MJardin Archives - Green Market Report

William SumnerWilliam SumnerMay 30, 2019
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5min3000

It’s time for your Daily Hit of cannabis financial news for May 30, 2019.

On the Site

The Economics of Cannabis and Women Led Businesses

Women lead almost 30% of the businesses in cannabis and the opportunities are there. This group of distinguished women reviews the best sectors to build a business and how to obtain the capital for your company to thrive and grow. Click here to watch.

MJardin

MJardin Group, Inc.  (CSE: MJAR) (OTCQX: MJARF) reported its financial results for the quarter ending March 31, 2019, in Canadian dollars. The company delivered revenues of $10.9 million versus last year’s $6.7 million for the same time period. MJardin said it continued to see improvements in the sales of Cannabis from its WILL facility, recording $1.1 million in sales in the first quarter with a $0.8 million fair value adjustment to inventory.

In Other News

Illinois

The Illinois State Senate has voted to approve the Cannabis Regulation and Tax Act. Under the approved measure, cannabis would be taxed and regulated like any other substance and would help communities disproportionately affected by the “War on Drugs.” This is just one step of many in ending cannabis prohibition. Even after this bill passes there will still be work to do to give adults in Illinois access to cannabis without having to purchase it from a limited amount of stores and cultivators,” said Dan Linn, Executive Director of Illinois NORML.

Green Thumb Industries

Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) today reported its first quarter financial results for the period ending on March 31, 2019. Quarter-over-quarter revenue grew by 34% to $27.9 million. Adjusted EBITDA was $4.9 million. For the quarter, the company incurred a net loss of $9.7 million, which the company attributes to the decrease in value from a variable note receivable in other income. The company currently has $151.1 million in assets and $6.7 million in outstanding debt.

Cansortium

Cansortium Inc. (CSE: TIUM.U) today reported its financial results for the period ending on March 31, 2019. Revenue for the quarter was $5.5 million and the experienced a consolidated net loss of $16.6 million. “We expect 2019 to be a year of expansive growth and we are reaffirming our previous full year outlook,” said Cansortium CEO Jose Hidalgo. “Our team is focused on positioning the Company and the Fluent brand to capitalize on rapidly expanding opportunities in the U.S., while laying important groundwork for future expansion in international markets.”

Indus Holdings

After the market close yesterday, Indus Holdings announced the release of their first quarter financial results. Year-over-year, revenue grew by 180% to $6.4 million. The gross margin increased from 10% in the previous quarter to 21%.  “As consumer awareness and demand grows, for a company to be successful, it has to be strategic and adaptable with the capacity to scale up. We will selectively grow in a disciplined manner with smart and very accretive deals with an eye to high return – adding strategic and like-minded partners as we position ourselves as a multi-state operator,” stated Indus co-founder and CEO, Robert Weakley.


Debra BorchardtDebra BorchardtMay 30, 2019
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3min2540

MJardin Group, Inc.  (CSE: MJAR) (OTCQX: MJARF) reported its financial results for the quarter ending March 31, 2019, in Canadian dollars. The company delivered revenues of $10.9 million versus last year’s $6.7 million for the same time period.

MJardin said it continued to see improvements in the sales of Cannabis from its WILL facility, recording $1.1 million in sales in the first quarter with a $0.8 million fair value adjustment to inventory. The Colorado operations generated $8.9 million in sales.

The net loss was $7.7 million versus last year’s $1.3 million. Total expenses increased to $3.4 million from $1.8 million. General and administrative expense increases were attributed to the GrowForce Holdings acquisition. The company underwent corporate cost-cutting measures late in the first quarter of 2019 and the company said the resulting expected annual SG&A and Payroll expense run rate is approximately $12.1 million.

“Our Q1 results reflect the successful implementation of our operating plans.  We refocused our priorities back to what we do best: grow high yield premium products,” said Adrian Montgomery, Chairman, and Interim CEO. “We made considerable progress towards the completion of our build outs and expansion of our U.S. and Canadian facilities, committed to smart and strategic growth decisions, and utilized the impressive industry talent we have on our team to improve our earnings and bolster our capital position. In Q2 we will start recognizing the benefits of the SG&A cost-cutting initiatives we started at the end of Q1. We will continue to develop and build demand for our premium product lines and evaluate more tuck-in opportunities where we can confidently and responsibly deploy smart capital.”

