Why CLKA Embodies a New Theme in this Bull Market

Why CLKA Embodies a New Theme in this Bull Market

Uncomfortable facts are still facts. You don’t necessarily want to think about them, but they are still true. And, to be a responsible investor, you have to look at the world with a computational self-honesty.

A good example of this is the number of millionaires and billionaires in the world. Even as we wallow in a pandemic recession, the number of super-rich people grows and grows.

According to recent economic research, the rich are likely to get much richer from the current turmoil because balance sheets are everything: If you don’t have enough capital to maintain your capital structure for any organization, you may have to let it go to someone who has the cash to see it through.

The simple example is to imagine a mom-and-pop breakfast restaurant up the street. They may have to shut their doors and sell the business to Denny’s or IHOP in the months ahead because they don’t have deep enough pockets to survive for enough months with basically no revenues during the pandemic crisis. As such, the lease, the kitchen equipment, the location, and its relationship with the community – all of that is still a business. But it just becomes a new Denny’s because Denny’s has the deep pockets necessary to make it to the other side of this virus.

Take that as a metaphorical map of what’s happening right now. It’s happening in everything. It happened in the stock market rapidly in March. Stocks fell so fast that overleveraged, shallow-pocketed investors were forced to dump positions into the hands of richer people at distressed prices, who are now much, much richer for that transition. It’s not an everyone-hurts cyclical downturn. It’s a wealth transfer, plain and simple.

It’s not fun to think about it that way. But as investors, we need to examine the bloodless verdict of the marketplace and act accordingly. In this case, there are a number of rich-get-richer trades to be had – with big tech being the most obvious, and most played out. But we want to focus on a relatively new angle on this dynamic that may be relatively underappreciated: the rare custom luxury goods by-appointment consumer market.

And the stock that may most perfectly capture this theme right now is small-cap Clikia Corp (OTCMKTS:CLKA).

The Model… and the Money

Clikia Corp (OTCMKTS:CLKA) engages in the sale of extremely high-end watches and jewelry, with plans to expand into a number of other product categories, potentially including rare custom luxury cars, clothing, electronics, and possibly even real estate. The model is the key point to understand. It is based on access to a network of suppliers and buyers. That amounts to “being in with the super-rich”.

The company’s founder and CEO, Anil Idnani, has established those relationships and brings them to the table in the form off Maison Luxe, which is now a wholly-owned subsidiary of Clikia.

The establishment of this model has instantly turned around the fortunes of this left-for-dead stock, and we’re not sure the market has priced in the transition, which is a key reason we point it out here.

Clikia is suddenly doing solid seven-figure sales seemingly overnight, after booking basically nothing in sales for the prior few years.

We get this impression straight from the company’s official materials, which suggest CLKA is on pace for well north of $2 million in sales in 2020. That is coming from Maison Luxe individual sales deals with very-high-net-worth clients, as well as its negotiated relationships with duty-free sellers in Colorado, Alaska, and the US Virgin Islands.

That last point was brought up in a recent press release in which the company noted that it had already booked over $300K in sales in recent weeks on a wholesale basis with its duty-free partners.

The combination is a great start. But the ceiling looks to be quite a bit higher even for this small part of the equation.

“The idea is to grow a brand that sources retail markets with responsibly sourced and priced watches,” remarked Idnani. “That’s typically nearly impossible to find. This is now more the case than ever due to a supply shock as factories shut down or halt production of luxury goods. However, demand hasn’t dropped at all this year despite the health crisis and resulting economic turbulence. The result is rising prices on inventory we have in-house.”

The Path Ahead… and the Money

The vision for the company is to leverage its superior market positioning and experienced leadership in the domestic US custom luxury watch and jewelry space as a launching point for expansion into the global custom luxury goods marketplace, with potential for expansion into high fashion, exotic custom automobiles, luxury accessories, and other by-appointment, rare luxury items.

The model that Maison Luxe has developed, in managing by-appointment disruption in market inefficiencies in custom high-end luxury goods, has wide applicability to geographic and product category expansion. Additionally, the Company believes that this model has not been widely developed in terms of market competition, creating a strong opportunity for return on invested capital in expansion.

Expansion in both geographic and product category creates the potential for strong expansion in total addressable market for Maison Luxe in the future.

The other key here to appreciate is the feedback loop of success available to a company in this space that starts with the right connections.

As a company like CLKA sees greater access to capital, management believes margin expansion will become a function of volume purchasing for key items that carry little risk of long-term demand shortfalls and are also capable of price appreciation over time – which is a feature of inventory factors in the high-end custom luxury goods market.

Future capital deployment is anticipated to emphasize margin expansion through optimizing held inventories, creating volume input price advantages for any company in this position.

Additional core investments will be made in multifaceted marketing strategies, including the development of key influencer relationships, with an emphasis on social media networking. In addition, significant investments are expected to go toward developing additional product sourcing relationships outside of the US market and in multiple additional product categories.

And, again, the results so far are actually on track to be almost astonishingly good – as far as we can tell from company materials – in terms of turning Clikia around from a relative nothing to a company now driving huge topline growth and millions of dollars of cash flowing in the door.

This article is part of JournalTranscript.com Networks. Read the JournalTranscript.com Networks Disclaimer.

Published at Wed, 29 Jul 2020 06:12:10 +0000

Zenabis Provides Corporate Update

Zenabis Provides Corporate Update

Zenabis Global Inc. (TSX: ZENA) (“Zenabis” or the “Company“) today provided a corporate update on its recent activities.


  • The Company has entered into multiple international supply arrangements and expects to ship 550 kg of dried cannabis in July and August under these arrangements. Ongoing demand under these arrangements is expected to be 750 kg per month by the start of the fourth quarter of 2020.
  • Zenabis Atholville remains in steady state production, with June harvest volumes within 1% of design capacity. Through a combination cultivation output from Zenabis Atholville and Zenabis Langley, Zenabis does not expect to require any further expansion of cultivation capacity at this time.
  • First shipments of Re-Up 510-Threaded Vaporizer cartridges (“510 vapes”) occurred in July.

