Previous Tip of the Week

Nabis Holdings (CSE: NAB) (OTC: NABIF) (FRA: 71P)

Nabis Holdings (CSE: NAB) (OTC: NABIF) (FRA: 71P)

Nabis Holdings (CSE: NAB) (OTC: NABIF) (FRA: 71P), dba Innovative Properties Inc., is a Canadian investment company pursuing interests in high-quality cash-flow assets in real property, securities, cryptocurrency and all branches of the cannabis sector. The company's focus on strategic revenue generation, EBITDA and growth is enshrined in its moto, "One team. One goal," and is reflected in its name: "Na bis," which is defined as, "repeat performance" or "encore."

Strategy

While the Nabis' targets span numerous industries, the company aims to establish an Anchor Investment Portfolio primarily through the acquisition of majority interests in high quality U.S. cannabis assets and brands that have achieved cash flow. The company will then employ a hands-on approach to assist the investee in implementing standards and consistency to enhance their operations.

Criteria for investment targets are as follows:

  • Positive EBITDA, vertically integrated operators in limited license states with large addressable markets
  • Emphasis on operations that add material EBITDA within 12 months with enhanced access to capital and Nabis' value add approach on operations and brand consistency
  • Identifying proven operators with good expertise to add value to a consolidation strategy
  • Focused on MSOs (Multi-state Operators) with strong brand traction
  • Pharma grade cultivation, extraction, dispensaries and other addressable operations

Current Endeavors

Nabis has completed investments in five Michigan properties with Cannabis provisioning, processing and cultivation licenses. The Company has also entered into binding Letters of Intent ("LOI") to invest in vertically integrated assets in Michigan, Arizona and Washington State. The company's goal is to be invested in four to five additional states in the coming months.

Arizona – LOI to acquire full control of Organica Patient Group Inc. ("OPG") and RDF Management Group. OPG is a fully integrated medical marijuana business licensed under the provisions of the Arizona Medical Marijuana Act. Its assets include the Chino Valley MMJ Dispensary and fully established Patient Group, which since 2012 has operated as "Organica Patient Group" in Chino Valley. OPG also operates a 26,000-square-foot indoor cultivation and processing center along with a 56,600-square-foot greenhouse in Prescott Valley; has its own branded products and wholesale operations which includes distribution to more than 25% of the dispensaries in Arizona; and has exclusive manufacturing and licensing agreements with Fire Brand, Gas Extracts and Donuts Concentrate products distributed within Arizona.

Michigan – LOIs to invest in multiple strategically located properties that have or are eligible for municipal approvals for provisioning centers in Michigan. The company is currently evaluating 10 to 15 additional municipally approved locations in Michigan that would substantially increase the company's overall presence in the U.S. cannabis space.

Washington State – LOI to purchase assets from PDT Technologies LLC, including extraction and production equipment and rights to lease the current production facility in Port Townsend, Wash. The LOI includes licensing rights to produce Chong's Choice Brand CO2 Vape Cartridges, one of the leading and most recognizable brands in the cannabis space. Expansion plans include construction of a new ISO designed extraction clean room and GMP lab facility with new, highly specialized equipment with two extraction lines. The facility could produce up to 20,500 kg of cannabis concentrate on an annual basis.

Hivemind Refinery – LOI to invest in a 70% interest of Hivemind Refinery, an established line of CBD-based wellness products in the United States. The investment into Hivemind expands Nabis' investment portfolio to CBD edibles, water, drops, lotions, and other CBD wellness products across the spectrum. Nabis anticipates Hivemind will be a premium consumer CBD line to be distributed across the U.S. and Canada and will focus on products utilizing locally grown, premium CBD along with unique formulations and delivery systems.

Bloombox – binding term sheet with Momentum Ideas Co. to acquire certain assets used and marketed under the brand "Bloombox," a leading intelligent retail cannabis software platform that includes the Bloombox Software and data platform. The acquisition of Bloombox will create a dominating presence in the U.S. cannabis market, featuring an integrated ecosystem of modern, next-generation cannabis technology. Bloombox is one of the world's first standards-based cannabis software systems, enabling frictionless integration with nearly any business system or regulatory body.

Proven Management Team

CEO and Director Shay Shnet has over 20 years of experience in business and was most recently a founding partner and vice president of operations of MPX Bioceutical (CSE: MPX). While at MPX, Shnet focused on the North American cannabis space and helped build the company's portfolio of international cannabis assets. He is highly skilled in finding unique opportunities and has been directly involved with the development, branding, importing, consumer packaging and distribution of a wide variety of product lines.

President Mark Krytiuk is a very successful cannabis operator and was a founding partner of MPX. As the vice president of grow operations of MPX, he oversaw the production of medical marijuana and pharma-grade products across North America. He has been directly involved in overseeing the rapid expansion and buildout of nine facilities in three countries with budgets ranging up to $30 million. Krytiuk's experience includes consulting and working with customers to develop individual requirements for indoor and outdoor cannabis cultivation while working with federal regulators and licensing bodies to ensure compliance.

Investment Considerations
  • Recent passage of U.S. farm bill presents extraordinary opportunity to capitalize on an estimated US$22 billion CBD wellness market
  • Consumer sentiment is changing with 92% of U.S. states legalizing some form of cannabis
  • Positive regulatory momentum in the U.S. is spreading with legalization and acceptance of cannabis spreading internationally
  • Global legal marijuana market expected to reach US$146.4 billion by end of 2025
  • Significant near-term portfolio target opportunities under evaluation in several U.S. states, Israel and the European Union
Additional Resources

Company News & Data

News & Media Overview Chart Financials Filings Time & Sales Historical Data

Got a Tip to Share?

Know of a stock poised to make a big move? Tell us which one and why! We're constantly scanning the headlines and keeping tabs on what's hot, but can always use an extra hand. Whether amateur or pro, you're more than welcome to join in on the fun!

Send Us Your Tip

Recent Tips

The Tip of the Week Newsletter features one play we think you can't live without.

We're not going to bombard your e-mail with a daily parade of "hottest stocks" - when we say week, we mean it, the WEEK.
Give it a shot, you can unsubscribe at any time. No questions asked.

We respect your email privacy