Invest in MOCA New Zealand

Are you looking to invest in the New Zealand cannabis industry? Well you are are at the right place.

Medicinal Organic Cannabis Australia (MOCA) has a wholly owned subsidiary in New Zealand MOCA Pty Ltd.  We call the Company MOCA New Zealand and we are gearing up for the medical marijuana market in New Zealand.

Now you can invest with a market leader in the organic marijuana space as we expand into New Zealand. We are offering shares in the booming legal marijuana market.

You may know a little about MOCA already - if not; 

Here is a brief summary.

MOCA is  focused on becoming a leading national & international producer, & wholesaler of cannabis based products by expanding rapidly to meet the demand, we;

1.     Increase our wholesale MOCA product range in Australia.

2.     Grow our health care client base in Australia & New Zeal New Zealand.

3.     Establish a licensed wholesale facility in New Zealand to cater to the emerging market.

4.     Establish a cultivation facility in New Zealand. 

5.     Expand our cultivation base in Europe exponentially to cater to international demand. 

Controlling our cultivation & production process enables us to grow our distribution network.

Cannabis Industry Overview

The global legal marijuana market is expected to reach USD 146.4 billion by end of 2025, according to a new report by Grand View Research, Inc. Growing adoption of marijuana in several medical applications such as cancer, mental disorders, chronic pain & others is expected to propel revenue growth in near future. Safer forms of ingesting marijuana such as tinctures, oils, vapes & other edibles are expected to positively reinforce market growth. The number of conditions treated using medical marijuana is growing rapidly, the demand for medical marijuana is expected to increase multiple folds.  

This is a list of US branded organic products, approved by New South Wales Health to import and wholesale by MOCA. 

Regarding the New Zealand operations. 

Marijuana Investment Summary

According to Barclays September 2018 European Consumer Staples Report the global cannabis industry could be worth USD$272 billion by 2028. European government-subsidized health care systems with a current budget of $1.3 trillion in spending will bring the medical cannabis market to dominate Europe and become the largest medical marijuana market in the world. 

A 2018 cannabis report from Deloitte found 74 percent of people surveyed have had prior experience with recreational cannabis, and 41 percent have consumed it in the past five years. Not surprisingly, the study found that approximately one-third of cannabis consumers indicated an interest in buying products online.

Hill and Knowlton report that environmental, social and governance indicators have never been more important to large investors. The same research found that 57% of medical patients prefer organic cannabis. The survey found 43% of recreational users had the same preference and were willing to pay a premium for the product. Now, the world is watching as Canada stepped into the spotlight in late 2018 as the first G7 country to legalize recreational cannabis nationwide.

It is in this context that Medicinal Organic Cannabis Australia (MOCA) Pty Ltd, (The Company) is operating. Australia’s legal cannabis market is forecast to grow from $52 million in 2018 to $1.2 billion in 2027 making it the fifth largest in the world.

MOCA has operation in three countries, Australia, New Zealand, and Italy and is the first organic cannabis company in these three nations. The Company has developed vertical integration processes and controls more than one stage of the supply chain. Its processes in turning raw material into products and delivering it to the consumer, give the company total control of the entire manufacturing process to ensure its ‘People, Planet, and Profit’ bottom lines are achieved. 

Australian, Federal and State Government licences, allow MOCA to import, export and wholesale cannabis and cannabis-based products both high in CBD and THC. In Australia and New Zealand, target markets are pharmacies, hospitals, medical practices, and practitioners. Internationally, MOCA targets the wholesale supply of CBD biomass and extracted cannabidiol oil based products. The Company has supply agreements with leading cannabis cultivators and manufacturers in Canada, The United States, and Europe, which include internationally recognised brands and products. 

In January 2019, MOCA received conditional approval by the New Zealand Government to develop a research facility to cultivate medical cannabis. The Company will commence operations in NZ in mid 2020 in preparation for the referendum to introduce recreational cannabis. 

The Company is currently working closely with cannabis cultivators in Italy to develop a standardised medical cannabis cultivation protocol and is engaging the European Union to fund the program. MOCA’s unique strains of high CBD and low THC cultivars, and proprietary cultivation techniques are assisting Italian farmers develop pharmacy grade CBD flowers and biomass for importation into Australian markets. 

In July 2019, MOCA made international news, as it was shortlisted in an international tender to supply the Italian market via the Italian Ministry of Defence with 400 kgs of medical cannabis. MOCA was the only non-Canadian company and competed against the four largest cannabis companies in the world. 

The Company is offering investment opportunities to discerning investors. It is seeking to fund its international expansions and will raise AUD$5 million by offering one third of its shares. 

Key Points of differentiation 

Key Investment Details

MOCA New Zealand is seeking AUD$500,000 for its expansions into the New Zealand cannabis market 

In summary:

The Company 

Australia

Medicinal Organic Cannabis Australia Pty Ltd ACN 619 709 278. 

The company incorporated in June 2017. 

