North American Cannabis Holdings, Inc. (OTC: USMJ) is founded on the core belief that cannabis makes people's lives better. Cannabis can fight disease, improve wellness and do so in an environmentally sustainable manner. North American Cannabis Holdings is dedicated to finding the best possible applications for cannabis to serve consumers.
Late in 2013, North American Cannabis Hodlings launched a subsidiary called The American Seed & Oil Company to conduct various pilots in the legal cannabis sector in order to explore various high growth potential business opportunities.
American Seed & Oil Company pilots have included the cultivation of cannabis to include hemp and marijuana in the States of Vermont and Maine. American Seed & Oil has also engaged in the processing of harvested hemp and marijuana plants in order to deliver a variety of health and wellness consumer products in addition to supplying commercial clients. Cultivation and processing operations to date have been concentrated on establishing best practices and validating economic and market opportunity assumptions.
Currently, the health and wellness benefits from medical marijuana are credited largely to two substances found in cannabis, Tetrahydrocannabinol (THC) and Cannabidiol (CBD).
Hemp typically has negligible amounts of THC but is rich in CBD. The therapeutic benefits of CBD suggested by preclinical studies include the treatment of seizure disorders, chronic pain, anxiety, nausea, schizophrenia, diabetes, PTSD, alcoholism, strokes, cardiovascular disease, cancer, as well as other ailments and various conditions.
Marijuana is typically rich in THC, but with limited CBD. Like CBD, THC also has many therapeutic benefits but is better known for its recreational characteristics.
The United States Drug Enforcement Administration (DEA) has differentiated hemp extracts not containing THC from marijuana in an effort to avoid disrupting ‘legitimate industry.’ Accordingly, hemp seeds, hemp oil, hemp lotions and other hemp infused products are readily available at boutique grocery stores, supermarkets and department stores.
A number of the American Seed & Oil Company pilot initiatives have shown promise. The Company will continue to develop existing and new pilot initiatives under the American Seed & Oil Company subsidiary.
Resulting from the American Seed & Oil Company pilots, North American Cannabis Holdings has introduced a second subsidiary, The AmeriCanna Café.
The AmeriCanna Café is a destination beverage company designed to let consumers interface with trained staff to learn about the specific benefits of cannabis and to select healthy and refreshing cannabis infused beverages. The AmeriCanna Café menu includes custom blended hemp infused coffee, cold pressed juices and smoothies in addition to carrying raw hemp seeds and other hemp infused foods. As state and federal law permits, THC infused beverages and foods will be added to the menu.
North American Cannabis Holdings has conspicuously included defensible differentiation into its national marketing strategy in order to establish, grow and sustain market share within the cannabis sector which is experiencing nothing short of gold rush attention from entrepreneurs and investors. According to a recent research report published by GreenWave Advisors, the marijuana market within the United States if legalized nationwide could reach $35 billion by 2020.
Central to the Company’s differentiation strategy is producing superior product through research partnerships with recognized universities that can identify, validate and enhance the natural attributes of cannabis beneficial to human health and wellness.
To further differentiate itself and insure long-term operational sustainability, North American Cannabis Holdings is
1.) integrating the local community into its production process and
2.) integrating the customer community into the product development process.
Through its American Seed & Oil subsidiary, the Company is leasing local land and contracting local farmers to tie the Company’s economic success with the local community’s economic vitality. The Company thrives if the local community thrives and the local community thrives if the Company thrives.
Similarly, the Company is engaging the cannabis health and wellness consumer in the development of cannabis infused products. North American Cannabis Holdings is not designing its products. North American Cannabis Holdings’ customers are designing their own products.
North American Cannabis Holdings is integrating the veteran community through out its production process and health and wellness consumer product development cycle. The Company is actively engaging organizations helping to train veterans and put them to work in sustainable and organic farming. The Company is also exploring research project opportunities to evaluate the efficacy of both CBD derived from hemp as well as medical marijuana in the treatment of Post Traumatic Stress Disorder (PTSD).
The Company anticipates meaningful sales activity from its core cultivation operations in Vermont and Maine to begin in 2015. The Company anticipates additional revenues from its health and wellness consumer pilot partnerships that have not yet been estimated. The Company has also established a reseller relationship with a foreign hemp cultivator and expects revenue in the 2015 calendar year that has also not yet been estimated. Management believes the revenue potential that might be achieved through reselling for the foreign hemp cultivator could be substantial.
The Company’s current working capital requirements are small and growth is anticipated to be primarily funded by high margin sales. The Company has not experienced any undue pressure in regard to debts associated with past operations. Management is optimistic that debts associated with past operations may be mitigated. In fact, year to date, debt has already been reduced by $1.5 million.