Can ICC Make a Big Impact on Pot Stock?
International Cannabis Corp (CVE:ICC) is the new kid on the block in the pot stock business hitting the Canadian TSX Venture market. And, as the name implies, it’s not strictly limited to Canada, with Uruguay set to be one of the key facets of its operation.
Why Uruguay? Because a pot stock based out of there has a pretty big consumer base from which to draw. Of the 3.4 million people living in the South American country, an estimated 55,000-plus engage in marijuana use, sparking up 40 grams per month on average.
The country is also a little ahead of the times concerning marijuana (and marijuana stock) compared to Canada; both recreational and medicinal pot are legal. The country consumes about 27 million tonnes annually. That’s quite a few joints. And they definitely have the land to produce the crops.
ICC’s pot stock is looking to take advantage of its indoor greenhouse operation that includes a 1,630 square meter vegetation room and a 3,400 square meter flowering—as well as drying, extracting, and processing—space that is set to produce two million tonnes initially. The total space comes out to around 64,500 square meters, with upwards of 40 hectares for future expansion. (Source: “New marijuana company International Cannabis starts trading on TSX,” Financial Post, November 29, 2016.)
All this is part of a broader strategy to become one of the main producers of marijuana in South America. The company is planning to eventually produce 15 tonnes per year and is looking to expand into the medicinal marijuana business in Brazil. Ultimately, this pot stock hopes to see its products reach a large portion of the 620 million consumers within Latin America.
Nor is the business limiting itself to medicinal and recreational weed. It’s also looking to take advantage of the extracts market and produce vaporizers, edibles, tea, soda, energy drinks, and cosmetics, among other consumer-oriented products.
In the already volatile (but potentially hugely profitable) marijuana stock market, ICC is looking to lay claim to the southern consumer base and lobby its position as a first mover in the region into big gains.
ICC stock so far is reaping the benefits of that potential: it’s up over 100%.