Blockstrain Technologies Corp. Strong After Strategic Partnership Announced
Blockstrain Technologies Corp. (CVE:DNAX) has issued an under-the-radar press release—but an interesting one for early-stage investing enthusiasts nonetheless. The company joined forces with biopharma in what could be the early stages of the next news cannabis investing frontier—supply chain management.
Yesterday morning, Blockstrain Technologies they has signed a letter of intent to integrate BLOCKStrain’s proprietary technology into Abattis Bioceuticals Corp. product and services ecosystem. Both parties seek to enable Abattis clients to arrange for sales, shipping, testing and analysis of their products while giving comprehensive visibility over entire product lifecycles.
In other words, it’s an entire supply chain management solution—except it uses blockchain applications to get there.
In a highly regulated market where large volumes of standardized testing take place, such applications are important. Unlike standard cash crops, Licensed Producers need to test for more than just safety (pesticides). There’s bioactive components to consider (THC/CBD and terpenes), and mold—in which cannabis is particularly susceptible. There’s also strain genetics to catalog, where hundreds of different iterations will be hitting the market come fall.
Thus, testing standards in the cannabis industry are exceedingly high. With the voluminous amount of data needed to satisfy regulator demands, the logistical quagmire is quite evident. Early-stage companies are rushing to fill a void by providing blockchain-based SaaS solutions which are more efficient, accurate, and save significant unit labor costs to boot. Ultimately, faster results means a faster supply chain, which further enhanced production cost benefits.
That’s really what makes this press release so interesting and noteworthy. While cannabis investors are mainly focused on today’s best LP investments, cannabis supply chain companies are flying completely under the radar. Blockstrain’s latest deal with a reputable entity has vaulted the profile and legitimacy of this early-stage cannabis niche.
Because it’s not about top line revenue growth (no financial details were disclosed), big-time distribution deals or 1 million square foot greenhouse facilities. It’s about looking ahead to the next untapped cannabis sector play, and Blockstrain has just made an significant move to stake its claim.
DNAX is currently trading higher by $0.10 to $0.90/share (↑12.50%). More importantly, volume should exceed record high volume beyond 943k shares—the benchmark established yesterday. This comes on the second day after the news was announced—a sign investors are taking notice. As the new entity began trading on May 23, the only technical that matter to the upside is $1.20/share. Watch for upside fireworks whenever that level is exceeded, although that may take time.
Also keep in mind, WeedMD Inc. has a small incubator investment in the company. In March, WeedMD announced it had made a strategic investment in the latter, believing it to be “best positioned to protect our intellectual property by further validating and securing our best-in-class genetics”. WeedMD is also another high-profile of Blockstrain Technologies.
Midas Letter will continue to cover this niche segment of the market, as events warrant.
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