Kevin Coft, Interim Chief Executive Officer of Zenabis, stated, “Zenabis continues to make significant strides in controlling operational costs, increasing our SKU and product-line distribution across all provincial distributors, and expanding our international bulk sales channel. Zenabis has reduced prices of flower products across all provincial distributors to provide best-in-class, or close to best-in-class, pricing in all categories.  The business continues to experience growth in shipments as a result of price, format, and cultivar variety in domestic flower, the addition of new products including 510 vapes, and international distribution expansion.”

Facilities Update

Zenabis Atholville


Zenabis Atholville remains in steady-state production from a cultivation standpoint. While May cultivation output remained slightly below design capacity, June harvest volumes were within 1% of design capacity. Zenabis has commenced commercial rollout of three new cultivars in July, with an additional nine cultivars to commence distribution over the remainder of the third and fourth quarter. The Company anticipates that the continued addition of high THC cultivars, together with a more diverse range of SKUs, will continue to increase overall throughput of Zenabis flower and pre-roll products.


Zenabis Atholville is currently operating extraction activities for production in line with the below “Cannabis 2.0 Update” including PAX cartridges, oil-derivative concentrates, and 510 vapes.

Zenabis Langley

Zenabis Langley cultivation remains in steady state for the summer months at this time. In conjunction with production from Zenabis Atholville, cultivation output remains sufficient to meet current market demand without further expansion of Zenabis Langley.

Zenabis Stellarton

Zenabis Stellarton is currently operating as the Company’s center of excellence for Cannabis 2.0 products, including beverages, products derived from trichome extraction, edibles, and hashish products. The facility is also completing pre-roll production and distribution for Namaste and Re-Up pre-rolls.

Business Development Update

Cannabis 2.0 Update



Applicable Updates



Zenabis launched two new SKUs, including a balanced format, in June.

Additional Oil-derivative Concentrates


The commercial production of additional oil-derivative concentrate products commenced in July.

Trichome Concentrate Product Production


The commercial production of hash products commenced in July. Zenabis anticipates achieving hash product listings in August, with distribution no later than September.

HYTN Beverages


Installation of the HYTN beverage line has taken place; however, commercialization has been delayed due to USA/Canada border crossing closures and quarantine issues for certain HYTN-related personnel as a result of the COVID-19 pandemic. Final commercialization is now expected in September as a result of such delays restricting the physical presence on-site of certain essential personnel.

Edible Production


First processing and testing of edible products has taken place. Commercial production is expected to commence this quarter.

510 Vapes


The first shipments of 510 vapes took place in July. The current product line includes two high-THC products and one CBD product, with these products currently listed in five provinces, with listings in an additional three provinces anticipated by the end of August.

Recreational Cannabis

Recreational cannabis shipments continue to increase month over month as the Company has continued to launch additional recreational cannabis SKUs and act as necessary to remain price competitive. In response to consumer demand, the Company has continued to increase listings of larger format offerings within its Re-Up brand. While the Company originally focused solely on strain-specific Re-Up listings, the Company has now secured listings with several provinces for non-strain specific Re-Up Indica and Re-Up Sativa 28 g formats.

The Company has also increased the availability of oil products, including soft gels and sprays, to meet growing consumer demand. The recent increase in extraction capacity at Zenabis Atholville has allowed the Company to expand availability of oil products, and expects increased availability in various provincial markets commencing in Q3 2020.

Supply Agreements, Contract Cultivation Agreements, International Agreements, and Bulk Market Cannabis Sales

The following is a summary of the status of the various relations by contract or relationship type:

Contract or Arrangement Type

Number of contracts or counterparties, status and current or expected volume

Bulk – Current Pay – Canada

Two ongoing arrangements, with both currently shipping; volume of up to 200 kg per month.

Bulk – Current Pay – International

Two ongoing arrangements exist with counterparties in Israel, with anticipated combined volume of up to 750 kg per month, and scheduled shipments ongoing.

Packaged – Current Pay – International

One ongoing arrangement with a counterparty in Australia, with first shipments expected in August subject to export license receipt.

Bulk – Current Pay – EU GMP

One executed contract for a minimum volume of 500 kg per year with shipments awaiting EU GMP certification of ZenPharm facility in Malta.

Contract Cultivation – Canada

Two executed contracts for a potential volume of 200 kg per month, with one ongoing and one on hold.

Prepaid Supply – Canada

Two executed contracts with potential volume of more than 2,000 kg per month, with one operating in accordance with the contract, and one subject to dispute.

The Company expects to complete its first two shipments to Australia in August, with this shipment being of packaged cannabis, rather than bulk cannabis.

Zenabis is currently in various stages of discussions with potential counterparties for additional agreements for bulk, contract cultivation and other commercial agreements.


There are have been no changes to the status of Zenabis’ ZenPharm joint venture since the most recent operational update.

About Zenabis

Zenabis is a significant Canadian licensed cultivator of medical and recreational cannabis, and a propagator and cultivator of floral and vegetable products. Zenabis employs staff coast-to-coast, across facilities in Atholville, New Brunswick; Aldergrove, Pitt Meadows and Langley, British Columbia; and Stellarton, Nova Scotia. Zenabis currently has 111,200 kg of licensed cannabis cultivation space across four licensed facilities. Zenabis has 3.5 million square feet of total facility space dedicated to a mix of cannabis production and cultivation and its propagation and floral business.

Zenabis expects Zenabis Stellarton and Zenabis Langley facilities to join Zenabis Atholville in steady state production in 2020. The Zenabisbrand name is used in the cannabis medical market, the Namaste, Blazery, and Re-Up brand names are used in the cannabis adult-use recreational market.

