CannAmerica had an exciting start to fiscal 2019 ending March 31 . The Company has entered into licensing agreements for its key brand, CannAmerica (the “Brand”), in three key geographic markets – Colorado , Nevada and Maryland , with industry leaders in each of these respective markets. The Company has licensed its brands, packaging, formulas, supply chain and processes to the three licensees in exchange for licensing royalty fees based on sales by the licensee. The Company has successfully raised approximately $5.4 million via non-brokered private placements. The initial Brand has sold over 12 million state approved gummies in the Colorado market, since launching in 2016.
Update on Current Licensees
The Company currently licenses its Brands to licensed and regulated Cannabis product manufacturers and wholesale licensees and has three licensing agreements with licensees in the States of Colorado , Nevada and Maryland , with additional multi-state growth planned in the current and subsequent fiscal year.
The licensee in Colorado is a well-established 25,000 square foot cultivation and manufacturing facility, currently selling in dispensaries in Colorado . New SKU’s will be introduced into the Medical market in October.
The licensee in Nevada is a well-established 30,000 square foot cultivation and manufacturing facility, currently selling in dispensaries in Nevada . Production commenced in August 2018 with over 150,000 gummies produced to date.
The licensee in Maryland has a 7,500 square foot facility and was one of the first extraction licenses issued in Maryland , and is currently one of only 15 extraction licenses in the state. The operations related to CannAmerica’s license agreement commenced in August 2018 .
Updates on Near-Term Growth
New Geographic Markets
The Company plans to launch its existing brand portfolio via new license agreements in several new and important U.S. states, including California , in the next six months.
The Company is currently assessing a number of key brands as acquisition targets to continue growing the portfolio of brands and to diversify revenue streams. These efforts will be a catalyst in the Company’s growth strategy.
The Company aims to acquire well-known consumer brands in the Cannabis space with high potential for growth and strong brand awareness. The Company is also seeking to diversify its portfolio by evaluating the strength of targeted brands and expected viability and sustainability of future royalty streams. Upon the acquisition of a brand, it seeks to partner with leading wholesalers and dispensaries to drive incremental value and maximize its brand equity. It focuses on certain key initiatives in its licensing and brand management business. These initiatives include:
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