January 7th, 2019
Demand for legal marijuana globally is increasing exponentially. While this is a good thing overall for the marketplace, shortages and supply chain issues have become prevalent. One company aiming to ensure access is DionyMed Brands, a “cannabis to consumer” platform offering both manufacturing and distribution solutions to producers and retailers alike, serving nearly half a million consumers and counting with their 12 unique brands and other producer and retailer brands supported by the platform. The company just went public on the CSE under the ticker symbol DYME after securing C$35 million of private placement subscription receipts days before its debut.
CFN Media spoke with DionyMed CEO Edward Fields at the recent MJBizCon in Las Vegas to discuss the company’s journey to RTO and what they’re looking forward to in 2019.
CFN: How does DionyMed support the cannabis space?
Edward Fields: We provide services across pretty much the entire value chain. While we’re not a cultivator per se, we help cultivators get their product to market, both with bulk purchases, finished goods processing using our manufacturing license, and then of course distribution. We walk into virtually every retail dispensary in California and Oregon today every month with a sales force of over 15 professionals who are helping other companies and ours tell their brand story everywhere that it matters. We launched our own direct-to-consumer brand called Chill (calichill.com) in September of this year. All I can say is, we’re thrilled with the rate of growth and the pace of execution.
CFN: What sets you apart from potential competitors?
EF: The sustainable point of difference for us is really derived from our Silicon Valley DNA. Our technologists have built one of the most exciting logistics platforms for managing cannabis across the entire value chain. We see data from both the supply chain as well as the sell-side at the dispensary level and direct to consumer by ZIP code in ways that make it possible for us to drive new product development and make investments and provide data to our supply chain partners to accelerate and grow their own businesses.
There’s a few things where I think we’re different and really good at, that others have not been able to either invest in or get to scale. But the thing that really sets us apart is our Silicon Valley DNA and our focus on data as a strategic asset.
CFN: Tell us about the journey to going public on the CSE?
EF: This is a business that’s been growing very, very quickly over the last 12 months and this is all about accessing the most cost efficient growth capital in the market today. Additionally, Canada has done a phenomenal job of leading the way as a capital markets destination, if you will, and really made it possible for both companies and investors to come together. People can invest in confidence in the cannabis space, and Canada is the one that led the way. We’re really excited about participating in that marketplace, and pioneering alongside of other US companies as public market businesses in Canada.
CFN: Why should potential investors consider buying DionyMed stock?
EF: We have believed from the beginning that pricing the equity at a point which creates value creation or stock appreciation for all of our investors is enormously important. If an investor’s looking for a data-infused, hyper-growth capable management team in the United States with a stable footprint in California and Oregon, and expanding into other states like Colorado, Nevada, Massachusetts, then this is a great opportunity to frankly be part of. This is something that’s going to be much bigger and getting in at a point in its lifecycle where the value of the stock is still quite conservative and reasonable.
The family office that founded the business owns 33 Million of the 70 Million shares outstanding. For any investor that’s looking for a place to park a cannabis investment for the long term, we’re a great option. We will be here for the long term, growing and scaling this business, using data as the principle driver around both differentiation and the sprint to scale.
CFN: What are your current projections for growth?
EF: I expect the business to continue growing month over month on an eight to 10 percent basis for three, four, five years ahead.
Operating these hyper growth businesses presents its own unique challenges, both for the business itself, the stakeholders in the ecosystem, and the employees and leadership team. We have a Silicon Valley view on how that best works. It starts with getting the team right. It moves on to supporting the line staff and their own professional development and growth as they align themselves to the vision.
CFN: What are you looking forward to in 2019?
EF: We think sprinting to scale is really important. The most rewarding part of my job is supporting the leadership team and the young entrepreneurs who are bringing their businesses onto our platform, whether through acquisition or partnering. I’m looking forward to meeting more of them, working with more of them, and continuing to grow the business.
With more than 400 employees, we’re one of the fastest growing employers in Oakland and one of the fastest growing employers certainly in the cannabis space. I’m just looking forward to putting more great people to work in the cannabis space. I would expect by the end of 2019 to be posting north of 1,000 headcount, and providing great, safe cannabis products to consumers worldwide.
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About Rachelle Gordon
Rachelle Gordon is a Minneapolis-based writer. Find her online at www.rachellegordon.net.
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