One of the first vertically integrated global cannabis supply chains is being built by ICC International Cannabis Corp. (OTC: KNHBF) (CSE: WRLD). Why?
Because, as the global trend toward marijuana legalization intensifies, the business is confronted with a new challenge: logistics.
According to ArcView Market Research, the Cannabis Industry will be worth $57 billion per year by 2027. The global legal marijuana market is estimated to reach $146.4 billion by the end of 2025, representing a compound annual growth rate of 24.9 per cent between 2017 and 2025.
One issue is that producers must first get their products to consumers.
The legal status of cannabis is changing all across the world. Even in now-legalized Canada, the restrictions varied drastically from one province to the next. It becomes even more complicated when you factor in the international landscape.
Companies that have complete control over growth, manufacturing, and distribution have wide influence over the market. Vertically integrated businesses increase efficiency and reliability and gain a significant competitive advantage over their competitors.
Until now, there was no global supply system in place to get $57 billion worth of cannabis from the farm to customers worldwide.
How much longer will the market overlook this chance?
With the market capitalizations of large marijuana companies skyrocketing, such as Tilray at $11.5 billion, Canopy Growth at $14.7 billion, Aurora Cannabis at $8.37 billion, and GW Pharmaceuticals at $4.7 billion, investors are looking for niches within the business to profit from.
Auxly recently made a strategic investment of $5 million in ICC International Cannabis Corp. Not only does the merger of ICC and Auxly add significant option value to both companies’ international platforms, effectively expanding their combined international footprint to 22 countries across five continents, but it also demonstrates that a company known for making timely strategic investments chose ICC as its next strategic investment.
ICC now has a market capitalization of around $258 million. It is a sliver of the size of the big growers. With Fortune 500, beverage, and tobacco companies vying for a piece of the estimated $57 billion markets and no existing global supply chain to get the product from the farm to consumers all over the world, investors and major players in the space are starting to “catch on” to the marijuana distribution problem, potentially positioning ICC International Cannabis Corp (OTC: KNHBF) (CSE: WRLD) as one of the biggest winners as the industry matures.
laying the groundwork for a global cannabis conglomerate
Please take a peek at what Walmart has to offer: They have a market capitalization of $280 billion. After Poland, with $500 billion in revenue in 2017, they are the world’s 24th largest economy. Why did they triumph over tens of thousands of other big-box retailers? They were relentless in their supply chain optimization and use of cutting-edge technology.
Amazon had a similar storey: they weren’t the only online e-commerce platform, but they were the most effective. Jeff Bezos spent billions on developing and optimizing his logistical infrastructure. Amazon paid $775 million for Kiva Systems, the maker of warehouse robots, gradually replacing humans in Amazon’s global “pack and ship” operations. Amazon has a market capitalization of more than $1 trillion, which the market has rewarded.
ICC International Cannabis Corp. (OTC: KNHBF) (CSE: WRLD) is securing worldwide distribution. They just purchased 50% of Marathon Global Inc., an exclusive arrangement with Cosmos Holdings Inc., a European pharmaceutical distributor, to gain rights to supply marijuana to around 35,000 pharmacies in 16 countries.
ICC International Cannabis has agreements in place with subsidiaries in Colombia, Denmark, Greece, and the Kingdom of Lesotho for European-based pharmaceutical distribution, wholesale importation, research and development, as well as licences to cultivate, produce, distribute, store, and export Cannabis and Cannabis derivatives and industrial hemp.