- The company is contracted to sell 8 tons of marijuana into Canada’s vast legal adult-use market.
- Has a contract to grow 5 tons of high-grade medical marijuana in Germany.
- Announced plans for a 300-acre year-round outdoor cannabis cultivation and process facility in Ibague, Columbia
- Is set to acquire a UK medical cannabis distributor
- Made its first foray in Australia, expanding its global footprint into the Asia-Pacific market
Investors with a yen for marijuana stocks need to take their eyes off Canada and Colorado for a moment and refocus them on the globe.
That’s because huge new opportunities are springing up worldwide. And, Canada-based Wayland Group (CSE:WAYL) (FRANKFURT: 75M) (OTCQB:MRRCF) is in the heart of the action.
The company’s European footprint is expanding so rapidly, it should consider a name change to Wayland Group Worldwide. In fact, the rapid global growth is beginning to overshow its domestic success.
Yet, its home court is where Wayland has opened a huge new 189,000 square foot grow and production facility in Langton, Ontario. It has the capacity to grow 72 tons (66,000 kg) of varied strains of marijuana for the Canadian market each year.
The new facility has a full buildout potential of 924,000, which would push its annual grow capacity well past 100,000 kg.
Its initial capacity is dedicated to making good on its agreements to supply adult-use marijuana to four Canadian provinces.
- British Columbia (3,622 kg)
- Alberta (3,375 kg)
- Manitoba (550 kg)
- Ontario (37 Ontario Cannabis Store listings).
Wayland Brands Its High-Quality Product
The company made additional news in its domestic market when, October 17, 2018, it announced the release of its brand portfolio.
Already an innovator in cultivation, Wayland brought that same spirt to its retail line. Rather than taking a one-size-fits-all approach, the company took a purposeful, consumer-centric approach and created brands designed to address various segments of the market
This market strategy is one that’s generally applauded by consumer researchers and branding authorities.
Wayland’s brands include these:
- KIWI – aimed at adults who are light users or who are looking to better understand cannabis.
- HIGH TIDE – a high-THC cannabis strains for experienced medium to heavy users.
- NORTHERN HARVEST – a light to medium brand for moderate users who enjoy cannabis.
- LOST AT SEED – not yet on the market this is meticulously curated collection of the finest and most rare cannabis genetics.
- SOLARA C – high-quality CBD products
- RARA DANKNESS – a selection of premium award-winning limited-edition strains.
Aggressively Improving Its Competitive Edge
As lowering cannabis production costs becomes increasingly important with increased competition, Wayland is not sitting on its laurels.
To maintain its edge, Wayland has claimed a stake Colombia, which is a low-cost source for its cannabis offerings in Europe.
To that end, on November 6, 2018, Wayland announced an agreement to acquire Colma Pharmaceutical SAS, a licensed producer of THC cannabis in Colombia.
The acquisition comes with four licenses for cultivation and processing in the western Columbia city of Ibague, which form a triangle on the map with Cali to its south and Medellin to its north.
Wayland expects to cultivate THC cannabis outdoor and year-round with an infrastructure investment that will include a 415,000 square feet of processing and clone and vegetation greenhouse, as well as facilities to support outdoor cannabis flower production on 300 acres.
Wayland’s CEO Ben Ward explained move to low-cost, high-yield production in Colombia this way, “Our move to outdoor cultivation in Colombia is the first step in creating a reliable and consistent mass supply of cannabinoid isolates for the global market, including THC and CBD, and importantly commercial quantities of lesser known CBG and CBN.”
He went on to say that the Colombia acquisition reflects the company’s global ambitions, which are centered in Germany.
“We’ll be establishing a robust outdoor flowering operation as a source of products to be manufactured for global distribution from Ebersbach, Germany. We continue to move aggressively in the international market, creating a global presence, built on a rational business platform of geographic cost centers.”
Wayland’s Latest European Move Is Into The United Kingdom Where Insurance Covers Medical Marijuana
Building on its success in Canada, Wayland has turned its focus on Europe, which is fast becoming an important market for cannabis.
With over 742 million people and combined gross domestic product of EUR 15.3 trillion, Europe’s cannabis market forecast to be worth EUR 115.7 billion by 2028.
In November 2018, Wayland made a potentially exciting move into the United Kingdom when it announced an agreement to acquire 51% of UK based Theros Pharma.
Theros is an early stage company that has successfully imported cannabis to the UK for patients with prescriptions for medical cannabis.
Recent UK legislation allows patients to fill their medical cannabis via a regular pharmacy.
That makes the UK an attractive, fast-growing market, because National Health Service insurance covers medical cannabis.
Wayland’s Successful Model Is Now Spreading Across Europe
While the UK is a new deal, Wayland’s established European footprint spreads out this way:
Germany – production is beginning
Wayland was one of the first Canadian companies involved in the German market.
Wayland is developing a facility in Ebersbach, near Dresden, with a proposed 820,000 square feet of clean-room cultivation, processing, and extraction, including up to 300,000 square feet of cultivation.
