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PI Financial initiated coverage on ABcann Global Corporation (TSXV: ABCN)

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Analyst Jason Zandberg gives the company a buy recommendation along with a speculative risk rating and a 12-month target of $2.25, a premium of 181% to the $0.80 price on May 3rd, the day the report was issued.

Additional Information:

Company: ABcann Global Corporation
Website: http://ww.abcannglobal.com
Stock Symbol: TSXV: ABCN
Date Published: May 16, 2017
Transcript: Available

Video Transcript:

I’m Megan Edwards for Investmentpitch Media

Today’s buy recommendation comes from PI Financial.

PI Financial has initiated coverage on ABcann Global Corporation (TSXV:ABCN), which recently began trading on the TSX Venture following its qualifying transaction with CPC Capital Pool company, Panda Capital.

Analyst Jason Zandberg gives the company a buy recommendation along with a speculative risk rating and a 12-month target of $2.25, a premium of 181% to the $0.80 price on May 3rd, the day the report was issued.

ABcann Global owns 100% of ABcann Medicinals, a Canadian medical marijuana company licensed to carry on business as a producer and seller of medical cannabis, through its facilities in Napanee, Ontario.

The report estimates that ABcann produces in excess of 250 grams per square foot per annum, among the highest yields within the Canadian sector.

These yields are possible due to ABcann’s computer-controlled growing environment that monitors and controls several growing variables to maximize growth and minimize or avoid disease.

The company’s systems can produce a consistent environment which will result in a consistent chemical compound from plant to plant and from batch to batch.

This consistency puts ABcann in a strong position for potential medical device partnerships and clinical trials that require pharma-grade consistency in its delivery.

The company has exported seed to the State Government of Australia and dried flower to Israel and is expected to begin shipping product to Germany this year.

Health Canada has granted a license to build a new 70,000 square foot facility which is expected to produce 10,000 to 20,000 kilograms per annum depending on single or double-layered grow rooms.

Analyst Jason Zandberg stated: “We are forecasting ABcann to reach breakeven by Q218 and ramp up sales to $30.3 million in FY18 and $74.2 million in FY19. Our EBITDA projection for FY18 and FY19 is $8.4 million and $24.6 million respectively.”

The shares are currently trading at $0.87, well below the $2.25 price target, and with 99.6 million shares outstanding, the company is capitalized at $86.7 million.

For more information, please visit the company’s website www.abcannglobal.com or contact Aaron Keay, CEO, at 604-323-6911 or by email at aaron@abcannglobal.com.

For investor relations, contact Leo Karabelas at 416-543-3120 or by email at leo.k@abcannglobal.com

For more information about PI Financial or to obtain a copy of their research report, contact your nearest PI Financial office. Their branches are listed on their website at www.pifinancialcorp.com.

I’m Megan Edwards for Investmentpitch Media