Last month, we highlighted American Cannabis Company Inc. (OTC: AMMJ) as a United States (US) cannabis operator that was flying under the radar.
A key reason for our bullish view on American Cannabis Company is related to how the business has evolved and how it is differentiated from other US operators. A core pillar of our thesis on the US Cannabis operator is related to how it is levered to the environmental, social or governance (ESG) investment theme.
So far this year, ESG has been one of the most important themes on Wall Street and we believe the companies that have made this focus a priority are better positioned over the long-term. One of the ways that American Cannabis Company has enhanced its ESG component is related to how it’s proprietary potting mix, SoHum Living SoilsÒ has been recognized as both OMRI Listed® and Clean Green Certified.Ò
In the early 2000s, the Clean Green CertifiedÒ program was created to regulate legal cannabis-products that claimed to be organic. The program was developed to help farms and products be granted an organic certification and is based on the US Department of Agriculture’s (USDA) national organic program.
American Cannabis Company is one of the few Colorado-based cannabis companies to be granted the Clean Green certification and consider this to be an important differentiator for the business. Across the globe, Clean Green cultivators and processors have won more awards than any other cannabis certification program and we find this to be an important aspect of the story.
Since cannabis is illegal at the federal level in the US, there is not a similar organic certification to what fruit and vegetable growers can receive from the USDA. The Clean Green certification program was developed to fill this void by making sure that cannabis flower and products meets the exact same set of standards.
The Clean Green certification provides consumers with a level of comfortability as it relates to the sustainability of the conditions in which the product was grown, the way the plants were cared for as they grew, and how the crop has been processed and stored. The program has separate certification processes for both cultivators and processors, and we are favorable on American Cannabis Company’s ability to be granted the designation.
There are several stages in the application process for the Clean Green certification. We believe the company’s ability to satisfy these stages is a testament to the level of expertise the management team has in the cannabis industry. From cultivating to licensing, American Cannabis Company’s leadership team has a proven track record in several major US markets and consider the strength of the team to be a core pillar of the story.
SoHum was developed as a living soil that contains all the required microbial nutrients to sustain a cannabis plant through both the vegetative and flower cycles using water only. Over time as the company has worked to perfect its blend to maximize the production of cannabinoid and terpene profiles.
Recently, SoHum Living Soils® was awarded an official certification from the Organic Materials Review Institute (OMRI). The company’s target market for SoHum products are both licensed commercial cannabis cultivation operations as well as smaller home-based home growers that are focused on growing cannabis organically.
When you combine the OMRI certification with the Clean Green certification, it is easy to understand that American Cannabis Company offers a best-in-class solution to cultivate clean green cannabis. We believe this provides the company with an important differentiator from other cannabis businesses and consider this to be an important aspect of the story.
In the cannabis industry, products are tested before they are allowed to be sold to consumers. We believe that American Cannabis Company has a recipe to release premium organic products to the market and find this to be a core pillar of the long-term growth opportunity. We are favorable on the amount of time that has been spent on being granted these important certifications and expect the organic aspect of the story to resonate with consumers.
We believe the market does not appreciate the amount of human capital that makes up American Cannabis Company’s leadership team. At current levels, we believe the US cannabis company has a compelling valuation. By focusing on the both the plant and non-plant touching side of the cannabis industry, we are of the opinion that the story has been further de-risked and are bullish on the growth prospects that are associated with the business.
If you are interested in learning more about American Cannabis Company, please send an email to support@technical420.com with the subject “American Cannabis Company” to be added to our distribution list.
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Pursuant to an agreement between StoneBridge Partners LLC and American Cannabis Corporation we have been hired for a period of 90 days beginning October 1, 2021 to publicly disseminate information about (AMMJ) including on the Website and other media including Facebook and Twitter. We are being paid $5,000 per month (AMMJ) for or were paid “ZERO” shares of unrestricted or restricted common shares. We plan to sell the “ZERO” shares of (AMMJ) that we hold during the time the Website and/or Facebook and Twitter Information recommends that investors or visitors to the website purchase without further notice to you. We may buy or sell additional shares of (AMMJ) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.
Authored By
Michael Berger
Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.