Forward Looking Information

This news release contains statements that may constitute “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information may include, among others, statements regarding the future plans, costs, objectives or performance of Zenabis, or the assumptions underlying any of the foregoing. In this news release, words such as “may”, “would”, “could”, “will”, “likely”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate” and similar words and the negative form thereof are used to identify forward-looking statements. In this news release, forward-looking statements relate, among other things, to: ongoing demand under these arrangements is expected to be 750 kg per month by the start of the fourth quarter of 2020; an additional nine cultivars to commence distribution over the remainder of the third and fourth quarter; the Company anticipates that the continued addition of high THC cultivars, together with a more diverse range of SKUs, will continue to increase overall throughput of Zenabis flower and pre-roll products;  final commercialization is now expected in September as a result of such delays restricting the physical presence on-site of certain essential personnel; commercial production is expected to commence this quarter; the current product line includes two high-THC products and one CBD product, with these products currently listed in five provinces, with listings in an additional three provinces anticipated by the end of August; the recent increase in extraction capacity at Zenabis Atholville has allowed the Company to expand availability of oil products, and expects increased availability in various provincial markets commencing in Q3 2020; two ongoing arrangements exist with counterparties in Israel, with anticipated combined volume of up to 750 kg per month, with scheduled shipments ongoing; one ongoing arrangement with a counterparty in Australia, with first shipments expected in July or August subject to export license receipt; the Company expects to complete its first two shipments to Australia in either July or August, with this shipment being of packaged cannabis, rather than bulk cannabis; and the expected content of future operational updates. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. No assurance can be given that any events anticipated by the forward-looking information will transpire or occur. Forward-looking information is based on information available at the time and/or management’s good-faith belief with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond Zenabis’ control. These risks, uncertainties and assumptions include, but are not limited to, those described in the shelf prospectus dated April 9, 2019 as supplemented by a prospectus supplement dated June 19, 2020 and the annual information form dated March 30, 2020, copies of which are available on SEDAR at www.sedar.com and could cause actual events or results to differ materially from those projected in any forward-looking statements. Furthermore, any forward-looking information with respect to available space for cannabis production is subject to the qualification that management of Zenabis may decide not to use all available space for cannabis production, and the assumptions that any construction or conversion would not be cost prohibitive, required permits will be obtained and the labour, materials and equipment necessary to complete such construction or conversion will be available. Forward-looking statements or information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements or information contained in this news release. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Zenabis does not intend, nor undertake any obligation, to update or revise any forward-looking information contained in this news release to reflect subsequent information, events or circumstances or otherwise, except if required by applicable laws.

For more information, visit: https://www.zenabis.com.

SOURCE Zenabis Global Inc.

Cision View original content: http://www.newswire.ca/en/releases/archive/July2020/28/c8098.html

Media Relations, Email: media@zenabis.com, Phone: 1-855-936-2247; Investor Relations, E-mail: invest@zenabis.com, Phone: 1-855-936-2247Copyright CNW Group 2020

Published at Tue, 28 Jul 2020 11:33:58 +0000

Nevada Compliance Board Holds Inaugural Meeting, FDA Issues Much-Anticipated Report: Week in Review

Nevada Compliance Board Holds Inaugural Meeting, FDA Issues Much-Anticipated Report: Week in Review

On July 22, the Boston Cannabis Board (BCB) adopted new rules and regulations. They state that the BCB’s role is to grant licenses to applicants “for cannabis establishments within the City of Boston while ensuring Licenses are granted in such a manner so as to ensure equity, quality, and community safety.

“Specifically, the BCB is the siting authority for such establishments evaluating the proposed time, place, and manner in which these establishments are approved, open, and operate.”

Cannabis Business Times and Cannabis Dispensary spoke with Lydia Edwards, councilor of Boston’s District 1, about the rules and regulations, and she shared several points of contention.

The BCB noted in its new rules and regulations that it “does not have the authority or ability to negotiate host community agreements.” However, Edwards said host community agreements (HCAs) should be part of the applications that come before the BCB and should be approved by the board. Those agreements are part of the local approval process that the Massachusetts Cannabis Control Commission mandates in its licensing scheme.

“Negotiations are currently happening “in the dark,” she said. “So, to what end? To whose benefit? The whole point and the spirit of the law and the reform that Councilor [Kim] Janey was trying to put in, was that a public process with people representing the community would be the ones negotiating and finalizing and getting the HCAs done for everyone to see. And instead, they decided to interpret the regulations to allow for a song and dance.”

The BCB also didn’t address in its rules and regulations the topic of potential disparities between people who are granted brick-and-mortar and delivery licenses. The city previously established a 1:1 ratio for granting social equity and other licenses. However, due to the state setting aside delivery licenses to social equity applicants for the next two years, Edwards wrote in public comment prior to the adoption of the new rules, this could “create an industry with a disproportionate number of dispensaries being operated by non-equity license holders.”

Edwards proposed the BCB issuance of separate license classes for delivery businesses than brick-and-mortar dispensaries and a separate fee structure. Another idea she proposed in public comment is for the BCB to “create an additional license class for cultivation and manufacturing businesses.”

These changes don’t appear in the new rules and regulations, Edwards told CBT and CD. “The whole point of this damn statute is equity and race analysis,” she said. “I am telling you, we are set up so that there are going to be a bunch of white owners, and they’re not incentivized now to get any people of color to own with them if they can just go get Black folks to deliver for them.”

In addition, Edwards said the city needs to provide license applicants with a distinct timeline, which is something that isn’t in the new rules and regulations. “That, I think, is by far the biggest frustration most people have, because they are still paying rent, they put up time, they put up money, they quit their jobs, they’ve done whatever pursuing this—and like, any other business, they would have a predictability.

“Their lawyers or their consultants would be able to say, ‘This is how long it takes to get this part, this part, this part, then you get your decision, and if it’s for you, you go this way; if it’s against you, you go this way.’”

Edwards also weighed in on Massachusetts lawmakers’ efforts to pass a police reform bill. She said she thinks the main issue that needs addressed relates to qualified immunity, a process that protects police from lawsuits and has become a part of the ongoing debate surrounding racism and police brutality.

When asked what the cannabis industry should know about these discussions in Boston and Massachusetts more broadly, Edwards said: “I believe that this industry needs to take a long, hard look at who’s involved and who’s running it, and also needs to be holding them accountable. You cannot just walk in the middle of the most pained history on war on drugs on certain communities and then say, ‘I’m here to make money, and I’ve got nothing to do with that.’ And that’s what I’m seeing too much of.”

