Cannabis is one of the most regulated industries in the world. Those regulations are helping the industry gain credibility and keeping consumers safe. However, these regulations are also creating unique security needs.
Canadian cannabis companies must comply with strict regulations on how to secure production facilities, inventories, and transport goods.
These strict security requirements are creating a big opportunity for a young and promising Canadian security company that specializes in providing security services to Canada’s largest cannabis companies.
3Sixty Security Corp (CSE: SAFE) is an early leader in Canada’s cannabis security industry.
This up-and-comer provides cannabis security consulting, guarding and secure transport security services to more than 500 customers and more than 60 licensed cannabis producers, including some of the world’s largest, such as licensed producers owned by Canopy Growth Corporation.
3Sixty has a staff of over 275 employees and employs a fleet of over 60 vehicles, which management believes provides a combined security footprint to approximately 30 million square feet of patrolled area. 3Sixty transports approximately $250 million in cannabis every month for its customers.
Big Clients Signing on with 3Sixty
3Sixty has seen tremendous momentum in the last few months, landing a string of big-time clients that rank as the biggest in the entire global cannabis industry.
On January 14, SAFE announced a multi-year deal with Canopy Growth Corp, the largest cannabis company in the world.
Here are some more details from the press release.
3Sixty, has entered into a three-year master services agreement to provide security services to Canopy Growth Corporation (“Canopy Growth“) (TSX: WEED) (NYSE: CGC) across Canada. As part of the agreement, 3 Sixty Secure Corp. will provide 24/7 guarding services to protect Canopy Growth’s Canadian facilities, as well as other security services as required. The agreement will include all existing and future Canopy Growth facilities across Canada. The agreement with Canopy Growth expands services to include all of its national facilities and extends the prior agreement from a one-year term to a three-year term.
3 Sixty Secure Corp. Enters into Multiyear, National Security Services Agreement with Canopy Growth Corporation
3Sixty’s has announced eight new contracts in 2019.
These deals are setting the stage for substantial revenue growth in the next few years.
3Sixty began trading on the Canadian Securities Exchange on January 8 under the ticker symbol SAFE. I see average daily trading volume of close to 1 million shares to this ticker is plenty liquid.
Shares also trade in the US under the ticker symbol PTVFY. I see average daily trading volume of 150,000 shares so this ticker looks plenty liquid as well.
Despite the potential, SAFE is still is still in its infancy. I see a market cap of just $75 million, a fraction of larger cannabis companies such as Canopy and Aurora.
3Sixty is up 36% Since Going Public in January
SAFE has done well since going public in January. Shares initially surged higher, fell back some and then began climbing higher again.
The Big Picture on 3Sixty
The cannabis industry has some very unique security needs, and that is creating a big opportunity for 3Sixty. 3Sixty is an early leader in the Canadian cannabis security industry. It has secured a string of contracts in the last 6 months that should set the stage for substantial revenue growth in the next few years.
Editor, Cannabis Stock Trades
About the Author & Cannabis Stock Trades
Michael Vodicka is an equity analyst with more than 20 years of experience in trading and investing. His research has been featured in some of the industry’s most respected publications.
He has been investing and leading investors in the cannabis sector since 2013. Now, Mr. Vodicka brings his expertise and guidance to the members of Cannabis Stock Trades.
Join Cannabis Stock Trades for Mr. Vodicka’s exclusive analysis, trade alerts, and model portfolio.