Medical Cannabis CRM Software
Building on its 20 years of experience in CRM software, BYND Cannasoft Enterprises recently began the development of a new CRM platform designed to serve the needs of the medical cannabis industry. BYND Cannasoft Enterprises is looking to transform the sector into a more organized, accessible, and price transparent market. BYND Cannasoft’s goal is that its New Cannabis CRM Platform will ultimately become the “virtual marketplace” for all stakeholders in medical cannabis, which is similar to what Jack Ma did with Alibaba (BABA).
In addition to the virtual marketplace, the CRM and ERP system will allow growers a deep insight into all aspects of managing a cannabis farm and cannabis distribution, from the amounts of fertilizer to tracking delivery revenue. The ERP system will help cannabis growers manage their day-to-day business activities like supply chain operations, accounting, procurement, project management, risk management, and compliance. BYND Cannasoft’s medical cannabis software has completed its first development phase and is currently installed in one entity in this field in Israel. Cannabis stocks have had a mixed year, led by companies like Aurora Cannabis (ACB), Canopy Growth Corp (CGC), and Cronos Group (CRON). However, BYND Cannasoft could provide a boost to the industry as its CRM platform catches on.
This new platform could be a first for the medical cannabis field. Cannabis growers have been affected by the covid-19 pandemic and the war in Ukraine. Since Ukraine and Russia export 28% of the world’s fertilizers, supply chains have been upset by war and economic sanctions. During the pandemic, consumers spent more money on cannabis than ever before, which meant growers had to produce a lot more cannabis to meet demand. Cannabis sales increased during the covid-19 pandemic, as many people were homebound. Now that the pandemic is winding down and people are returning to work, supply outweighs the current demand for cannabis. If you remember back to introductory economics, we generally see a price decline if supply is more significant than demand. Lower prices do not necessarily mean growers need to throw in the towel on their cannabis crops, but they need to be more aware of their costs and inventory, which is where BYND Cannasoft Enterprises comes in.
BYND Cannasoft Enterprises has been working with the Bezinzsky family to establish a medical cannabis farm in Israel. The company has made the following progress:
- It is currently working on transferring the initial permit for the cultivation and multiplication of medical cannabis according to the partnership agreement with the Bezinsky family. After its transfer, the company will operate for the planning and construction of a growing facility in Moshav Kochav Michael.
- The company has completed the planning and placement of an internal breeding facility and has applied for a breeding license.
- BYND Cannasoft Enterprises has applied for a license to trade in medical cannabis “without contact with the substance,” also known as a constructive license. After receiving the permit, the company can implement agreements it has signed with various growers for marketing and selling the company’s private label.
BYND Cannasoft Enterprises plans to develop its cannabis farm near Ashkelon, Israel, on 3.5 acres (15 dunams) of land with an option to expand the farm to twice that size. The IMC-GDP license is an exclusive license issued by the Ministry of Health – The Israeli Medical Cannabis Unit for importing, distributing, and storing cannabis for medical use in a designated facility. BYND Cannasoft Enterprises aims to receive the IMC-GMP licenses within the year and will mainly export to Germany once regulation permits.
BYND Cannasoft Enterprises has applied for a separate license that allows the company to enter into a contract with one of the existing growers in Israel to build a private label of products for the company. The company intends to market these products to pharmacies to generate revenues without the required investment in establishing and operating a growing facility. The agreement with the grower includes marketing in Israel and the marketing of BYND Cannasoft Enterprises’ brand to Germany through the grower’s growing farm in Uganda.
BYND Cannasoft Enterprises Current Customers Incude Some of Israel's Largest Companies (Company website)
BYND Cannasoft Enterprises’ plans include the construction of 4 state-of-the-art greenhouses, housing approximately 2.5 acres of total growing area. The company estimates that, once fully operational, its Cannabis farm facility will be able to produce 7,500 kg, or 16,534 pounds, of raw cannabis each year. BYND Cannasoft Enterprises also intends to work with strategic partners to develop and market proprietary cannabis-infused products for the Israeli and global markets. The data and information collected through the operation of the cannabis farm and the products it produces will also allow BYND Cannasoft Enterprises to test its new Cannabis CRM platform and adjust the platform as necessary.
BYND Cannasoft Enterprises’ long-term goal is to leverage its cannabis farm business to assist in developing its New Cannabis CRM Platform. Utilizing data from growing, harvesting, and selling medical cannabis at its cannabis farm, BYND Israel can optimize its New Cannabis CRM Platform to offer stakeholders in the Cannabis industry a state-of-the-art resource that will enhance their businesses.
Q2 2022 Financial Highlights
According to an August 12, 2022 press release, BYND Cannasoft Enterprises reported financial results for the six months ending June 30, 2022. Complete versions of BYND Cannasoft Enterprises’ financial statements can be found on www.sedar.com.
As a result of the move toward its cannabis CRM platform, BYND Cannasoft Enterprises posted revenue of $662,932 for the first half of 2022, compared with $662,728 for the same period in 2021.
Gross Profit increased to 59% for the first half of 2022 from 48% for the same period in 2021.
Net loss decreased 86% to $638,669 for the first half of 2022 from $4,543,591 for the same period in 2021.
Working capital decreased to 3,988,467 for June 30, 2022 from $5,487,201 for December 31,2021.
The total number of shares outstanding as of June 30, 2022, was 29,670,083.