Cultivation and production licensing are subject to German government approval.
On October 15, 2018, Wayland announced an agreement to supply a minimum of 9,000 kg (about 5 tons) of EU-GMP certified cannabis dry flower over a three-year term to Cannamedical Pharma GmbH, an importer and distributor of cannabis in Germany to over 2,200 pharmacies.
Wayland is also engaged in hemp operations in Germany through its European nutraceutical subsidiary MariPlant. On August 3, 2018, MariPlant commenced the harvest of approximately 405 acres of hemp.
Switzerland – an important market
Wayland was one of the first companies to recognize that Switzerland will be a key market for the European cannabis industry.
On May 10, 2018, the company announced the acquisition of Haxxon AG, which positions Wayland to operate in the Swiss market through Haxxon’s production of feminized high-CBD cannabis plants.
Haxxon has a 64,500 square foot facility in Regensdorf, a suburb of Zurich.
Of the deal, Wayland CEO Ben Ward said, “A phenomenon has occurred in Switzerland, where people are substituting or modifying tobacco consumption with low THC cannabis (less than 1% THC).”
Italy – Growing cannabis acceptance
Italy, Wayland entered a strategic partnership to take advantage of the country’s increasing acceptance of medical cannabis.
On November 9, 2018, the company announced a joint venture agreement with CBD Italian Factory S.S., a company of Group San Martino.
The aim is to produce high-quality cannabis products by pairing world-leading technology by Rockwell Automation with existing infrastructure in Piedmont.
There, the company will combine agricultural expertise and biogas electricity to sustainably produce CBD and THC products from a naturally-derived fuel source.
The joint venture will be split between Wayland (50.1%) and CBD Italian Factory (49.9%).
A key aspect of the joint venture is a relationship with the University of Eastern Piedmont, which will develop a research center focusing on producing high-CBD products for medical purposes, and further studies of high-THC content and medical uses.
Malta – pure cannabis distillates
To complement its Western European assets, Wayland also received a license in Malta to manufacture finished-dose medical cannabis.
This license allows Wayland to supply its Maltese operation with raw materials that will then undergo advanced post processing to create pure cannabis distillates, allowing for pharmaceutical manufacturing.
Wayland Travels To The Land Down Under To Stake A Claim In The Asia-Pacific Medical Cannabis Market
Wayland topped off a busy 2018 with a statement move that declares its commitment to carving out a profitable share of the global cannabis marketplace.
In early December, it announced an expansion into Australia, which is a move into the important Asia-Pacific region.
The move comes via an agreement to acquire 50.1% of Tropicann Pty Ltd.
It’s a newly formed, privately owned Australian company located in Darwin, Northern Territory. Tropicann’s goal is to partner with industry leaders in Australia’s expanding cannabis industry and to cultivate proprietary cannabis.
The deal will provide Wayland with ideal climate conditions in a globally respected and sovereign country with a large and fast emerging market of over 250 million people.
9 Reason To Add Wayland Group To A Diversified Portfolio
- Pot stocks are sliding back into a value range after the massive runup at the advent Canada’s legal adult-use marijuana market.
- Picking a winning stock among Canada’s domestic cultivators is difficult because they are all fishing in the same small pond.
- Ontario-based Wayland may be a home- grown, but it is not dependent on the Canadian market.
- In Canada, however, Wayland Group is licensed to grow 8 tons of marijuana for sale in four provinces.
- Wayland’s Ontario cultivation facility can grow and process up to 72 ton of marijuana a year.
- The company has a new agreement to has the potential to grow and process marijuana outdoors on 300 acres in Columbia. That marijuana would be dedicated for processing and sale in Europe.
- In Germany, the company is developing a huge cultivation and processing facility that will support its agreement to grow 9,000 kg (about 5 tons) of medical marijuana.
- In The United Kingdom, where the National Health Service insurance pays for medical cannabis Wayland has agreed to purchase a startup company that’s seeking a license to cultivate or import medical marijuana.
- Now that pot stocks have cooled down, investors have a rare second chance to buy Wayland at a value price before its global revenues begin to flood it coffers.
Value Laden Wayland Is Positioned for Growth
Investors who missed the rollicking early days of Canada’s legal cannabis markets have been given a rare second chance to enter a megatrend.
The valuations of Canadian licensed producers faced a recent reckoning.
Now that the hype surrounding the new legalized market is in the rear-view mirror, companies will need to distinguish themselves with real earnings and by executing on thoughtful strategies for the future.
Wayland has recognized the early-mover opportunity to use its initial success in Canada as a springboard for global ambitions.
Wayland presently trades at less than 30 percent of its January 23, 2018 high of $4.25 CAD, and significantly lower than its 200-day, 100-day, 50-day, and 20-day moving averages.
As the market continues to distinguish between Canadian cannabis companies competing for slices of a relatively small Canadian market and those with global growth strategies and executable international footprints, Wayland’s global footprint positions the company for significant upside.