Published at Sat, 25 Jul 2020 12:30:00 +0000

The Story Turns Back to Pot Stocks (GRWG, CRON, MEDIF, NUGS)

The Story Turns Back to Pot Stocks (GRWG, CRON, MEDIF, NUGS)

The green machine is back. And we would expect the usual election hype to get started again ASAP. We are now closing in on the next moment when some percentage of the population will be focused more on whether or not their particular state is about to offer legal pot than on who’s the next president.

And that percentage is worth a mint to the industry and to investors who get in for the run into the election. In addition, this time around is super spicy because the polling numbers slant heavily in Biden’s favor and the Biden-Sanders “unity task force” put together a lengthy document of policy recommendations across a wide array of issues that is highly instructive on the pot stock election hype factor.

For example, among the issues that the task force considered was recreational cannabis legalization, calling for the decriminalization of marijuana using executive action. The task force also expressed support for the federal legalization of medical marijuana.

So, get your engines started folks. With that in mind, here’s a selection of some of the most active names in the space, including: GrowGeneration Corp (OTCMKTS:GRWG), Cronos Group Inc (NASDAQ:CRON), and Medipharm Labs Corp (OTCMKTS:MEDIF), and Cannabis Strategic Ventures (OTCMKTS:NUGS).

GrowGeneration Corp (OTCMKTS:GRWG) trumpets itself as a company that, through its subsidiaries, owns and operates retail hydroponic and organic gardening stores in the United States. Currently, GrowGen has 27 stores, which include 5 locations in Colorado, 5 locations in California, 2 locations in Nevada, 1 location in Washington, 4 locations in Michigan, 1 location in Rhode Island, 4 locations in Oklahoma, 1 location in Oregon, 3 locations in Maine and 1 location in Florida.

GrowGen also operates an online superstore for cultivators, located at https://growgen.pro/. GrowGen carries and sells thousands of products, including organic nutrients and soils, advanced lighting technology and state of the art hydroponic equipment to be used indoors and outdoors by commercial and home growers.

GrowGeneration Corp (OTCMKTS:GRWG) just announced the pricing of an underwritten public offering of 7,500,000 shares of its common stock at an offering price of $5.60 per share. GrowGen expects the gross proceeds from the Offering to be approximately $42.0 million, before deducting the underwriting discount and other estimated offering expenses.

The Offering was upsized from the previously announced offering size of $35.0 million of common stock. GrowGen has also granted the underwriters a 30-day option to purchase up to an additional 1,125,000 shares of common stock offered in the public market. The Company expects to close the Offering on or about July 2, 2020, subject to the satisfaction of customary closing conditions.

If you’re long this stock, then you’re liking how the stock has responded to the announcement. GRWG shares have been moving higher over the past week overall, pushing about 7% to the upside on above average trading volume. Shares of the stock have powered higher over the past month, rallying roughly 10% in that time on strong overall action.

GrowGeneration Corp (OTCMKTS:GRWG) pulled in sales of $33M in its last reported quarterly financials, representing top line growth of 152%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($11.4M against $17.3M, respectively).

Cronos Group Inc (NASDAQ:CRON) casts itself as an investment firm in the biopharmaceutical space, with a strong emphasis on medical marijuana and cannabis-related research and products. In short, the company seeks to invest in other companies, either licensed or actively seeking a license, to produce medical marijuana pursuant to Canada’s Marijuana for Medical Purposes Regulations (MMPR).

The firm typically invests in companies based in Canada. The firm is primarily an equity investor, may also advance debt as appropriate. It seeks to make minority investments with appropriate governance and shareholder rights. The firm seeks board representation consistent with the size of the investment but does not need control.

Cronos Group Inc (NASDAQ:CRON) just announced that the shareholders have approved a special resolution authorizing the Company to make an application for the continuance of the Company from the laws of the Province of Ontario to the laws of the Province of British Columbia, as further described in the Proxy Statement.

The Company believes the greater flexibility afforded by the British Columbia corporate statute by virtue of the absence of a Canadian residency requirement for members of the board of directors of the Company will allow the Company to consider Board candidates from a larger pool of candidates to ensure the Board maintains the right composition, skills, expertise and diversity to drive long-term value. The completion of the Continuance remains subject to the satisfaction of the conditions described in the Proxy Statement.

While this is a clear factor, it has been incorporated into a trading tape characterized by a pretty dominant offer, which hasn’t been the type of action CRON shareholders really want to see. In total, over the past five days, shares of the stock have dropped by roughly -5% on above average trading volume. All in all, not a particularly friendly tape, but one that may ultimately present some new opportunities. CRON shares have been relatively flat over the past month of action, with very little net movement during that period.

Cronos Group Inc (NASDAQ:CRON) generated sales of $11.3M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 17.6% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($1.9B against $286.8M).

Medipharm Labs Corp (OTCMKTS:MEDIF) bills itself as a company that primarily focuses on producing pharma-grade cannabis oil and concentrates in Canada. It also focuses on providing cannabis contract processing services to licensed producers and growers; supplying cannabis oil to companies for sale under its brand; and supplying raw materials and processing for the creation of ready-to-sell cannabis products. The company was founded in 2015 and is headquartered in Barrie, Canada.

This expert focus on cannabis concentrates from our cGMP (current Good Manufacturing Practices) and ISO standard clean rooms and critical environments laboratory, allows MediPharm Labs to produce purified, pharmaceutical-grade cannabis oil and concentrates for advanced derivative products. MediPharm Labs has invested in an expert, research-driven team, state-of-the-art technology, downstream extraction methodologies and purpose-built facilities to deliver pure, safe and precisely-dosed cannabis products to patients and consumers. MediPharm Labs’ private label program is a high margin business for the company, whereby it opportunistically procures dry cannabis flower and trim from its numerous product supply partners, to produce proprietary cannabis oil concentrate products for resale globally on a private label basis.

Medipharm Labs Corp (OTCMKTS:MEDIF) just announced that it has appointed James (Jim) Maloney as Chief Financial Officer, effective July 20, 2020.

In his role, Mr. Maloney will be responsible for leading the finance function including all aspects of financial planning and analysis, setting Medifast’s financial and capital allocation strategies, and managing investor relations. He will serve as a member of the company’s leadership team and report directly to Chief Executive Officer Dan Chard.