Post Quarter End

Following the end of the quarter, MJardin acquired Nevada edible producer Carson City Agency Solutions dba Cannabella. This past week, the company completed construction of its 76% owned “GRO” cultivation facility in Dunnville, Ontario. Plus, the company said it submitted the Evidence of Readiness package to Health Canada for the purposes of receiving a Cultivation and Processing Licence. On May 29, 2019, MJardin said it amended the terms of its existing loan with the senior lender to remove the callable feature and convert into a term loan, this enables MJardin to simplify the Company’s capital structure and fully focus on executing the operational plan.


William SumnerWilliam SumnerMay 8, 2019
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7min3350

It’s time for your Daily Hit of cannabis financial news for May 7, 2019.

On the Site

Investors Are Bullish On Cannabis, According to KCSA Survey

Investors are feeling bullish about the cannabis industry, according to a new survey released by KCSA Strategic Communications. Titled the Cannabis Investor Survey, KCSA polled over 250 retail cannabis investors about their investments and outlook on the legal cannabis industry in the United States.

Illinois Releases Plan For Full Legalization

This past Saturday, Illinois Governor J.B. Pritzker released the plan for full cannabis legalization which is set to begin on January 1, 2020. Companies that currently had medical cannabis licenses would get a jump on other companies with regards to applying for licenses. According to the plan, new licenses for dispensaries would begin on May 1 and processors, craft growers and transporters would begin licensing on July 1. It wouldn’t be until late 2021, that the next round of businesses would receive licenses.

Long-awaited German Tenders Handed to Specialist Trio

White smoke emanating from Germany’s medical agency signals the wait is over to find out which firms have been awarded medicinal cannabis tenders for Europe’s top market. Two Canadian firms, Aphria, and Aurora Cannabis and Germany’s Demecan have won out, it has emerged. The three companies will split a four-year tender to grow 10,400kg between them. Aphria won five of the 13 lots, with Aurora Cannabis and Demecan handed five and three lots respectively.

In Other News

MJardin

MJardin Group, Inc. (CSE: MJAR) (OTCQX: MJARF) today released their fourth quarter and full year financial results for 2018. Revenue for the year was $27.5 million. Adjusted net loss from operations was $27.4 million and adjusted EBITDA was $12.2 million. “2018 was a year of significant change in the company as we expanded in to another US state, entered the Canadian market via acquisition, and became a publicly traded company on both the CSE and OTC,” remarked Adrian Montgomery, MJardin Chairman of the Board and Interim CEO. “In addition, we have restructured our corporate size and organization to better integrate and align with our core business goals in both countries.”

Heritage Cannabis

Heritage Cannabis Holdings Corp. (CSE: CANN) announced that it has closed a $17.3 million bought deal offering, selling approximately 32.6 million units of the company at a price of $0.53 per unit. Each unit consisted of one common share and one-half of one common shar purchase warrant. Proceeds from the offering will be used to increase extraction capacity and follow-on investments in existing portfolio companies, new domestic and international opportunities, working capital and general corporate purposes.

TerrAscend

TerrAscend Corp. (CSE: TER) announced that it has completed the book-build for its previously announced upsized private placement. The gross proceeds from the offering totaled $52 million. The company is issuing common shares in the private placement at the previously announced price of C$7.64, which is a 5% discount from Monday’s closing price.

Cronos Group

Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) announced that is has opened a cannabinoid device R&D facility in Israel. Dubbed Cronos Device Labs, the facility will feature a 23-member team and is comprised of product designers, mechanical, electrical and software engineers, and analytical and formulation scientists. “The launch of Cronos Device Labs is an exciting next step on our journey to become a leader in cannabinoid innovation,” said Cronos Group Chairman, President and Chief Executive Officer Mike Gorenstein. “Vapor is already one of the most popular forms of cannabis consumption, and we see a clear opportunity for Cronos Group to introduce the next-generation of vaporizer products designed specifically for cannabinoid formulations.”

