Get In Early on the Companies Leading Cannabis's Fastest-Growing Market

It's no secret that the cannabis markets in the United States and Canada are the largest in the world. Some estimates value the combined market at $35 billion in just a few short years.

While we're excited about the profit potential soaring up from these regions, there's a faster-growing market that deserves investor attention right now...

In just a couple of years, Latin America has stepped out from the shadows. Consumer demand is skyrocketing, labor is dirt cheap, and the geography offers the perfect growing conditions - an ideal combination for huge margins.

Revenue in the region is starting to ramp up as well. Legal sales in 2018 were around $125 million, but analysts expect this to explode 100-fold to $12.7 billion by 2028.

And we're seeing new evidence to support these estimates every day. Large cultivation operations are popping up. Deals are being signed to export Latin American cannabis to Europe and Canada.

But most importantly, the opportunities in Latin America are starting to capture the attention of the world's largest cannabis firms. Newer companies are even getting their operations up and running in these countries.

This, in turn, gives cannabis investors nearly endless opportunities in yet another growing cannabis market - and a chance to get in on the two firms that have a leg up on all the rest...[mmpazkzone name="in-story" network="9794" site="307044" id="137008" type="4"]

The Latin American Gem with Power at the Helm

Given its smaller size, you may not have heard about Khiron Life Sciences Corp. (OTCMKTS: KHRNF). But between its multinational footprint, high-profile partnerships, and top-tier management team, it is truly impressive.

Its reach is extensive. It has products or operations in nine countries throughout Latin America. And it comes at just a US$113 million valuation.

Despite its Canadian headquarters, all of its assets are in Latin America.

There's a lot to unpack with Khiron's operations, so let's begin with cultivation and processing.

Currently, it has an 80,000-square-foot greenhouse and GMP-certified extraction lab. In total, it can cultivate 24,500 kilograms of cannabis annually. But an ongoing expansion will bring its cultivation to 1.9 million square feet and its annual capacity to nearly 160,000 kilograms.

To further add to its cultivation assets, Khiron has entered into a joint venture with DayaCann, a medical cultivator in Chile. The agreement entitles Khiron to produce 1,000 kilograms of cannabis in Chile.

Khiron is proving that Latin America is the best place to cultivate cannabis. In Colombia, it's experiencing a cost per gram of US$0.26.

In Canada, producers are experiencing costs of up to US$3.01 per gram.

To move its low-cost cannabis, Khiron developed a number of product lines and has established multiple distribution networks.

Khiron is developing brands across the medical, adult-use, and wellness categories. Each are distributed and sold through different avenues.

Its medical products are offered under the Khiron brand. Its products include THC and CBD and different combinations and formulations of both: high-THC strains, THC and CBD blends, and pure CBD.

These medical products are distributed by doctors via prescriptions and clinical networks. One such network is ILANS, a Latin American institute for neurological health that has over 119,000 patients.

The institute is also looking to enter Colombian pharmacies. For one, it's rolling out Khiron-branded pharmacies in major cities. But it also signed an agreement to distribute its products in over 900 pharmacies throughout the country.

For recreational products, Khiron has an agreement with Dixie Brands Inc. (OTCMKTS: DXBRF), a leading branded products company that we recently mentioned is also making headway in the United States' latest cannabis hotspot, Oklahoma. Dixie distributes Khiron-branded cannabis products throughout Latin America.

Khiron has also developed Latin America's first CBD-infused beauty products under the Kuida brand. It's the first product of its kind in Latin America and is currently selling in Colombia and Peru.

In fact, through its Dixie Brands partnership, the Kuida product line will make its way into the U.S. marketplace.

And that's only the beginning of Khiron's expansion plans.

The company is heavily targeting entrance into the emerging Mexican market. And Khiron will have a huge leg up on its competition throughout the expansion process.

Vicente Fox, a former president of Mexico, is on the board. With this connection, Khiron is establishing itself in the Mexican market by hosting educational cannabis events with Centro Fox, a think tank run by the former president.