The stock has suffered a bit of late, with shares of MEDIF taking a hit in recent action, down about -7% over the past week.

Medipharm Labs Corp (OTCMKTS:MEDIF) generated sales of $11.1M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of -65.8% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($21.4M against $25.1M, respectively).

Cannabis Strategic Ventures (OTCMKTS:NUGS) bills itself as one of the largest publicly traded marijuana cultivators in the United States. The Company is Los Angeles-based and incubates, develops, and partners with category leaders within the cannabis and ancillary sectors.

The Firm’s NUGS brand experience provides operational and financial strategic partnerships and a range of essential services to emerging and existing Cannabis consumer brands.

Cannabis Strategic Ventures (OTCMKTS:NUGS) recently announce topline performance data for the month of June, which featured over $1.3 million in sales, representing over 40% sequential monthly revenue growth. This performance demonstrates a dramatic acceleration in month-over-month growth.

“June set new records for the Company, with a massive acceleration in the pace of growth, which is so far continuing in July,” stated Simon Yu, CEO of Cannabis Strategic Ventures. “We have successfully repositioned ourselves in the ecosystem of the California cannabis marketplace, moving up the ladder and widening our distribution footprint. We will continue to focus on ramping production capacity and steadily driving gains in quality, efficiency, and volume. That has been our focus all year. Besides dramatic expansion in sales volume by weight, we have also been rewarded by the market with steady gains in pricing. That represents the ultimate positive reinforcement.”

Even in light of this news, NUGS has had a rough past week of trading action, with shares sinking something like -2% in that time. That said, chart support is nearby and we may be in the process of constructing a nice setup for some movement back the other way. Shares of the stock have powered higher over the past month, rallying roughly 53% in that time on strong overall action.

Cannabis Strategic Ventures (OTCMKTS:NUGS) generated sales of $1.4M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 91.4% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($222K against $13.1M, respectively).

This article is part of JournalTranscript.com Networks. Read the JournalTranscript.com Networks Disclaimer.

Published at Thu, 23 Jul 2020 03:35:01 +0000

How the Global Health Crisis Affected 3 of Europe’s Most Promising Industries

How the Global Health Crisis Affected 3 of Europe’s Most Promising Industries

eCann Media is proud to showcase our portfolio of investments and subsidiaries. We have completed numerous investments across multiple verticals and sectors in the cannabis industry. Requesting an invitation will enable the eCann team to consider your eligibility for investment as well help us to identify the opportunities that best fit your needs and investment objectives.

Published at Mon, 20 Jul 2020 16:45:00 +0000

Pat McCutcheon, CEO of MediPharm Labs to Present at the Avicanna Hosted Virtual Symposium Titled “Medical Cannabis 2.0” in Partnership with Medical Cannabis by Shoppers™

Pat McCutcheon, CEO of MediPharm Labs to Present at the Avicanna Hosted Virtual Symposium Titled “Medical Cannabis 2.0” in Partnership with Medical Cannabis by Shoppers™

MediPharm Labs Corp., (TSX: LABS) (OTCQX: MEDIF) (FSE: MLZ) (“MediPharm Labs” or the “Company”) a global leader in specialized, research-driven pharmaceutical-quality cannabis extraction, distillation and derivative products, is pleased to announce that Pat McCutcheon, CEO & Co-Founder of MediPharm Labs will be participating at the Avicanna Hosted Virtual Symposium Titled “Medical Cannabis 2.0 in Partnership with Medical Cannabis By Shoppers™.

Patients and health care practitioners globally can join the virtual symposium to learn more about the potential advantages of medical cannabis and the advancement of product offerings including MediPharm Labs manufactured products such as Avicanna’ s RHO Phyto product offerings. In addition, experts will discuss the pharmacology, safety, and dosing guidelines of medical cannabis for therapeutic conditions. This includes presentations on the, efficacy of cannabinoids for chronic pain, anxiety, depression, and comorbidities as well as an overview of the patient pathway to Medical Cannabis by Shoppers.

The webcast presentation will begin at 10:00am Eastern Time, and Pat McCutcheon, CEO of MediPharm Labs will be presenting on a panel at 12:50pm Eastern Time. Participants may view the full agenda and access the webcast using the following link: https://www.avicanna.com/symposium/ or through the events section of MediPharm Labs Investor Relations website at https://ir.medipharmlabs.com/ir-calendar.

About MediPharm Labs

Founded in 2015, MediPharm Labs specializes in the production of purified, pharmaceutical-quality cannabis oil and concentrates and advanced derivative products utilizing a Good Manufacturing Practices certified facility with ISO standard-built clean rooms. MediPharm Labs has invested in an expert, research driven team, state-of-the-art technology, downstream purification methodologies and purpose-built facilities with five primary extraction lines for delivery of pure, trusted and precision-dosed cannabis products for its customers. Through its wholesale and white label platforms, MediPharm Labs formulates, develops (including through sensory testing), processes, packages and distributes cannabis extracts and advanced cannabinoid-based products to domestic and international markets. As a global leader, MediPharm Labs has completed commercial exports to Australia and is nearing commercialization of its Australian extraction facility. MediPharm Labs Australia was established in 2017.

For further information, please contact:
Laura Lepore, VP, Investor Relations and Communications
Telephone: 416-913-7425 ext. 1525
Email: investors@medipharmlabs.com
Website: www.medipharmlabs.com


This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; the inability of MediPharm Labs to obtain adequate financing; the delay or failure to receive regulatory approvals; and other factors discussed in MediPharm Labs’ filings, available on the SEDAR website at www.sedar.com. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, MediPharm Labs assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change.