Canopy Growth

Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) announced the launch of Spectrum Therapeutics, a new global brand that will encompass all of the company’s ongoing commercial medical and clinical research operations including Spectrum Cannabis, Canopy Health Innovations , and Bionorica SE-founded C3 Cannabinoid Compound Company. Spectrum will be involved with the production and distribution of full-spectrum and single cannabinoid medical cannabis products; education, resources and support for patients and healthcare practitioners; as well as pre-clinical and clinical research and the development of cannabinoid-based medicines.


Debra BorchardtDebra BorchardtNovember 28, 2018
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MJardin Group

MJardin Group, Inc. (CSE: MJAR), reported financial results for its third quarter ended September 30, 2018. The company’s revenue increased 65.1% to $7.0 million versus last year’s $4.3 million. The company said that the revenue growth was driven primarily by facility design and build-out fees earned from GrowForce for cultivation centers, interest on notes receivable and rent income earned from Buddy Boy Brands.

Still, MJardin delivered a net loss of $0.4 million versus last year’s net income of $0.6 million. The company attributed the loss to higher interest expense, compensation and benefits, and higher legal and consulting fees related to recent acquisitions, equity and RTO transactions.

“We are pleased to report our first quarterly results as a publicly traded company, continuing our strong growth trends and positive EBITDA,” said Rishi Gautam, Chairman of MJardin. “This is a very exciting time for MJardin with this month’s public listing of MJardin shares and the announcement of the proposed acquisition of GrowForce. We believe we are well positioned as one of the largest and most experienced cannabis operators in North America and as the largest multi-national operator.”

At the end of the third quarter, MJardin was managing 37 total facilities/operations. The company’s total operating expenses jumped by 58.9% to $5.8 million over last year’s $3.6 million. MJardin said that the increase reflects increased compensation and benefits to support that growth, including increased grow facility personnel at operator facilities and the continued expansion of the company’s executive team and corporate office personnel.

Subsequent to the quarter ending, MJardin completed an equity capital raise for approximately C$26 million. On November 13, 2018, MJardin completed the reverse take-over of Sumtra Holdings. On November 15, 2018, the company began trading on the Canadian Securities Exchange and the $26 million of subscription receipt proceeds were released from escrow and available to the Company.

iAnthus

Following the market close on Tuesday, iAnthus Capital Holdings (CSE: IAN, OTCQB: ITHUF) reported its earnings for the third quarter of 2018 ending in September. The sales for the quarter were $939,098 with a gross profit of $2.6 million. The net loss for the three months ending September 30, 2018, was approximately $10.0 million.

“iAnthus continues to execute,” said CEO Hadley Ford. “The company has expanded its footprint and added to its industry leading-team while maintaining a prudent balance sheet throughout the process. We are now generating revenue in five of the six markets in which we operate, with a significant number of dispensaries expected to open within the next few months. Assets are up 344% year-over-year as we grow the iAnthus platform across the United States. This performance, combined with the outlook for our Massachusetts, New York and Florida operations and the pending acquisition of MPX, position us very well for 2019.”

iAnthus reported that its consolidated revenues for the company increased 101% quarter-over-quarter, increasing to $1,074,398 in Q3 from $533,545 in Q2, yet these figures didn’t appear in the company’s filing. The company also said in its press release that system-wide revenues, including the revenues from iAnthus’ investments in New Mexico and Colorado, were $5,139,769 in Q3, up 16% quarter-over-quarter from $4,415,368 in Q2. These figures are unaudited and are not consolidated by the company at present due to certain regulatory restrictions.

In a statement, the company reported that its cash balance is currently $24.3 million. As of November 26, 2018, the Company had 20,933,995 warrants outstanding, all of which are currently in the money. iAnthus would receive approximately $54.5 million if all outstanding warrants were exercised.

Charlotte’s Web

Charlotte’s Web Holdings, Inc. (CSE: CWEB, OTCQX: CWBHF) reported financial results for the third quarter ending September 30, 2018. Organic revenue growth of 57% to $17.7 million versus last year’s $11.3 million for the same time period. Net income fell to $1.8 million from last year’s $2 million for the same time period.

Gross profits increased 54% to $13.8 million over last year’s $9 million for the same time period. Earnings per diluted share fell to two cents from last year’s three cents for the same quarter.

