Cannabis investors have started taking notice of how crucial branding will be for the competing companies in this space, once the markets change recreational laws.

Observers of the industry have debated the significance of owning a discernible brand will do to engage consumers and favor one company over another.


But, as noted by former Eight Capital analyst Daniel Pearlstein in a research note issued on February, consumers make decisions based on brands in other markets like the tobacco and alcohol industry, and that trend was coming to cannabis as well.

“Soon cannabis and derivative products will go from mostly being defined by the literal description of the product to being described by origin, quality, and experiences,” Pearlstein wrote.

With that in mind, the Investing News Network (INN) takes a closer look at the recent branding efforts from two different types of cannabis operations in the Canadian market.

Organigram reveals brand portfolio

On Tuesday (May 15) Organigram Holdings (TSXV:OGI; OTCQB:OGRMF) offered investors a detailed look into the portfolio of recreational brands the company plans to develop and nurture into recognized names for legal recreational consumers.

Organigram CEO Greg Engel said the recreational brand strategy for his company “incorporates the best of what we know about our current and potential customers.” He added over 18 months of research work was completed in order to create four different brands.

The actual brands themselves, The Edison Cannabis Company, ANKR Organics, Trailer Park Buds and Organigram will attempt to appeal to four different consumer types, from organic demands to premium priced products.

Arguably the most distinct of the four is the brand associated with Trailer Park Productions, associated with the popular Trailer Park Boys television show. According to Organigram, this brand will speak to consumers who “don’t take themselves too seriously.”

Actual product offerings for this brand include pre-rolled and blended cannabis. Despite introducing these brands Organigram’s stock value decreased during the trading sessions on Tuesday and Wednesday (May 16) by 1.04 and 0.21 percent respectively to reach C$4.74.

Canadian operator announces recreational brand will lead retail strategy

National Access Cannabis (TSXV:NAC), an operator in Canada that earned one of the four critical retail licensed in the province of Manitoba, announced on Tuesday the introduction of its own recreational market brand Meta Cannabis Supply.

Meta, the way the company is also referring to the brand, will be tasked with guiding the company’s recreational efforts including serving as the face of the upcoming retail locations, set to be open where NAC has obtained licenses for.

“NAC developed the Meta brand to appeal to health-conscious Canadians who embrace the benefits of quality cannabis products,” Mark Goliger, CEO of the company said in a statement.

The concept images from NAC offer a view into a futuristic version of modern cannabis retail spaces available to consumers in Canada, with tablets offering information on the products displayed.

The company also promised it will be offering cannabis products from CannaRoyalty (CSE: CRZ; OTCQX:CNNRF) a US-focused cannabis operator and Tilray a private medical marijuana licensed producer in B.C.

However, CannaRoyalty is not currently an LP, nor does it hold any late-stage applicant facilities in Canada. Therefore, according to Afzal Hasan, former executive vice president of corporate development and recently appointed president of CannaRoyalty, this partnership between the two companies does not have a timeline on actual production.

“Given the fact that it’s uncertain when we will be able to produce products in Canada, given the fact that it’s uncertain when the regulations are going to come out and what exactly they are going to say about the different product categories, we have taken the pathway of actually trying to secure these distribution channels first,” Hasan told INN.

NAC declined in value 3.75 percent following the announcement by the company. During Wednesday’s ’s trading session the company closed at the same price as its previous close at C$0.76.

Investor takeaway

Despite an increase in companies in the cannabis space announcing more concrete strategies in regards to the brands they intend to develop, most of these announcements won’t likely cause a huge effect on the stock performance of companies–at least until the market sees the results with legalization.

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

US Election 2020 and Cannabis

 
Investing in cannabis? Read what experts have to say about cannabis and the US Election!
 
  • Company surpassed 5,600 patient prescriptions for its medical cannabis products in Colombia . Prescriptions filled increased over 450% in Q3 2020 over Q2 2020
  • Khiron declared a National Strategic Project by the Government of Colombia , simplifying and accelerating administration and processes for the Company in executing strategic projects in Colombia and for export
  • Subsequent to the quarter, the Company completed a bought deal financing on November 26, 2020 , selling 32,200,000 units at a price of $0.45 per unit for aggregate gross proceeds of $14,490,000 CAD
  • Khiron signed partnerships with 15 clinics and health centres in Colombia , extending education and sales reach further across the country
  • As a result of the Company’s Doctor Zerenia TM telehealth platform more than 25% of the Company’s medical cannabis prescriptions came from outside of Bogota , expanding geographic presence of its Colombian clinics
  • Company achieved first sales of High CBD medical cannabis through private pharmacies in Peru . Additional approval received from Peru’s drug regulatory authority for Company’s High THC cannabis, with first prescriptions anticipated in Q1 2021
  • Expanded medical cannabis E-Learning platform to UK market in partnership with Medical Cannabis Clinicians Society (“MCCS”)
  • Entered an exclusive partnership with Rappi SAS, Latin America’s largest home multi-vertical app platform to distribute the Company’s CPG product portfolio, introducing Kuida products to Rappi users across the LatAm region
  • Signed agreement to distribute the Company’s Kuida TM CBD skincare brand through pharmacy, beauty retail and online markets serving the Hong Kong territory, with first orders expected in Q4 2020
  • Prudent cash use of $5 million in Q3 2020, compared with $4 million in Q2 2020, $12 million in Q1 2020 and $10 million in Q4 2019

