Written by: Ryan Allway – CFN Media
The cannabis industry is projected to reach $75 billion in annual revenue by 2030, according to Cowen & Co., driven in large part by the legalization of recreational cannabis in California. While there are many cannabis companies operating within the state, Next Green Wave Holdings Inc., (CSE: NGW) is quickly becoming one of the most influential, with its vertically-integrated approach and award-winning premium products.
In this article, we will take a look at Next Green Wave’s recent letter of intent to acquire Loud Seeds and how it fits within its plans to become a leading cultivator in California.
It All Starts with Genetics
Genetics stands at the core of any premium cannabis brand and the company’s recent letter of intent with Loud Seeds, LLC underscores its commitment to quality and innovation in the medical and recreational markets. The six-time Cannabis Cup winner has spent the past 20 years developing a vast collection of award-winning strains and has been inducted into the High Times Hall of Fame and the Top 40 Seed Banks of All Time.
These awards have helped Loud Seeds become one of the most recognizable brands of seeds throughout California and the United States. In addition, the company has built a strong distribution list throughout the state and formed relationships with many other well-known cultivators and breeding partners. These relationships could be extremely valuable to Next Green Wave as it nears the completion of its cultivation facilities and begins its harvests.
“Being able to bring one of the best seed banks in the world into our nursery continues to differentiate Next Green Wave from other cultivators,” said Next Green Wave Executive Chairman, Leigh Hughes in the press release announcing the letter of intent. “We are excited to join an award-winning genetics portfolio with world-class breeding skills as the construction of our facility nears completion and begins cultivation.”
Infrastructure Already in Place
Many cannabis companies operating in California have little more than a business plan and a lease on some land. Investors are left to trust that management will be able to raise enough capital, build cultivation facilities, and hire the talent necessary to operate them—and actually grow quality products. With a growing number of cultivators in the state, the task has become increasingly difficult to execute properly without the right team at the helm.
Next Green Wave was started by six-time Cannabis Cup High Times award winner Mike Jennings, who is backed by an internationally experienced team with a focus on consumer products. The team plans to build four centrally-located facilities on 15.5 acres of owned land in Coalinga, California, enabling it to reach the entire state. The first two facilities total 85,000 sq. ft. and are near completion while the others will boost capacity to 350,000 sq. ft. in total.
The company is 45% owned by management and only recently started trading on the Canadian Securities Exchange (CSE) under the ticker symbol “NGW”. The company has room to create shareholder value by becoming a leading fully-integrated provider of cannabis across California—particularly as it works to roll up brands that consumers already know and trust.
California’s cannabis industry is rapidly expanding following the legalization of recreational cannabis this year. While many companies are facing regulatory hurdles, Next Green Wave Holdings Inc. (CSE: NGW) has already secured all of the permits it requires—from seed to consumer—and is nearing the completion of its initial cultivation facilities. The recent acquisition of Loud Seeds further enhances its leading brands and adds valuable experience to the team.
For more information, visit the company’s website at www.nextgreenwave.com/investors.