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Published at Tue, 21 Jul 2020 11:44:17 +0000

Rapid Dose Therapeutics and McMaster University Initiate QuickStrip™ COVID-19 Vaccine Research With Immediate Impact

Rapid Dose Therapeutics and McMaster University Initiate QuickStrip™ COVID-19 Vaccine Research With Immediate Impact

Rapid Dose Therapeutics Corp. (“RDT” or the “Company”) (CSE: DOSE), a Canadian Life Sciences company focused on innovative drug and active ingredient delivery solutions, is pleased to announce it has begun COVID-19 vaccine research in conjunction with McMaster University and the team lead by Drs. Alex Adronov, James Mahony, and Mark Larché. The federally-funded project tests the use of QuickStrip™ for administering vaccines orally as a convenient and safe alternative to injection with needles, the currently accepted delivery format for most vaccines.

Dr. Adronov is a recognized Canadian expert in synthetic polymer chemistry and the development of novel polymer architectures, Dr. Mahony has extensive experience in virology and vaccine development, and Dr. Larché is an immunologist with expertise in vaccine research geared toward treatment of common allergies. The combined expertise of this research team will enable development and evaluation of oral vaccine delivery strategies.

Jason Lewis, RDT SVP said “RDT is focused on novel research through collaboration with the experts at McMaster. We see QuickStrip™, oral mucosa thin film delivery, as an efficient solution for distributing vaccines globally. Experts believe that antigens to COVID and other viruses can be delivered sublingually, a much easier and less expensive process than the current single or multidose vial methods.  Imagine the significance of creating a vaccine that can be sent in an envelope, by mail.”

“Our combined experience indicates that this is very feasible” said Dr. Adronov a recognized polymer expert leading the research project. “Our past collaborations with RDT in developing polymeric delivery innovations have resulted in solutions we are proud of, and continue to be involved with. Globally, we are seeing the development of many vaccines that we believe can be applied using sublingual delivery. Our project focuses on producing a polymer strip that delivers viral antigens by a transmucosal approach rather than injection. This funding will allow us to quickly get started, and we expect to generate positive results in the near future.”

Mark Upsdell, RDT CEO, said “The current COVID situation requires everyone to think outside of the box as to how we might deliver safe, effective and timely solutions for combating COVID-19 and other viruses that require serum-based defenses. RDT remains committed to its research and innovation strategy which is highlighted now by our work on the COVID-19 project’s unique delivery format. RDT provides scale-up testing and bench strength support for the McMaster research team in the race to provide an effective product that can be produced and delivered on a world-wide scale. A successful outcome of this project and its application with our QuickStrip™ delivery system will create exciting new opportunities for RDT.”

About Rapid Dose Therapeutics

Rapid Dose Therapeutics Corp. is a publicly-traded Canadian Life Sciences company providing innovative, proprietary drug delivery technologies designed to improve outcomes and quality of lives. RDT offers Quick, Convenient, Precise and Discreet™ choices to consumers. RDT is focused and committed to clinical research and product development for the healthcare manufacturing industry — including nutraceutical, pharmaceutical and cannabis industries. Within the cannabis sector, RDT also provides a turn-key Managed Strip Service Program enabling RDT’s QuickStrip™ proprietary cannabis delivery technology to be licensed to select operators in identified markets. RDT’s service-based annuity contracts drive recurring revenue and facilitate rapid expansion into emerging markets across multiple consumer segments. RDT is committed to continually create innovative solutions for humans, animals and plants.

For more information, visit: www.rapiddose.ca

For inquiries please contact:

Certain information in this news release may contain forward-looking information within the meaning of applicable securities laws.

Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expect”, “potential”, “believe”, “intend”, “will”, “could”, “are planned to”, “are expected to” or the negative of these terms and similar expressions. Statements containing forward-looking information, including, without limitation, in respect of the delivery of equipment and products using the QuickStrip™ product delivery method, the generation of recurring revenues and the dismissal of the CTT lawsuit, express, as at the date of this news release, the plans, estimates, forecasts, projections, expectations or beliefs of RDT management as to future events or results and are believed to be reasonable based on information currently available to RDT management. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; termination of WLM agreements; future legislative and regulatory developments involving cannabis; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the cannabis industry in Canada generally, income tax and regulatory matters; the ability to implement its business strategies; competition; currency and interest rate fluctuations and other risks.  Readers are cautioned that the foregoing list is not exhaustive. There can be no assurance that statements of forward-looking information, although considered reasonable by RDT management at the time of preparation, will prove to be accurate as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. Actual results and future events could differ materially from those anticipated in such forward-looking statements. Readers should not place undue reliance on forward-looking statements. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

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Published at Tue, 21 Jul 2020 11:47:51 +0000

Psychedelic Drugs and Seniors Health

Psychedelic Drugs and Seniors Health

A funny thing has happened as cannabis legalization is pushing across North America. The fastest-growing demographic of cannabis consumers today are senior citizens.

Are Baby Boomers suddenly rediscovering their hippie roots from the 1960s? No.

Rather, awareness about the many potent medicinal properties of cannabis has spread. And as the age demographic that has the most health problems (and most-serious health problems), senior citizens have been gravitating toward medicinal cannabis use in steadily increasing numbers.

Is the same trend about to repeat itself with psychedelic drugs?

It’s very possible.

Seniors still have the most health issues. Even with the benefits derived from medicinal cannabis, many areas of seniors healthcare are still in need of better treatment options.

Psychedelic drugs offer great promise in a number of these areas. Depression and anxiety are two rapidly worsening mental health issues where psychedelic drugs are showing exciting potential as a solution.

Those health issues affect all age levels. However, a 2016 clinical study reported that 80% of terminally-ill patients receiving psilocybin therapy experienced reduced levels of depression and anxiety. Senior citizens represent the majority of those with terminal illnesses.

Ketamine and MDMA are two psychedelic drugs that are seen as having potential pain-management applications. Chronic pain is another medical problem that tends to be more severe with age.

More specifically to seniors, Eleusis Ltd. is presently in early clinical trials to treat Alzheimer’s disease with microdoses of LSD.

This is exclusively a senior’s health issue. It’s one of the most endemic medical problems that confront senior citizens. And existing therapies generally offer poor treatment outcomes.

If successful, this one medical application alone would raise psychedelics usage rates among seniors dramatically. However, Eleusis CEO Shlomi Raz strongly believes that LSD in particular may have a multitude of medical applications for more complex neurological disorders.

In a February 2020 interview, he made the following observations.

