InvestorIntel Part 2 - ezGreen on the massive market for regulatory compliance in the cannabis sector
Cultivators, LP’s, Dispensaries, Brands, Extraction. These are all cannabis verticals that investors are familiar with. One generally undiscovered sector is regulatory compliance. Compliance requirements are being put in place across the cannabis industry to hinder money laundering from illicit growers who have been stashing away cash waiting for cannabis to become legal and to support proper tracking and taxing of cannabis sales. ezGreen Compliance is the second investee company of FinCanna Capital Corp. (CSE: CALI | OTCQB: FNNZF) and it has the software in place to make compliance, tracking and taxing seamless for dispensaries in both the medical and recreational spaces across the United States.
The innovative software is a proprietary HIPAA (Health Insurance Portability and Accountability Act) compliant, Point-of-Sale (POS) system whose architecture is derived from the technology of Automated Healthcare Solutions (AHCS) providers of one of the largest pharmaceutical grade POS systems in the United States.
Today, I sit with management of ezGreen Compliance, to discuss a little more about the Company, its addressable market and its competitive advantages. I hope you enjoy the read.
What does it mean to be a pharmaceutical grade POS system?
ezGreen was created by AHCS, a software company that specializes in pharmaceutical dispensing in the U.S. With over 3,500 dispensaries under management and 16+ years in the space, AHCS has created a product to manage the biggest pain point in the retail dispensing space, managing patient information. Patients in the U.S. market receive recommendations for cannabis through a medical physician with a DEA license number that allow for those physicians to be audited at any time by Health and Human Services. Each data breach costs between $5,000 and $50,000 under U.S. HIPAA guidelines, so dispensaries need to manage that patient database with a software product that will provide a data protection strategy to mitigate the risk of losing data or getting hacked by an outside group.