AGFAF, New CBD Alert with Strong Sales Guidance +Major Growth.=====================
AgraFlora Organics International Inc. (AGFAF)
Canada CSE: (AGRA)
Germany Frankfurt: (PU31)
Alert Price: $0.1959
Investor Presentation (Must Read)
Chart Analysis
Float: 461.02M
Website | Recent News
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Members,
Earlier today, we told you we may have come across the biggest steal in the cannabis space at the moment.
We also mentioned that we have been right on the money when it comes to the sector as a whole.
Many of our cannabis trade ideas have given our members the opportunity to secure gains of +100% or more!
For that reason alone, you really owe it to yourself to pay attention to us when we say we've found another incredible opportunity in the cannabis space.
Please turn your immediate attention to AgraFlora Organics International Inc. (AGFAF).
Trading at $0.1959, and just above its 52-week low, AGFAF may have more upside than any company operating in the booming cannabis space.
So Just How Booming Is This Sector?
Brightfield Group, a leading market and consumer intelligence firm for the legal CBD and cannabis industries, reported significant expected acceleration in growth for the CBD market, resulting in a 706% year-over-year CBD product sales jump in the US in 2019 to around $5 billion in total sales, with sales expected to reach $23.7 billion by 2023. This suggests the overall CBD-based products market is set to grow by a stunning 107% CAGR over coming years.
We consider AGFAF one of the biggest bargains in the sector right now, especially considering the fact that it has the the world's second largest cannabis cultivation operation under glass!
AGFAF owns and operates an ACMPR licensed indoor cultivation operation in London, ON, and controls a 70% interest in Propagation Service Canada and its large-scale, 2.2 million square foot greenhouse complex in Delta, B.C. The Company’s Delta Greenhouse Complex is equipped with 2.2 million square feet of dedicated cultivation area under glass and is widely considered to be one of the most technically advanced and environmentally efficient greenhouse operations in the world.
AGFAF has made some big moves as a of late, all of which could be considered market friendly and bullish in the near and long term:
Their wholly owned subsidiary Canutra Naturals Ltd. (“Canutra”) has been awarded a cannabis research license (the “Research License”) by Health Canada under the Cannabis Regulations Act. The Research License permits Canutra to pursue the development of proprietary cannabis genetics and phenotypes at its flagship 76-acre campus in Kent County New Brunswick .
The Company’s 51500 square foot GMP edibles manufacturing facility (the “Facility”) in Winnipeg Manitoba has received all required architecture and ancillary construction permits and continues to adhere to its projected Q4 2019 completion date for applicable Facility upgrades including architectural mechanical electrical as well as security retrofits per Health Canada regulations.
Strong sales guidance pertaining to the Company’s 50 per-cent owned Joint-Venture (the “JV”) Eurasia Infused Cosmetics Inc. (“Eurasia Infused”).
Natures Hemp Corp (“NHC”) a former portfolio company which was spun out to shareholders of AGRA in August of 2018 has acquired 100% of the assets of HapiFoods Group Inc. the founder of Holy CP breakfast cereal. Historically Holy CP products have garnered shelf space in as many as 2500 stores across Canada at retail outlets such as Whole Foods London Drugs IGA Save-On Foods Urban Fare Capers and Stong’s Market. At its zenith Holy CP achieved sales of over $5,000,000 CDN per annum.
Two things we love to see in any company are multiple revenue streams and steady growth.
And as you can see, AGFAF is aggressively looking to increase both to the benefit of their shareholders.
About AgraFlora Organics International Inc. (AGFAF)
AgraFlora Organics International Inc. is a growth oriented and diversified company focused on the international cannabis industry. It owns an indoor cultivation operation in London ON and is a joint venture partner in Propagation Service Canada and its large-scale 2200000 sq . ft . greenhouse complex in Delta BC . The Company has a successful record of creating shareholder value and is actively pursuing other opportunities within the cannabis industry. For more information please visit: www.agraflora.com.
AGFAF Is Gearing Up For A Historic Q4 2019
"...our Winnipeg edibles manufacturing facility will be the most technologically advanced plant of its kind in the world".
The Company’s 51500 square foot GMP edibles manufacturing facility (the “Facility”) in Winnipeg Manitoba has received all required architecture and ancillary construction permits and continues to adhere to its projected Q4 2019 completion date for applicable Facility upgrades including architectural mechanical electrical as well as security retrofits per Health Canada regulations.
