- 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
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investors or visitors to the website purchase without further notice to
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Source:
https://technical420.com/cannabis-article/spyder-cannabis-looks-to-create-value-for-investors-with-its-unique-retail-strategy/#
