Medical Kiwi is one of few companies focused on re-branding medicinal cannabis. Since the amendment of the Misuse of Drugs Act 1975 took place back in 2018, the company has begun to pave their way by carving a significant share within the cannabis industry. With already applying for the licenses required, they plan to cultivate, produce and sell medical and nutraceutical cannabis products to their consumers.
The basis of operations will involve researching and developing their business as well as creating a base to market and manufacture their product to the masses. Medical Kiwi has managed to complete significant milestones within their journey, which includes securing a greenfield site for their state-of-the-art facility and conducting further product development and research. They have also successfully raised their first round of seed money being NZ $1 million and commenced their second wave in July 2019 with a plan to further their seed to $20 million, to continue product and company growth. To achieve these numbers, Medical Kiwi plans on selling 300,000 shares of their business at NZ $66 per share to independent, wholesale and retail investors.
Until recently, cannabis has been a globally prohibited substance with most people completely unaware of its medicinal effects and the cost of the product, leaving people with an inability to afford and consume it. Scientists believe that the properties within cannabis can positively impact a range of physical and physiological properties. Being on high-demand in most overseas Western countries who have already legalised the research and development of the product, the supply and demand of medicinal cannabis is increasing and in-turn causing a pressing issue on quantities to distribute to the masses. Since the passing of the legislation, there is now an opportunity for companies like Medical Kiwi to leverage New Zealand’s provenance, reputation for innovation and areas of competitive advantage to cultivate, produce and sell medicinal and wellbeing cannabis products domestically and globally.
With further funding, Medical Kiwi will use NZ $12.5 million towards the building phase of their 8,000 – 10,000m2 facility, which will include a cultivation space, warehouse, laboratory and offices. A further NZ $4,950 million for the plant and equipment, including the use of solar drying tunnels, extraction plants, lighting and security. Also, for market entry NZ $1,850,000 will go towards distribution and marketing.
Medical Kiwi plans to reach full capacity of their facility within four years with staged building costs within this period. In total production by early 2024, the 8,000 – 10,000 m2 facility is to produce 30,000 – 35,000 tonne of dried product per annum, which today is valued between NZ $100-110 million. Medical Kiwi has begun building international relationships and has calculated that they will receive white-label import products by the end of January 2020 and expect to see sales revenue from March 2020.
For investor interest contact Medical Kiwi here.