AgraFlora reports there are currently over 40 contractors and skilled trades personnel on-site concurrently performing the following Facility retrofits:
Modernization of water service infrastructure;
Fire suppression system installation;
Improvements to the Facility’s structural integrity;
Installation of two rooftop HVAC units;
Upgrading of electrical service infrastructure including transformers and surge protection systems;
Completion of a 750 square-feet pharmaceutical-grade research and development (“R&D”) laboratory including the installation of state-of-the-art equipment for the weighing handling and processing micro-dosages of CBD and THC compounds including magnetic mixers homogenizers and high-pressure liquid chromatograph (“HPLC”);
Installation of pharmaceutical grade building envelope including epoxy floors as well as food grade insulated metal panels for walls and ceiling;
Installation of floor drains throughout the 33000 square foot production area;
Retrofitting of the Facility’s on-site high-pressure boiler room; and
Upgrading office and staff facilities.
The Company has submitted its application to Health Canada for an R&D license and anticipates successful award within the next 60 days. Equipment for AgraFlora’s pharmaceutical-grade R&D laboratory has been shipped from the manufacturer and is expected to arrive at the Facility within the next 30 days. Receipt of full spectrum cannabinoid concentrates is expected post licensing to assist with product development and ancillary R&D activities.
AgraFlora is also pleased to announce the following operating updates relating to its flagship edibles manufacturing facility:
All applicable cooking depositing packaging and lab equipment has been spec’d and ordered;
Once completed the Facility will be turnkey in nature and boast complete automation from the time inputs arrive in tankers to the time finished products are shipped;
Product and packaging has been designed with capability to package child resistant re-closable bags bottles droppers and tubes;
Security system designed and ordered for install in the next 90 days; and
Anticipated license application and submission of its affirmation of readiness and video evidence package to Health Canada by December 2019.
Brandon Boddy Chairman and Chief Executive Officer of AgraFlora stated: “With two material licensing awards expected imminently: the standard cultivation license at our 2.2m square foot Delta Greenhouse Complex and the R&D license at our Winnipeg edibles manufacturing facility as well as two imminent license submissions: a Standard Processing License and Medical Cannabis Sales License also at our Winnipeg edibles facility our ability to capture material revenues from upstream cultivation to downstream product formulation manufacturing extraction and end-retail distribution are becoming readily apparent.
The experienced operators at our state-of-the-art Winnipeg edibles manufacturing facility continue to execute on the on-going Facility retrofit and licensing objectives and are expected to submit applications to Health Canada for standard processing and sales licenses on October 17 2019. We are of the opinion that once complete our Winnipeg edibles manufacturing facility will be the most technologically advanced plant of its kind in the world.
Once operational and in receipt of all necessary tertiary licences as required from a regulatory perspective the true value of the Delta Greenhouse Complex will be crystallized by its ability to serve as a robust feedstock source for the myriad of downstream value-added assets including our flagship edibles facility domiciled under the AgraFlora corporate banner. The successful implementation of full vertical integration will support increased efficiency across business channels and allow for maximum economic margin capture for the enterprise as AgraFlora moves into the next phase of cannabis normalization”.
The Facility will be operated by a roster of experienced chocolatiers and confectioners as well as equipped with state-of-the-art manufacturing equipment capable of producing an assortment of both cannabinoid/terpene-infused products for medicinal functional and adult use including:
Gourmet snacks including cannabis infused honey maple syrup sugar & fruit and vegetable puree-based snacks;
Gummies hard candy toffee caramel gum;
Baked goods;
Flavoured tinctures;
Powdered drinks;
CBD-infused pet products.
The Company anticipates the facility will be fully operational by the first quarter of 2020. Existing downstream capabilities will be buoyed by one of Canada’s leading sales forces affording AgraFlora the ability to secure immediate shelf space across all major retail channels.
Can you believe that the future owner of the world's most technologically advanced edibles plant in the world is trading at under $0.20 per share!
Here's a fun fact...the cannabis edibles market will hit $4.1 billion by 2022 according to a research report from ArcView.
