Skip to content
April 24, 2024

Equity.Guru

Investment information for the new generation

Search

Chemesis (CSI.C): The hard moving global cannabis venture that gets it, even if you don’t

In talking to Chemesis (CSI.C) CEO Edgar Montero, one thing becomes abundantly clear: You can go ahead and grow all the marijuana you want, and he won’t begrudge you your opportunities. He just doesn’t think that’s going to change the world, nor be bait for a bigger player looking for acquisitions, nor be a means of earning revenue that will matter in the long term.

Montero wants to take inexpensive marijuana feedstock and make it into other things.

Lots of other things.

Oh so many other things, and in many places.

One of those places is Canada:

The company is reviewing possible joint ventures, agreements or acquisitions in distribution, manufacturing, and product development spaces. Chemesis intends on leveraging its assets, brands and management expertise to gain market share in Canada. Chemesis is presently performing due diligence on fully licensed and operational cannabis companies in Canada.

So, growers then?

Nah.

The company sees major opportunities in Canada from high-quality manufacturing to brands that have developed a strong presence in the market.

Products, baby, products. Chemesis wants to take your weed and turn it into stuff like this:

This is their California Sap brand of products, based on 100% organically grown cannabis.

Chemesis’ oils contain no fillers and no additives, which means they’re ahead of most of the California market in terms of purity and quality. That’s a good thing because, if you want your weed extracted into an oil product in California, you can either buy the equipment and the real estate it’s hosted in, and get yourself a permit to extract, and then figure out your sales network… or you can just ask Chemesis to white label it for you, clean up your crappy oil so it meets their standards, and turn it out through their existing sales network.

In essence, Chemesis wants a piece of your deal, and your competitors, and anyone else with an idea. And, on your side, it’ll be faster, better, and bigger if you leave the work to them than if you did it all yourself.

That includes novel delivery systems. Here’s the Gramqul [right], allowing you to deliver a measured dose in the cleanest way possible while refilling your vape cartridges, cooking edibles, or dabbing.

If you’re not into that, there’s the vape cartridges, pre-rolls, and oral strips.

Yes, oral strips. Other companies have built their entire market cap on that one product, but Chemesis just signed a deal to deliver their own.

RDT’s innovative QuickStrip is an easy-to-use, safe and effective oral fast-dissolving drug delivery system, developed in conjunction with McMaster University through the renowned Adronov Research Group, which provides accurate dosing and potency.

Under the terms of the agreement, Chemesis will receive rights to produce, distribute and sell QuickStrip products, with rights for cannabis markets in California. With Chemesis’s state-of-the-art facility, the company believes this partnership with RDT will further strengthen its position in the California cannabis market, by allowing the company to use a convenient drug delivery system that can target a variety of consumers and also allow them to use cannabis products in a new way.

When a client comes in with a desire to produce an extract brand, not only can Chemesis do the extracting and product development, but they also handle the logistics too. Through their Desert Zen Fulfillment subsidiary, they stock, package, manufacture, and distribute cannabis products across California.

Our network includes cultivators, manufacturers, extractors, and retailers that have proven their success in the cannabis industry over the years and are ready to work in a fully compliant environment.

It’s a pretty good strategy, especially in a state where longtime part time players have struggled to come under good standing within new state laws.

Chemesis International Inc. will be entering into the cannabis edibles category. Chemesis intends to use its existing facilities and licences to streamline its entry into the expanding edibles market, providing services for businesses that need manufacturing, packaging and distribution while maintaining compliance.

But California has state lines, so Chemesis has looked further afield to find more opportunities: Like Puerto Rico.

Oh, I know what you’re saying to yourself right now.. “Little Puerto Rico? Who cares?”

  1. Natural Ventures is the largest medical licensed cannabis company in Puerto Rico
  2. Natural Ventures serves a whopping 30,000 patients
  3. CannaRoyalty (now Origin House – OH.C) bought into the company some time ago and serves as an amazing potential licensee and partner
  4. Natural Ventures is licensed to cultivate 100k sq ft of cannabis, and has a 35k sq ft processing facility
  5. Puerto Rico has traditionally been where American pharma companies go to have their medicines manufactured

CannaRoyalty (CRZ.C) strategic partner carries out successful commercial launch in Puerto Rico

Chemesis is set to make a big push into Latin America, where the latino executive team will have a distinct advantage in negotiating deals, and the current $94m market cap attached to the company looks positively value-heavy when compared to comparables in the space.

Even with a big recent lift, as they keep announcing new deals, has only got them to a place where the valuation isn’t inexplicable.

 

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *