Major Expansion in the Cannabis Space Triggers Security and Surveillance Demand Increase
StockMarketPress.com Market Commentary
New York, NY May 8, 2019 – Explosive growth continues in the Cannabis space. This growth rate is only expected to increase as more states in the USA and more countries across the world warm up to cannabis. This includes both marijuana and hemp plant varieties, something that in the USA was previously marked as Schedule 1 by the FDA but has seen some easing of restrictions with the recent passage of the Farm Bill, allowing for Hemp/CBD to be removed from the Schedule 1 classification.
Along with the easing of restrictions, an increase in security and surveillance has been required by the various governing bodies in the USA as well as other countries. As the Cannabis industry grows, companies like DirectView Holdings, Inc. (OTC:DIRV) are seeing a significant increase in business, specifically when related to cannabis cultivation, processing and sales. Providing a turnkey security-surveillance solution for all companies, big and small, in the cannabis industry goes hand in hand with the ability of the industry to flourish.
Expansion in the sector is driven by acquisitions of operating entities as well as existing or new properties. These properties can be developed for farming, processing or sales of cannabis products.
Canopy Growth Corporation (“Canopy Growth” or the “Company”) (NYSE:CGC) is preparing for further easing of regulations in the USA by acquiring strategic properties, like the one recently announced in New York State. As a result, security-surveillance companies will benefit from this new construction as end to end systems can be integrated as part of the building itself, not just add-ons.
On the operating entity acquisition front, we see HEXO Corp (“HEXO”) (NYSE:HEXO) finalizing their plans to acquire 100% interest in Newstrike Brands Ltd. and Curaleaf Holdings, Inc. (Canadian listed company) taking over the state-regulated cannabis business of Cura Partners, Inc. This brings a whole new set of security-surveillance requirements to the new parent company, further expanding the need for well versed security-surveillance companies to step in a facilitate smooth transitions and expansions.
Canopy Growth Corporation (“Canopy Growth” or the “Company”) (NYSE:CGC) is pleased to announce a key milestone in establishing its Hemp Industrial Park in the Southern Tier region of New York State.
The Company has secured a 308,000 sq. ft. facility on a 48-acre property in Kirkwood, NY. Design activities will commence immediately with construction commencing this summer. The vision for the property is to build the infrastructure necessary to support hemp-derived cannabinoid extraction and related manufacturing together with providing an opportunity for participation by other businesses in the hemp industry.
“As we establish a stronger foothold in the exciting US market, we want to do so in a way that prioritizes local vendors and creates meaningful career opportunities for people in the communities where we operate,” said Bruce Linton, Chairman & co-CEO, Canopy Growth. “The vision for our investment is to create an eco-system that inspires new entrepreneurs and generates more economic stimulus than a single company can offer. As we build the facilities, we’ll also attract like-minded businesses who share our excitement for the emerging hemp and hemp-derived cannabinoid markets.”
The Company will begin hiring senior leadership in late 2019 and recruit the full workforce in mid 2020. Canopy Growth has also begun securing farm capacity to supply enough hemp for its own future extraction and formulation activities within the park. The Company intends to prioritize farms within New York State for the supply of hemp at this site.
“We welcome Canopy Growth to Broome County with open arms. We haven’t seen an investment like this in Broome in some time, and we’re so excited a company like them is setting up shop in our area,” said Broome County Executive Jason Garnar. “With Canopy Growth coming to Broome County we look forward to seeing the benefits in job investment.”
With the location secured, Canopy Growth expects work to commence quickly on Pine Camp Drive and with local contracted construction teams retrofitting the facility, operations will scale-up quickly. It is anticipated that the operations will create hundreds of new local full-time positions, in addition to the contracted construction workers.
New York State granted a hemp license to Canopy Growth in January of this year, allowing the Company to establish operations in the state and build a facility for hemp-derived cannabinoid extraction and processing for various applications. The new hemp facility will be capable of producing tons of hemp extract on an annual basis.
The Company will begin approaching third-party organizations to join the ecosystem. Canopy Growth is eager to attract businesses and researchers focused on every application of the hemp crop such as fibers, seeds, and hemp-derived cannabinoids. Since announcing intent in January 2019, the Company has worked closely with US government officials at all levels. From the local government and economic development officials, the New York Farm Bureau, to state representatives, Governor Cuomo’s office, and Senator Schumer’s office, Canopy Growth wishes to thank these key stakeholders for their commitment to building a hub for hemp innovation and entrepreneurship in the Southern Tier.