AGFAF Provides Strong Sales Guidance For Upcoming Quarters
Two weeks ago, AGFAF management provided the following operational updates and sales guidance pertaining to the Company’s 50 per-cent owned Joint-Venture (the “JV”) Eurasia Infused Cosmetics Inc. (“Eurasia Infused”):
YuShopGlobal ( HK ) Limited (“YuShop”) product listings for CBD-infused and Canadian organic hemp-oil derived CPGs:
Permits immediate access to China/Hong Kong’s burgeoning CBD-infused CPGs marketplaces;
Hyper-targeting of 1.08-billion WeChat users by way of YuShop’s proprietary marketing algorithms suite of automation tools and influencer campaigns;
Pre-sale orders to be fulfilled via YuShop’s e-commerce portal/mobile application equipped with an active user footprint of over 500-million consumers
Expanded marketing and distribution initiatives to be announced in the coming weeks including the introduction of high-traffic retail channel partners as well as 1500 luxury health spas;
Initial three SKUs fully customized/import certified for the Chinese/Hong Kong marketplaces packaged for shipment from the Company’s co-packer to fulfill anticipated pre-sales orders;
Continued product development of a suite of CBD-infused CPGs and nutraceutical product formulations;
Eurasia Infused is tactically positioned to capitalize on the continued expansion of Asia’s CBD-infused CPG geometric growth story due to:
Diverse portfolio of CBD-infused and/or hemp-oil-derived CPG personal care products;
10-years experience specializing in the importation and customization of premium Canadian consumer packaged goods (CPGs) for the Chinese marketplace;
Forecasted Q2 2020 rollout of Whole Hemp Health-branded pop-up shops further expanding the Company’s downstream footprint and brand presence in an economical and contemporary manner;
AgraFlora’s Hong Kong domiciled JV-partner CBD Group Asia Ltd. (“CBD Group”) has previously distributed premium Canadian CPGs into China’s largest retail chains and C stores including RT-Mart International Ltd. and Carrefour SA .
RT-Mart alone operates over 484 retail locations covering 233 cities and 29 provinces in China and generated $20-billion in sales in 2018.
Eurasia Infused by way of a commercial concession with CBD Group controls a distribution agreement signed with Yushop for CBD and hemp-derived beauty and wellness products for the territories of People’s Republic of China and the Hong Kong special administrative region. This distribution agreement extends to AgraFlora’s robust portfolio of CBD-infused and/or hemp-oil-derived CPG personal care products.
Brandon Boddy Chief Executive Officer and Chairman of AgraFlora stated: “We are very optimistic for a full-scale Asian commercialization campaign of Eurasia Infused’s comprehensive CBD product suite. Further reinforced by YuShop’s expeditious listing of our three-flagship cosmetic SKUs on their cross-border lifestyle and e-commerce platform forthcoming phases of commercialization will include the launch of our premium product suite in hundreds of high traffic locations spanning China’s metropolitan city centres. Internal forecasts indicate we expect to reach over 1.5-million targeted consumers per month by end of Q2 2020 with realized revenues projected to increase accordingly. Our premium CBD and Canadian organic hemp-oil derived CPGs fills an underserved product category in China and Hong Kong today and we feel that it will function as a benchmark for CBD infused CPG formulations”.
Eurasia Infused is positioned to capitalize on current and future market trends in the rapidly expanding global cannabinoid-infused CPG space. Existing turnkey cultivation/manufacturing capabilities further bolster the JV’s ability to swiftly expand the breadth of its current product line to more than 40 SKUs. Eurasia Infused is finalizing the development phase of a suite of innovative SKUs specifically tailored of the Asia Pacific theatre including:
Organic cosmetics with anti-aging properties;
Shampoos and conditioners;
Sunscreens.
James Foster Chief Executive Officer of CBD Group Asia commented: “We are delighted to move our business case forward to generating revenue so quickly having agreed terms on our Eurasia JV with AgraFlora. Asian customers have responded extremely well to the prospect of purchasing AgraFlora ‘Whole Hemp Health’ brand and as a result we have moved forward with our distribution plans through a successful listing with YuShop Global.
Furthermore we have initiated discussions with further parties working within CBD Asia Group’s existing sales network. These include three more large distribution companies based in PR China to further expand sales reach after this initial launch. Prospects for the JV look extremely strong as the market for CBD in Asia rapidly accelerates to hyper growth and we are fortunate through our JV with AgraFlora to be tactically well positioned within this margin rich marketplace.”
Recent Developments:
AgraFlora Organics Awarded Cannabis Research License from Health Canada
Sep 18 2019
Vancouver British Columbia / September 18th 2019 – AgraFlora Organics International Inc. (“AgraFlora” or the “Company”) (CSE: AGRA) (Frankfurt: PU31) (OTCPK: PUFXF) a growth oriented and diversified international cannabis company is pleased to announce the Company’s wholly owned subsidiary Canutra Naturals Ltd. (“Canutra”) has been awarded a cannabis research licence (the “Research License”) by Health Canada under the Cannabis Regulations Act. The Research License permits Canutra to pursue the development of proprietary cannabis genetics and phenotypes at its flagship 76-acre campus in Kent County New Brunswick .