“During the third quarter we completed a successful initial public offering and private placement that generated significant capital for the company that is being deployed to accelerate our growth in the hemp-derived CBD sector,” said Hess Moallem, President and Chief Executive Officer. “This capital is being used primarily to expand the company’s cultivation and production capacities to meet the increasing demand for our industry-leading Charlotte’s Web products, both domestically and internationally.”

The company’s statement said that on a year-over-year basis for the third quarter, e-commerce revenue grew by 37% and wholesale, distributor and retail revenue grew by 118%. Revenue from human nutrition products and animal nutrition products grew by 42% and 153%, respectively (canine products were introduced in February of 2017).


Debra BorchardtDebra BorchardtNovember 15, 2018
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4min13142

MJardin Group signed a letter of intent to acquire Toronto-based cannabis company GrowForce Holdings Inc. MJardin will own 100% of the outstanding shares of GrowForce in an all-stock deal valued at approximately C$275 million. In addition to that, MJardin began trading on the Canadian Securities Exchange using the symbol MJAR.

MJardin projects that it will bring in $162 million in revenue in 2019 according to an investor presentation. The 2020 estimates are for $325 million in revenue.

“With more than ten years of professional cannabis cultivation, processing, distribution and retail, MJardin is among the world’s most experienced cannabis companies, with a proven track record of operational excellence,” said Rishi Gautam, Chairman & Chief Executive Officer of MJardin. “Listing on the Canadian Securities Exchange is a significant milestone in our evolution and a testament to our team’s dedication and focus on building a preeminent global cannabis management platform.”

Grow Force Acquisition

Once the acquisition is completed, the new MJardin Group will have 49 facilities operating or under development across North America, cultivating approximately 87,000 kg of finished product per annum and managing 23 cultivation facilities, two outdoor grows, five extraction facilities and 19 retail dispensaries across four U.S. states and four Canadian provinces.

GrowForce shareholders will receive 0.375 MJardin common shares for each GrowForce common share held. Based on MJardin’s common share price of $12.00 per share pursuant to the Company’s October subscription receipt financing, the implied consideration to GrowForce shareholders is $4.50 per share. The combined company is anticipated to have a pro forma cash balance of approximately C$65M.

“The combination of MJardin and GrowForce provides the foundation to create a preeminent global cannabis management platform with what we believe is unparalleled experience in cannabis cultivation, processing, distribution, and retail,” said Gautam. “We are excited to bring both companies together under one comprehensive platform as we enter the public markets, further invest in our business and execute on our growth strategy.”

Looking Ahead

In the U.S., MJardin said it would continue expansion by entering key-markets via acquisitions and organic growth and increase its existing footprint by developing vertically integrated networks owning the “Seed to the Shelf.” The company plans on focusing on Florida, California, Massachusetts, New York, and Arizona. In the Canadian market, MJardin plans on taking over existing Canadian Licensed Producers and retail assets.

Internationally, MJardin will focus on Spain, Italy, Germany, and Switzerland. The company is currently, forging partnerships with local players as the regulatory framework requires a country-specific strategy and approach. The company also plans on establishing contacts with Universities and pharma players to develop R&D initiatives to address the nascent European medical market.

The company will look to Latin America and Africa as focus regions to build low-cost cultivation facilities. It is currently in talks for expansion initiatives in Colombia and Uganda.


Anne-Marie FischerAnne-Marie FischerSeptember 6, 2018
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Earlier this year, MJardin Group, North America’s largest operator of turnkey cannabis facilities, announced the creation of a new company, GrowForce Holdings Inc (“GrowForce”).

GrowForce has a mission to become one of the premium licensed producers (LPs) in Canada, and other federally legal markets worldwide. Shares were offered to all of the securities holders of MJardin after GrowForce completed a private placement financing of its shares.

Within GrowForce’s portfolio in Manitoba and Ontario includes a 120,000 square foot flagship production facility, and it plans to acquire more facilities across Canada. GrowForce is currently headquartered in Toronto.

One important flagship of GrowForce’s work is the opportunities that will be provided to Canada’s First Nations in terms of job creation and retail market development. GrowForce announced that Bridging Finance Inc, an established leader in private debt infrastructure financing to First Nations, has agreed to provide significant project financing for various opportunities that engage the First Nations communities.

“We are pleased to continue our strategic partnerships with MJardin and now GrowForce in Canada, which includes a deeper focus on our collective First Nations strategy of which we are extremely proud to actively support,” said David Sharpe, CEO of Bridging Finance and a member of Tyendinaga First Nation.

