Is This Tiny Stock the Next Big Thing?

 

Unless you’ve been hiding under a rock, you’ve probably read and heard about an industry in radical reformation, attracting entrepreneurs, venture capitalists and investors in droves.

There’s a lot riding on this movement – political elections, cultural shifts, medical benefits, and oh… financial windfalls. Let’s take a look together at what we have discovered as possibly one of the best investment opportunities you may come across this year.

The US Cannabis market size alone is forecasted to represent approximately $44 billion dollars, and according to a recent Washington Post article, it speculates that there’s up to $120 Billion unaccounted for in what some refer to as “the black market,“ ADD in the nutritional supplement market of nearly $37 billion dollars and you have approximately a $200 billion dollar market opportunity ripe for businesses to capture. The Natural Cannabis Medication and Dietary Supplements Trend is Going Ballistic and companies like Eco Science Solutions, Inc. (Stock Quote: ESSI $0.30 -6.25% – website), are changing the entire Alternative Medicine Industry. We believe this company could be the NEXT BIG THING in Natural Cannabis Medication and Supplementation!

ESSI went public this year and it is now trading on the OTC stock exchange in USA, which makes it one of the very few, publicly listed companies in the booming Natural Cannabis Medication and Supplementation industry!!!

Through their own proprietary technologies, ESSI has developed various smart-device apps, along with an entire line of related supplements to for natural medication use. In looking at their marketplace we have seen select acquisitions and venture funds sprouting up, indicating that the smart money is coming into the category in a big way. Between the market sizing data, large-scale take outs and funding transactions, not only is there an appetite for products and services in this category, but rich multiples are being paid for emerging companies.

Let’s look at the ESSI Product Line!

In analyzing their core products, we find ESSI to be uniquely disruptive and it appears they are the only company blending technologies designed to 1) educate consumers about cannabis medication, exercise, diet, supplements; 2) introduce them to local businesses who can best service them; and 3) then allow for products purchased to be delivered same-day.

Herbo

“With a database of over 14,000 alternative medicine locations and delivery services, doctors who provide evaluations, and local shops that sell relevant product. The Herbo app helps consumers find products and services that support the intake of alternative medicines for a more naturopathic way of living.”

We find this description released in an earlier Press Release made by the Company in January of this year very helpful:

Herbo for Consumers
Consumer-facing app with the following core e-commerce and social networking features: (1) location and directory listings of marijuana businesses that include physical dispensaries, delivery services, smoke shops and doctors; (2) product catalog of cannabis-related products that can be browsed and purchased; (3) e-wallet that stores credit cards and specialty gift cards, allowing for seamless electronic payments; (4) discrete messaging that allows for consumers to communicate directly with marijuana businesses; and (5) content streams that allow for consumer-generated and business-generated content to be captured and share amongst the Herbo community to build engagement and loyalty.

Herbo’s e-commerce features allow consumers to locate, access, and buy premium cannabis-related products easily, conveniently and securely. Its social networking features focus on engaging and growing the Herbo community with like-minded enthusiasts.

Herbo for Business
Enterprise-focused app for marijuana businesses with the following core features: (1) claiming of business listing; (2) updating and management of business profile information; (3) messaging that allows for management of businesses to discretely communicate directly with marijuana enthusiasts; (4) updating and management of product catalog and product offerings; (5) affiliate marketing; and (6) customer relationship management tools that support the targeting and engagement of prospective, current, and past customers.

Herbo for Drivers
Herbo is currently accepting driver applications for its branded delivery service. Herbo Drivers will be able to receive, coordinate and provide same-day delivery services for consumer orders that are purchased on Herbo and desired immediately. The Herbo Drivers app integrates seamlessly with Herbo’s consumer and business platforms to provide customers with enhanced visibility and tracking of their Herbo orders.

Diving even deeper, ESSI clearly “get’s it” as with natural cannabis medication comes a healing benefit, but to maintain and even improve one’s body, sound exercise and diet are critical.

We find their Fitrix App very interesting and a nice tie into a wholistic solution.

“The Fitrix app is a powerful and flexible companion that helps keep track of your day-to-day fitness routines, dietary habits and alternative medicine intake. Fitrix users can measure and track anything and everything when it comes to their Health and Wellness. One can track the accomplishment of custom created goals; monitor dietary, exercise and alternative medication schedules; be notified of important milestones; establish timelines to develop effective habits … all leveraging a unique notebook and calendar.”

After reviewing more of the Fitrix app we see how ESSI is leveraging their technologies to not only apply to professionals in the cannabis field, but professionals in the exercise field. They have taken their consumer, business and driver model, married it with rich content of over 5 million foods, describing nutritional value and calorie makeup and countless life hacks to bring to their users a full-circle experience for those looking for a balanced, healthy lifestyle inclusive of diet, exercise and natural cannabis medication and supplementation. Genius!

