SEATTLE, Nov. 09, 2018 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- CFN Media Group (“CFN Media”), the leading agency and financial media network dedicated to the North American cannabis industry, announces publication of an article covering Next Green Wave Holdings Inc. (CSE: NGW).  California’s cannabis industry is projected to grow from $3.7 billion this year to $5.1 billion in 2019, according to Arcview Market Research and BDS Analytics, making it the world’s largest adult-use recreational market. In fact, the industry may surpass $5 billion per year beer market next year as it cannibalizes sales and reaches new consumers. There are many companies targeting the space, but only a handful could become market leaders.

Next Green Wave Holdings Inc. (CSE: NGW) is one of only a few companies building a vertically-integrated cannabis business—from seed-to-consumer. By taking this approach, the company aims to dramatically lower its costs, increase quality standards, and ultimately generate greater revenue growth and profit than its competitors. The company also holds conditional use permits (CUPs) for nursery, cultivation, extraction, and distribution, which form the foundation of its vertically-integrated business model. Investors may want to take a closer look at the stock given this unique business model.

Vertically Integrated Cannabis

Vertical integration is a business strategy whereby a company controls every stage of a single production path. For example, a vertically-integrated cannabis company may consolidate multiple steps in the cannabis production process, including both manufacturing and distribution. 

The internal cost-savings and greater efficiency of this approach leads to several key benefits, including lower transaction costs, strict quality control, supply reliability, and increased market control. Since vertical integration requires a large capital outlay, the strategy also helps create a barrier to entry for competitors. Vertically-integrated companies often have greater pricing power and better quality control than non-vertically-integrated competitors. 

Different states have different laws regarding vertical integration.  California permits some licensees to hold both producer and processor licenses, but doesn’t permit manufacturers to own retail operations—a model similar to the alcohol industry’s distribution.

Next Green Wave’s Approach

Next Green Wave is building state-of-the-art facilities for cultivation, nursery/breeding, extraction, and distribution to produce and transport premium cannabis products to consumers.

The company’s assets include over 15 acres of cannabis-zoned land and two facilities where it will create hybrid strains and plans on becoming a supplier of clones, seeds, and seedlings to wholesale clients. In its flowering facility, the company will cultivate globally-recognized and award-winning genetics into premium flower. It will then process this flower to produce oils, waxes, tinctures, and other cannabis products, as well as provide extraction for others.

In addition to manufacturing, the company will develop a network of licensed retail stores to distribute its branded and white-label products throughout the state. The company will also contract with other high-quality brands to provide distribution.

The seed-to-consumer business model will empower innovative nursery practices, while enabling strict quality control and stable supply. By entering both premium and white-label markets, the company aims to control every price point on dispensary shelves—ranging from mid-to high-end branded products spanning every major category.

Looking Ahead

Next Green Wave Holdings Inc. (CSE: NGW) is uniquely positioned to capitalize on California’s cannabis industry given its unique seed-to-consumer business model. In addition the company has recently acquired a leading cannabis genetics company—Loud Seeds—which has won the High Times Cannabis Cup six times since 2012, making it one of the best known cannabis brands in the world.

Investors may want to take a closer look at the stock as it moves closer toward completing its facilities and moving into production.

For more information, visit the company’s website or download their investor presentation.

Please follow the link to read the full article article: http://www.cannabisfn.com/next-green-waves-unique-business-model-yields-greater-potential/

About CFN Media

CFN Media (CannabisFN) is the leading agency and financial media network dedicated to the global cannabis industry, helps companies operating in the space attract investors, capital, and publicity. Since 2013, private and public cannabis companies in the US and Canada have relied on CFN Media to grow and succeed.

Learn how to become a CFN Media client company, brand or entrepreneur: http://www.cannabisfn.com/featuredcompany

Download the CFN Media iOS mobile app to access the world of cannabis from the palm of your hand: https://itunes.apple.com/us/app/cannabisfn/id988009247?ls=1&mt=8

Or visit our homepage and enter your mobile number under the Apple App Store logo to receive a download link text on your iPhone: http://www.cannabisfn.com

Disclaimer

CannabisFN.com is not an independent financial investment advisor or broker-dealer. You should always consult with your own independent legal, tax, and/or investment professionals before making any investment decisions. The information provided on http://www.cannabisfn.com (the ‘Site’) is either original financial news or paid advertisements drafted by our in-house team or provided by an affiliate. CannabisFN.com, a financial news media and marketing firm enters into media buys or service agreements with the companies that are the subject of the articles posted on the Site or other editorials for advertising such companies.  We are not an independent news media provider. We make no warranty or representation about the information including its completeness, accuracy, truthfulness or reliability and we disclaim, expressly and implicitly, all warranties of any kind, including whether the Information is complete, accurate, truthful, or reliable. As such, your use of the information is at your own risk. Nor do we undertake any obligation to update the items posted. CannabisFN.com received compensation for producing and presenting high quality and sophisticated content on CannabisFN.com along with financial and corporate news.  

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

Contact

CFN Media
Frank Lane
206-369-7050
flane@cannabisfn.com