HENDERSON, NV / ACCESSWIRE / January 3, 2019 / Legal questions continue to surround CBD and cannabis companies. This has made investing in them a bit dicey. There is no question, however, that the amount of cannabis being grown will continue to rise, and companies with products or services that help this growth are going to be the big winners. Since, they aren’t completely reliant on cannabis, they are a bit safer than the direct plays.
A very interesting company that falls into this category, Clean Spark, Inc. (CLSK), has the best in class microgrid solution for the cannabis industry. Additionally, CLSK is one of the top microgrid companies in the entire world, currently working with NYSE company MAC on a potential $18 million project. If this is your first-time hearing about CLSK start your due diligence immediately because when the street finds out about the company it could trend much higher.
Today we are highlighting: CleanSpark, Inc. (CLSK), Innovative Industrial Properties, Inc. (NYSE:IIPR), The Scotts Miracle-Gro Company (NYSE:SMG), General Electric Company (NYSE:GE), and Constellation Brands (STZ).
The $3.5bn cannabis industry is one of the nation’s most energy intensive, often demanding 24-hour indoor lighting rigs, heating, ventilation and air-conditioning systems at multiplying grow sites. Legal cannabis cultivation in the U.S. consumes an estimated 1.1 terawatt-hours of electricity a year, according to the 2018 Cannabis Energy Report, published by Scale Microgrid Solutions along with New Frontier Data and the Resource Innovation Institute. Companies managing these solutions are great ways to diversify your cannabis industry risk.
Indoor growers are looking to cut spiraling electricity consumption with custom-built microgrids in U.S. states where cannabis cultivation is legal.
A company that seems to be in the right place at the right time to capitalize on this huge market inefficiency is CleanSpark, Inc. (CLSK) (Market Cap: $83.335M, Share Price: $2.28).
CLSK has a unique microgrid solution for the cannabis industry. Their mPulse software reduces the monthly electricity bill of indoor grow-houses by up to 82%! They do this by virtually eliminating the demand charges that can account for almost 50% of the utility charges for such a facility.
Pressure is mounting on the cannabis industry to improve its margins after a lackluster 3rd quarter, companies like CLSK can help do just that.
CLSK also just released an impressive letter to shareholders highlighting: an agreement for an $18.3 million ‘Zero Net Energy’ Microgrid with an S&P 500 Member Real Estate Investment Trust (REIT), near completion on a $900,000 contract to install a ‘turn-key advanced microgrid system’ at the U.S. Marine Corps Base Camp Pendleton, they have been awarded 2 patents, and they updated an acquisition that could be a huge boost to the company’s year-end revenues.
CLSK’s acquisition, Pioneer Custom Electrical Products, has delivered $32 million in products since 2016 and has $5 million in backlog. They have also received a $2.4 million equipment order as part of a contract for the new U.S. Embassy in Beirut, Lebanon which should end up on CLSK’s balance sheet.
A company standing to benefit from Cannabis growth while not directly involved in its production like CLSK is Innovative Industrial Properties, Inc. (IIPR) (Market Cap: $448.807M, Share Price: $45.91) a real estate investment trust that specializes in the medical marijuana industry. A REIT allows investors to pool their money to own real estate properties and it has a unique distinction that provides some safety for investors: REITs are required to distribute at least 90% of taxable income to shareholders as dividends.
The Scotts Miracle-Gro Company (SMG) (Market Cap: $3.45B, Share Price: $62.42) another company set to make big money off of marijuana growers, has quickly become the top supplier to the U.S. cannabis industry. Thanks to a string of acquisitions, Scotts Miracle-Gro’s Hawthorne Gardening subsidiary now offers a wide range of products to marijuana growers including fertilizers, hydroponics, irrigation systems, lighting systems, and ventilation systems used in cultivating cannabis.
Another way to play cannabis energy usage like CLSK, General Electric Company (GE) (Market Cap: $70.02B, Share Price: $8.05) announced that the Audit Committee of its Board of Directors will move forward with a tender process for the appointment as GE’s independent audit firm. The effective date for the audit firm appointment following that process will be based on the progress toward completing the Company’s previously announced portfolio actions. The Audit Committee has determined to reappoint KPMG LLP (KPMG) as GE’s auditor for 2019.
Constellation Brands (STZ) (Market Cap: $31.12B, Share Price: $164.04) alcohol producer and marketer demonstrated its commitment to the cannabis industry when it bought a 9.9% stake in Canopy Growth Corp. for around $245 million in October 2017, later increasing its equity to 38% with a $5-billion investment in August. However, the company has several other verticals.
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 $18,000 for services provided in December and Regal is expecting to be compensated an additional $70,000 for services in December. 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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