Thank you very much for joining us! Technical 420’s been following Canrim for several months and are excited about the leverage the business has to untapped markets. For our readers who do not know about Canrim, can you tell us more about the business?
Absolutely. Canrim Growth Group is an investment company constructed specifically to leverage the rapid growth underway in Asian CBD markets. Asia represents the next enormous opportunity to benefit from the global secular trend towards the legalization of cannabis, particularly in healthcare and cosmetics.
We have positioned ourselves to capture this by becoming investors in two companies within Asia, giving Canrim an early mover advantage and positioning to harness the region’s growth curve and deliver rapid results to our stakeholders. Our two portfolio companies give us direct exposure to China and Hong Kong in the first instance, and to Singapore and Thailand further south in the second.
Canrim is comprised of two portfolio companies, CBD Group Asia (CGA) and Natural Source Group (NSG). Can you provide more insight into these assets and explain the relationship in place?
CBD Group Asia (CGA) is a distribution and investment company focusing on China’s high growth CBD market. Canrim and CGA have entered into an investment agreement to fund and earn up to a 75% ownership in CGA. Through its incubation program based in Shanghai, CGA is investing and partnering with innovative CBD related start-ups and established businesses in the region to create new brands and introduce high tech solutions within the CBD sector.
Product and tech innovation will be deployed initially throughout China’s demand driven markets, followed by a broad Asia-wide approach. Additionally, utilizing CGA’s expanding distribution network and veteran management’s marketing acumen, CGA has already partnered with successful North American brands for introduction of their product line into the Asian marketplace through their China focused distribution partners.
Within our Natural Source Group platform, Canrim has an exclusive, commercial arrangement to distribute co-branded CBD products across NSG’s platform. NSG has an Asia-wide distribution reach which has been developed conducting sales since 2013. NSG’s underlying investment thesis is that a fundamental imbalance exists between sources of supply and aggregate demand in areas of the emerging frontiers of Asia.
With the current joint ventures in place, how does Canrim expect to distribute its products throughout Asia? How far along as you?
Our investee, CGA, has partnered with brands we believe that can make a major impact in Asia. The way our process works is we typically find high potential brands based in North America and modify the branding to make them more appropriate for Asian consumers. Their marketing team formulates a strategy for getting the products out there, and we utilize our in house proprietary sales platform built within WeChat to start direct to consumer sales.
They currently have products in their warehouse in China that are being market tested, and expect our first sales to commence in December of 2019.
When new markets come on-line, it takes time for them to gain traction. How does Canrim plan to use its first mover advantage to its benefit?
The Asian market, and China in particular, represent a massively untapped opportunity for first movers. By 2024, the CBD market it China is forecasted to be worth US $15 billion, according to Hong Kong based investment company Regent Pacific Group, with beauty and wellness as the main drivers. Specifically, in China, where CBD cosmetic products are 100% legal, we see the opportunity with our first mover advantage to really drive the Company forward. As our portfolio companies provide the Asian market with the much-desired North American high quality CBD products, our experienced management team and consumer outlets will allow us to gain immediate traction.
When looking at the biggest potential catalyst for growth for Canrim, what are you the most excited about and what should our readers be aware of?
As an investment Company, our mandate is to provide top quality products to underserved Asian markets. We don’t have to worry about the optics and costs of growing Hemp + Cannabis, rather our portfolio company’s partner on a 50/50 basis with Companies we believe will sell well in jurisdictions we are experts in. Into 2020 we will be looking add more strategic companies that want to grow alongside of us in Asia. Additionally, we will invest in more Asia based companies seeking to expand within their jurisdictions.
What is the current market for CBD products in Asia? What are legalities relating to THC content and importation into Asia and China specifically?
The legislative picture is changing in Asia every day to fall more in line with North America and Europe. China specifically allows for the production and sale of CBD with a THC level of below 0.03% which is extracted from hemp rather than cannabis. China is in fact the largest producer and cultivator of CBD in the world; that said the quality in comparison to North America is quite low.
Currently retail CBD infused cosmetics are the only product range which is legal for sale in China. However, we anticipate medicinal and edibles to soon become fully legal at the end of the year or early next. We don’t foresee full legalization of cannabis in the short or medium term.
The overall picture around Asia is far more lenient generally speaking. Thailand has full legalization of cannabis. South Korea, Japan, Hong Kong, Sri Lanka and others currently offer full legalization for medicinal Marijuana. We anticipate when anticipated changes in UN with regards to regulation of CBD and cannabis take effect all countries in Asia will fall like dominos into place in terms of more full legalization generally speaking.
Management has a lot of experience in working in Asia. Can you give me some background on the team and how that relates to the opportunity within Canrim?
Our management team is comprised of international business and capital markets experts who are committed to aggressive, cost effective growth. We are currently based out of Vancouver and multiple offices throughout Asia, and are led by James Foster and myself (Ranjeet Sundher). I personally have over 25 years’ experience within the capital markets and have raised over $50 million for public and private companies. My previous shell completed a transaction with Jushi Holdings, one of the largest public cannabis space listings in Canada this year. James has been focused on Asia focused sales, investment opportunities and natural health distribution for the past 6 years. He started his career in London with the Royal Bank of Canada investment team and is a successful Asia brand owner (NSG). Between us and the rest of our team, we have strong experience in working in Asia and have the connections to the right people and capital to add to propel the Company forward.
How can investors participate in the Asia/China CBD Growth story that is Canrim?
Investors can reach out to the Company and request participation into our listing placement.
Pursuant to an agreement between StoneBridge Partners LLC and Brigadier Gold Limited (BRG-H.V) we have been hired for a period of 180 days beginning September 16, 2019 and ending March 16, 2020 to publicly disseminate information about (BRG-H.V) including on the Website and other media including Facebook and Twitter. We are being paid $10,000 per month (BRG-H.V) for or were paid “0” shares of restricted common shares. We own zero shares of (BRG-H.V), which we purchased in the open market. We plan to sell the “ZERO” shares of (BRG-H.V) that we hold during the time the Website and/or Facebook and Twitter Information recommends that investors or visitors to the website purchase without further notice to you. We may buy or sell additional shares of (BRG-H.V) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.
Published at Fri, 18 Oct 2019 11:18:34 +0000