In conjunction with the Canutra’s existing cannabis research and development partnership with the Universite de Moncton (“UM”) the company will leverage its recently awarded Research License to augment its portfolio of unique cannabis genetics and phenotypes. Canutra intends to utilize its proprietary cannabis genetics and phenotypes as base-inputs for its suite of premium cannabinoid-infused cosmetics which are presently marketed across North America the People’s Republic of China and the Hong Kong Special Administrative Region.
Canutra continues to demonstrate its leadership with regards to cannabis-derived CPGs due to its Health Canada awarded Research License and continued collaboration with UM. The company also continues to achieve material advancements throughout its IP development and aggregation initiatives including:
High CBD hemp cultivation techniques;
Advanced extraction methodologies;
Cultivar development;
Inoculation formulations; and
Proprietary cannabinoid profiles for future skin care product lines.
By way of its wholly owned cannabinoid-infused cosmetics/topicals subsidiary Canutra AgraFlora is equipped with robust cultivation extraction manufacturing and distribution capabilities from the company’s New Brunswick facility. Canutra owns and operates 76 acres of unzoned arid agricultural land including 1000 feet of river frontage.
The New Brunswick campus formerly a federally owned farm and research facility boasts over 17500 square feet of commercial-grade production facilities as well as 12 separate free-standing structures.
Canutra manufactures and distributes premium personal care cosmetics and cannabinoid-infused product lines including a suite of trusted consumer brands such as Whole Hemp Health; a Canadian all-natural hand-made skin care line formulated with 100-per-cent-Canadian organic hemp seed oil . Canutra markets its Whole Hemp Health products by way of brick-and-mortar retail outlets Amazon Prime as well as direct to consumer through an integrated Shopify e-commerce platform.
Tony Harris Chief Executive Officer of Canutra stated: “We are thrilled to formally announce our research program to develop unique and patentable cannabis genetics and phenotypes to be used in the creation of functional cosmetics and proprietary skincare formulas. Development of proprietary base-inputs derived from custom cannabis plants and refined into a unique cannabinoid formula augments our already top tier Whole Hemp Health line of products and will serve to ensure the continued growth of our products and shelf space and stay ahead of the pack in terms of quality and functionality.
By leveraging our R&D team’s ability to create and perfect unique cannabinoid combinations focused on skincare functionality we intend to become the leader of cosmetic cannabis technology in Canada and the world.”
Brandon Boddy Chairman and Chief Executive Officer of AgraFlora stated: “Canutra’s plan to create unique and functional farm to face skincare product offerings is sure to boost an already exponentially expanding sector. The North American cannabis industry is forecasted to grow to US$19 billion by 2020 and Canutra is tactically positioned to capture signature market share.
The combination of pharmaceutical and cosmetics expertise affords Canutra a strategic advantage within the rapidly growing hemp and cannabis research space and industries. We are most confident the Canutra team with be able to develop world class products that will excite even the most demanding of consumers.”
Market Outlook
Brightfield Group, a leading market and consumer intelligence firm for the legal CBD and cannabis industries, reported significant expected acceleration in growth for the CBD market, resulting in a 706% year-over-year CBD product sales jump in the US in 2019 to around $5 billion in total sales, with sales expected to reach $23.7 billion by 2023. This suggests the overall CBD-based products market is set to grow by a stunning 107% CAGR over coming years.
The cannabis edibles market will hit $4.1 billion by 2022 according to a research report from ArcView.
Technical Analysis
Just like some of our biggest winners, AGFAF is trading on a bottom'd out chart, and just above what we believe is solid support.
We've done our very own chart analysis and see the potential for a nice move from here.
Bollinger Bands have flattened and showing a reversal to bullish trajectory.
Bullish volume change
The Bottom Line:
AGFAF could be the biggest steal in the CBD sector.
With its multiple revenue streams and strong sales guidance, shareholders could be in for a treat in the near and long-term.
We are urging all members to start their research immediately, and add AGFAF to the top of their watchlist.
(*Remember to use a Stop-Loss Order or basic Limit Order to protect your gains, as well as limit possible losses.)
Best Regards,
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