Security companies positioned to capitalize on growth in the legal marijuana market

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A leading investor news resource covering security and cannabis stocks releases, Investorideas.com, a sector snapshot looking at how the two sectors are growing synergistically.

According to an article in SecuritySales.com, ”Security companies are well positioned to take advantage of growth in the legal marijuana space. Once the products reach the warehouse or dispensary shelves, marijuana companies rely on advanced security systems including visual and audio surveillance to protect their valuables and even their license. In order to prevent diversion of product, most state cannabis regulations require growers, storage facilities, processors and dispensaries to have advanced video security systems.”

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DirectView Holdings, Inc. (OTC: DIRV), a video surveillance solutions technology company just announced its rollout and plans to enter the cannabis and CBD markets, to provide and install custom-tailored security, surveillance and safety equipment to meet their regulatory and compliance requirements.

Roger Ralston, CEO and Chairman of DirectView said, "Businesses that operate in the legal cannabis space are required to follow strict regulatory guidelines. One of the most important requirements is proper Security, Surveillance and Safety Systems. Take Colorado as an example: They have dispensaries that operate entirely on cash and have large inventories of cannabis and related products. This creates an environment where top-of-the-line security and surveillance systems, like those provided by DirectView, are a necessity. In addition to cameras, access control systems are usually a prerequisite."

In addition to extensive security and surveillance, CBD extraction facilities are required to take proper safety precautions. There is a risk of fire and explosions when dealing with flammable gasses and liquids in the production of CBD extracts, while C02 extraction can put occupants in danger from lowering the levels of oxygen. DirectView is a provider of class 1, division 1 explosion-proof cameras for special use in the CBD extraction rooms and in places where they otherwise are required.

"What we're seeing now are specialized extraction rooms; they have to be self-closing, they have to have an air exhaust system in place with panic hardware and they have to have gas detectors present. In addition, special class 1 division 1 explosion-proof cameras, which we provide, are required," Roger Ralston, CEO & Chairman of DirectView said. "We are seeing a unique opportunity to incorporate our access control solutions to these specialized extraction rooms as well. We believe this will prove to be a valuable vertical for DirectView," he concluded.

March Networks, a video surveillance and video-based business intelligence solutions provider to the cannabis industry, announced in August that a  ‘publicly-traded producer’, with multiple brands and a global presence, chose the March Networks solution based on its proven reliability, ability to support thousands of locations, and its Searchlight business intelligence software.  The news release did not name the stock but the Director of Information Security at Canopy Growth Corporation ( TSX: WEED.TO) ( NYSE: CGC) was a previous Director of IT at March Networks according to his Linkedin Profile.

An article, ‘Medical marijuana producer moving into Pointe Claire tries to ease neighbours' concerns’, shows how addressing security and surveillance plays a role in addressing residential concerns in opening up in a new area.  “Aurora Cannabis (TSX: ACB.TO) (ACBFF) is taking over the old Peloton plant on Hymus near Alston. It's the world's second largest medical marijuana producer. Residents near the site were uneasy with the thought of a medical marijuana company moving in. They were concerned about possibly more crime in their neighbourhood and smells wafting out.”

Executive Vice President of Aurora Cannabis, Cam Battley said similar concerns have been addressed at other facilities. "Under Health Canada regulations, the security at these facilities has to be very high and for example, there must be cameras covering every square inch of the production facility to ensure that there can be no diversion to the black market," said Battley, adding, “there are 150 surveillance cameras at their Calgary plant.”

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