“Most biotechnology companies try to develop a [Alzheimer’s] drug that hits a single target and nothing else. But Alzheimer’s is a complex disease with multiple therapeutic targets, and as single target approaches continue to fail, there is a growing and widespread belief that a successful therapeutic approach will have to hit multiple targets simultaneously.”

“LSD in particular seemed like an attractive candidate for such a therapeutic approach, as it is capable of potent and prolonged activation of the serotonin and dopamine neurotransmission receptors implicated in Alzheimer’s disease, and specifically the serotonin 2A receptor.”

Other complex neurological conditions such as multiple sclerosis and Parkinson’s disease may also benefit from the “multi-target” efficacy of psychedelic drugs. These are degenerative conditions and thus those with the greatest treatment needs will be older patients.

Of equal significance is that Eleusis’s focus on an Alzheimer’s treatment that requires only micro-dosing. This greatly increases the potential for market penetration for a number of reasons.

  • Cheaper
  • Safer and better tolerated
  • More convenient (no medical supervision required)

If the psychedelic drug applications currently being researched exclusively involved (larger) “experiential” doses of psychedelic drugs, then perhaps senior citizens would never be a large potential consumer base for these substances.

However, at the microdose level (where there are no psychoactive drug effects) consuming a psychedelic drug becomes no different than any other medication.

Psychedelics continue to demonstrate superior efficacy (in many medical contexts) to existing pharmaceuticals in current clinical trials.

If this R&D translates into a new class of (highly effective) drugs, then seniors may become the biggest growth market for psychedelic drugs just as they are for medicinal cannabis.

Published at Fri, 17 Jul 2020 17:17:04 +0000

Hawaii Legislature Approves Bill Allowing Cannabis Edibles, Illinois Collects More Than $52 Million in Adult-Use Tax Revenue to Date: Week in Review

Hawaii Legislature Approves Bill Allowing Cannabis Edibles, Illinois Collects More Than $52 Million in Adult-Use Tax Revenue to Date: Week in Review

Helping to build a brand-new industry is generally a once-in-a-lifetime experience, but for Michael Cohen, co-founder and president of The Pass, a vertically integrated adult-use cannabis operator in Massachusetts, the cannabis industry gave him a second opportunity to be at the start of something big.

Cohen launched one of the first internet ad buying agencies in 1996, when online advertising was in its infancy.

“I was part of this string of industry professionals where we were all true believers,” Cohen says. “People would say, ‘I don’t get online advertising, I would never click on one of those banners.’ We would tell people, ‘This is the future of marketing,’ and three years later, it was just booming.”

Cohen sold the company and turned to consulting and investing as he waited for his next business opportunity. Now, almost 20 years later, he’s found it in the cannabis industry.

Cohen and his partner have been building their cannabis business for nearly three years, and currently hold three licenses in Massachusetts for cultivation, processing and retail. They operate indoor and greenhouse cultivation facilities  in Sheffield, Mass., in Berkshire County, and have a provisional license for an outdoor grow site. The Pass opened its first dispensary location in the Berkshires July 17 and has the option to open two more storefronts with its current retail license.

“When we first started, when we were interviewing lawyers, our first question to our lawyer was, ‘What are the chances we’re going to end up in handcuffs?’” Cohen says. “That was an issue for us. It just felt like there was a lot more stigma three years ago. … We’re just really proud to be creating a product that provides people with inspiration, relaxation, relief and stimulation.”

Photos courtesy of The Pass

The vertically integrated company opened its first dispensary location in the Berkshires July 17.

Cohen describes the Berkshires as “an intersection of nature and culture,” a place where families visit to connect with nature and art, and he has worked to make his dispensary an extension of that.

“The Pass brand we also believe is representative of the cannabis experience,” he says. “The Pass stands for ‘permission.’ We’ve been given the pass to consume—this is now legal. It represents communal sharing. It represents passing from one state to another. It represents the mountain passes in which we live … and getting from one hard-to-reach place to another.”

Preparing for Opening Day

Leading up to the dispensary’s grand opening on July 17, Cohen and his team were busily training retail staff, setting up merchandising displays and, of course, grappling with the necessary precautions to keep employees and customers safe during the ongoing COVID-19 pandemic.

The Pass hired 25 new retail employees for its Berkshires store, and Cohen says he became emotional walking into the conference room this past week to give a presentation to the new hires.

“You have this idea, then you start pursuing it, and I’ve had so many of these over the years just not come to fruition, and this one really has,” he says. “We’re so proud to be working in the cannabis industry.”

The Pass has 40 total employees for its vertically integrated operations, and Cohen hopes to expand his staff to 50 by the end of the month as it hires for cultivation, manufacturing, logistics and sales positions.

The Pass operates indoor and greenhouse cultivation facilities in Sheffield, Mass.

“It’s so amazing to be able to provide a full range of jobs and career opportunities for people in the Berkshires, which is a place that has been hard hit by COVID, like others,” he says. “It’s historically a beautiful place to raise a family, but a hard place to make a living. We have jobs for people who need to feed themselves and we have serious career opportunities in an industry that is a generational business opportunity.”

“I just remember building a team back in the ’90s and how amazing it was to be a part of a team of people who really believed in what they were doing,” Cohen adds. “We were doing something really exciting, and it’s like the same thing all over again, 20 years later. We’re really trying to build a culture—we’re building a diverse culture of people that really want to be here and I’m totally thrilled.”

The Pass cultivates 40 different varieties of cannabis, and its cultivation team has completed its first harvest at the indoor facility  in Sheffield. The greenhouse has been planted, with some rows just beginning to flower.

“The guys who grow [the plants], they talk about it like a sommelier talks about wine,” Cohen says. “They’re just in love with the plants.”

With final inspections recently completed by the Massachusetts Cannabis Control Commission, The Pass’ packaging operations are now in full swing to package the vape cartridges, concentrates, edibles, tinctures and topicals produced at the company’s processing facility.

The Pass is also in the process of launching its marketing efforts, which include a billboard and a print ad in Berkshire Magazine.

The Pass produces and sells vape cartridges, concentrates, edibles, tinctures and topicals.

