Addition of EnWave Corporation to Popular Cannabis ETF Generates Increased Liquidity Within US Markets
Innovation continues towards the development of new applications for Radiant Energy Vacuum (REV) technology, across many different sectors. However the success for this processing breakthrough in the cannabis sector is one of the major themes supporting the explosive growth for EnWave Corporation (CA: ENW – $2.25 & US: NWVCF – $1.71 & GER: E4U – €1.55).
The rapid growth story for the cannabis sector has been one of the major market trends for several years. Numerous jurisdictions have moved towards legalization for cannabis consumption. This includes acceptance for legitimate medicinal treatments, and also for recreational use. A corresponding increase in the cultivation of cannabis plants is underway to meet this new demand.
Research into new treatments and medicinal applications for the plant is also increasing. CBD oil, produced from processing of cannabis and hemp plants, is emerging as a complimentary product with enormous potential. The scope of the cannabis sector is evolving and many companies are active in the space.
REV processing is now becoming established as the superior option for drying cannabis and hemp plants. The system affords advantages of faster and more uniform processing, with less waste and lower costs. In addition, the precise moisture control ensures the ideal quality for secondary processing to extract CBD oil.
Processing Advantages Establish Foundation for REV Technology in the Cannabis Sector
As leading companies in the sector have recognized the efficiency of REV technology for cannabis processing, high value sales and royalty agreements have been arranged. There are currently three commercial royalty-bearing license agreements underway for processing of cannabis in Canada. One similar deal has been established for hemp processing within the United States. The pace of the sales transactions for participants in the cannabis sector has accelerated.
For cannabis producers, the production of a premium product line will enable marketing and price point advantages. Meanwhile, the use of efficient REV technology contributes to cost savings and reduces losses from spoilage. These factors will lead to higher profits for the cannabis companies that are licensed to use REV processing. Therefore, it is likely that other producers within the sector will seek to build partnerships with EnWave to gain access this processing advantage.
Addition to The Cannabis ETF Builds Greater Trading Presence for US Based Investment
The importance of REV processing has now again been recognized with the inclusion of EnWave in a cannabis sector Exchange Trading Fund (ETF). ETFs have become a popular option for investors to gain leverage to a range of companies within a specific sector with just one purchase. By holding a basket of representative companies, an ETF is structured to track the market performance of the sector.
This week EnWave reported that it has been added to The Cannabis ETF. Trading on the New York Stock Exchange (NYSE – THCX), this ETF enables leverage to EnWave for US market participants. There are a total of only 35 different companies held within the basket of stocks currently included in the THCX. The ETF stated that EnWave was included as business providing ancillary services related to the sector. A wider diversity of companies is desired for the ETF, beyond the typical cannabis cultivation and marketing stories. This positive association for EnWave within a growing sector builds further appeal for the Company.
Some US based investors do not have access to trade Canadian-listed stocks. The popularity of the cannabis sector has led to increasing participation using The Cannabis ETF. Therefore the ETF addition will increase the scope of ownership of EnWave shares within the United States.
This comes in addition to the inclusion of EnWave within the Horizon Marijuana Life Sciences Index (TSX – HMMJ), another prestigious ETF. Participation within these ETFs garners further validation of the successful innovation of REV processing for cannabis producers.
It was not that long ago that the cannabis sector represented just a promising opportunity for investigation among many potential applications for REV processing. How things have changed! The subsequent technology breakthrough vaulted EnWave to the forefront of processing options for the sector. Meanwhile the expectation for additional contracts and partnerships in the future builds further growth potential.
Being a member of the select club of The Cannabis ETF will contribute to greater overall liquidity for the trading of EnWave shares. The NYSE provides a much higher average trading volume than the typical daily action on the TSX Venture. Leverage to the rapid growth of the cannabis sector ensures EnWave will continue to rank among the best small cap stocks to invest in.
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