Cannabis Companies Amazon Would Like
Now that we can be fairly certain that Bezos doesn’t hate weed the way that Las Vegas Sands’ (NYSE:LVS) Founder and CEO Sheldon Adelson does, what would an Amazon acquisition target in the cannabis industry look like?
We can start by saying what it doesn’t look like. It certainly is not a company that touches the plant.
Given current federal law, we’re confident you won’t see Amazon buying into a company like Aphria Inc. (OTC:APHQF) which is a cultivator up in Canada, and also “acquired one of only seven legal Florida medical marijuana cultivators” here in the United States.
Going through the previously referenced Inc. Magazine article’s detailed history of Amazon acquisitions and investments, there is most definitely a trend! From shoe shopping site Zappos, to the artificial intelligence software Evie, Amazon acquisitions and investments’ common denominators are data and synergies. This leaves us with a few ideas.
The aforementioned article by Brian Fredrick on the Rooster did a great job of elaborating on Allen St. Pierre’s musing that Amazon “would profit exponentially if national legalization were a thing and Amazon drones could deliver an 1/8 right to your doorstep.”
You may laugh, but this Amazon marijuana delivery can totally happen. Amazon’s Prime Air drone made its first demonstration delivery of sunscreen at their conference back in March. As for the legal right to deliver, some municipalities currently allow for this, with more rolling out similar allowances.
Since marijuana is currently only legal in some forms in some cities, it wouldn’t be crazy for Amazon to test this as a pilot program in only one city, as it did for the 2007 launch of its AmazonFresh grocery delivery service in Seattle.
Another category Amazon could consider in the cannabis space are in the internet-of-things, a.k.a. “IOT”. Amazon has made major investments in data-driven device companies in the past. The Amazon Alexa Fund has invested companies like Scout, a maker of DIY home security kits and Orange Chef, which has produced products such as a smart-scale to check the nutritional value of food while you cook.
If Amazon were to invest in a marijuana consumption device company, it would probably be MyDx Inc. (OTC:MYDX). The company’s CannaDx handheld chemical analyzer allows users to test cannabis for THC and more in the palm of their hands. The testing data gathered by users is linked with the MyDx CannaDx App which helps users “find and track the strains that work” for them.
Another IOT-enabled company that Amazon could consider would be Heliospectra AB (OTC:HLSPY). Through the company’s CORTEX Software, cultivators of cannabis plants and more can totally control and automate their Heliospecra lighting and more, while tracking data to help cut electricity costs and improve efficiency/yield. This also may seem crazy, but some Whole Foods locations already grow produce on their roofs to enhance freshness and savings. Imagine if Amazon utilized the massive square footage on top of their fulfilment centers to cultivate crops and produce?