Last month, we issued an update on Integrated Cannabis Company, Inc. (ICAN.CN) (ICNAF) and we have been closely monitoring the company following the recent developments.
ICAN has attractive leverage to the smokeless product market and offers a novel line of health care and life-enhancement nutraceutical sprays for pain relief, awareness, sleep, libido, energy, and recovery.
Last week, the company announced an agreement with Canadian cannabis producer GTEC Holdings (GTEC.V) (GGTFF) and the market responded favorably to this. The agreement allows for the co-development and marketing of novel spray products, utilizing proprietary nanotization technology containing both Cannabidiol (CBD) and/or Tetrahydrocannabinol (THC) for distribution in the Canadian medicinal and recreational markets.
Over the next month, we expect to receive a number of updates from the companies and will be closely monitoring this. The companies plan to engage with their science, marketing and distribution teams to streamline the logistics of developing and ultimately introducing products to the Canadian marketplace.
ICAN has been primarily focused on the United States market so this agreement is very significant. Through GTEC, ICAN will have attractive leverage to the burgeoning cannabis market in Canada and this represents a massive opportunity. Demand for smokeless cannabis products continues to increase and we expect ICAN to generate traction in this burgeoning market.
Attractive Leverage to the United States
ICAN has several catalysts for growth and we are favorable on the leverage to the Colorado market in the United States. Last month, the company announced the completion of a market ready Tetrahydrocannabinol (THC)-infused spray product and has the licenses required to manufacture the product in Colorado.
This was a major milestone that comes after ten months of hard work and we are favorable on the continued execution. ICAN executed flawlessly on this and was able to successfully gain licensing and approvals for facilities that manufacture CBD- and THC-infused products in Colorado.
In order to gain these approvals, ICAN had to complete the build out of a commercial kitchen adjacent to a licensed medical and recreational extraction lab, secure a high-quality CBD and THC source from licensed suppliers, complete process validation with the Colorado Marijuana Enforcement Division (MED), receive shelf stability approval throughout the state and in Denver, and receive approval to sell CBD and THC formulated products throughout Colorado (only awaiting approval in Denver).
Early Innings of a Major Growth Cycle
The leverage to the United States and Canada is significant and ICAN is one of the few cannabis companies to have this type of leverage. The relationship with GTEC is significant and we believe that this partnership could prove to be a major growth driver for both companies.
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