Registered office: - 903/50 Clarence Street, Sydney, Australia 2000

Main website https://www.MedicinalOrganicCannabis.org 

New Zealand

MOCA Pty Ltd

Registered Office: Kensignton Swan, 

18 Viaduct Harbour, 

Auckland Central

Auckland 1010, New Zealand 

Main website https://www.MedicinalOrganicCannabis.org 

Business Overview

The Company is growing the business through the manufacture of organic products and development of the MOCA brand over the next one to three years.

MOCA is developing three distinct market sectors;- 

We generate revenue i via our supply agreements with licensed cannabis cultivators in the United States and in Canada that enable us to import products into Australia. We have a patient access program that brings medical cannabis patients to licensed medical practices who prescribe MOCA products in Australia and New Zealand. 

Business Model

Our main source of revenue is the wholesale of cannabis medications to the healthcare industry in Australia and abroad. As an importer/exporter of wholesale cannabis biomass and products, MOCA has greater dexterity to meet demand from new and emerging markets. We specifically target hospitals, medical cannabis clinics and licenced doctors. The Company targets emerging nations such as India with approved medical marijuana for wholesale supply of biomass products. 

MOCA is Australia’s first organic medical cannabis company and we place significant importance on People, Planet, and Profit. Fresh polling of 600 pension funds, endowments, and sovereign wealth funds with $21.5 trillion (U.S.) in assets around the globe has made it clear that the majority of large investors see putting money into companies that ignore environmental, social and governance indicators as a material risk to their portfolios. MOCA is responsible to our physical and social environments while providing excellent products to consumers. Interestingly, research from Hill+Knowlton found 57% of medical patients prefer organic cannabis. The survey found 43% of recreational users had the same preference. Reference

The cannabis industry is evolving very rapidly as such; we are working with evolving business models. Commencing with the ‘Warby Parker Model’, MOCA presently is the ‘middleman’ in the vertically integrated cannabis category, as we import other company’s products. This approach allows us to meet immediately the rapidly growing demand for medical cannabis worldwide. MOCA has a wide range of products in transit to our facility in New South Wales, which will be market ready in early October 2019. This approach allows us to select from the best-priced products that meet our standards and make available to a burgeoning market. It allows MOCA to determine the most desirable and marketable products without investing in manufacturing products. With the ability to reduce the price of product, MOCA is able to capitalize by providing consumers with large savings. 

This pricing advantage gives MOCA much more control over the quality of the products and gives the Company immediate feedback from users to continuously develop a better product. This model also allows for better control over contracts and negotiations with distributors, as well as building stronger relationships with suppliers. 

As our Italian and New Zealand operations come online, we will manufacture and supply the market with customized products. Cannabis works with the human endocannabinoid system, a uniquely individual system of health, which responds to different cannabinoid compositions for each person. A rising percentage of the population is interested in build-to-order products and are willing to spend 25% more according to a study by Mashable.com for products built specifically to their needs. Production time and lowering costs of customization configurators also bring much more potential to the market, compared to previous years. 

Key Achievements to Date

The Company owns significant intellectual property including:

•       A Proprietary Drugs and Poisons Control Procedure (DPCP) meeting the Poisons and Therapeutic Goods Act, 1966 and approved for a license to; Supply by wholesale Schedule 2, 3 and 4 substances and Manufacture and/or supply Schedule 8 substances.

•       Australian Government Department of Health Licence to Import under the provisions of Regulation 5 of the Customs (Prohibited Imports) Regulations 1956.

•       Australian Government Department of Health Licence to Export under the provisions of Regulations 10, 10A, 10B 10C, 10D, 10E and 10F of the Customs (Prohibited Exports) Regulations 1958 

•       New South Wales Government Licence to Supply by Wholesale Poisons and/or Restricted Substances for Therapeutic Use under the Poisons and Therapeutic Act 1966 

•       New South Wales Government Licence to Supply Drugs of Addiction.

•       Contracts with Australian Government approved state of the art pharmaceutical grade warehouse and distribution Centre with an international focus. 

•       Proprietary Standard Operating Procedures (SOP’s) developed to meet Australian and New Zealand Government regulations for the construction and operation of a cannabis cultivation facility designed to meet stringent government requirements.

•       MOCA applied for two trademarks in early 2017, both have been approved and granted Class 34 Trademarks, for the words SMOCA and SMOKA. 

These trademarks, registered with corresponding domain names, are registered in Australia. www.smoca.com.au and www.smoka.com.au - both trademarks and domain names are secured for, and programmed for the development of the global cannabis trends and will become operational in the (likely) event that cannabis is legalised for recreational use, as is the case in Canada and in some states in the US.

Overview of the Cannabis Market

MOCA views the potential market in two segments, the Australian/New Zealand market, and the international opportunity. These two markets are quite distinct from each other and are handled in our marketing and development strategy accordingly. 

New Frontier Data’s latest analysis reveals the full scale of global cannabis demand: More than 260 million adults worldwide consume cannabis at least once per year, collectively spending $344 billion USD annually.

The size of the cannabis market varies widely by region: social norms and cultural practices significantly influence cannabis use, each region’s market is heavily dependent on population, demographics, rates of usage, and average cannabis prices paid for in the countries within each region.

