Launch marks the initial phase in multi-state agreement with planned expansion into Pennsylvania

PHOENIX, Oct. 06, 2022 (GLOBE NEWSWIRE) — TILT Holdings Inc. (“TILT” or the “Company”) (NEO: TILT) (OTCQX: TLLTF), a global provider of cannabis business solutions that include inhalation technologies, cultivation, manufacturing, processing, brand development and retail, today announced the Massachusetts launch of Black Buddha Cannabis, a Black and woman-owned and led, environmentally conscious, social impact driven cannabis wellness brand.

Roz McCarthy is the driving force and founder of Black Buddha Cannabis, as well as Minorities for Medical Marijuana Inc. which advocates for equity and diversity in the nascent cannabis marketplace. Both organizations originated from the personal needs and experiences of McCarthy, who found cannabis instrumental to her healing journey after a car accident. Her brand seeks to promote optimal wellness across every aspect of life and support each patient or consumer to achieve their potential and live with passion and purpose.

The initial experience-based product line, Blyss, could support euphoric and positive effects. The products are primarily built around a sativa-leaning, hybrid flower that creates an uplifting blissful feeling with an array of sweet aromas in the following offerings:

• Blyss Flower—an eighth of expertly grown, premium cannabis;
• Blyss Chyllum—a 100-percent recyclable glass chillum, packed with 0.35g of flower; and
• Blyss Vape—a vape containing 300mg of a 3:1 THC:CBD ratio that is rich in beta-caryophyllene.

“Adding Black Buddha Cannabis to our diverse and innovative product portfolio available across the state is a testament to the success of our distinctive brand partner model,” said Gary Santo, Chief Executive Officer of TILT Holdings. “Black Buddha Cannabis is our eighth brand partner and the sixth brand we’ve brought to Massachusetts, further demonstrating our commitment to diversity in cannabis and the availability of quality products for patients and consumers. With our operational expertise, we believe a purpose-driven, environmentally conscious brand like Black Buddha Cannabis can scale and succeed in Massachusetts.”

“There is a dearth of equity-driven cannabis brands in Massachusetts, and Black Buddha Cannabis helps to fill that void,” said Roz McCarthy, Founder and Chief Executive Officer of Black Buddha Cannabis. “We’ve been careful to select partners who share our vision and commitment to product quality and integrity, and in TILT we’ve found a capable and trustworthy steward of our brand. Together we will break down silos within the industry and create a win-win for businesses and social equity efforts.”

Added Chris Kelly, Senior Vice President of Revenue Growth at TILT, “It’s our goal to provide our wholesale customers with a portfolio of in-demand products that will not only differentiate their dispensaries from the competition but also attract patient and consumer interest across demographics. Black Buddha Cannabis is a brand that has built a loyal following and is a strong addition to our portfolio.”

Black Buddha Cannabis is also expected to launch in the Pennsylvania market this fall through the brand’s exclusive partnership with TILT. Dispensaries in Massachusetts and Pennsylvania interested in Black Buddha Cannabis or other brand partner portfolio products from 1906, Airo, Her Highness, Highsman, Old Pal, Timeless Refinery, or Toast should contact our wholesale team to order or save a spot on our Launch List.

To keep up-to-date on progress, follow TILT and Black Buddha Cannabis on social media:
Instagram: @tiltholdings and @BlackBuddhaCannabis
Twitter: @TILT_Holdings

About TILT
TILT helps cannabis businesses build brands. Through a portfolio of companies providing technology, hardware, cultivation and production, TILT services brands and cannabis retailers across 37 states in the U.S., as well as Canada, Israel, South America and the European Union. TILT’s core businesses include Jupiter Research LLC, a wholly-owned subsidiary and leader in the vaporization segment focused on hardware design, research, development and manufacturing; and cannabis operations, Commonwealth Alternative Care, Inc. in Massachusetts, Standard Farms LLC in Pennsylvania, Standard Farms Ohio, LLC in Ohio, and its partnership with the Shinnecock Indian Nation in New York. TILT is headquartered in Phoenix, Arizona. For more information, visit www.tiltholdings.com.

