Cannabis Industry Consuming Energy at An Alarming Rate: Investing in Solutions

HENDERSON, NV / ACCESSWIRE / April 9, 2019 / As per the report, "The Cannabis Energy Report: Current and Evolving State of Cannabis Energy Consumption" published by New Frontier Data, cannabis cultivation (legal and illicit) in the US consumed an estimated 4.1 million MWh of electricity in 2017. This is over 1% of total US electrical consumption! It's like 554,054 Israeli people consuming electricity for an entire year! Not only does this magnitude of energy use create an alarming impact on the environment, but it is a financial concern for the grower as electric costs are one of the top overhead expenses in a grow operation.

According to a 2014 report produced by the NPCC, indoor cannabis production can consume 4,000 to 6,000 kilowatt hours (kWh) of energy per kilogram of product. The equivalent would be a half year of average household consumption. The three main methods of cannabis cultivation used today are: outdoor, greenhouse, and indoor.

One company that could lead the way in solving this major issue is CleanSpark, Inc. (CLSK). The company has developed a microgrid power solution for the cannabis industry, which can reduce energy costs by up to 82%. This represents a huge potential revenue stream for the company. Due to this fact, the company has stated that marketing to cannabis companies is one of their top initiatives for 2019. Recently, the company closed on $5 million round of funding, engaged a firm to navigate their up listing and as far as currently operation go, announced the near completion of a $900k contract to install a CLSK microgrid at a U.S. Marine Corps Base and have been progressing on a $18.3 million deal with NYSE company MAC. This could be big, so start your research today.

Today we are highlighting: CleanSpark, Inc. (CLSK), Constellation Brands (STZ), Canopy Growth Corporation (CGC), Correvio Pharma Corp. (CORV), DURECT Corporation (DRRX).

In recent news, CleanSpark, Inc. (CLSK) (Market Cap: $142.312M; Share Price: $3.43) announced that it has delivered approximately $357,000 in custom electrical equipment to customers and received new orders of approximately $438,000 since the closing of the definitive agreement on January 22, 2019 to acquire the intellectual property of Pioneer Critical Power Inc. The custom equipment backlog has increased to approximately $3.9 million, an increase of approximately 8.3% from the backlog levels on the date of acquisition. Their acquisition of intellectual property of Pioneer Critical Power Inc. has already been a boon for their bottom line.

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Beer and wine sales at Constellation Brands (STZ) (Market Cap: $36.509B; Share Price: $192.34) led their industry in the fiscal year ending February. However, the cash it made from booze was dwarfed by gains on its investment in the cannabis business Canopy Growth (CGC) (Market Cap: $14.659B; Share Price: $42.71) according to the company reported earnings of last week. Recently, it has signed an agreement with E. & J. Gallo Winery to divest approximately 30 brands from its wine and spirits portfolio principally priced at $11 retail and below and related facilities located in California, New York and Washington for $1.7 billion, subject to closing adjustments. The transaction is also subject to the satisfaction of certain closing conditions, including the receipt of regulatory approval, and is expected to close at the end of the company's first quarter of fiscal 2020. The company is trying to reposition itself in the competitive landscape.

Constellation Brands, Inc., together with its subsidiaries, produces, imports, and markets beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. The company sells wine across various categories, including table wine, sparkling wine, and dessert wine. It provides beer primarily under the Corona Extra, Corona Light, Modelo Especial, Modelo Negra, Modelo Chelada, Pacifico, and Victoria brands, as well as Funky Buddha, Obregon Brewery, and Ballast Point brands. Constellation is the No. 3 beer company in the U.S. with high-end, iconic imported brands such as the Corona and Modelo brand families and Pacifico.

Canopy Growth Corporation, together with its subsidiaries, engages in growing, possession, and sale of medical cannabis in Canada. Its products include dried flowers, oils and concentrates, softgel capsules, and hemps. The company offers its products under the Tweed, Black Label, Spectrum Cannabis, DNA Genetics, Leafs By Snoop, Bedrocan Canada, CraftGrow, and Foria brand names.