The organization is hoping its educational efforts will help generate credibility around the Khiron brand and help it establish a widespread customer base.

Overall, Khiron ticks a lot of boxes. It has the infrastructure, it's moving into high-growth areas, and it has a lot of pull at the highest levels.

Finally, we wanted to take a look at a recent IPO that's putting Canadian growers to shame.

More Cultivation Capacity Than All of Canada Combined

The region's leading producer currently has 1 million square feet of cannabis under cultivation, and this will soon double by the end of the year. But those numbers still pale in comparison to this company's full potential.

In total, this company can bring its cultivation footprint to over 15 million square feet, equating to over 5.5 million kilograms of cannabis annually.

PharmaCielo Ltd. (OTCMKTS: PCLOF) is an early leader in Colombian cannabis production. In fact, this small medical marijuana producer was the first to grow legal cannabis in the region.

Since then, it has rapidly become the largest grower in Colombia, and it has a massive expansion plan that could make it the largest cannabis grower in the world.

And PharmaCielo's cost advantage compared to U.S. and Canadian growers is why this company deserves your attention. By the time Canadian companies can get cannabis production costs to less than $1 per gram, PharmaCielo will be doing it for closer to $0.05 per gram.

It will start selling cannabis in Colombia - and it will expand to Mexico, Brazil, and Europe. Most countries in the EU are relying on Canada for medical marijuana, but it won't be that way much longer if PharmaCielo has its way.

You see, PharmaCielo is a customer-to-contract growing business, which is how it's able to gain such an immense footprint.

Because along with the traditional growing facilities it owns, it has agreements with a number of Colombian farmers. These farmers get paid by PharmaCielo to cultivate cannabis on their land and in turn give the crops to the company.

To deal with its enormous and increasing capacity, PharmaCielo began to build out its processing capabilities and developed a complex sales strategy.

The company is operating out of a temporary extraction facility where it has processed 600 kilograms of cannabis throughputs so far. Ongoing expansion will increase this capacity to around 70,000 kilograms annually.

PharmaCielo has a two-part strategy for selling its cannabis - one within Colombia and one for all other countries.

In Colombia, it sells to medical cannabis patients through a telemedicine firm it acquired back in July 2019. That has given PharmaCielo access to 80,000 patients, a number the company expects to increase to 350,000.

This means PharmaCielo directly sells cannabis products to all of these patients. It also sells products directly to established Colombian pharmacies. Finally, it wholesales its unbranded products to other Colombian producers.

In fact, this strategy is how PharmaCielo will also conduct sales outside of Colombia. While this won't allow the company to get the premium prices it might get by selling a branded product, its low costs still leave room for great profit.

The company also entered a joint venture with a Mexican medical distributor in January of last year. Through the agreement, PharmaCielo supplies its partner, Mino Labs, with its medical-grade cannabis oil to be distributed throughout the country.

The Latin American market is gearing up to explode, and we want to make sure you can take advantage of this exciting opportunity in 2020.

But we didn't want to stop there...

You see, the legal cannabis market brought in $12.8 billion last year. But the real demand for cannabis products? It's estimated at $85.6 billion.

That's a $72.8 billion shortfall between supply and demand... because cannabis dispensaries can't restock the shelves fast enough to meet the soaring demand in this industry.

Analysts are predicting that this could even become up to a $500 billion global market as countries around the world - like those in Latin America that we just talked about - recognize how lucrative legalization could be.

Find out how you can start capitalizing from this market almost immediately right here...

Follow Money Morning onFacebook and Twitter.

About the Author

Millions of Americans are hungry for information on cannabis investing. And for good reason…
Cannabis is the fastest-growing investment opportunity of all time. It represents a turning point for investors.
That’s what inspired the launch of The National Institute for Cannabis Investors – The Institute, or NICI, for short.
The Institute brings together the brightest minds in cannabis investing and research, all to give investors the information and guidance needed to make a fortune.
NICI is the most powerful cannabis-investing tool available to investors who want to achieve their dreams of financial freedom. You can learn more about how to get free access to their cannabis profit research here.

Read full bio