ASHKELON, Israel and VANCOUVER, British Columbia - BYND Cannasoft Enterprises Inc. (NASDAQ:BCAN), an Israeli software company, announced today its decision to pivot towards the burgeoning Femtech sector and halt the construction of its planned medical cannabis growing facility. This strategic shift follows a successful fundraising effort last month.
The company's board cited negative changes in the global medical cannabis market, particularly in Israel, as a reason for suspending the construction project. These changes include industry consolidation and the economic non-viability of new cannabis farms, evidenced by recent closures within the country. Security concerns due to the facility's proximity to the Gaza border were also considered. The board plans to reassess the suspension in July 2024.
BYND Cannasoft, which owns the proprietary CRM software "Benefit CRM," is now focusing on developing products within the female wellness realm, including technology and materials, some of which are expected to be CBD-based. The move aligns with the company's development of the EZ-G Device, a therapeutic device designed to deliver low concentrations of CBD oil and other natural oils to the female reproductive system.
The Femtech market, which encompasses software, diagnostics, and products targeting women's health, was valued at USD 45.75 billion in 2022. According to Straits Research, it is projected to grow to USD 139.51 billion by 2031, with a CAGR of 13.12% during the forecast period (2023-2031). Femtech solutions address a range of health issues including reproductive health, pregnancy, pelvic care, and conditions such as osteoporosis that disproportionately affect women.
BYND Cannasoft's decision reflects a strategic adaptation to market conditions and an aim to capitalize on the growth potential within the Femtech industry. This article is based on a press release statement and reflects only the information provided therein.
InvestingPro Insights
BYND Cannasoft Enterprises Inc.'s (NASDAQ:BCAN) recent pivot to the Femtech sector comes at a time when the company's financial metrics indicate some challenges. The InvestingPro data shows a market capitalization of a modest 1.64 million USD, underscoring the small size of the enterprise in a competitive market. Additionally, the company's revenue for the last twelve months as of Q3 2023 stands at 0.81 million USD, with a notable decline of 3.76% in that period. This contraction in revenue, coupled with a gross profit margin of approximately 49.93%, suggests that while the company is able to maintain a relatively high margin on its products, overall profitability remains elusive. The stock's performance also reflects these difficulties, with a staggering 94.41% drop in the one-month price total return as of the latest data point.
Two InvestingPro Tips that are particularly pertinent to BYND Cannasoft's current situation include the observation that the stock is trading at a low Price / Book multiple of 0.05, which may attract value investors seeking assets that trade below their net worth. Another tip highlights that the company holds more cash than debt on its balance sheet, providing some financial stability as it navigates through its strategic shift. These insights suggest that while the company faces significant challenges, there may be underlying value that could interest certain types of investors.
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