RavenQuest BioMed Inc. (OTC: RVVQF) (CSE:RQB) (Frankfurt:1IT) is one of the most fascinating marijuana stocks I have have encountered. They just gained their over-the-counter listing (RVVQF) on March 21st. Their Orbital Garden system is fascinating, their focus on scientific research and engineering of strains through cannabis genome mapping is exciting, but their consulting division is what makes RavenQuest BioMed Inc. a strong solid business.
Many cannabis companies go through extended periods of negative cash flow while they build grow facilities, work on winning licensing and cultivate their first marijuana crops. RavenQuest BioMed Inc. earns money through their consulting for other cannabis companies by helping them earn their own licenses. The consulting cash flow provides RavenQuest BioMed Inc. the ability to fund their own projects rather than seeking venture capital and prevented them from going through the extended period of negative cash flow. It is about as well thought of a business plan as any cannabis company could come up with, and the consulting does something else too.
While RavenQuest BioMed Inc. (OTC: RVVQF) (CSE:RQB) (Frankfurt:1IT) has undoubtedly signed many non-disclosure agreements, they still have been able to glimpse the workings and innovations of many other cannabis companies to help them discover ideas of their own. Vertical growing systems are not new, nor is genome mapping, but seeing the most efficient equipment and strategies takes the guessing game away. It is smart business practice, but it does not change the fact that like the rest of the cannabis sector and the market as a whole, RavenQuest BioMed Inc. is in the same precarious position as the rest of the market.
The S&P 500, the marijuana stock sector and many leading sectors, like financials and transportation are sitting on their 200 dma. A break below the 200 dma and large institutions may start selling hard. If that happens then even the most well thought out business will get dragged down along with the rest of the market. It does not change the fact that the marijuana industry is here to stay and that investors looking for long term plays in marijuana stocks will want to see the sort of strong fundamentals found in a company like RavenQuest BioMed Inc. (OTC: RVVQF) (CSE:RQB) (Frankfurt:1IT).
The Orbital Garden system is a spin on vertical agriculture. Much of the design for vertical agriculture has plants facing out with traditional lighting above. The real innovation for most vertical agriculture designs is the technology providing nutrients and water to the plants. The Orbital Garden system is simulating real life where the plants orbit the lighting and grow inwards instead of out. It is how life actually works with our planet orbiting the sun.
The way the Orbital Garden system achieves this is with the concept of a ‘stacked rotational garden’. Since cannabis plants grow toward a light, a light source is placed in the center of the garden, and all the plants grow toward it. This is the rotational garden concept. The Orbital Garden takes it one step further and makes it stackable; stacking six gardens right on top of each other.
To top it off, the increased yields bring lower operational costs as well. Because of the way the Orbital Garden system is structured, electrical costs are reduced by 75% to 80% and nutrient costs are slashed by about a quarter. The system is also automated, which means that it is highly scalable.
RavenQuest BioMed Inc. (OTC: RVVQF) (CSE:RQB) (Frankfurt:1IT) is also using its consulting revenue to expand its growing and cultivation operations which could quickly put it into competition with the other major Canadian players like Canopy Growth Corp. (TSX:WEED) and Aurora Cannabis Inc. (OTC: ACBFF) (TSX: ACB). RavenQuest BioMed Inc. does not seem like the type of company that is just looking for a big buyout. An investor may not mind a buyout but the longer that RavenQuest BioMed Inc. builds our their assets, the larger the buyout would likely be. It is an investment more for a long term play.