As the royal assent approval of Bill C-45 in Canada neared earlier this June, there were significant concerns raised by Canada’s First Nations about the lack of consultation for First Nations in the legal Canadian cannabis space. This partnership moves the country closer to ensuring that First Nations are equally represented in Canada’s implementation of Bill C-45, set for October 17. 

Bridging Finance and MJardin have established the Bridging Infrastructure Fund that has a particular focus on private debt financing for infrastructure and consolidation of entities within the cannabis sector. The project has committed over $75 million thus far, with over $60 million of projects in the pipeline.

“We are excited to launch GrowForce into the Canadian market as a fully-financed and proven operator of cannabis assets with a deep bench of strategic and operational talent,” said Rishi Gautam, GrowForce Chair and CEO.

MJardin is planning a reverse take-over of Sumtra Diversified Inc. and expects to list on the Canadian Securities Exchange (CSE) in a few weeks.

 


Debra BorchardtDebra BorchardtAugust 7, 2018
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3min6550

Canadian-based cannabis platform GrowForce Holdings Inc. closed its previously announced equity
capital raise giving the company more than C$38 million in gross proceeds. GrowForce plans to use the funding for cultivation expansion and strategic acquisitions of high-quality assets, and general working capital.

The offering was completed in connection with GrowForce’s previously announced proposed
reverse take-over (RTO) of Platform Eight Capital Corp. That deal is expected to be completed during the third quarter of 2018.

“With this capital raise, additional access to growth capital and key strategic partnerships in place,
GrowForce is well-positioned to consolidate a fragmented cannabis industry in Canada and
international markets,” said James Lowe, EVP of Operations for GrowForce. “Our growth strategy is
focused on leveraging our significant experience successfully operating cultivation facilities across North America for more than nine years to position GrowForce as the leading consolidation platform in the legal cannabis industry.”

GrowForce was created and spun-off by Denver, Colorado-based cannabis management company MJardin. According to the company statement, GrowForce said that it has entered into an exclusive cultivation, extraction and retail licensing agreement with MJardin, including exclusive rights to its cannabis management services and intellectual property portfolio in Canada and international markets.

Terms 

The statement said that GrowForce issued 7,832,716 brokered subscription receipts exchangeable
for common shares at a price of C$3.20 amounting to C$25,064,700. GrowForce also issued 4,115,521
non-brokered subscription receipts at the same price for gross proceeds of approximately C$13,169,700. The result is a cumulative raise of more than C$38 million. Cormark Securities Inc. and Canaccord Genuity Corp., acted as co-lead agent, together with a syndicate of agents, including Haywood Securities Inc., KES 7 Capital Inc., nd Mackie Research Capital Corporation, for the offering.

GrowForce Footprint

GrowForce possesses an existing Canadian footprint of cannabis assets with a planned cumulative capacity of approximately 60,000 kg of cannabis production per annum. GrowForce also plans to establish partnerships with various First Nations to build new facilities for large-scale cannabis cultivation, extraction, and retail. These partnerships will allow Indigenous Peoples of Canada to capitalize on economic opportunities in the cannabis space through the cultivation, distribution and retail sale of cannabis products.

“There are currently more than 100 licensed producers across Canada, with the majority moving from the construction of facilities to operations. Few of these licensed producers have the operating expertise to successfully execute this transition,” said Lowe. “GrowForce has significant access to capital with the operational expertise to be one of the top licensed producers as we execute our M&A consolidation strategy and unique retail distribution model.”

 


Debra BorchardtDebra BorchardtJuly 12, 2018
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2min14350

Denver-based MJardin has engaged Canaccord Genuity along with KES 7 Capital Inc. to pursue a private placement to raise money to hasten the company’s expansion strategy. The offering will be complete along with the company’s previously announced reverse take-over of Sumtra Diversified Inc. The shares will be listed on the Canadian Stock Exchange.

“This capital raise will broaden an already strong shareholder base and provide incremental capital to further accelerate our growth,” said Joann Bailey, President of MJardin. “MJardin currently operates with a strong balance sheet, and this capital raise, along with the closing of the Transaction, will allow us to efficiently access the public equity markets, accelerate our acquisitive growth and capitalize on the significant opportunities in the fast-growing U.S. and international cannabis markets.”

