North American Cannabis Holdings, a private conglomerate of several cannabis businesses, just made its first profit since launching back in 2013. You probably haven’t heard of the company, but they’re behind some of the weed industry’s most successful initiatives. Take, for example, the “American Seed & Oil Company,” which North American Cannabis Holdings, Inc. (USMJ) founded in order to study the markets with the highest growth potential. One of those markets is a bit surprising. It’s the cannabis beverage sector. And it’s finally making USMJ some green.
North American Cannabis Holdings Is Finally In The Black
Hearing about the “record sales” in states with legal recreational cannabis is so common that the headlines barely attract attention anymore. Most Americans support legal weed, and nearly 15 percent of adults smoke it, making the plant more popular and mainstream than ever.
Furthermore, weed-legal states are rolling in tax revenue from those sales. And new dispensaries, products, and services are cropping up virtually every day. As a result, the legal marijuana industry has seen a dramatic uptick in investment opportunities. Everyone is eager to get in on the ground level of the cannabis revolution.
With an expanding customer base, a legal framework, and plenty of venture capital, you would think companies wouldn’t have any problems cashing in.
However, due to the legal complexities and large startup costs, many cannabis businesses in the private sector are having a hard time. For example, it took North American Cannabis Holdings, Inc. more than 4 years to turn their first quarterly profit.
Therefore, from an investment perspective, it’s important to know which companies are actually succeeding. You want to invest in companies that can secure long-term financial gains for your portfolio. The recent financial report from USMJ imparts that confidence.
North American Cannabis Holdings’ Report, By The Numbers
The company has been steadily increasing its revenue stream over the past couple of years. But until March 31, 2017, revenue wasn’t exceeding costs.
Specifically, USMJ made $15,000 more in the first 3 quarters of FY2017 than it did in all of FY2016, and posted a 40 percent increase from the same period in 2016.
In Q3 2017, North American Cannabis Holdings posted a gross profit of $117,000. In Q3 2016, that number was just $41,000. That’s a 53 percent spike.
Overall, the company only turned a profit of $7,000. It’s not much, but it’s a healthy sign that the company is showing viability for the long term. As a result, USMJ saw its stock prices jump 14 percent to close the week.
How Did North American Cannabis Holdings Finally Turn A Profit?
The legal cannabis industry is a complex machine with multiple parts. Knowing where to invest is crucial. You want a company that knows the market and how to exploit the areas with the highest growth potential.
By piloting multiple subsidiaries, each with their own specific focus and mission, North American Cannabis Holdings has been able to gain experience in diverse sectors of the legal cannabis economy.
But a few of their pilot programs have been especially successful. That’s because USMJ found success connecting investors with the brightest entrepreneurs in the cannabis industry.
One of the company’s most successful pilots is the AmeriCanna Café. USMJ describes the AmeriCanna Café as a “destination beverage company” that interfaces dedicated and trained staff with consumers interested in cannabis-infused health drinks.
As previously mentioned, the cannabis beverage sector is one area where USMJ plans to make its mark. The AmeriCanna Café will pick up where the company’s current cannabis drink sensation left off. North American Cannabis Holdings successfully distributed their DuBe Hemp Energy drink.
Now, with the AmeriCanna Café, they plan to offer blended hemp infused coffee, cold pressed juices and smoothies. Additionally, the company will carry raw hemp seeds and other hemp-infused raw foods.
The focus on hemp products stems from the company’s dedication to the health benefits of CBD. CBD is a non-psychoactive component of cannabis responsible for many of the plant’s therapeutic applications.
However, as the company grows and expands and as state and federal laws permit, they will add THC beverages and edibles to the AmeriCanna Café menu.
A Commitment to Cannabis and Health
North American Cannabis Holdings, Inc. is “founded on the core belief that cannabis makes people’s lives better.” The company acknowledges how cannabis can fight disease and improve wellness. Furthermore, they understand the importance of being environmentally sustainable. As such, USMJ is committed to cannabis and health, and aims to develop and pilot the best cannabis products and services.
And they’ve done all of this while steadily increasing the return on investment. Besides posting their first every quarterly profit, North American Cannabis Holdings has continued to reduce its overall liability. At the end of Q3 in 2016, overall liabilities was $3.5 million. Now, in the same quarter that it posted a profit, liabilities are down to $2.5 million.
The company anticipates revenue growth to continue, making USMJ a viable company to add to your investments in the cannabis industry.