Below is a Table Listing a Summary of the Quarterly Comparison of Revenue, Gross Profit, and Net Income (Loss) taken from the August 12, 2022 press release
|Net Income (Loss)
*Includes a one-time non-recurring non-cash $4,394,390 listing expense incurred due to the Business Combination Transactions and the company’s listing of its shares on the CSE.
The following management bios have been consolidated from BYND Cannasoft Enterprises’ Storydoc website.
Moti Maram – President and Director
In 1986, Mr. Maram partnered to found a computer company that mainly provided services to EXATEC-compliant IBM AS 400 computers and sales and service to the first PCs in the world. After identifying a need for CRM and ERP software, Maram and his partner, Avner Tal, established a software company that manufactures CRM and ERP management software called BENEFIT in 2000.
Yftah Ben Yaackov – CEO and Director
Mr. Yaackov has been a professional lawyer since 2004. He specialized in real estate-related issues, including real estate corporations, complex sales transactions, real estate unions, and real estate taxation. His recent experience includes managing large projects exceeding tens of thousands of square meters with budgets exceeding 400 million NIS ($115 million). Over the last five years, Mr. Yaackov has assembled the business activity of two of the largest medical cannabis companies in Israel, providing him with tremendous experience and knowledge in this field.
Avner Tal – VP Sales & Marketing, CTO, and Director
Mr. Tal currently serves as the Technology Director of Beyond Solution Company. After studying electronics and control, he served in the Navy on the team that implemented and developed the technology that included “smart” missiles. He came to BYND Cannasoft Enterprises after working with Moti Maram to establish the computer company that supported Exatech computers and its innovative network.
Gabi Kabazo – CFO and Director
Gabi is a seasoned finance and operations professional with over 20 years of experience supporting accounting, finance, and IT operations in complex corporate settings. Since 2009, Mr. Kabazo has been with TELUS Telecommunications Company. From 2002-2011 he served as CFO for m-Wise Inc. He received B.A from TAU and M.B.A from UBC in Accounting & Economics.
Dr. Stefánia Szabó – Director
Dr. Szabó is the Vice President of Pace Law Firm and Director of International Relations at Pace Global Advantage in Toronto, Canada. She is a former diplomat, a charismatic government services, management, and public relations professional with 25 years of progressive experience. She is an international lawyer by profession and serves as a member of the Canada-Israel Chamber of Commerce executive committee.
Harold Wolkin – Director
Mr. Wolkin is a retired Investment Banker and Financial Analyst with over 40 years of business experience. As an esteemed advisor to Chief Executive Officers and Boards of both public and private companies, he provides BYND Cannasoft Enterprises with strong financial expertise. Mr. Wolkin holds the Chartered Financial Analyst (CFA) certification and is a member of the Institute of Corporate Directors.
Niv Shirazi – Director
Mr. Shirazi is a business professional with strong financial acumen. Since 2018, he has served as Chief Operating Officer with H.N. Win Ltd, an Israeli real estate firm. Mr. Shirazi received a B.A. in Business Administration and Accounting from the Ono Academic College in Kiryat Ono, Israel.
Carmel Zigdon – Director
Mr. Zigdon is a business professional with strong skills in the fields of marketing and online sales. He is the inventor of the EZ-G device and the previous owner of Zigi Carmel Initiatives & Investments Ltd. Since 2018 Mr. Zigdon has served as the online shopping manager of ZCRAVE.com, an online clothes store.
Gil Shapira – Greenhouse Facility Project Manager
Mr. Shapira is an engineer with more than 30 years of experience planning, managing, and implementing complex engineering projects. Operating locally and internationally, he continues to provide customized services to the pharmaceutical, biotechnological, medical device, health, and food industries. In his career, Mr. Shapira has designed thousands of square meters of production facilities, clean rooms, laboratories, and production equipment certified by the FDA, EMEA, GMP, GLP, FACT, NETCORD, JACIE, and the Israeli Ministry of Health.
Summary and Investment Thesis
BYND Cannasoft Enterprises Inc. has been marketing its proprietary software product, Benefit CRM, to approximately 400 clients with a monthly recurring revenue model for nearly 20 years. A quick Google search will turn up numbers showing the growth of some of the leading companies in the CRM sector. The big reason the CRM industry is making money is that CRM helps other businesses make money. The cannabis business has the same day-to-day requirements as any other business, which is why BYND Cannasoft Enterprises introduced its new CRM platform.
The company plans to extend its success in the CRM business to meet the needs of the medical cannabis industry. According to the Israeli Medical Cannabis Agency, as of November 2021, Israel had 110,000 medical cannabis license holders. BYND Cannasoft’s medical cannabis software has completed its first development phase and is currently installed in one entity in this field in Israel.
BYND Cannasoft Enterprises’ Cannabis CRM Platform provides growers tremendous insight into all aspects of managing a cannabis farm and cannabis distribution. BYND Cannasoft’s goal is that its New Cannabis CRM Platform will ultimately become the “virtual marketplace” for all stakeholders in medical cannabis, like Jack Ma’s Alibaba. I believe this new platform could be the first of its kind for the medical cannabis field.
Cannabis growers are dealing with supply chain issues and lower prices, as consumers had to return to work post-pandemic. In addition to creating a virtual marketplace, BYND Cannasoft Enterprises believes its CRM platform will also help growers be more aware of their costs and inventory by being more organized and accessible and providing a price transparent market. As BYND Cannasoft Enterprises introduces its CRM to the medical cannabis industry, strong results could mean a much higher stock price.