About Black Buddha Cannabis 
Black Buddha Cannabis establishes a new paradigm for the industry as a black-owned, environmentally conscious, wellness-focused, and social equity-driven brand. Black Buddha Cannabis’ premiere lifestyle and wellness products will be found at leading dispensaries across the country through state-by-state brand partnerships with equitable manufacturers, cultivators, and operators. Currently available in Ohio, Black Buddha Cannabis expects to have products initially available in California, Michigan, Nevada, Massachusetts, and Pennsylvania. To learn more about Black Buddha Cannabis please visit https://blackbuddhacannabis.co.

Forward-Looking Information
This news release contains forward-looking information and statements (together, “forward-looking information”) under applicable Canadian and U.S. securities laws which are based on current expectations. Forward-looking information is provided for the purpose of presenting information about TILT management’s current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. Forward looking information may include, without limitation, the expected performance and success of the collaboration between TILT and Black Buddha Cannabis, planned expansion and timing of Black Buddha Cannabis into the Pennsylvania market, anticipated development, timing and release of future product offerings, the opinions or beliefs of management, prospects, opportunities, priorities, targets, goals, ongoing objectives, milestones, strategies, and outlook of TILT, and includes statements about, among other things, future developments, the future operations, strengths and strategy of TILT. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “will”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. These statements should not be read as guarantees of future performance or results. These statements are based upon certain material factors, assumptions and analyses that were applied in drawing a conclusion or making a forecast or projection, including TILT’s experience and perceptions of historical trends, the ability of TILT to maximize shareholder value, current conditions and expected future developments, as well as other factors that are believed to be reasonable in the circumstances.

Although such statements are based on management’s reasonable assumptions at the date such statements are made, there can be no assurance that it will be completed on the terms described above and that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Accordingly, readers should not place undue reliance on the forward-looking information. TILT assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by applicable law.

By its nature, forward-looking information is subject to risks and uncertainties, and there are a variety of risk factors, many of which are beyond the control of TILT, and that may cause actual outcomes to differ materially from those discussed in the forward-looking information. Such risk factors include, but are not limited to, those described under the heading “Risk Factors” in Amendment No. 2 to the Form 10 Registration Statement filed by TILT with the United States Securities and Exchange Commission and on SEDAR at www.sedar.com.

Company Contact:
Lynn Ricci, VP of Investor Relations & Corporate Communications
TILT Holdings Inc.
[email protected]

Investor Relations Contact:
Sean Mansouri, CFA
Elevate IR
[email protected]
720.330.2829

Media Contact:
Leland Radovanovic
Trailblaze
[email protected]

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.

Recurring Cartridge Sales Increased 329% to $1.1 Million in the First Half 2022

NEWPORT BEACH, CA / ACCESSWIRE / August 16, 2022 / Jacksam Corporation dba Convectium (OTCQB:JKSM) (“Jacksam” or “Convectium” or the “Company”), a workflow automation Company focused on developing system solutions for the cannabis and CBD industry, today announced financial and operational results for the three and six months ended June 30, 2022.

Key Financial Highlights for Three Months Ended June 30, 2022 (Year-over-Year as Compared with the Three Months Ended June 30, 2021)

• Revenue decreased 12% to $1.5 million; due to shipping delays from China
• Cartridge revenue increased 132% to $0.3 million
• Gross profit decreased 16% to $0.4 million
• Operating expenses as a percentage of revenue declined to 34%, from 53%, reflecting continued focus on optimization
• Operating loss decreased by 80% to $0.1 million
• Adjusted EBITDA on a pro-forma basis was breakeven, if excluding one-time non-cash items
• Net loss was $0.0 million, compared to $0.3 million net income
• Cash balance at $0.4 million

Key Financial Highlights for Six Months Ended June 30, 2022 (Year-over-Year as Compared with the Six Months Ended June 30, 2021)

• Revenue decreased 5% to $3.2 million; due to shipping delays from China
• Cartridge revenue increased 329% to $1.1 million
• Gross profit decreased 17% to $0.8 million
• Operating expenses as a percentage of revenue declined to 28%, from 40%, reflecting continued focus on optimization
• Operating loss decreased 80% to $0.1 million
• Net loss was $0.0 million, compared to $0.3 million net income

Management Commentary

Mark Adams, Jacksam’s Chief Executive Officer, commented, “We are pleased with our second quarter and first half 2022 results, given the headwinds in the cannabis industry and the challenges many of the producers are experiencing. Our sales pipeline remains strong and we are confident in our products and believe it’s just a matter of when, not if, the industry returns to growth.”