 MJardin says it is a profitable company with a strong cash flow, executing a high-growth, recurring revenue model from operations in the U.S. It is in 13 U.S. states and has designed and planned more than 100 legal cannabis facilities. The company also has a long-term exclusive relationship with Toronto-based GrowForce Holdings Inc. for international royalties. 

MJardin spun-off GrowForce Holdings Inc. back in April with a mission to become one of the premier vertically-integrated cannabis platforms globally outside of the U.S. GrowForce recently announced that it has entered into a license agreement with MJardin for the exclusive rights to its cannabis management services and intellectual property portfolio in international markets.


Jack SmithJack SmithDecember 28, 2017
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5min12741
With the cannabis industry still in its nascent stages, consolidation is bound to happen, as companies look to capture as much of it as they can. And MJardin wants to be a part of that.
Denver, CO.-based MJardin announced it has closed on $20 million in financing (both equity and debt) from KES 7 Capital to acquire companies, something the company believes can help take it to the next level.
“We saw this as not only a logical next step but an opportunity for a transformational partnership,” said James Lowe, Co-Founder, Director and Chief Cultivation Advisor at MJardin in a statement. “We brought in strategic long-term shareholders [KES 7 Capital] who will support the Company for both near and long-term growth initiatives. MJardin has now further solidified its position as a market leader.”
In addition to looking at acquisitions, MJardin said it will use the proceeds for general working capital and corporate purposes.
KES 7 Capital CEO and President Mark Christensen said the financing puts further confidence behind MJardin as one of the companies likely to benefit from consolidation in the space.
“We looked at many cannabis deals and companies, and MJardin is a clear leader in the space,” said Christensen. “We are very excited to continue working with the MJardin team on their future growth initiatives and their Canadian strategy.”
MJardin specializes in providing different services to its partners in the legal cannabis industry, including “turnkey cannabis cultivation and processing solutions including licensure support, facility design, and systems implementation.”
It also provides “facility ramp-up and the day-to-day operational management required in a large-scale, professionally managed cannabis facility.”
The capital raise comes after MJardin announced a strategic partnership with Bridging Finance “to create the premier infrastructure fund for the consolidation of the cannabis sector.”
Earlier this month, MJardin announced a partnership with Grand River Organics to “produce and distribute medical cannabis throughout Canada under Health Canada’s ACMPR, while positioning for the ultimate legalization of recreational cannabis.”
In August, MJardin partnered with The Canadian Bioceutical Corporation (BCC) to provide a number of different services for BCC’s licensed facilities across the U.S., including ones in Massachusetts and Nevada.
In a November report, Ernst & Young believes consolidation is inevitable in the legal cannabis space, particularly in Canada.
Chuck Rifici, a leading cannabis investor in Canada, believes that now is the time to buy other companies while the market is still growing.
“It makes sense to do deals where you’re buying optionality in a future market for not much in stock,” Rifici said in an interview with CBC News. “These smaller companies are in a position to fill in gaps and get a nice premium on their stock and the larger guys are essentially printing cheap paper to do those deals.”

Emerson BrownEmerson BrownNovember 21, 2017
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9min10540

History is being made in the Lone Star State as Texas prepares to open its first medical marijuana dispensaries. The state of Texas saw Compassionate Cultivation as one of two companies to set the tone for the state when it comes to the current market for cannabis and the treatment of epilepsy. The dispensary is located in the liberal bastion of Austin Texas with plans to open its doors in January.

Dr. Karen Keough, a board-certified child neurologist, who specializes in the treating of intractable epilepsy at child Neurology Consultants of Austin is a key team member. ““I know many of my patients are incredibly excited about this. For them, it’s a new and promising opportunity to manage this devastating neurological disorder when more traditional options just aren’t working,” said Dr. Keough. Like every new state that decides to intertwine into the culture and business of cannabis, don’t expect a line of epilepsy patients at Compassionate Cultivates front door January of 2018 ready to walk in and to buy some high-quality CBD oil.

