After being part of one of the biggest cannabis acquisitions ever, Marc Lustig is ready to catch the next big opportunity.
The chief executive officer of Origin House, the trade name of CannaRoyalty Corp., isn’t sitting idle after U.S. cannabis operator Cresco Labs Inc. acquired his company, in a friendly, all-stock deal worth $1.1 billion.
Founder of CannaRoyalty Corp., Trichome Financial Corp. and Cannabis Royalties & Holdings Corp., Marc Lustig is an entrepreneur and businessperson who has been at the head of 7 different companies and currently occupies the position of Executive Chairman of IM Cannabis Corp. and Chairman of Wellfield Technologies, Inc. Mr. Lustig is also on the board of 7 other companies.
With an impressive resume and significant bankroll, he continues to pursue large growth opportunities in burgeoning sectors.
His resume includes the following positions:
He received an MBA and a graduate degree from McGill University.
We are already seeing strong volume, before the market appreciates this company's value
Watch for a volume over 400k the first hour of market open for possible move, and over 600k on daily close.
Volume will precede the move, key indication of our push coming and an impulsive break to the upside.
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CULT Food Science (OTC:CULTF) is launching some of the world's first branded food products that include lab grown meat. CULT is positioned as a first mover in this industry that McKinsey estimates will be worth $25 billion by 2030.
This topic is extremely polarizing, as most progressive shifts in culture and tradition are. Some people love this concept (animal lovers, vegetarians, environmentalists) and some people hate it. Polarization creates opportunity for those with the self awareness to put ego and emotion aside and look at the facts.
For those who aren't familiar with the topic, lab grown meat is created through a biotech process called cellular agriculture.
As an example, rather than raising a cow for 2 years just to slaughter and butcher it, the meat can be made by taking a cell biopsy from the cow, and then having those cells proliferate in a controlled environment.
The result is the same protein and meat structure, but much quicker, and without the environmental, ethical, and time costs.
The main problem currently is that this process is still more expensive than farming a cow.
But a lot is happening to change this, and bring more capital to the space to scale the production and make the process economically feasible. Many from the industry assume that the costs will follow a pattern similar to Moore’s Law in computing, in which the cost to produce lab grown meat will drop significantly every 2 years.
Here is a short summary on the sector without getting too granular. If you google ‘Lab Grown Meat’ you will find new developments happening nearly every week (just last week a company used DNA from an extinct woolly mammoth to produce a ‘Mammoth Meatball’. The implications of this alone are staggering.
The benefits of lab grown meat are clear to many large investors
The scaling issue will inevitably be solved, enabling significant revenues.
For investors withoutties to silicon valley or the Asia Pacific foodtech startup scene, options are limited to what is currently available on public markets in North America.
Even though there are over 100 private companies that are well know in the cellular agriculture industry, there are, by our count, only 3 publicly traded companies in North America.
Each company has a unique business model. With that comes unique opportunities that we can capitalize on for huge profits.
Agronomics: primary listing is in London, but they do have a US listing (AGNMF) and trade at a $153 million valuation. As a simplified description, they act as a publicly traded cellular agriculture fund, and hold equity in many different companies in the space. Shareholders of Agronomics are benefactors of Agronomics' DD expertise and portfolio appreciation.
CULT Food Science: primary listing in Canada (CULT) and also trades in the US (CULTF). Similar to Agronomics, CULT also has a portfolio of private cellular agriculture companies. Where they differentiate, is that they have publicly announced their ambitions to work with these portfolio companies to develop consumer products in a venture studio model, and have acquired product formulations such as Because Animals, a pet food line that is well known in alternative protein circles. The company is currently trading at a $12.5 million valuation.
Steakholder Foods: listed on Nasdaq (STKH). Unlike Agronomics and CULT, Steakholder is an operating company fully focused on their own product development. Specifically, they 'specialize in 3D printed meat'. The company is currently trading at a $12 million valuation.
Agronomics is the clear leader in general market exposure, but for investors with a higher risk tolerance and experience in wholesale and retail sales, the greatest near term upside in CULT Food Science is right here, right now. Brands command value, and it appears they understand this and are working to be first-movers in the space. Accompanying the recent focus on pet food, this has become a great launch point for consumer adoption. People are much more likely to try a new food product on their pet than on themselves, and many vegans and vegetarians would be interested in ensuring their pet gets proper nutrition without needing to slaughter animals to do so.
Larger investors have taken notice and positions. In March 2023 alone, CULT has traded over 55 million shares, and the stock price is up over 150% since January 1st.
Further, a prominent entrepreneur (Marc Lustig, whom sold his last CPG company for $1.1 billion) has acquired 15% of the company - this is very rare for companies at this low of a valuation. Entrepreneurs of this stature can legitimize early stage companies like CULT, and get them in to meetings and boardrooms that they wouldn't have had a chance at without them.
The house positions and recent trading volumes of CULT lead us to believe the majority of accumulation is from these large investors, likely some close friends of current investors in the company. There is still minimal awareness of CULT in trading chat rooms and investor communities such as Stockhouse, CEO.ca, and even Reddit. That can change quickly, but for now the opportunity to acquire a meaningful position at these levels is still possible.
This window of opportunity before the market appreciates the value of this company is the sweet spot for many growth traders. When the attention from majority traders kicks in, there is not only potential for a massive price run, but also of potential interest from larger companies like Nabisco, General Mills, as well as traditional meat companies.
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