Kanaco is the trading name of Diamond Cloud Corporation Ltd. which started trading in early 2018. Kanaco is a profitable online CBD shop with its core focus being the sale and development of premium and proprietary CBD products under the Kanaco brand. The company is seeking to raise up to £500,000 to fund growth through the issue of 80,000 shares at £6.25 per share under the EIS scheme.
Our premium Kanaco portfolio includes:
Tetrahydrocannabinol (THC) is one of at least 113 cannabinoids identified in cannabis. THC is the principal psychoactive constituent of cannabis. Because of THC’s intoxicating affects, Cannabis was made illegal in the United Kingdom on 28 September 1928.
However, doctors could still prescribe cannabis for medical use in the UK until 1971 when the misuse of drugs act was passed and It became a prohibited substance once again.
Although currently illegal, we believe THC will eventually be legalised in the UK and believe the public's increasingly positive sentiment towards recreational legalisation will become more important in the run up to the next general election (May 5th, 2022). The recreational model has been proven in the US and Canada.
Unlike THC, CBD is 100% legal in Europe and US. CBD is non-intoxicating, non-psychoactive and has no known negative side effects so the risks are very limited. By contrast, THC is a psychoactive chemical and is a controlled substance under the Misuse of Drugs Act 1971.
CBD has become increasingly popular due to growing research into benefits, industry investment and technological innovation. It’s now possible to remove THC and produce THC-free CBD products that can be sold legally in most countries.
CBD is short for cannabidiol which is one of the main of the 120+ cannabinoids found in hemp and cannabis. CBD interacts with our endocannabinoid system (ECS) which is present in all mammals and regulates a range of physiological functions. Cannabidiol is completely legal and non-intoxicating.
We look to create premium CBD products. We search, source and sample CBD products from around the world, and we hand select the best quality oils, capsules, and edibles in the industry.Our aim is to only supply CBD products that are organically farmed, lab tested and THC-free.
We have identified 6 health and wellness megatrends that research suggests give the best product-market fit for our key demographics of millennials and generation Z: These are:
The research also shows that the following areas are of concern to our target demographic: Anxiety, Insomnia, Stress, Inflammation.
We have entered into a strategic Agreement with the London Cannabis Club (LCC). The LCC was created by Orson Boon in 2011, as a social platform to talk about cannabis, cannabinoids, mental health & wellness. Orson was offered and has accepted to be a director of the company.
The Club has over 135,000 followers, split between Instagram and Facebook, and it has a very large monthly reach. The LCC has one of the largest alternative-plant medicine lifestyle followings in the UK today and is well positioned to become the UK’s leading online cannabis lifestyle brand.
Orson is a very well-known and respected social media influencer, and early advocate of cannabis and CBD products in the UK; running biweekly podcasts on all thing health and wellness, which gain high viewing figures and so make the perfect platform for Kanaco. In this way, we are creating engaged and valuable relationships with consumers across the UK and beyond.
In addition, Orson has a vast amount of experience in plant medicine and formulations to help build our proprietary products.
We plan to grow the LCC into a Cannabis media company, used primarily to educate the public on CBD, and of course promote Kanaco. We believe our strategic partnership with LCC is unique and something our competitors will have difficulty in replicating.
The CBD market in the UK is maturing and growing fast; and no one company is owning it.
The past few years have seen the CBD market in the UK explode, growing from effectively zero to £50 million per annum in this very short period. This trend is expected to continue, with the UK CBD market expected to be worth around £300 million per annum by 2022.
We feel that we are in prime position to be a major player in this space; having early-mover advantage, a great team, and a wealth of knowledge and expertise.
The European CBD market is also still in its infancy but is quickly picking up steam as both awareness about CBD generally, and favourable regulations throughout the continent, expand. Europe’s CBD market, estimated at $319 million in 2018, is expected to grow to nearly $1.7 billion by 2023, with a 2019-2023 CAGR of 42%.
European countries have tremendous spending power ($17 trillion combined GDP in 2017), and many consumers around the region are seeking alternatives to tobacco and pharmaceutical use - needs that CBD appeals to.
Tapping into this market has the potential to be very lucrative, especially for those of us who join the market at a relatively early juncture. Currently, there is no stand-alone dominant CBD company in Europe; a position we feel we are ready and able to fill.
"Former Conservative leader William Hague called for the UK to be as “bold” as Canada, in creating a responsible and professional cannabis economy for both medical and adult-use products.’’
Canada legalised the use of cannabis in October 2018. In the US, 10 states have legalised cannabis for recreational use. In Europe, Spain allows private use with Luxembourg looking to become the first country to make it lawful.
Cannabis is the UK’s most widely used illicit drug with an estimated 3 million users. Overall it is a market worth an estimated £2.5 billion, with potential tax revenues of £1 billion.
The Evening Standard reported on 1st July 2019 that 63% of Londoners think that UK should follow Canada and make cannabis legal.
The legalisation of THC is a big opportunity for Kanaco. It will be covered by mainstream media with lots of hype but having the freedom to use all the cannabinoids in cannabis creates many more product opportunities. THC will be a very welcome high growth part of the industry and broadens our demographic from health, wellness, longevity seekers to people looking to enjoy social settings in new ways. The London Cannabis Club will provide education and content to cover THC and CBD so we expect the followers to demand THC products when legally available.
Kanaco has within a short space of time formed well established sales channels. These include its online store, as well as through agreements with two physical brick and mortar shops owned by its sister companies. It also sells products wholesale to 40+ shops.
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|Location||London, United Kingdom|