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Spyder #Cannabis $SPDR.ca Looks To Create Value For Investors With Its Unique Retail Strategy $WEED.ca $CGC $ACB $APH $CRON.ca $HEXO.ca $TRST.ca $OGI.ca

Posted by AGORACOM-JC at 9:48 PM on Wednesday, July 3rd, 2019
  • The cannabis retail market represents a massive opportunity and it is much less saturated when compared to the cannabis cultivation opportunity
  • The company, Spyder Cannabis (SPDR: TSX Venture) recently completed a go-public transaction and has been flying under the radar

By Anthony Varrell

During the last year, the amount of interest in the legal cannabis industry has significantly increased and most of this attention has been focused on North America. This is a trend that we have been excited about as it has benefited the companies that are levered to the burgeoning cannabis market.

Earlier this month, we came across a cannabis business that is focused on the North American cannabis retail opportunity. The cannabis retail market represents a massive opportunity and it is much less saturated when compared to the cannabis cultivation opportunity. The company, Spyder Cannabis (SPDR: TSX Venture) recently completed a go-public transaction and has been flying under the radar.

Spyder Cannabis is an emerging opportunity that is focused on expanding into legal cannabis and hemp industry. The company has developed a scalable retail model that includes an aggressive expansion plan that is focused on creating a significant retail footprint while being highly focused on securing strategic partners.

Spyder Cannabis will utilize a targeting retail distribution strategy and will focus on the cannabis retail opportunity in Canada and the US. The company plans to open retail outlets in high-traffic locations and we are favorable on this approach.

Spyder Cannabis: An Execution Story to be Watching

One of the reasons we are excited about Spyder Cannabis is due to the focus on the cannabis opportunity in the US and Canada. These two markets represent massive opportunities for the company and we are bullish on the growth prospects associated with these markets. Spyder Cannabis will be utilizing a specific strategy to capitalize on each market and we find this to be significant. There are massive differences between the Canadian and the US cannabis market which has made the opportunity for Spyder even more significant.

An attractive aspect of Spyder Cannabis’ expansion plan is related to its plans to partner with a variety of developers to sign lease agreements for prime real estate in close proximity to senior living, sporting venues and malls throughout the US. The company plans to initially focus on the opportunity in California, Florida, Michigan and New York, and we will monitor how the team is able to open new retail outlets and increase market share in the US.

When a company is looking to open a cannabis retail operation, there are countless factors that must be considered. We believe that Spyder Cannabis has the right approach to opening locations and will monitor how the team is able to execute on its expansion strategy. By targeting the aging, athletics and health and wellness community, the company should be able to de-risk its expansion plan and we find this to be significant aspect of the story

Spyder Cannabis is developing a proprietary product line of hemp-derived ointments, oils, capsules and topical creams for the aging, sports and health and wellness space. The products will be sold directly to consumers through both kiosks and retail stores throughout the US. We are favorable on the markets the company is focused on and the strategy to reach consumers. Over the next year, we expect the US market to be a major value driver to Spyder Cannabis and this is an opportunity that we will continue to monitor.

A US Cannabis Retail Expansion Story

When looking at Spyder Cannabis’ approach to capitalizing on the US cannabis market, the first thing to stand out are the states that the company is focused on. Currently, Spyder is executing on an expansion in California, Florida, Michigan, and New York. These are four of the most exciting markets in the US and we are favorable on the growth prospects associated with these markets.

Spyder Cannabis is focused on opening branded boutique retail stores and kiosks in burgeoning cannabis markets in the US. The company has been working tirelessly on this expansion and has been successfully increasing market share in the states that it has entered. Over the next year, we expect to see the company build upon its existing footprint and are favorable on the value that can be created through this expansion.

By 2020, Spyder Cannabis plans to open between 30 to 50 boutique retail stores and kiosks and has developed a cost-effective strategy in order to execute on this. The company is focused on opening locations that require a limited amount of capital expenditures that are in secondary and tertiary markets and located in high-traffics areas. Specifically, Spyder Cannabis plans to open stores that are located close to malls, retirement centers, and sporting events.

A Canadian Expansion Story

When it comes to the Canadian cannabis opportunity, Spyder Cannabis has been executing on a nationwide expansion and already has three operational Spyder Vape stores open in Ontario. Over the next year, the company plans to significant increase its reach in Canada and plans to open 20 retail locations in Ontario, 5 retail locations in Alberta, and 5 retail locations in British Columbia.

Currently, there are two additional Spyder Vape stores under construction in Ontario and we will monitor how the management team is able to execute on this expansion. The company has been granted a development permit for a retail location in Alberta and we are favorable on the growth prospects associated with this market.

When it comes to the cannabis retail opportunity in Ontario, Spyder Cannabis is strategically positioning itself throughout the province through the opening of Spyder Vape stores. Once the company has received the necessary permits, it plans to convert these outlets to cannabis retail locations and we are favorable on the strategy in place.

Alberta represents a different type opportunity when it comes to the cannabis retail market. Currently, there is a cannabis supply shortage and the province has put a hold on issuing retail licenses. This has caused a steep decline in the price of development permits and Spyder Cannabis has been focused on acquiring permits for high-traffic locations.

An Industry Leader in the Making

Spyder Cannabis wants to become the most recognizable brand of independent retail stores and kiosks throughout North America. The company is focused on offering best-in-class cannabis products and tailored retail experiences in order to attract consumers and we are favorable on this approach. Spyder Cannabis has strategic partnership with more than 30 premium cannabis vendors and offers an industry leading portfolio of cannabis products.

One of the reasons we are bullish on Spyder Cannabis is due to the way that the management has positioned the business. The company is led by an executive team that has a proven track record of success and that has positioned the business to capitalize on the North American cannabis market. We are favorable on the growth prospects associated with the planned expansion and will monitor how the company continues to expand across North America.

We are favorable on the strategic relationships that Spyder Cannabis has been able to secure and find this to be an attractive aspect of the story. From real estate partners to cannabis brand partners, the company has done a fantastic job at pooling together its relationships to support all facets of the business. Spyder Cannabis will be leveraging its contacts for increased brand awareness and cross-selling opportunities. We are favorable on this strategy when it comes to becoming a leading cannabis brand and will be monitoring how the team executes on this.

Spyder Cannabis is a company that has significant potential catalysts for growth and this is an opportunity that we are excited about. To learn more about the North American cannabis company, please reach out to [email protected].

Pursuant to an agreement between StoneBridge Partners LLC and Spyder Cannabis we have been hired for a period of 30 days beginning June 11, 2019 and ending July 11, 2019 to publicly disseminate information about (SPDR) including on the Website and other media including Facebook and Twitter. We are being paid $6,750 per month (SPDR) for or were paid “ZERO” shares of unrestricted or restricted common shares. We own zero (0) shares of (SPDR), which we purchased in the open market. We plan to sell the “ZERO” shares of (SPDR) 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 (SPDR) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.

Source: https://technical420.com/cannabis-article/spyder-cannabis-looks-to-create-value-for-investors-with-its-unique-retail-strategy/#

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