A question posted recently by Forbes: Big Marijuana: Is It The Future?
Love it or loathe it, marijuana as medicine is not a trend likely to disappear soon. Its use – and sale – is not going unnoticed by the legitimate business world.
Michigan-based nutritional supplement company, Creative Edge Nutrition, is on course to becoming the first U.S. company to be allowed to distribute medicinal marijuana in Canada, says CEO Bill Chaaban. In November the company was notified by Canada’s federal health department, Health Canada, that it has been approved to grow, distribute, import and export medicinal marijuana and plant seeds through its Canadian subsidiary CEN Biotech.
Creative Edge, which sells health supplements and trades for fractions of a penny on OTC Markets, reported less than $2 million in the first half of 2013 but Chaaban – an attorney licensed to practice in both the U.S. and Canada – says this latest play could catapult the company’s earnings into the stratosphere. “By the end of year five we’ll be doing $100 million in sales, with a margin of 80 percent.”
Currently, for medicinal users in Canada, marijuana costs between $5 and $6 CAD per gram (that’s between $4.70 and $5.60 in U.S. dollars). CEN Biotech’s cost to produce runs between 80 cents and $1 CAD per gram. Chaaban predicts the operation will be up and running and ready to begin shipping within seven months.
CEN Biotech’s new 58,000 square foot facility – still under construction in Lakeshore, Ontario, across the Detroit River from Michigan – has cost the company about $16 million CAD. Chaaban claims capital was raised from a pool of, ahem, ‘seed’ investors that includes companies that deal in alcohol and tobacco, entertainment industry players and professional sports figures. He would not provide specific names. Chaaban estimates that he owns roughly 4% of the company… Full Article »
As I’ve said all along, as soon as the big corporations & old money can figure a way to rake in profits while excluding the common person from doing so as well, everything will get “green lighted” by the Feds…