Abattis Prepaid Card and Mobile App to Revolutionize Marijuana Dispensary Payment Systems
June 3rd, 2014
News, Top News
Abattis Bioceuticals (OTC: ATTBF) (CSE: ATT) is a vertically integrated international company focused on both the Canadian and American regulated medical marijuana (MMJ) industries. In addition to engaging in activities encompassing cannabis cultivation, production, extraction and refining technologies, as well as quality control, laboratory analysis services and the creation of several derivative products, the company has also taken up a strong position in patient payment technologies via their acquisition of a 34% equity interest (option to acquire 50%) in Instant Payment Systems, LLC (IPS) of Vancouver, WA.
IPS has a team of award winning technologists in the telecommunications, banking, and payment systems space. IPS has acquired a banking system software license from Agilivant LLC, a Washington based debit-card and money transfer specialist, whose system is installed in US banks and meets all bank regulatory and compliance requirements. The system also operates the Philippine Postal Savings Bank (PPSB) to perform money transfers, and will bank the millions of unbanked Filipinos, and convert the 1800 post offices into PPSB bank branches. The Agilivant system is established in the banking business, mobile payment and instant settlement markets, and is being integrated as a mobile payment network into global telecommunications providers. IPS’s access to this system with its banking system security, reporting discipline, and regulatory controls represents a huge boon for ATTBF’s plans to revolutionize the marijuana dispensary payment systems arena.
The plan to roll out a branded, reloadable pre-paid patient card and medical marijuana phone app removes the cash-on-hand security risk for dispensaries and customers while giving regulators a new level of system-wide transparency. The ability to track purchases and audit prescribed quantities of product sold on a per-person basis, all within a robust digital environment where patient records are secure, is extremely appealing to regulators. The IPS platform, which links patient information to the payment system, is so structurally compelling that it has the potential to evolve into a minimum standard for dispensaries worldwide. The IPS platform already looks like it could relegate large players, like biometric marijuana vending machine company Medbox Inc. (OTC: MDBX), to a niche market as dispensaries start to crop up like gas stations and more comprehensive systems like the IPS platform take over.
The IPS platform implementation is extremely lightweight for dispensaries, requiring little more than point of sale readers and improving overall usability while lowering operating costs. ATTBF also gets access to a huge set of high-value customer data that can be used to improve end market engagement metrics. Simultaneously, this payment platform opens the door to incentive/loyalty reward programs that further enhance customer retention. The IPS platform has the potential to compete with or perhaps compliment other players like Argitek Holdings Inc. (OTC: AGTK) ($16M+ market cap), which is focused on cloud-based networks for patient certification, registry and data management.
Serving the unmet needs of dispensaries with a sophisticated, yet easy-to-use payment system dovetails exceptionally well with the company’s plan to implement their Washington State Lab model all across the U.S. This strategy revolves around deploying labs similar to PhytaLab in Washington State, the primary facility of the company’s 51% interest owned partner, Phytalytics. PhytaLab does government-mandated cannabis and derivatives testing under Initiative 502 and provides lucrative consulting services to both licensed producers and retailers, including advice on production methods, packaging, labeling and safety. Phytalab recently held a grand opening for their product testing and quality assurance analytics lab in Kirkland, WA, boldly marking the start of ATTBF’s entry into the U.S. MMJ specialty services market.
I-502 quality control testing via such labs, including identification, CBD/THC level checks (cannabidiol/tetrahydrocannabinol) and testing for toxins or other contaminants, is an important slice of ATTBF’s “GDERS” model (Grow, Dry, Extract, Refine, Sales/Science/Sustainability). The IPS payment system creates a strong secondary component for the Washington State Lab segment of GDERS and will provide important revenue as production ramps up in Canada at the 20k square foot, pharma-grade botanical drug facility being leased by wholly-owned subsidiary, BioCell Labs, Inc.
ATTBF is about far more than just high-yield marijuana growing and cultivation, or advancing industry standard cannabinoid extraction technologies. Using their closed-loop Flash-Freeze Extraction process, ATTBF is able to produce undamaged phytocompound, resulting in extremely high quality extracts. The company through its subsidiary, Northern Vine Canada Inc. is in the final stages of obtaining a Controlled Substance License which is different than the MMPR Licenses it has also applied for via two different ownership interests. This license will enable the company to test and compound medical marijuana derivatives.The company has developed a truly broad-spectrum approach to dominating a sizeable chunk of the burgeoning North American MMJ space and they are now capable of hitting all major aspects through their various partners and subsidiaries. The legal market is currently worth upwards of $1.5B to $2B in the U.S., while the Canadian market is expected to reach $1.3B by 2024 according to Health Canada. The U.S. market is expected to quadruple by 2018 to around $6B, creating a target-rich environment for ATTBF’s Washington State Lab model and dispensary-friendly payment platform.
The IPS payment platform makes ATTBF a unique play compared to companies like industrial hemp and CBD products-focused Medical Marijuana, Inc. (OTC: MJNA) ( $180M-plus market cap), or CannaVEST Corp. (OTC: CANV) ($60M-plus market cap) who has an extensive portfolio of testing services and industrial hemp/CBD-based products, neither has a footing in payment systems. From their proprietary CCE grow systems and production of refined marijuana CBD oil or THC extract oil, to complete testing services, retailing channels and the IPS payment system, ATTBF has the sector well covered and before the market really starts to hit its stride.
Positive public opinion regarding marijuana legalization in the U.S., ATTBF’s initial target market for the IPS platform and Washington State Lab model, is at historic highs which haven’t been seen since 1969 when polling on this issue first began. A 54% majority are currently in favor of legalization according to recent Pew Research Center poll data. With 18 states and D.C. having currently okayed medical use and upwards of 2k dispensaries in operation in the U.S., there is a mounting trend towards legalization across the country and ATTBF is winding up to strike while the iron is hot.
The underlying market dynamics are worth studying, especially with the new Marijuana for Medical Purposes Regulations (MMPR) recently doled out by Health Canada rolling back individual licensing and moving the supply market firmly into the hands of licensed commercial producers. The “Green Rush” has been surging again since the new MMPR regulations came out, with the 40k currently qualified patients in Canada expected to balloon to over 450k in the next decade and numerous companies continuing to pile into the sector. However, few of these companies have a comprehensive sector strategy put together like ATTBF, which has production and third-party sourcing channels lined up, as well as the extraction, testing, payment, proprietary formulation and retail muscle needed to potentially deliver strong, long-term results.
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
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