Since inception, management at Ayurcann (CSE: AYUR) have been building the Company with a holistic view of servicing both the supply and demand side of the industry. 

As we have seen in previous months, previous news releases and as in our previous article entitled: Extracting Shareholder Value in a Growing Industry, which can be read here, the efforts have been on the supply side. AYUR has successfully been building out their capacity to process and extract biomass for licensed producers and have since signed up over 20 clients with a growing list of prominent brand partners. This side of the business is performing extremely well for AYUR who, in their most recent quarter, posted $2.6 million in sales, 70% margins, positive EBITDA and no debt.

We fully expect the processing and extraction business line to continue its upward trajectory because there is a real need in the industry for this service. In fact, the founding team of Igal Sudman and Roman Buzaker did a stellar job in 2018 of identifying a need in the industry and subsequently set out to solve the issue. In their first year as a publicly traded company, AYUR is hitting every target they should be, executing their business plan and generating shareholder value.

In another demonstration of the teams ability to assess industry needs, today Ayurcann (CSE: AYUR) announced that they have launched the Ayurcann Marketplace. Not only will the new marketplace be able to service medical cannabis patients nationwide for Fuego Vapes and Xplor Tinctures products, but it will also provide current processing and extraction clients an immediate sales channel. AYUR has now created a closed loop ecosystem whereby licensed producers can really just concentrate on growing their best crop ever.

But really, in our view, what AYUR has done is address the biggest issue for the medical consumer in Canada: lack of product variety. The way the Health Canada system is currently set up, a patient must have their prescription reside with one licensed entity, be it a licensed producer or a licensed processor, who also have a medical sales license. In the case of a licensed producer, they can only provide their own products to patients and thereby limiting the patients’ choices for variety. Licensed processors like AYUR on the other hand, will have the ability to offer multiple products and brands to patients all under one roof by operating a marketplace. So, a patient who has their prescription with AYUR will have the ability to try out different kinds of producers, products, delivery systems and really find what works best for them. Later this year, AYUR will also be adding new products to the marketplace under the brands, Green Bee Botanicals and Bazelet, two partnerships AYUR has just signed months ago! The possibilities and varieties AYUR will be offering to patients are enormous.

Throughout our investing careers, we have found that companies that approach corporate growth through solving problems in the industry, focus on the client and continuously optimize for sales growth while managing their debt load, tend to generate the best performance for shareholders. AYUR is in a great spot, hitting on all those points while maintaining a debt free balance sheet, growing EBITDA and a $25 million market cap. 

They started with the contract manufacturing approach (“CMO”) and AYUR is one of the best in the country, gearing to take companies such as Neptune Wellness and Valens head on!

Ayurcann is just getting started and investors can expect to see a lot of developments to come to fruition over the next couple of months includes, being listed on the OTCQB, the completion of AYUR’s Phase 2 facility which brings its total processing capacity to 300,000 kg and it is anticipated that AYUR will be reporting record revenues for its fourth quarter, which is slated for the end of August.

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