We are excited about Benchmark Botanics Inc. (symbols CSE: BBT) (FSE: BBW) (OTC-PK: BHHKF) for two reasons. It is a producer that is growing and expanding its operations and it is the only cannabis producer setting its sights on the huge Asian markets for sale of its nutraceutical cannabis products.
Benchmark is expected to announce its first revenues from its first two harvests in 2018 and will continue reporting revenues from all subsequent harvests.
The cannabis market is about supply and demand, the demand has dramatically increased due to Canadian recreational legalization in 2018, and for supply there is a reported 18-month shortage in Canada.
This is supported by the fact that Health Canada projects 450,000 patients will be using cannabis at $1.3 billion annual value by 2024.
A report from Canaccord Genuity Group predicted the combined annual demand for recreational and medical marijuana would reach 575,000 kilograms by 2021, which is a lot more than current Canadian producers are growing.
In the case of Benchmark Botanics they have existing production and they are expanding their capacity to meet the supply and demands of the market.
· Their initial indoor facility the Peachland Cannabis Complex located in Peachland, BC, is fully operational and producing and we are estimating 550 kg / yr. cannabis.
· An already planned Phase 2 with a 50,000 square foot production facility for Peachland, BC we are projecting 6000 kg / yr. production.
· Set to open and operate in Q2 2019 is Benchmark’s Pitt Meadows Greenhouse Operations, with 174,240 sq. ft greenhouse space and we are projecting 19,000 kg / yr. production
· Benchmark produces high quality pharmaceutical grade medicinal and recreational cannabis
· Benchmark has multi licenses – import, cultivation, sales, and extraction
· The Company owns a supercritical CO2 extraction processor for production of CBD oil products
· Peachland Indoor Phase 1 we estimated 550 kg/ yr. = $ 2,750,000 est. potential revenues
· Peachland Indoor Phase 2 we projected 6000 kg/yr. = $ 30,000,000 est. potential revenues
· Pitt Meadows Greenhouses we projected 9000 kg /yr. = $45,000,000 est. potential revenues (NOTE: revenues based on $5 Cdn / gram)
· EU partnerships established in Germany, Spain and Netherlands
· Targeting sales of nutraceutical cannabis and hemp products in China and throughout Asia
Our focus remains on the production capacity and speed of expansion. Visibly Benchmark Botanics is doing a great job with production and expansion and is looking at other revenue streams such as additional sales into the EU, nutraceutical sales into China and throughout Asia.
All of this is supporting our bullish stock forecast for 2019.