Adams, continued, “Our system sales declined primarily due to shipping delays from China and some customers pushing out, but not cancelling, their orders. Our recurring cartridge sales continue to ramp, as that revenue contributor grew 329% year-to-date to $1.1 million. On the cost side of our business, we continued to keep expenses low and operate efficiently, resulting in a further decline of operating expenses as a percentage of revenue to 34% and 28% for the second quarter and first of 2022, respectively. We look forward to returning to growth over the remainder of 2022 and into 2023, with an eye on profitability as we have optimized our operations for efficiency.”

Financial Results for Three Months Ended June 30, 2022

• Revenue for the three months ended June 30, 2022 decreased by $0.2 million, or 12%, to $1.5 million, compared to $1.7 million for the three months ended June 30, 2021. For the three months ended June 30, 2022, the breakdown of sales comprised of $1.2 million of system sales and $0.3 million of cartridge sales, compared to $1.5 million of system sales and $0.1 million of cartridge sales for the three months ended June 30, 2021.

Revenue for the three months ended June 30, 2022 was negatively impacted by the lockdown of major cities in China due to Covid-19, which caused shipping issues of systems from China to the U.S. This adversely impacted our ability to fulfill orders of our customers during the quarter. However, lower machine sales were offset by higher cartridge sales driven by our strong execution of strategic partnerships that drive recurring cartridge revenue.

• Gross profit for the three months ended June 30, 2022 decreased by $0.1 million, or 16%, to $0.4 million, compared to $0.5 million for the three months ended June 30, 2021. Gross margin decreased to 29% for the three months ended June 30, 2022, as compared to 30% during the three months ended June 30, 2021.
• Operating expenses for the three months ended June 30, 2022 decreased by $0.4 million, or 43%, to $0.5 million, compared to $0.9 million for the three months ended June 30, 2021. Operating expenses as a percentage of revenue decreased to 34% from 53% for the three months ended June 30, 2022, reflecting the Company’s continued focus on operation optimization and efficiency. Management believes this ratio will decrease going forward as revenues continue to grow at a higher rate than operating expenses.
• Operating loss for the three months ended June 30, 2022 decreased by $0.3 million, or 80%, to $0.1 million, compared to $0.4 million for the three months ended June 30, 2021.
• Net loss for the three months ended June 30, 2022 was $0.0 million, compared to net income of $0.3 million for the three months ended June 30, 2021. Of note, net income for the three months ended June 30, 2021 included non-cash items totaling $0.7 million, made up of interest expense of $0.2 million, a derivative gain of $0.5 million and a gain on a settlement of a note payable of $0.3 million. The resulting EPS loss for the three months ended June 30, 2022, was ($0.00), as compared to an EPS profit of $0.00 for the three months ended June 30, 2022.
• As of June 30, 2022, Jacksam had $0.4 million in cash, compared to $0.3 million on December 31, 2021.

Financial Results for Six Months Ended June 30, 2022

• Revenue for the six months ended June 30, 2022 decreased by $0.2 million, or 5%, to $3.2 million, compared to $3.4 million for the six months ended June 30, 2021. For the six months ended June 30, 2022, the breakdown of sales comprised of $2.2 million of system sales and $1.1 million of cartridge sales, compared to $3.2 million of system sales and $0.2 million of cartridge sales for the six months ended June 30, 2021.
• Gross profit for the six months ended June 30, 2022 decreased by $0.2 million, or 17%, to $0.8 million, compared to $1.1 million for the six months ended June 30, 2021. Gross margin decreased to 26% for the six months ended June 30, 2022, as compared to 30% during the six months ended June 30, 2021.
• Operating expenses for the six months ended June 30, 2022 decreased by $0.5 million, or 34%, to $0.9 million, compared to $1.4 million for the six months ended June 30, 2021. Operating expenses as a percentage of revenue decreased to 28% from 40% for the six months ended June 30, 2022, reflecting the Company’s continued focus on operation optimization and efficiency. Management believes this ratio will decrease going forward as revenues continue to grow at a higher rate than operating expenses.
• Operating loss for the six months ended June 30, 2022 decreased by $0.1 million, or 80%, to $0.1 million, compared to $0.4 million for the six months ended June 30, 2021.
• Net loss for the six months ended June 30, 2022 was $0.0 million, compared to net income of $0.3 million for the six months ended June 30, 2021. Of note, net income for the six months ended June 30, 2021 included non-cash items totaling $0.7 million, made up of interest expense of $0.5 million, a derivative gain of $1.1 million and a gain on a settlement of a note payable of $0.2 million. The resulting EPS loss for the six months ended June 30, 2022, was ($0.00), as compared to an EPS profit of $0.00 for the six months ended June 30, 2022.