Estimated Size Of Texas Cannabis Market

Matt Karnes of Green Wave Advisors estimates that the addressable market in the state is 1.9 million patients. Texas will only allow for patients with epilepsy to be treated at this time, reducing that patient count to approximately 185,000. Karnes believes the market could see $9 million for 2018 and then if the program restrictions are eased, it could grow to $162 million in 2020. He also thinks that as the state grapples with hurricane expenses from this past year, it may begin to quickly consider legalizing adult-use marijuana in order to reap the tax revenues.

Austin is a state of structure and proper percentages, so when it comes to growth there must be a few guidelines to follow in order for a patient receive this miracle medicine. First, they must be a current resident of Texas and have a written prescription from a licensed doctor that treats epilepsy and that prescription must be entered into the computer system of Compassionate Cultivations as active. Lastly, the patient must be resistance to two of the current drugs on the market that are already expected and recommended to treat epilepsy.

The Limitations Of Texas’ Program

So, there are some limitations and restrictions that come with current patients being treated for epilepsy, but under this new Texas Compassionate Act, Austin is providing for the state a great start. At least some families will be able to stay in state to receive treatment instead of traveling to a nearby state to receive treatment. And situations like the one of 12-year-old Alexis Bortell whose family filed a lawsuit against the federal government this month will stay out the headlines.

Medical marijuana plants being grown by MJardin. (Courtesy photo)

Compassionate Cultivation teamed up with well-known cannabis management consultant group MJardin to operate its grow. The company manages 30 licensed facilities in 13 states and two countries. MJardin has produced over 150,000 pounds of cannabis product since its inception in 2014, making it the largest cultivator of legal cannabis in the world. “MJardin and the Compassionate Cultivation team have worked seamlessly throughout the process thus far,” says MJardin Chairman and CEO Rishi Gautam. “And the fact that we are about to achieve an unprecedented five-month stand up from provisional license to final license is a testament to the level of expertise this team will bring to the medical cannabis community of Texas.”

In addition to Compassionate Cultivation, Knox Medical is slated to open its doors in small hill country town of Schulenberg, Texas. It is owned by Jose Hidalgo, who also has licensed operations in Florida and Peurto Rico. Knox will not operate a storefront and instead will deliver by courier to registered patients. The Florida stores have been described as looking like Apple stores with its clean, sleek minimal style. While the group is hoping for a December opening, it’s possible that it won’t be able to begin filling prescriptions until January.

Limited Amount Of Texas Doctors For The Program

It seemed like Texas’ tightly restricted medical marijuana wasn’t going to get off the ground. According to Texans for Responsible Marijuana Policy, “only 411 doctors in the state have the necessary qualifications to register for the program. This amounts to approximately 0.54% of the licensed physicians in Texas. Far fewer may decide to register in light of the personal and professional risk involved.”

With that being said and the facts too bold to ignore, watch out for the state of Texas and the city of Austin when it comes to using some of the world’s most high-quality cannabis as a medicine to treat and prevent epilepsy. The state of Texas will now be responsible for every patient that the standards and the business ethics of this calibration will always be held to the highest.

My Personal Thoughts

You know in today’s day and age.We need examples. We need people that dream. We need people that plan and we need people that execute. And I must say, Austin Texas has officially stamped itself as one of those examples within the culture of cannabis with the partnership of Compassionate Cultivation and MJardin. This tandem has now produced a strong platform, but uniquely this tandem isn’t all about getting patients elevated. It’s all about producing some of the world’s most high-quality CBD. You know that beautiful extract of oil that is known to prevent the sudden shock of epilepsy. And now with the state’s approval, these two companies are set and ready to produce some of the world’s most high-quality cannabis in order to do so.

Think about this for a minute, Compassionate Cultivation’s CEO Morris Denton is a homegrown businessman of 30 years and a few of his partners have now teamed up with one of the world’s largest cultivators and processors of cannabis. And with a full license and local laws on their side, these two companies are able to start planting hundreds of seeds in their own backyard, with no duplication unless you have their approval.

I would let you know how much to expect from each quarterly harvest and what strains to expect to hit the market first and most often, but all this information is still under wraps. And personally I don’t blame them, because small roots will always rise to be respected in the culture of cannabis, because believe it or not this direction towards the production of CBD oil wasn’t a choice for Morris and his partners, yes it was pondered on by them for years, but truthfully it was the best direction for the state according to its planners.



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