ABcann Global Corporation (OTCQB:ABCCF) shares plunged sharply amid the broader selloff in cannabis market over the last couple of months. The company’s stock currently trades around $0.93, down substantially from the 52-week high of $3.30 a share it had hit early this year.
However, the company has been aggressively working on its expansion plans to capitalize on increasing demand in Canadian and U.S. markets.
The company expects to reach annual revenue of $500 million in the next four years. Its sales were standing around $77 million in fiscal 2017. ABcann appears in a healthy cash position to support its investments and growth plans. It has almost $100 million in cash at the end of the latest quarter.
ABcann Global Corporation Expansion Plan and Business Strategy
The company has set high production targets for the following years. It expects to produce 1,500 kilograms of seasonal greenhouse cannabis and 800 kilograms of indoor grown premium dry flower in fiscal 2018.
Moreover, it anticipates indoor grown premium dry flower production to increase to around 1,500 kilograms in 2019, while greenhouse cannabis production is anticipated to stand around 14,000 kilograms. It is working on two key facilities, including Vanluven and Kimmett to achieve its production targets.
ABcann is also focusing on the production of extracted oil products, and it is looking to introduce three unique oil formulations in Q3 2018.
It is planning to expand its product portfolio to oral strips, soft gels, inhalers, patches and topical products. Its two major strategic investments in Harvest Medicine and Choom are setting foot-prints for potential growth in medical cannabis market.
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ABcann Global Corporation is working on the following go-to-market strategies to improve the customer experience and drive higher revenue growth:
- It is looking to secure distribution agreements for its adult-use products
- The company is increasing its promotional interactions
- ABcann is increasing the frequency and impact of its marking and communications
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