Next Green Wave Holdings: Canadian Cannabis Company Is California Dreamin’

Next Green Wave Holdings
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Next Green Wave Holdings Inc: From Distribution to Profitability

Next Green Wave Holdings Inc (OTCMKTS:NXGWF, CNSX:NGW) isn’t a cannabis tsunami yet, but it could be in the next three years. The Vancouver, Canada-based company is working at becoming a top-five cannabis business in California, the largest recreational pot market in the world.

Next Green Wave is a financially strong company with 15 acres of land zoned for cannabis production in Coalinga, California. Its first facility, at 35,000 square feet, has been completed. Construction on a second facility, at 50,000 square feet, will commence in the first half of 2019.

Next Green Wave also recently announced a strategic acquisition and partnership with Intrexon Corp (NASDAQ:XON).

Although NXGWF is an upstart cannabis penny stock, it is on the right path and it looks like 2019 is going to be an exciting year for the company.

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California Cannabis Market

California, the fifth-largest economy in the world, started legally selling recreational cannabis on January 1, 2018, making it the biggest legal marijuana market in the world. (Source: “Corporate Presentation | Q1 2019,” Next Green Wave Holdings Inc, March 22, 2019.)

In 2017, legal marijuana sales in California were an estimated $2.8 billion. This year, recreational cannabis sales are projected to hit $5.1 billion. To put that two-year growth into perspective, California’s beer market was worth $4.0 billion in 2017. By 2021, cannabis sales are expected to come in at $6.3 billion.

The recreational cannabis market is still in its infancy and will only continue to grow in the Golden State. In just a few years, cannabis will have gone from being illegal in California to generating more (legal) sales than the beer industry.

Next Green Wave Holdings Overview

Next Green Wave is a vertically integrated seed-to-consumer producer and reseller of cannabis products in California. The company has been awarded licenses for indoor cultivation, nurseries, manufacturing, extraction, and distribution. (Source: Ibid.)

The company’s experts are well known in the cannabis industry, having produced global award-winning seeds and plants with the company Loud Seeds, which has has won the Cannabis Cup six times since 2012 and has been inducted into the Seed Bank Hall of Fame.

As mentioned earlier, Next Green Wave’s first state-of-the-art facility in Coalinga has been completed. A second facility for research and innovation is being retrofitted and expected to be ready for production in the second quarter of 2019.

On top of that, Next Green Wave has the opportunity to add an additional 250,000-square-foot greenhouse to its land parcel, increasing its capacity to 350,000 square feet.

2019 will be an exciting year for Next Green Wave. In just the first quarter of this year, the company has achieved the following:

  • officially opened its 35,000-square-foot Facility A
  • got its first plants in the ground in Facility A
  • completed the retrofit of its 3,240-square-foot Facility C
  • announced the planning phase for its 50,000-square-foot Facility B
  • launched its first official brand and products that will be ready for distribution throughout California

(Source: “Chairman’s Letter To Shareholders 2018,” Next Green Wave Holdings Inc, December 20, 2018.)

Next Green Wave Stock Information
Market Cap $58.2 million
Current Share Price $0.48
52-Week High $1.05
52-Week Low $0.21

(Source: “Next Green Wave Holdings Inc. (NXGWF),” Yahoo! Finance, last accessed March 27, 2019.)

Next Green Wave Enters Colombian Market

On March 15, Next Green Wave Holdings entered a definitive agreement with Organic Medical Growth OMG3 Inc. (OMG), another Canada-based company.

OMG’s wholly-owned Colombian unit, Proymed SAS, produces non-psychoactive cannabidiol (CBD) products. (Source: “Next Green Wave Enters into Definitive Agreements with Organic Medical Growth (OMG),” Newsfile Corp., March 15, 2019.)

With this agreement, Next Green Wave now has access to Colombia’s lucrative legal cannabis market, which has an estimated six million medical cannabis patients. The company will get access to these consumers though OMG’s distribution channel of 7,300 pharmacies.

“To see how quickly OMG is growing their business opportunities in Colombia is exciting for Next Green Wave,” said Next Green Wave CEO Leigh Hughes.

“As OMG grow their distribution channels, it opens up the platform for our brands outside of California and gives us scope to do more in a low-cost, high-margin environment in Colombia.” (Source: Ibid.)

Next Green Wave Acquires No. 1 Cannabis Consumer Products Company in California

On March 12, Next Green Wave announced that it, along with its U.S. subsidiary, Crossgate Capital US Holdings Corp, signed a definitive agreement to acquire 100% of California-based SDC Ventures, LLC. (Source: “Next Green Wave Acquires for $27 Million 100% of California-Based Consumer Products Goods & Extraction Leader, SD Cannabis,” Next Green Wave Holdings Inc, March 12, 2019.)

SDC Ventures is home to eight leading cannabis brands and 45 CBD and tetrahydrocannabinol (THC) products that cater to the entire cannabis user market, including pets, in California and other parts of the world.

SDC has a loyal global audience, with a social reach of over 25 million people and 100+ million “YouTube” views. The company’s growing network of retail and online sales channels include 700 Zumiez stores.

Analyst Take

Next Green Wave Holdings Inc hasn’t reported any revenue yet, but all that will change this year, which should help propel this penny stock onto the radar of Wall Street.

In addition to being financially solid, the company’s first state-of-the-art facility in California has been completed, and construction on a second one is set to start in the first half of 2019.

Next Green Wave’s recently announced acquisition of SDC Ventures and its investment in OMG is set to drive revenue growth in 2019 and help the company execute on its distribution and product development in California.

In addition to opening up sales in Colombia, the company is in discussions to expand into Australia, Canada, and Europe.

Everything, it seems, is in place for Next Green Wave.