We also like their supplementation line, pHion Balance, and see how they are taking their smart-device apps and then filling any gaps that their users may have in either their cannabis medication or standard diet by providing a diverse supplementation line.

According to their website, pHion Balance was developed to create nutritional supplements keenly designed to complement cannabis usage and leverage hemp when applicable. In researching their supplement product line we can connect the dots regarding how it has been crafted to not only enhance cannabis usage, but also support and promote an overall healthy lifestyle while supplementing one’s diet.

“Our bodies were created to be healthy, energetic, vibrant and resilient. But in today’s fast paced life, we all need a little extra help to recharge, re-energize, and rebalance. pHion Balance is focused on developing nutritional supplements that take the guesswork out of supplementing the body in the most healthy way. A ton of work goes into research & development efforts, which are tightly coupled with “Good Manufacturing Practices,” to create a focused group of products geared towards balancing body and supporting your healthy lifestyle.”

What really grabs us most here is how ESSI has truly created multiple lines of revenue for their business spanning, advertising, subscription, and direct product sales. Let’s now take a look at the overall marketplace that ESSI is playing in …

QUESTION TO ASK YOURSELF – What do you get when you combine disruptive technologies, diversified revenue streams with the red-hot Natural Cannabis Medication and Supplementation industry?

THE ANSWER – An explosive multi-billion dollar market opportunity, that while still is in its infancy, is starting to show signs of entering into its hyper-growth cycle that will yield amazing business and investment opportunities!

First, let’s take a quick look at the state of the cannabis industry. It continues to experience strong growth rates as the industry transitions from being viewed as underground and “high risk” into a regulated and legitimate mainstream industry.

As we look back at 2015, here are 5 things to know about the Natural Cannabis Medication and Supplementation market:

1. Legalization – Medical marijuana is now legal in 23 states and Washington D.C.with 5 jurisdictions having passed laws allowing for recreational use (Alaska, Colorado, Oregon, Washington and Washington D.C.).

2. Industry growth – Targeted to be $10 billion by the end of 2015, with $3.1 billion (31%) generated from cannabis sales and the remaining $6.9 Billion (69%) coming from ancillary products and services, with a 30%+ annual growth rate for the years to come, leading to a $44 billion forecasted opportunity.

3. State tax revenue growth – Taxes generated from cannabis sales provide impactful tax revenue dollars to states. For example, in its fiscal year ending June 30, 2015, Colorado generated over $70 Million in tax revenue from medical and recreational marijuana sales. This number is almost double the $42 Million Colorado generated in tax revenue from alcohol sales in the same fiscal year.

4. Boost to the local economy – it is estimated that for every $1 spent on medical and recreational cannabis, there is an infusion of approximately $2.60 to the local economy, which is termed the “marijuana multiplier” effect.

5. Investors are coming – Venture capitalist and PayPal co-founder Peter Thiel’s investment in Privateer Holdings, a cannabis-focused investment fund, is an indicator that sophisticated investors are entering the cannabis industry which has to also spark Wall Street’s attention. Of interest to note, Peter Thiel’s fund that invested in Privateer is also the same fund that made an early investment in Facebook, and key investments in SpaceX and Palantir Technologies.

And here 5 major topics for the the Natural Cannabis Medication and Supplementation industry going into 2016 (and beyond):

1. On-going legalization – More states will legalize cannabis – An August 2015 USA Today article projects that 11 states are in line to potentially legalize recreational marijuana with many states having laws that could come-up for voting in 2016: Massachusetts; Nevada; California; New York; Vermont; Minnesota; Connecticut; Maryland; Rhode Island; Maine; and Delaware.

2. Impact on state tax revenue growth – States that have legalized recreational marijuana use will continue to report the strong tax revenues generated from medical and recreational marijuana sales that will put pressure to lawmakers review their positions.

3. Changing consumer sentiment – It is expected that consumer sentiment will continue to sway and grow in favor of some form of federal legalization of cannabis because of the growing body of information about the medical benefits of cannabis, and the cannabis industry’s economic impact on creating local jobs that cannot be easily transferred to foreign countries.

4. Growth of consumer market – Migration of fragmented, underground consumer market into above-ground, organized market that will be a major catalyst start to attract new cannabis users.

5. Celebrity brands are coming – As the consumer market continues to grow, expect a flood of new lifestyle-branded, celebrity-endorsed cannabis products, e.g. Willie Nelson and Whoopie Goldberg have both recently announced new ventures.

Entrepreneurs have taken notice and are creating business ventures with a specific spin on the cannabis lifestyle!

Let’s now tie it all together – ESSI is spot on with their business plan and model: educational content, directory listings, activity tracking, social networking between consumers and professionals, advertising, e-commerce, and mobile delivery.