 Khiron Life Sciences Corp. (“Khiron” or the “Company”) (TSXV: KHRN ), (OTCQX: KHRNF), ( Frankfurt : A2JMZC), a vertically integrated cannabis leader with core operations in Latin America and Europe announced today its financial results for the quarter ended September 30, 2020 . These filings are available for review on the Company’s SEDAR profile at www.sedar.com All financial information in this press release is reported in Canadian dollars, unless otherwise indicated.

Keep reading... Show less
  • Q3 Systemwide Pro Forma Revenue increased 18% quarter-over-quarter to $22.3 million , 170% year-over-year – Company became cash flow positive from operations in August
  • Company sale leaseback transaction with Innovative Industrial Properties scheduled to close within two weeks. As a result of close, together with proceeds from the recently closed bought deal financing, the Company will have $16 million of cash and $43 million in long-term debt
  • Company is in the process of acquiring acreage to construct up to 210,000 square feet of flowering canopy and supporting manufacturing facility in Cook County, Illinois to exponentially increase capacity in state
  • Initial guidance for 2021 with Systemwide Pro Forma Revenue of $170 -180 million and Adjusted EBITDA of $40 -50 million
  • The Company’s existing projects at maturity represent a long-term revenue and EBITDA opportunity upwards of $650 million and $250 million

4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) (” 4Front ” or the ” Company “) today announced its financial results for the third quarter of 2020. All financial information is presented in U.S. dollars unless otherwise indicated.

Third Quarter 2020 Financial Results Highlights

Keep reading... Show less
  • Q3 Systemwide Pro Forma Revenue increased 18% quarter-over-quarter to $22.3 million , 170% year-over-year – Company became cash flow positive from operations in August
  • Company sale leaseback transaction with Innovative Industrial Properties scheduled to close within two weeks. As a result of close, together with proceeds from the recently closed bought deal financing, the Company will have $16 million of cash and $43 million in long-term debt
  • Company is in the process of acquiring acreage to construct up to 210,000 square feet of flowering canopy and supporting manufacturing facility in Cook County, Illinois to exponentially increase capacity in state
  • Initial guidance for 2021 with Systemwide Pro Forma Revenue of $170 -180 million and Adjusted EBITDA of $40 -50 million
  • The Company’s existing projects at maturity represent a long-term revenue and EBITDA opportunity upwards of $650 million and $250 million

4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) (” 4Front ” or the ” Company “) today announced its financial results for the third quarter of 2020. All financial information is presented in U.S. dollars unless otherwise indicated.

Third Quarter 2020 Financial Results Highlights

Keep reading... Show less

Shareholders with losses exceeding $50,000 are encouraged to contact the firm

The Law Offices of Frank R. Cruz reminds investors of the upcoming December 1, 2020 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased Aurora Cannabis, Inc. (“Aurora” or the “Company”) (NYSE: ACB ) securities between February 13, 2020 and September 4, 2020 , inclusive (the “Class Period”).

Keep reading... Show less

Lobe Sciences Ltd. (CSE: LOBE) (OTC Pink: GTSIF) (“Lobe” or the “Company”) is pleased to announce the launch of preclinical research studies using psilocybin and N-Acetylcysteine (“NAC”) for the treatment of mild traumatic brain injuryconcussion (“mTBI”) with post-traumatic stress disorder (“PTSD”). The study is in collaboration with a multidisciplinary team of scientists and physicians at the University of Miami Miller School of Medicine under the lead of Michael E. Hoffer, M.D., professor of otolaryngology and neurological surgery.

NAC has been shown to be safe and efficacious in a phase I human clinical study in treating military personnel who had suffered mTBI. The initial research focus is to demonstrate the safety and efficacy of the combination of psilocybin and NAC using broadly accepted rodent models. Final results are expected in 2021. Once this is established, more specific work can examine dose response, medicine uptake, and medicine levels. The research team at the Miller School of Medicine has conducted prior studies involving NAC with mTBI and has a license from the United States Drug Enforcement Administration to conduct research using Schedule I controlled substances, which includes psilocybin.

Keep reading... Show less