Abattis positions strong in medical and cannabis value-chain with $25M financing
With $25 M financing Abattis Bioceuticals Corp. (OTCQX: ATTBF | CSE: ATT) is showing the cannabiz world a new integrative business model, making it a favourite in the race for long term sustainability.
Farming is tough business: while some crafty farmers make money but those who become rich from farming are those who provide goods and services to farmers. Why wouldn’t it be the case in the marijuana business?
Mind you, a cannabis plant can be worth as much as a thousand bucks because of prohibition, but the same fundamental issues control success: nutrients, pathogens, insects, quality control, and value-added opportunities.
This is especially true in Canada where the slowness of the Canadian government at granting MMPR licenses has made cannabis investors into disillusion. Canadian would-be growers like drivers driving on reverse on a one-way street: trying to find a way to make things work without looking silly. Fundamentally investing into would-be MMPR growers has become highly risky unless management finds business mitigation risks.
Such is the case for Abattis and it has the funds to do so.
With its recent disclosure of $25M in funding Abattis Bioceuticals Corp. is in position to become a leader in the growing, testing, and distribution of medical and adult-use cannabis in North America. Through its network of subsidiaries and partners, the Company is deploying a pioneering GDERS (grow, dry, extract, refine, sell) strategy to span the entire industry supply chain from seed to sale. These subsidiaries and partners specialize in cultivating, licensing and marketing proprietary ingredients, bio-similar compounds, patented equipment, and consulting services across the continent.
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I like that Abattis is a technology consolidator. There is a real business opportunity by consolidating emerging businesses along the value chain. One of the biggest cannabiz challenge marijuana business is that experts are the small growers with all kinds of processes and remedies that they’ve demonstrated to support their family while worried that the sheriff department would break down the front door in the middle of the night.
Abattis entered into a US$25 million equity line facility agreement with Dutchess Opportunity Fund, II, LP, a Delaware Limited Partnership – (“Dutchess”). The Company has agreed to file a registration statement with the U.S. Securities & Exchange Commission (“SEC”) covering the Abattis shares that may be issued to Dutchess under this financing. After the SEC has declared the registration statement related to the transaction effective, the Company has the right at its sole discretion over a period of three years to sell up to US$25 million of common shares to Dutchess under the terms of the financing agreement, which shares will be issued at the current market price less permitted discounts in effect during such issuances.
According to its quarterly disclosure ending September 30, 2014 the company had generated roughly $25k in revenues in 2013.
In the short term it will be critical for Abattis to show how it can generate revenues quickly as a result of the deployment of its business plan.
Dr. Luc C. Duchesne is a Speaker and Author with a PhD in Biochemistry. With three decades of scientific and business experience, he has published ... <Read more about Dr. Luc Duchesne>