MARICANN GROUP INC (OTCMKTS:MRRCF): The Youngest Bull In Town

In our most recent analysis of MARICANN GROUP INC (OTCMKTS:MRRCF) which can be read here, we concluded that the company was a strong buy with the long term benefits far exceeding the heavy capital investments the company was making in the short term.Moreover, these investments were, in our view, well negotiated and bought at a discount to their fair value, a factor which alluded to their strong management of costs and optimization of resources.Well, one of the lee ways the company was targeting in a bid to increase their market outreach has just panned out.News just reaching us tells us that a deal which had been alluded to in the previous article has just been concluded.The deal which now allows the firm to create a pharmacy services program enabling pharmacists to counsel and appropriately educate patients in relation to medicinal cannabis is bound to see MRRCF grow by great strides long into the future. This is already being witnessed in their share price.During the time of our last analysis on 24^th October, the company had a market capitalization of about $74 million, a figure which, courtesy of this information, has now risen to a figure just shy of $79 million as can be seen in this chart: MRRCF Daily ChartAs such, we will use this article to dive deeper into the proposed deal and have a look at how MRRCF is bound to benefit from it. Moreover, we will analyze their partner in this deal and what they bring to the table.However, let’s first review the company for the sake of first time readersA Look Into MRRCFMRRCF was founded in 2013 with their headquarters located in Langton, Ontario. They serve thousands of patients using their cannabis brand as a platform to do so.Currently, they are invested in all facets of the cannabis business: cultivation, extraction, analytics and production with their main focus being the Canadian market as they advance towards the international front with their significant investments in countries such as Germany.With the legalization of cannabis in Canada expected to occur in July 2018 as well as the general acceptance of the drug globally, MRRCF is looking at significant revenues going into the future as they position themselves for dominance within this industry: something which they have begun doing.The Art of the DealA lot of marketing goes into the healthcare sector within the sector. In the recent past, the sector’s marketing division has become a ‘big boys only’ club with the large pharmaceutical companies paying top-dollar to get their products into the hands of consumers.MRRCF has seen this and opted to take another route.The company has instead opted to partner with one of the national service providers within Canada as they venture into this space. This partnership, which according to management will ensure that patients are educated on cannabis in addition to other drugs, is in the long run a strategic move to boost their market share through this partnership.However, the question that still lingers is who is this player?Our last analysis of MRRCF brought to light a deal that was being worked out between the company and McKesson Canada Retail Banner Group. Back then, they had just published a letter of intent with the hope of merging forces and growing in the cannabis space within Canada.McKesson Canada Retail Banner Group, which controls 20.01% of The National Association of Pharmacy Regulatory Authorities (NAPRA) and therefore holds one of the largest client bases in Canada, was meant to play the role of partner as they provided education to their patients in Canada is a deal that seems to mimic the current closed deal.

Source:

It is against this backdrop that we arrive at the conclusion that the above discussed deal is most likely the latter.Therefore, with all fingers pointing towards McKesson, the positive impact of such a deal is amazing for MRRCF. The 20.01% control is enough market share to boost their revenues quite significantly and, if played right, serve as a stepping stone for entry into new markets. Over the near and long term, the company seeks to benefit quite significantly from this move.Their CEO, Ben Ward has stated as he made this announcement that:

"We are extremely excited about this important initiative. Pharmacists consistently rank at very high levels among the most trusted professionals, and this initiative will place participating pharmacists at the forefront of patient care as it relates to the use of medicinal cannabis."

Source:With this information in mind, investors are bound to be happy. Our view is that investment in this company over both the short and long term is expected to have significant value add to any investor’s portfolio as growth is imminent. The company’s outlook is thus one full of promise of an upside potential that, so far, seems limitless going into the horizon.ConclusionMRRCF has positioned itself as a global player, investing heavily in its bid to expand its reach. This is expected to reward them handsomely and grow the company in future. Investors would be prudent to ride this wave by investing in this company.We will be updating our subscribers as soon as we know more. For the latest updates on MRRCF, sign up below!Disclosure: We have no position in MRRCF and have not been compensated for this article.