Market Overview

How Blockchain Is Revolutionizing The Marijuana Industry


It's no secret - marijuana is big business.

With wide-spread legalization expectedly approaching in Canada, and other parts of the world likely to follow, companies are racing to claim their slice of what could be a $63-billion annual global market.

Valuations in most every sector of the industry have exploded.

Unfortunately, there's just one ugly problem investors are ignoring.

In an industry where a popular cannabis strain could be worth millions or even billions of dollars, growers are struggling to protect their valuable intellectual property.

Ownership disputes have already kicked off, with legal battles underway.

Fortunately, Vancouver based BLOCKStrain Technology Corp (TSX-V:DNAX) is working on a definitive technology solution.

They've introduced the world's first fully integrated and secure Blockchain platform to register and track cannabis IP from genome to sale.

It will record potentially billions of data points across the marijuana logistics chain - positioning BLOCKStrain to become the "big data" equivalent of Google for pot.

Here are five reasons investors should pay attention to BLOCKStrain (TSX-V:DNAX)

1) The Wave to Legalize Marijuana For Widespread Use

2) Huge Intellectual Property Concerns

3) Blockchain Technology for Pot

4) The Search Engine for Cannabis

5) Major Industry Partners

The Birth Of A $63-Billion Industry

We're on the eve of a global marijuana revolution.

By mid-summer, Prime Minister Trudeau is expected to sign legislation legalizing the production and sale of cannabis across Canada.

Medicinal marijuana is already legal in Canada and in 20 U.S. states, and nine additional states - including Colorado, Nevada and California – have legalized it for recreational purposes.

Global spending on legal cannabis is expected to spike to $63 billion by 2024.

Deloitte predicts the Canadian market alone might be worth $22.6 billion.

This isn't just a North American story either.

Germany is poised to be the leader of the European cannabis market, and Italy is expected to be second with $1.2 billion in sales by 2027.

In South America, countries like Uruguay have already gone fully legal.

Early stage pot investors have earned stunning returns in the sector. Medical innovators like OWC Pharmaceuticals have shot up as much as 5,324 percent.

Growers like Canopy Growth have popped 1,291 percent.

But there's a huge problem in the industry that nobody is talking about. And, it's a problem BLOCKStrain (TSX-V:DNAX) is leading the charge to solve.

A Major Intellectual Property Dilemma

Marijuana has been illegal in most of the world since 1923.

Growers were operating in a black market. Unlike with cotton or tobacco, you couldn't file a patent if you invented a new, superior strain of the plant.

Up until now, it was impossible for breeders to secure the rights to their strains. There are some 1,420 individual strains of cannabis grown world-wide.

That's a big problem when cannabis plant breeds can vary by yield, fiber and cannabinoid content, flavor and aroma - not to mention dozens of other factors.

Proof of ownership for a specific strain of cannabis is paramount in a multibillion dollar industry. Before now, there was simply no way to do it.

Nor was there any way for consumers to verify what they were buying.

That's not just bad for business. Given the 500 known chemical compounds in a single marijuana plant, it's also incredibly dangerous for the consumer.

With legalization looming, the status quo needs to change… and fast!

Regulators in Canada have stated their intention to "establish an efficient, accountable and transparent system for regulatory oversight of the supply chain."

This requires the collection and management of a tremendous amount of data.

The industry will need to start tracking factors like pesticide use, quality control, as well as possession limits and serving sizes in order to validate and verify products.

That's where BLOCKStrain comes in.

How The Blockchain Will Protect Pot Growers

BLOCKStrain Technology Corp (TSX-V:DNAX) is introducing the first blockchain based platform that registers and tracks cannabis IP from genome to sale.

The technology was invented by co-founder Tommy Stephenson.

He has been developing enterprise software for Fortune 500 companies for nearly 20 years and previously served as the CTO of California based Ghost Group, Inc. - the largest cannabis software company in the world, with its flagship product

BLOCKStrain will keep an immutable, cryptographically secure record of the entire logistical chain - establishing a single source of truth for cannabis strains and their ownership.

How it works is simple.

User groups - including cannabis breeders and growers of all sizes - register by creating an account with BLOCKStrain, which starts the process.

They submit seeds, flower and post-extraction product for testing to a registered and approved testing facility, which then submits test results to BLOCKStrain.

After verification by the network - a Registration Affidavit is auto-generated and given a unique "BLOCKStrain Address" along with a traceable QR Code.

This QR code can be integrated into product packaging.

Producers, patients, consumers and regulators will be able to not only verify the product's quality and authenticity - but can also rate it, write reviews and share opinions.

Growers and breeders will gain the ability to protect their IP. Governments will be able to effortlessly manage regulation, and monitor compliance in real time.

Consumers will finally know what they're really buying.

And BLOCKStrain (TSX-V:DNAX) will be central to every single transaction.

The Search Engine Of Cannabis

According to The Economist, data is now the most valuable commodity on Earth. It's more valuable than oil or gold, and a lot more critical for most businesses.

Google, Facebook and Twitter owe their multi-billion-dollar valuations to it.

BLOCKStrain (TSX-V:DNAX) will eventually have billions of data points on every step of the cannabis logistics chain - from breeders to growers, distributors and consumers.

They'll be the biggest "Big Data" player in the marijuana industry.

And, that means huge potential monetization opportunities.

The company intends to collect fees on everything from strain registration and certification, to analytics and custom software development on a SaaS model.

Bottom line: by offering a secure API network they've made it easy for testing providers, grow facilities, app and software developers, research groups and major supply chain platforms to build cannabis-centric applications.

Their technology will be at the center of innovation for a potential $63-billion industry. As we speak, BLOCKStrain is already building out their ecosystem.

