Transcanna Provides Investors with Exposure to Ancillary Cannabis Businesses -- CFN Media


SEATTLE, Jan. 25, 2019 (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 discussing Transcanna Holdings Inc.(CSE: TCAN, Frankfurt: TH8), and its specialization in branding, transportation, distribution, and fulfillment services for the legal cannabis industry. Since 2017, the company has signed more than 20 exclusive branding agreements with cannabis industry leaders and has plans to lease or acquire up to five strategically located cannabis distribution facilities. Investors may want to take a closer look at the newly public company as an ancillary service provider to the industry.

The global cannabis industry is projected to reach more than $150 billion by 2025, according to Grand View Research, driven by legalization across a growing number of countries. While most investors are focused on cannabis cultivators and retailers, these companies still face legal and logistical challenges in many jurisdictions. Ancillary service providers may be better positioned to build long-term shareholder value with comparatively less risk.

Why Ancillary Services?

Most people are familiar with the names “Levi Strauss” or “Wells Fargo”, but most haven’t heard of “John Sutter”. While Sutter discovered the first gold nuggets that led to California’s gold rush, Levi Strauss recognized that the gold rush would draw millions to California and began selling wagon covers to miners. John Sutter died a broke man while Levi Strauss created what’s now a multi-billion dollar multinational corporation.

Like the gold rush, the cannabis industry is often called the green rush due to the overnight opportunity created through legalization. Investors looking for exposure to the nascent industry may want to consider ancillary businesses—or, the “wagon covers” of the cannabis business—rather than trying to strike “gold” in cultivation or retail plays. Ancillary businesses include security firms, consulting firms, insurance providers, real estate companies and more.

Investors looking for well-rounded exposure to the cannabis industry may want to consider allocating capital across many different ancillary services. For example, they may invest in cannabis real estate companies, security companies, and companies providing logistics and transportation services. It’s also a good idea to invest in geographically diverse companies, such as those in Canada, the United States, and overseas to reduce risk.

Newly Public on the CSE

Transcanna recently raised $2.2 million in an initial public offering of 4.4 million units at $0.50 per unit.  Each unit consists of one common share and one warrant exercisable at $1.00 for 12 months. The company will use the proceeds to fund its current and future growth, while investors have access to participate in its potential upside through a listing on the Canadian Securities Exchange (CSE) under the ticker symbol “TCAN”.  The company recently received approval to trade on the Frankfurt Exchange with the ticker TH8.

Transcanna specializes in helping cannabis farmers and manufacturers get their products in the hands of consumers.

The company’s three core services will include:

  • Branding & Design: The company creates effective branding strategies for their clients, including messaging, social media, packaging, and outreach.

  • Distribution & Transportation: The company is proposing the development of a unified network of five or more strategic facilities located throughout California to help distribute product.

  • Marketing & Sales: The company will assist consumers with a catalog of cannabis goods that have been vetted for quality, scalability, and reliability.

Since its launch in 2017, the company has signed an agreement to acquire more than 20 branding contracts, where it can also upsell transportation, logistics, marketing, and sales services in the future. The company also reviewed more than 400 cannabis companies and completed advanced due diligence on about 50 companies for its catalog.

Looking Ahead

Transcanna Holdings Inc.(CSE: TCAN) provides investors with an opportunity to invest in ancillary cannabis services, including branding, transportation, distribution, and fulfillment in California’s nascent market. Since it doesn’t cultivate or sell cannabis, the company could face less legal uncertainty than other companies operating in the United States, while still capitalizing on enormous demand for these services among its customer base.

For more information, visit the company’s website. https://www.transcanna.com

Follow this link to read the full article: https://www.cannabisfn.com/transcanna-provi…nabis-businesses/

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.

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