Asia (39%) is the world’s largest market due to its geographical size; it is home to nearly 60% of the world’s population. Yet, Asia has the lowest regional usage rate (2%), while North America (15%), Europe (12%) and Africa (11%), respectively, have higher percentages of adult consumers.

Leading the world in social acceptance and cannabis use, North America has progressed furthest in legalizing cannabis use: with 1/4 of global demand (despite having 5% of the world’s population), the legal industry is quickly beginning to capture the very substantial existing market.

The UN estimates that approximately 3.9% of the global adult population, or 190 million people, are cannabis users (vs. 1 billion smokers). The highest prevalence of cannabis users was found to be from Europe, followed by the US and the Oceania Region. Although small, the Oceania Region is considered significant given its access to the Asia Pacific region. Reference

The global legal marijuana market size is expected to reach USD 66.3 billion by the end of 2025, according to a new report by Grand View Research, Inc. It is anticipated to expand at a CAGR of 23.9% during the forecast period. Increasing legalization and use of marijuana in medical as well as recreational applications is expected to promote the growth.

Growing adoption of cannabis as a pharmaceutical product for treating severe medical conditions, such as cancer, Parkinson’s disease, Alzheimer’s disease, arthritis, and other neurological conditions is anticipated to drive demand for medical marijuana in the forthcoming years. Increasing need for pain management therapies and growing disease burden of chronic pain among elders is expected to boost demand.

Legalization of medicinal marijuana and decriminalization in some countries has led to a significant decrease in the black market, as people are resorting to legally purchased cannabis for medicinal as well as recreational use. Moreover, government earnings through taxation is further viewed as an opportunity for countries to earn revenues. Presence of a large customer pool and legalization of medical marijuana in U.S. and Canada is expected to propel the product demand from North America.

However, legalization of medicinal cannabis in European countries, accompanied by stringent rules and regulations regarding the product sale and cultivation may limit the overall growth in Europe and in turn for the global market. Other promising markets for Cannabis are Australia, Germany, Poland, Colombia, Uruguay, and Israel. Israel is currently at the forefront of providing technology and knowledge transfer to the other world markets. As the newer markets such as the U.K. and Thailand create their legal structure for cannabis, the revenue is expected to witness significant growth. Reference 

The Australian Market 

The Victorian law reform report estimates that 750,000 Australians use cannabis every week, and that 35% of Australians over the age of 14 have used it within their lifetime. 

Up to 31 July 2019, the TGA has approved over 11,000 SAS Category B applications for unapproved medicinal cannabis products.

The growth trajectory of medicinal cannabis users that we have seen so far in Australia is very similar to what was seen in Canada in the early days of commercial legalisation.

Fortunately, more GPs and medical specialists are starting to learn more about the benefits of medicinal cannabis as well as how to prescribe it to patients.

There has recently been a significant shift recently in how the medical profession views medicinal cannabis and its place in the health sector."

Australia's top 20 listed cannabis companies have a market capitalisation of $1.8 billion, but more than half of that comes from the top three - Elixinol Global, Cann Group and Althea, all of which have significant North American backing.

Patient Data in Australia

SAS category B: application pathway. Category B is an application pathway that can be accessed by health practitioners (usually medical or dental practitioners) if patients do not fit the Category A definition and if the good is not authorized for supply under the SAS Category C notification pathway. Read more here. 

Read about patient statistics on this link https://www.medicinalorganiccannabis.org/research-news/medical-cannabis-patient-profiles-in-australia-sas

The New Zealand Market 

According to the health ministry, 11% of New Zealanders use cannabis at least once a year and 44% of those people report using it for medicinal purposes.

Official statistics from Auckland University’s Alcohol and Public Health Research Unit show half of New Zealanders aged 15-65 have tried cannabis, and one-in-six define themselves as regular users. That’s about 1.5 million ordinary Kiwis who have ignored the law and tried cannabis, and around 400,000 who continue to use it.

The Oceania market is set to quadruple in the next 10 years and with an overall population of 40 million, and comprising over 30 countries, this is a large and strategic 

It is estimated that by 2028, the region will be worth $8.7 billion. $6.2 billion of this will be recreational sales (with the estimates based on only 7% of the population using for recreational purposes).

New Zealand could well be the “legal leaders” of the Oceanic Region. In the recent Federal Elections, the Labour Party and the Green Party formed a coalition, and in doing so took control of the government.

Recreational Marijuana is currently illegal under New Zealand law. This referendum could mean a fully legalised and regulated market in New Zealand by 2021. Reference

Growth & Exit Strategy

MOCA has developed its business strategy based on a 15-year financial modelling. 

Where will the business be in five years’ time? As demonstrated above, MOCA is gearing up for significant expansion to meet the expected demand in Australia and more importantly, to an international market. 

MOCA intends to expand operation and will raise funds through an Initial Public Offering (IPO) to list on the Australian Stock Exchange. This strategy will offer an ideal exit opportunity to investors.

Management Team

https://www.medicinalorganiccannabis.org/about-moca/management-and-advisory-team