A Major Lead Client And Investor

On March 19th, 2018 - WeedMD Inc. announced a strategic investment of $500,000 into BLOCKStrain Technology Corp (TSX-V:DNAX).

WeedMD is a licensed producer under the Canadian government's Access to Cannabis for Medical Purposes Regulations (ACMPR).

It has a 26,000-sq.-ft. indoor facility in Ontario and a second facility under development, with another 610,000-sq.-ft. of capacity.

In addition to its own production, the company has entered into supply agreements and other strategic relationships to expand its capacity.

With this deal, WeedMD has become Canada's first licensed producer for medical marijuana to integrate blockchain technology into its ecosystem.

"We are thrilled to have the strategic support of WeedMD in the development and launch of our technology-based solutions," said CEO Robert Galarza.

"By utilizing BLOCKStrain, WeedMD can now expand its library of world-class genetics while building customers' trust."

For BLOCKStrain, the addition of a world-class licensed producer serves as a valuable proof-of-concept for its platform, as well as a source of early funding.

What's Coming Next

It could be only a matter of weeks before full legalization comes to Canada. And as this catalyst creeps closer, investors should keep their eyes on BLOCKStrain (TSX-V:DNAX).

BLOCKStrain is the first company to use blockchain technology to tackle the problem of testing and verifying large quantities of cannabis for mass consumption.

It has the potential to save producers and distributors a fortune in regulatory compliance costs by simplifying the whole process, all while protecting their valuable intellectual property from infringement.

BLOCKStrain (TSX-V:DNAX) has the potential to become the backbone of the world's cannabis IT infrastructure - tracking billions of data points in real time. In an era where data is more profitable than oil, that's an incredible business proposition.

Other companies looking to harness technology to transform their industries:

Descartes Systems Group Inc. (TSX: DSG) (commonly referred to as Descartes) is a Canadian multinational technology company specializing in logistics software, supply chain management software, and cloud-based services for logistics businesses. The company is making waves in the tech industry with its futuristic products and visionary leadership.

As a key stock in Canada's tech boom, Descartes Systems is a smart choice for investors. The company has a huge market cap of $2.6-billion and the stock has grown by nearly 20% YTD.

Kinaxis Inc (TSX:KXS) is a provider of cloud-based subscription software for supply chain operations. The Company offers RapidResponse as a collection of cloud-based configurable applications. The Company's RapidResponse product provides supply chain planning and analytics capabilities that create the foundation for managing multiple, interconnected supply chain management processes, including demand planning, supply planning, inventory management, order fulfillment and capacity planning.

Kinaxis is a growing company, but the company has already carved out a significant piece of the pie. As a leader in its field, Kinaxis is a force which investors are keeping an eye on.

Computer Modelling Group (TSX:CMG) is a software technology company producing reservoir simulation software for critical infrastructure. Computer Modeling Group LTD. Is a tempting trade for investors as it brings together two essential industries - tech and resources- which are not going anywhere any time soon. Especially as the need for security grows, a tech company involved in the oil and gas industry has an incredible opportunity to offer other services.

While Computer Modelling Group focuses on the resource industry, its technology is definitely breaking ground. Founded nearly 40 years ago by Khalid Aziz, a renowned simulation developer, the company has proven that it has staying power. As the resource industry meets technology, this will be a stock to pay attention to.

Avigilon:Avigilon develops, manufactures, markets and sells HD and megapixel network-based video surveillance systems, video analytics and access to control equipment. We expect strong continuous growth in the video analytics business and a company such as Avigilon is well positioned to capture market share in the Canadian markets.

As a key player in the digital security marketplace, it is clear to see why Avigilon made the list. With its technology continuing to move forward, investors can count on Avigilon to provide lasting value.

Sandvine Corporation: Ontario is seeing some vibrant cybersecurity growth, as well. Sandvine corp. is engaged in the development and marketing of network policy control situations for high-speed fixed and mobile Internet service providers. Products include Business Intelligence, Revenue Generation, Traffic Optimization and Network Security.

The company's high-quality products and solidified place in the stock market has helped Sandvine company grow 52% year-to-date and we expect strong growth throughout 2017.


Disclaimer for Forward-Looking Information

Certain statements in this press release are forward-looking statements and are prospective in nature. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. Forward-looking statements in this news release include that Blockstrain's technology will work as well as expected; that the cannabis industry in Canada and worldwide will continue to grow and meet sales expectations; that Blockstrain's technology will successfully validate and verify products, providing security for LPs and transparency for users; that Blockstrain can dominate the Canadian cannabis verification market; that Blockstrain could bring its tech to cannabis markets all over the world; that using the blockchain cuts down on verification costs; that the WeedMD deal could lead to other and bigger such deals; that six more clients are scheduled to come on line, and more partnerships are soon expected to be announced; and that Blockstrain could adapt its technology to service other industries. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements including, without limitation, risks with respect to: that Blockstrain's technology may not achieve the expected results and its accomplishments may be limited; that Blockstrain may not establish a market for its services as expected; competitors may quickly enter the industry; general economic conditions in the US, Canada and globally; the inability to secure financing necessary to carry out its business plans; competition for, among other things, capital and skilled personnel; the possibility that government policies or laws may change; technological change may result in Blockstrain's solutions not be the best or cheapest available; Blockstrain not adequately protecting its intellectual property; interruption or failure of information technology systems; the cannabis market may not grow as expected; Blockstrain's technology may not adapt to other industries; and regulatory risks relating to Blockstrain's business, financings and strategic acquisitions. The Company disclaims any intent or obligation to update publicly any forward-looking information other than as required by applicable securities laws.

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