More information on Canopy Growth Corporation (NYSE:CGC) can be found https://www.canopygrowth.com
HEXO Corp (“HEXO”) (NYSE:HEXO) today announced that it has entered into irrevocable hard voting support agreements with shareholders of Newstrike Brands Ltd. (“Newstrike”) (TSX-V listed: HIP) representing in aggregate approximately 38.3% of Newstrike’s issued and outstanding common shares in connection with definitive arrangement agreement (the “Arrangement Agreement”) under which HEXO will acquire, by way of a plan of arrangement under the Business Corporations Act (Ontario), all of Newstrike’s issued and outstanding common shares in an all-share transaction (the “Transaction”).
“We’re pleased to have secured hard lock up support for 38.3% of Newstrike shareholders since announcing the agreement,” said Sebastien St-Louis, HEXO’s CEO and co-founder. “This is a great recognition of the extreme alignment between both companies’ management and boards, as well as a vote of confidence in HEXO’s vision for the future. We are eager for the Newstrike family to embark on this journey with us!”
Jay Wilgar, CEO of Newstrike added: “Our recent respective quarterly financial reports demonstrate the collective potential of our combined organizations as one of Canada’s largest licensed producers. We look forward to working closely with the HEXO team to leverage the strengths of our two businesses, create synergies and accelerate value creation for both of our shareholder bases. Moreover, our strategic partners The Tragically Hip and Neal Brothers Foods are both supportive of the proposed combination.”
Catch up on all the HEXO Corp news at https://www.hexocorp.com/
DirectView Holdings, Inc. (OTC:DIRV), a company focused on ownership and management of leading video and security technology companies, today announced that it plans to address certain requirements by leasing a new multipurpose facility in the Dallas, Texas area. The new facility is planned to contain a showroom for customers, a training facility for clients and employees, a call center for technical support and sales, a distribution office, warehouse space for inventory and shipping, and additional sales and management offices. The recent growth of DirectView and its subsidiaries is attributed to the need for a larger, more complex facility.
As noted in DirectView’s press release on March 11th, 2018 (DirectView Enters Smart Home Market with Google Home, Nest, & Amazon Ring Products), the Company’s wholly-owned subsidiary, ApexCCTV.com, recorded an increase in orders and revenue of 172% and 185%, respectively. Total traffic to the ecommerce website increased by 43%, and the Company has recently added roughly 1,000 new products, including Google (GOOG) Home, Nest, and Amazon (AMZN) Ring products, further attributing to the need for more warehouse space.
Having concluded a record year of sales growth and customer headcount, DirectView’s investment in a new facility will provide space for training employees and also provide a traning center for clients and office space to provide pre and post installation support. The new facility is anticipated to host a state-of-the-art showroom demonstrating its various security, surveillance, and access control systems to new clients. Warehouse space will be reserved to ensure product availability and space for order fulfilment will ensure timely delivery of products.
“We are in the final stages of leasing a new multipurpose facility that will streamline our operations and further our growth strategy as we continue our pursuit to be the best in the industry,” stated Roger Ralston, CEO and Chairman of DirectView Holdings. “From design to installation, to customer experience and post installation support, investments in our team and our facilities ensures we are generating the best results. We anticipate the new facility will give DirectView the competitive edge to make this year even more productive than the last.”
More information on DirectView Holdings, Inc., (OTC:DIRV) can be found on their website.
The Cannabis Conference 2019 shed light on the fact that companies are concerned about the security-surveillance requirements which vary by state/country. Meeting these needs is critical to success, let alone growth, of any company in the cannabis space. Spot inspections are commonplace and knowing they have a dedicated security-surveillance team in place, allows these companies to focus on cultivation and those specific requirements, without the headaches added by monitoring security equipment, data storage, etc as some states, like Pennsylvania, require 2 years worth of video surveillance archiving. Staying ahead of the regulators and inspectors is paramount to growth of the industry.
Join Stock Market Press’ newsletter for the latest in IPO, market commentary and company profiles.
Stock Market Press is a financial news company that delivers up to date stock news, introduces private and public companies to a wide audience of investors, consumers, journalists and the general public via social media and a rapidly expanding network.
Stock Market Press
110 Wall St.
New York, NY 10005
Safe Harbor Statement:
Statements in this news release may be ”forward-looking statements.” Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions. These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and are likely to, differ materially from what is expressed or forecasted in forward-looking statements due to numerous factors. Any forward-looking statements speak only as of the date of this news release and Stock Market Press undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this news release.
See Stock Market Press disclaimer: http://www.stockmarketpress.com/disclaimer/
SOURCE: Stock Market Press