Solving Cannabis’ Energy Problem
May 2, 2019 -- InvestorsHub NewsWire -- Microcap Speculators -- The total production of U.S. cannabis cultivation (illicit + legal) in 2017 was estimated to be 16.4 million pounds. The combined consumption (illicit + legal) of 4.1 million MWh is roughly equal to the total electricity generated annually by the Hoover Dam. New Frontier Data anticipates a 162% increase in U.S. Legal Cannabis Cultivation Electricity Consumption by 2022.
A company that could solve cannabis’ energy problem, CleanSpark, Inc. (USOTC: CLSK), has a microgrid energy solution for the cannabis industry that dramatically decreases the cost of energy associated with producing each pound of valuable cash crop. A cannabis business using $90,000 per year in energy has the potential to reduce its operating costs (flowering stage) from $270/lb. to $200/lb., producing a 15% ROI over 10 years.
CLSK currently has several revenue generating projects. It also released an Edgar filing reporting $20 million in financing in the form of Debenture, the Series B Preferred Stock, the Warrant and the Common Stock. With the warrants being priced $3.50 per share with respect to 2,000,000 Warrant Shares, $4.00 with respect to 100,000 Warrant Shares, $5.00 with respect to 100,000 Warrant Shares, $7.50 with respect to 50,000 Warrant Shares and $10.00 with respect to 50,000 Warrant Shares, the parties are surely anticipating growth. This committed financing will help accelerate the development and deployment of CleanSpark's Distributed Energy Resource (DER) Solutions to commercial customers.
CLSK has outlined several initiatives in their recent letter to shareholders. CLSK is planning to initiate a marketing campaign to start reaching indoor cannabis growers dealing with inefficient energy usage in need of their services, push forward their projects with recent acquisition of Intellectual Property of Pioneer Critical Power Inc, and facilitate growth in their R&D to find new industries their solution can improve. Start your research now.
Today we are highlighting: CleanSpark, Inc. (USOTC: CLSK), Tilray, Inc. (NASDAQ: TLRY), Green Thumb Industries Inc. (USOTC: GTBIF), Trulieve Cannabis Corp. (TCNNF), and SolarEdge Technologies, Inc. (NASDAQ: SEDG).
This financing is the latest in a long string of positive announcements by CleanSpark, Inc. (USOTC: CLSK) (Market Cap: $90.855M; Share Price: $2.11). The company engaged a firm to navigate their up listing, announced the near completion of a $900k contract to install a CLSK microgrid at a U.S. Marine Corps Base and has been progressing on a $18.3 million deal with NYSE company, MAC. Now is the time to start your research on CLSK.
Tilray, Inc. (NASDAQ: TLRY) (Market Cap: $5.028B; Share Price: $51.95) sales grew 204% year over year to CA$20.9 million in Q4 2018. Tilray didn't break out how much it generated in the recreational market, but its sales were CA$12.9 million in Q3, before recreational sales began. If you assume every dollar of its quarter-over-quarter increase was from the recreational market, then its market share would be about 5%.
Tilray, Inc. engages in the research, cultivation, processing, and distribution of medical cannabis. The company offers its products to patients, physicians, pharmacies, governments, and hospitals; and for researchers for commercial purposes and compassionate access and clinical research applications.
Green Thumb Industries Inc. (USOTC: GTBIF) (Market Cap: $2.511B; Share Price: $14.627) announced in February ’19 the closing of the acquisition of For Success Holding Company, the Los Angeles-based creator of the lifestyle suite of Beboe branded cannabis products.
One of the largest U.S. multi-state cannabis operators is Green Thumb Industries. Headquartered in Chicago, Illinois, GTI has 11 manufacturing facilities and licenses for 71 retail locations across ten highly regulated U.S. markets. Green Thumb Industries Inc. manufactures and sells various cannabis products in the United States. The company's cannabis products include flower, concentrates for dabbing and vaporizing, edibles, and topical.
Trulieve Cannabis Corp. (TCNNF) (Market Cap: $1.47B; Share Price: $13.25), Florida's largest medical cannabis licensee, has settled their challenge with the Florida Department of Health. Following a ruling by Judge Karen Gievers claiming the statutory caps on dispensaries unconstitutional, Trulieve's 14 dispensaries that were established before the statewide cap was enacted are now excluded from the statutory cap.
Trulieve CEO Kim Rivers, said, "This is not a victory for Trulieve – it's a victory for Florida's patients. Our suit was first and foremost about patient access; working around the caps meant we had to build up a distribution model based on the statutorily-mandated geographic distribution instead of where patients live, effectively driving up costs and restricting patient access to the relief they need."
Trulieve Cannabis Corp. operates as a medical marijuana company. The company cultivates and produces products in-house and distributes its products to Trulieve branded stores (dispensaries) in Florida, as well as directly to patients via home delivery.
SolarEdge Technologies, Inc. (NASDAQ: SEDG) (Market Cap: $2.097B; Share Price: $44.14) has outperformed the broader solar industry, thanks largely to the fact that it doesn't manufacture solar panels. Instead, SolarEdge makes photovoltaic inverters and power optimizers. These are key components of solar systems that convert power from solar panels to usable AC electricity and help the panels run at peak capacity.
Although SolarEdge is one of the top producers in its niche, investors have reasons to be worried. Major panel manufacturer SunPower recently began including microinverters in its panels. If this becomes an industrywide trend, demand for SolarEdge's inverters could take a hit.
SolarEdge Technologies, Inc., together with its subsidiaries, designs, develops, and sells direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations worldwide. Its SolarEdge system consists of power optimizers, inverters, communication and smart energy management solutions, and a cloud-based monitoring platform. The company's products are used in a range of solar market segments, such as residential, commercial, and small utility-scale solar installations.
Priyanka Goel, CFA
This article was written by Regal Consulting, LLC (“Regal Consulting”). Regal Consulting has agreed to a three-month term consulting agreement with CLSK dated 9/12/18. The agreement calls for $10,000 in cash, and 30,000 restricted 144 shares of CLSK per month. Regal and CLSK have signed an amendment to extend the contract for twelve months starting 10/10/18, and increased the cash component to $20,000 per month. CLSK has paid an additional $12,000 for services provided in November. CLSK has paid an additional $88,000 for services provided in December. CLSK has paid an additional $100,000 for services for January. CLSK has paid an additional $100,000 for services for February. Regal was paid an additional $100,000 for March services. CLSK has paid an additional $100,000 for services for March. CLSK has paid an additional $80,000 for services for April. CLSK has paid All payments were made directly by Clean Spark, Inc. to Regal Consulting, LLC. to provide investor relations services, of which this article is a part of. Regal Consulting also paid one thousand dollars cash to microcapspeculators.com to distribute this article. Regal Consulting may have a position in the securities mentioned in this article at the time of publication, and may increase or decrease its position without notice. This article is based on public information and the opinions of Regal Consulting. CLSK was given an opportunity to edit this article. This article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any results predicted herein. Regal Consulting is not registered with any financial or securities regulatory authority, and does not provide or claim to provide investment advice.
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