A Port Moody entrepreneur is making headway into the ever-growing marijuana market with investments into North American companies that are reaping the benefits of the crop.
And realtor Rob Boies has some heavyweights behind him, people he says have the financial and government know-how to tap into the demand and make a profit for his soon-to-be-public company.
Boies — the president, board chair and majority shareholder of Confederation Income Solutions Inc. (CIS) — launched his business in February and included the following talent:
• Coquitlam Coun. Dennis Marsden, as a director and chief revenue officer. The first-term city councillor and former BC Liberal candidate, who is also a past chair of the Tri-Cities Chamber of Commerce board, is listed as CIS’ senior finance advisor.
• Gavin Dew, a former BC Liberal candidate, as a director and senior vice-president of government and stakeholder relations. The former BC Liberal candidate, who ran unsuccessfully in last year’s byelection in Vancouver-Mount Pleasant, is currently the external relations director for Great Canadian Gaming Corp. and was previously the director of the Vancouver Non-Partisan Association.
• Hal Weinberg, as a director and senior advisor. The SFU professor emeritus is the former mayor of Anmore.
• Tom Hill, as a director and senior vice-president of U.S. operations. Hill is a former member of the Green Bay Packers of the National Football League.
• Dr. David Owers, as an advisor. He formerly practised medicine at Eagle Ridge Hospital in Port Moody.
• And Kevin O’Rourke, as the corporate secretary. He is Marsden’s business partner with True North Consultation Ltd.
(Last week, Weinberg did not return a call for comment while Marsden, who is also in charge of CIS’ government policy, communications and branding, refused requests for a telephone interview.)
Boies said CIS’ first board meeting was in mid-April; it next plans to meet in October in Phoenix during a cannabis business expo.
While Boies said he has put up most of the capital to date, the company plans to take the business public this fall and list it on the Canadian Securities Exchange.
But while investment is its main thrust, CIS also plans to have a chain of franchised dispensaries — called Confederation Kush — with partners in California, Arizona and Texas, he said.
The retail stores should be open in the next few months, he said, and sell locally sourced product, complete with a red maple leaf logo.
“That Canadian brand is very important,” Boies told The Tri-City News. “It’s embraced and doors are open when they know we’re a Canadian company.”
Boies, who has invested in the legal cannabis sector for years, said now is the time to strike: The Canadian government is expected to make weed legal by July 1, 2018 and the “green future” needs to be managed and marketed properly for adult and medicinal use. (In the U.S., there are 28 states that allow medicinal and/or recreational use).
“I saw an opportunity to pool some finances and get involved in both Canada and the U.S.,” he said, adding, “It’s a billion-dollar industry that’s been underground and adding to the economy across Canada and the U.S. for decades that will now be legal.”
Recently, CIS joined forces with the True North Law Enforcement Training Group to form a new venture company that would provide security consultation to cannabis business operators.
“Right from general physical security, security around processes, transportation, storage, people, the potential influence of organized crime or prolific offenders who have targeted the cannabis industry over the last 20 years,” said owner Andy Richards, a Port Moody resident and former PoMo Police Department deputy chief constable.
And as of last Thursday, CIS signed a letter of intent to acquire 50% of a cannabis business park in Cathedral City, Calif.
“We are not passive investors,” Boies said, noting one of the companies it has partnered with is Segra Biogenesis Corp., a medicinal cannabis research and development firm based in Richmond. “We are primarily supplying capital to the business operations… and consultants in branding and policy. Cannabis is not, per se, our expertise.”
Boies added of CIS: “We’re very proud of what we’re doing here. Canada is recognized globally for its cannabis policies and research.”
In terms of competition, Boies said CIS is up against CannaRoyalty Corp., an Ottawa-based group that provides funds to licensed cannabis businesses in exchange for a royalty on their revenues; Chuck Rifici of Tweed Marijuana Inc.; and the American rapper Snoop Dogg.
Boies said CIS is also in negotiation with an Arizona firm to have the exclusive rights to market and distribute a micro-vaporizer for pain relief.
“We believe in the medicinal benefits of cannabis and the legalization for adult use so that we can get it out of the hands of the youth and ensure that it’s consistent and be tested. And, of course, we plan on profiting from our investment.”
jcleugh@tricitynews.com
