. Given the exploding demand, the total revenue number could balloon if the supply starts to dwindle and the price increases.
StillCanna (CSE:STIL) (OTC:SCNNF) also presents other benefits – for example, the wholesale business model is inherently less risky than retail.
But, as Dr. Oz has pointed out, the retail market is constantly expanding, with new products popping up every day that require hemp-based products. Someone has to supply this growing demand.
And wait, there’s more good news about StillCanna (CSE:STIL) (OTC:SCNNF).
Company CEO, Jason Dussault recently said that his company’s new hemp-flower extraction facility can make more hemp-derived product in half a day than most existing brands require in a year!
Under-the-Radar and Undervalued!
To get a better idea of the growth that could be possible with StillCanna (CSE:STIL) (OTC:SCNNF) it’s beneficial to look at what happened recently with another hemp supplier.
Colorado-based Charlotte’s Web Holdings (OTC: CWBHF) (CSE: CWEB) is a leader in the domestic seed-to-sale hemp industry. To meet the spike in demand, CWEB upped hemp production by 10X this year.
That increased production led to increased share value – with prices surging 120% since last Christmas Eve and currently sits at $18.75 and a market cap of USD $1.624 billion.
StillCanna’s (CSE:STIL) (OTC:SCNNF) market capitalization is 1/20 of CWEB’s, yet it has the potential to make more than 10 times the hemp oil and isolate.
StillCanna, however, arguably remains the more interesting of the two companies. Charlotte’s Web’s 300 acre farm can be swallowed by the huge 3706 acre farm that StillCanna just planted. With a tiny market cap of USD $52.5 million, this could be the most exciting stock to watch in 2019.
That’s because not only can it produce massive amounts of hemp-derived product each year, but it also has the proper licensing to export hemp-derived product to the U.S. where demand is set to increase the market’s size by more than 3,600% to $22 billion in 2022.
Popularity Amongst Baby Boomers and Millennials Rapidly Increasing
A study commissioned by hemp-derived product Marketing in Chicago analyzed 1.3 million U.S. social media posts regarding hemp-derived product between Jan 1, 2018, and Jan 1, 2019. Both Boomers and Millennials made 41% of the posts, while Gen X’ers made the remaining 18%. This data quantifies the point: hemp-derived products are attracting attention across demographics.
To give an idea of how big this is getting, compare and look at how large the market caps are of the top 4 publicly traded hemp-derived product companies in the U.S. compared to StillCanna’s (CSE:STIL) (OTC:SCNNF) market cap.
*** all figures are reported in U.S. Dollars ***
These year-on-year growth figures, provided by the Brightfield Group, are unprecedented. And these are just for the top 4 public companies in the American market.
In Europe, hemp-derived product has been legal for 5 years, which is why companies such as StillCanna (CSE:STIL) (OTC:SCNNF) with a foothold there hold a significant first-mover advantage with room to grow in the U.S.
The European market also holds its own potential. While hemp-derived product has been legal in Europe for longer than in the U.S., it’s been slower to grow due to varying regulations.
A report by the Brightfield Group suggests that’s about to change: the $416 million dollar European hemp-derived product market in 2019 is expected to explode to $1.7 billion by 2023.
As this explosion happens, StillCanna (CSE:STIL) (OTC:SCNNF) can leverage its European production and strategic partnership with Europe’s top supplier to become a dominant force in that market.
Only Pros Know How to Grow Good Hemp!
StillCanna (CSE:STIL) (OTC:SCNNF) farmers are generational, not only have Zofia Valber and Krystyna Bojeck been farming hemp in Europe for a combined 40 years, their parents were hemp farmers. The patent awarded for their microelement fertilizer solidifies their expertise.
That accumulated knowledge and experience is a big reason why StillCanna (CSE:STIL) (OTC:SCNNF) is capable of supplying up to 10 times the hemp-derived product that the U.S. leader is able to provide.
While Charlotte’s Web grows 300 acres of hemp and is by far the dominant U.S. hemp-derived product makers, StillCanna’s Polish farm is planting as many as 3706 acres of hemp in 2019 with expectations of up to 12,500 acres in 2021
In other words, this under-the-radar company could be due to breakout “big-time” in 2019 and beyond!
Why Investors Should Put StillCanna (CSE:STIL) (OTC:SCNNF) On Their Watchlist
Quality AND Quantity
StillCanna (CSE:STIL) (OTC:SCNNF) owns a proprietary EU-registered high content strain of hemp. Its proprietary extraction technology can make as many as 40 million grams of hemp-derived product in 2020.
Hemp has been legal in Europe for the past five years. That’s allowed StillCanna (CSE:STIL) (OTC:SCNNF) to fully develop a product line that’s ready for the retail market. And, it can put as many as 5,000 hectares under hemp, with an average of two crops a year. That’s up to 100 times what many leading U.S. producers can do.
Huge institutional investors – ones that have many companies to choose from – expect great things from StillCanna (CSE:STIL) (OTC:SCNNF). That’s why StillCanna was able to raise more than $24.3 million in what turned out to be an “oversubscribed” offering.
High Margin Business
StillCanna’s high-tech extraction facility can produce a gram of hemp oil for as low as $0.30. StillCanna’s (CSE:STIL) (OTC:SCNNF) margins are very high compared to every competitor in the U.S.
StillCanna (CSE:STIL) (OTC:SCNNF) CEO Jason Dussault is an internationally renowned business leader and marketing wizard, well known from the attention he’s gained on Fox News, The Wall Street Journal, The New York Times, MTV, Entertainment Tonight, and the CBC.
 https://keytocannabis.com/blogs/cannabis/10-celebrities-who-endorse-Hemp-derived product
 https://www.cbsnews.com/news/Hemp-derived product-on-a-real-market-high-swiftly-growing-demand-for-
 https://www.cbsnews.com/news/Hemp-derived product-on-a-real-market-high-swiftly-growing-demand-for-cannabidiol-products/
 https://www.supermarketnews.com/consumer-trends/boomers-and-millennials-alike-are-buzzing-about-Hemp-derived product
 All stock info from www.stockwatch.com as of EOD 05/07/2019
 https://www.brightfieldgroup.com/press-releases/europe-hemp-derived product-market-through-2023
 https://www.prnewswire.com/news-releases/charlottes-web-hemp-harvest-increases-10x-building-inventory-to-meet-growing-Hemp-derived product-product-demand-300778200.html