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Maricann is a vertically integrated producer and distributor of marijuana for medical purposes. The company was founded in 2013 and is based in Toronto, Canada and Munich, Germany, with production facilities in Langton, Ontario, Canada where it operates a medicinal cannabis cultivation, extraction, formulation and distribution business under federal licence from the Government of Canada. and Dresden, Saxony, Germany. Maricann is currently undertaking an expansion of its cultivation and support facilities in Canada in a 217,000 sq. ft. (20,159 sq. m) build out, to support existing and future patient growth.
The new sales licence is the second granted to Maricann by Health Canada, with the first applying to the company’s cultivation and processing facility in Langton, ON. With the granting of the new licence, Maricann is shifting its client services and sales operations to Burlington.
The establishment of the Burlington site helps Maricann centralize and streamline numerous sales and marketing processes, including potential same day delivery within the Greater Toronto Area, and next day delivery across Canada. This is expected to help scale the business at a faster rate.
“The new headquarters in Burlington will centralize our sales, marketing and customer services operations under one roof, which will ultimately create greater efficiencies throughout the company. Overall, the move sets up Maricann for much greater future growth.” said Ben Ward, CEO of Maricann.
Maricann will soon be rolling out new service offerings to clients, such as customer service live chat on its website. As part of Maricann’s commitment to maintaining a low carbon footprint, client services will now transition to a 100% paperless system, while still complying with all Health Canada requirements.
CCIM: Congratulations on being included in the CSE25 index and for current and prospective investors, what is the significance of that inclusion … and same for your inclusion in the ETF (HMMJ)?
MARI: Maricann has been included on the CSE25, a new index introduced by the Canadian Securities Exchange featuring the twenty-five largest and most liquid stocks in the CSE Composite Index as of the index rebalancing at the close on September 15. The CSE25 Index is a subgroup of the CSE Composite Index. The composite index launched in 2015 and includes almost half of the exchange’s listed companies and covers over 75% of the trading activity on the exchange. The new index includes the top twenty-five securities by market capitalization contained in the composite index. These companies account for over 50% of the weighting in the larger index and are typically stocks that attract considerable trading volume.
CCIM: Building on that last question and the status of the “High Standard” acquisition, should investors be concerned about QCA investing in US based companies such as Herbiculture?
MARI: We think that the US offers very attractive investments at this time. Companies are much cheaper than their Canadian counterparts. There is more regulatory risk in the United States. Accordingly, we will be careful about how we proceed in the US market. As in the case of Herbiculture, investing in debt securities with equity upside offers us some protection from regulatory risk.
CCIM: Aurora Cannabis Corporation (TSX:ACB) is no stranger to our subscribers as we predicted in advance expansion into a Hemp company and into Germany. With the recent announcement that ACB’s CEO Terry Booth has joined your board, what can investors of QCA expect in the months to come?
MARI: I look forward to working with Terry. He is one of the most respected executives in the sector. We think that his participation will let us see more opportunities and make better decisions.