Vancouver-based blockchain application company Global Compliance Applications Corp. (APP:CSE; FUAPF:OTCQB; 2FA:FSA) is partnering with two other companies to provide affordable ways for growers to connect with customers in the growing hemp industry.
GCAC’s Efixii app and blockchain allow farmers to get feedback from buyers and offer them digital rewards in exchange.
Since 2018, hemp, a species of cannabis that contains only trace amounts of the mind-altering substance THC, has been legal in the United States. It’s used to make everything from CBD to pet bedding, insulation, textiles and biofuel, and the market is set to expand eightfold over the next five years.
The pool of companies that stampeded to be part of the rush has thinned, leaving the stronger companies in control of the field, said Jim Higdon, co-founder of Cornbread Hemp and the author of “The Cornbread Mafia,” about the largest domestic marijuana syndicate in U.S. history .
“It’s a very good opportunity for investment because the market is almost certain to grow,” Higdon said. “And the players who have growth capacity in that market are fewer than they were two years ago.”
“It’s a very good opportunity for investment because the market is almost certain to grow,” Higdon said. “And the players who have growth capacity in that market are fewer than they were two years ago.”
GCAC is partnering with ThingBlu Inc., a Washington state-based software-as-a-service agricultural solution, and B&M Products and Services LLP, an Indiana company that contracts with industrial hemp growers and processors.
The CBD market is expected to grow from USD 2.42 billion in 2021 to USD 15.66 billion by 2028, according to a report by The Insight Partners.
GCAC and ThingBlu provide the app and business solutions, and B&M connects them with growers.
To use an example in another agricultural industry, a coffee grower using the app may have a direct relationship with the end consumer. Via a QR code, the grower can provide a history of the product that is accessible to anyone with the app and a smartphone – where it was grown, its genetic makeup and feedback from other consumers. The consumer can share feedback and get rewards from the grower, like a non-fungible token (NFT).
The program records these things along the way, every step from genetics to planting, from harvest to distribution.
“This coffee grower now has a direct relationship with the end consumer,” said GCAC Executive Director Brad Moore Streetwise reports. “You’ve given small to medium-sized businesses a marketing tool they’ve never had access to. You have connected them directly to consumers.”
The catalyst
Markets are opening up as attitudes towards cannabis continue to change. US President Joe Biden recently pardoned thousands of people charged with simple possession of marijuana at the federal level.
And another non-psychoactive substance in hemp, cannabidiol (CBD), is used for skin care, anxiety, seizures and pain management. The CBD market is expected to grow from USD 2.42 billion in 2021 to USD 15.66 billion by 2028, according to a report by The Insight Partners.
“The growth of the CBD oil market is mainly attributed to the increasing legalization of CBD oil-based products, increasing awareness of the medical use of CBD-based products, and increasing preference for cannabis oil extraction,” the report said. “However, strict government regulations and the high price of commercially available CBD oil products are hampering the market.”
Some predict that by 2030 there will be 9 million acres of land growing industrial hemp, and the global industrial hemp market could grow to as much as US$36 billion by 2026.
Connect through the blockchain
The blockchain that Efixii works with is an electronic distributed ledger system where no one entity, such as a bank, has control. Blockchains are best known for their role in cryptocurrency systems, but they can be used for any database – such as agricultural records and customer interactions.
GCAC launched Efixii in 2020 with its own blockchain. It has the ability to create NFTs.
Moore believes many everyday electronic items will eventually be consolidated into the blockchain, like all your store rewards programs and the other physical cards you might have in your wallet or dangling from your keychain right now.
“I guarantee that in five to seven years, everyone will have single sign-on,” Moore said. “It’s a simpler experience.”
For hemp growers and their customers, it will enable them to connect directly, even when there are other intermediaries involved in the transactions.
“As someone who grew up farming, I know that agriculture runs on very tight margins,” said Kevin Gorman, CEO of ThingBlu. “With the industrial hemp market growing, ThingBlu’s SaaS (software as a service) software analysis of collected workflow and sensor data can play a major role in the viability of hemp farmers. On the blockchain, it is unbeatable.”
Ownership and share structure
GCAC’s top shareholders include CFO and director Alexander Helmel with 2.57% or 5.29 million shares, CEO Moore with 2.54% or 5.25 million shares, Hanan Gelbendorf with 0.81% or 1.67 million shares, and director Jeffrey Hayzlett with 0.08 million or 0.08 million shares. .
The company has a market capitalization of CA$3.99 million, with 206.2 million shares outstanding, 193.9 million of which are free float. It is trading in a 52-week range of CA$0.075 and $0.02.
|
Want to be the first to know about interesting Cannabis, Technology and Cryptocurrency / Blockchain investment ideas? Sign up to receive FREE Streetwise Reports’ newsletter. |
Subscribe |
Disclosures:
1) Steve Sobek wrote this article for Streetwise Reports LLC. He or members of his household own securities in the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsorship fees. The above information is for informational purposes only and is not a recommendation to buy or sell securities. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with: Global Compliance Applications Corp. Click here for more information.
3) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional, and any action a reader takes as a result of the information presented herein is his or her own responsibility. By accessing this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation of investment. Streetwise Reports does not provide general or specific investment advice, and the information on Streetwise Reports should not be considered a recommendation to buy or sell securities. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
4) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the website, may have a long or short position in securities mentioned. Board members, managers, employees or members of their immediate family are prohibited from buying and/or selling these securities in the open market or otherwise from the time of the decision to publish an article until three business days after publication of the article. The preceding prohibition does not apply to articles which essentially only reproduce previously published company publications. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities in Global Compliance Applications Corp.a company mentioned in this article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities in Global Compliance Applications Corp., a company mentioned in this article.