When Massachusetts reopened after shutting down nonessential businesses in response to the COVID-19 pandemic, adult-use cannabis dispensaries could reopen for curbside service only, and The Pass set to work creating SOPs for curbside pickup.

Now, the dispensary is permitted to offer in-store sales with a limited number of people allowed in the store at any given time, and the Pass requires all staff and customers to wear masks at all times.

“One of the nice things about our space is it’s really lofty,” Cohen says. “It’s a big open barn, a modern barn. The ceilings are really high, and it feels spacious, but obviously, we have the stickers on the floor to mark 6 feet. … We’re taking it seriously.”

Upcoming Plans

Now that the dispensary has officially opened, Cohen is most excited to learn who The Pass’ customers are and which products they are most interested in.

All aspects of the company’s supply chain maintain constant communication, so the processing team can design its products around the specific genetics produced by the cultivation team. In addition, the retail space is located adjacent to the lab, which allows the processing team to answer the dispensary staff’s questions or address concerns about specific products.

“Education and listening are a really big part of the process from a retail standpoint,” Cohen says. “We’ll have all these different consumers who will be coming for all these different needs and many will have a lot of questions, so we want to educate them.”

The Pass’ dispensary is a lofty, modern barn with high ceilings, which Cohen says works well to promote social distancing during the ongoing COVID-19 pandemic.

Although The Pass’ specific sales analytics remain to be seen, Cohen has been studying the sales data in Massachusetts and has found that flower comprises 50% to 60% of the market, whereas vape cartridges and edibles make up 10% to 15% of all cannabis sales.

“I think that with COVID, which attacks the lungs, it’s reasonable to think that edibles and tinctures will probably be a product group that grows in this current environment,” he says. “I think that flower is king, and I think for us, we’re creating a full range of products, and we’ll probably want to expand on that over time.”

The Pass plans to sell its products in other dispensaries throughout Massachusetts, and it already carries other brands’ products in its store, as well.

“Our short-term goals are to be a viable, successful business, to provide a full range of experience, to enhance our consumers’ lives [and] to broaden a higher level of consciousness,” Cohen says. “We are committed to education. We are committed to inhibiting underage consumption. … We want to provide people with career opportunities and development opportunities. We want to make a positive impact on our community and our environment. We want to be responsible stewards of the plant and of our products.”

Published at Sat, 18 Jul 2020 12:00:00 +0000

SGMD BudCars: Built to Thrive

SGMD BudCars: Built to Thrive

In California, the business context is reverting back to fears around another wave of full economic shutdowns due to the increasing numbers of coronavirus infections, hospitalizations, and deaths in recent weeks. Besides the inherently tragic nature of this dark turn in events, many industries and businesses are now faced with the unthinkable prospect of “turtling” and praying for rain from the Federal Reserve and the Federal Government in the form of another bridge made of printed and borrowed money to help survive a drop-off in commercial activity.

This even applies to the cannabis market. The distribution landscape for cannabis in California, and elsewhere, is predominantly structured like any other retail market: with physical stores that consumers drive to and shop at. As consumers choose to stay at home more and more while the lockdowns go back into effect in many areas, cannabis product retailers will be in the same position that other businesses in the state are in: praying for survival.

Even though cannabis stores are considered essential goods during this process, we will no doubt see them suffer as they did in March, April, and May.

However, this throws the spotlight back on an upstart name in the space with a model that has paid huge dividends during this period: Sugarmade Inc (OTCMKTS:SGMD), a cannabis player that operates now mostly through its controlling stake in BudCars, a leading California cannabis delivery company that operates on a traditional retail model with consistent 45-50% gross margins on cannabis inventory.

Sugarmade’s BudCars model has been feasting on increasing market share during the pandemic for obvious reasons: cannabis consumers can order their favorite products and have them delivered right to the door in touchless convenience.

Organic Explosion

That dynamic has presented SGMD shareholders with a dramatic boom over recent months. Since Sugarmade took over control of BudCars in March, the outfit has posted 10% week-over-week sales growth basically at a minimum. With that growth, the rate of sales growth expected from the company in 2020 has walked up a steep ladder, with the latest guidance suggesting we could see it north of $30 million in annualized terms by year-end.

According to the company’s most recent release, based on robust growth and underlying data trends witnessed in May and June, and continued very strong performance underway so far in July, management now forecasts continued month-over-month sequential sales growth of 30% in July and August, positioning the company for July sales of at least $650K, and a pace lined up to close out September with annualized BudCars revenues running at or above $11 million.

Jimmy Chan, CEO of Sugarmade, noted, “We believe we have enough visibility and enough data in hand to forecast that we will continue to see extremely robust growth in July and August. Many of the trends we saw come together in June to drive our performance remain in place and suggest new records across many metrics are likely this month as well.”

However, astute observers will note that this is the company firing on only one engine: organic execution at its initial hub.

Why you ain’t seen nothin’ yet

We would submit that the explosive rate of growth for BudCars at its home Sacramento hub is certainly impressive and suggests shares of the stock are probably undervalued at present levels. But that doesn’t begin to scratch the surface of where this story may be heading when one starts to figure in geographic expansion.

The next phase later this year will likely be the launch of BudCars in the Southern California marketplace through the acquisition of two locations in the greater Los Angeles area (according to a recent press release).

As noted there, the BudCars Sacramento has been experiencing dramatic growth, with revenues consistently increasing 10% week-over-week, driven by exploding demand for contactless delivery of cannabis products due to the coronavirus lockdown. And that makes expansion necessary.

As Chan noted there: “Our Sacramento locations will pass the $10 million mark for annualized sales within the next 60-90 days. The growth has been so dramatic that we have had to drastically revise our expectations to the upside, which demands expansion, both in terms of staff and fleet in Sacramento, and in terms of regional expansion into Southern California. As a result, we are acquiring two distribution hub locations in the LA area with cannabis licenses included so we can hit the ground running.”

Based on data from its current operations as well as trends in the LA region, management believes that each additional new BudCars hub will provide an annual revenue run-rate of $15-20 million as a moderate baseline estimate.

Published at Wed, 15 Jul 2020 07:23:45 +0000