About Jacksam Corporation dba Convectium

Jacksam Corporation dba Convectium (OTCQB: JKSM) designs and markets automated vape, POD and cartridge filling/capping systems for the cannabis and CBD industry. We are also a distributor of other CBD and cannabis automation solutions including the “PreRoll-ER” automated pre roll machine. Our automated equipment is designed and built in the U.S. and carries full UL certification in the U.S. Using Jacksam/Convectium’s automated equipment, our customers increase output by up to 60 times over hand filling. Jacksam/Convectium is focused on helping our customers automate their workflow and quickly get custom branded products onto dispensary shelves. Over 250 companies, including many dominant brands and multi state operators (MSO’s) in this industry, rely on Jacksam/Convectium for automation of their production and back office operations.

For additional information, please visit: https://www.convectium.com.

Safe Harbor Statement

This press release contains “forward-looking statements.” Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential,” or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, the Company’s ability to retain the listing of its common stock on the OTCQB Market; the impact of the COVID-19 pandemic on our results of operations and our business. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (“SEC”), including the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s website at www.sec.gov.

All forward-looking statements speak only as of the date on which they are made. The Company undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement was made, except to the extent required by applicable securities laws.

Investors Contact:
[email protected]

SOURCE: Jacksam Corp.

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.

Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as “expects”, “will”, “anticipates”, and “estimates”; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief “snapshot” of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled “Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.

Copyright © Accelerize Inc. · All Rights Reserved · Privacy Policy · Legal Disclaimer

More than 80 percent of mergers and acquisitions fail to boost shareholder value, according to KPMG, often due to lofty valuations, incompatible cultures, excessive risk, or a combination of these factors. Of course, the cannabis industry has been no exception judging by the $835 million iAnthus/MPX merger and Cresco Labs’ acquisition of Origin House.

Companies that manage to beat the odds and make successful acquisitions have gone on to build tremendous value. Warren Buffett’s Berkshire Hathaway is a prime example of a conglomerate built on savvy acquisitions of high-quality businesses. Through smart acquisitions, its market capitalization has grown to nearly $500 billion in size over the years.

Red White & Bloom Brands (CSE: RWB) (OTC: RWBYF) has taken the Berkshire approach within the cannabis industry by pursuing savvy acquisitions and empowering the existing management team to build long-term value. After deploying acquisition capital at less than 1X of existing sales through its pending acquisition in Michigan, management demonstrated its discipline once again with the Platinum Vape deal.

Click here to download an investor presentation and receive corporate updates

Platinum Vape Acquisition 

Red White & Bloom recently announced a binding letter of intent to make its first acquisition since becoming a publicly-traded entity. In a transaction valued at up to $60 million, the company agreed to acquire Platinum Vape, which sells a line of premium cannabis products at more than 700 retailers throughout Michigan, California, and Oklahoma.

Platinum Vape’s Market Leading Product Lines – Source: Red White & Bloom

Started by a father and son team nine years ago, Platinum Vape has grown into a business generating more than USD $70 million in current annual revenue without any outside investment. In addition to generating attractive 25% to 30% EBITDA margins, the Company boast merchandise in over 700 dispensaries in 3 States.

The company also proved that giving back to their community and supporting social causes, as they have through their REACT Foundation and namesake line of products, actually translates to stronger margins and customer loyalty.

Even though RWB is acquiring Platinum Vapes for less than 1X sales, the sellers have ensured that they have the ability to benefit from this valuation as shareholders of RWB upon closing of the transaction. In addition, management expects synergies worth between 7% and 10% of EBITDA to further unlock value over the long run. The deal marks yet another example of judiciously deployed capital to acquire high-quality brands and the willingness of well-built companies and their management to join RWB.

RWB anticipates closing the transaction in September 2020 with a definitive merger agreement following satisfactory due diligence and other conditions that are customary in transactions, including the receipt of regulatory approvals.

Becoming a Leading MSO 

Red White & Bloom has quickly become one of the top five multi-state cannabis operators, or MSOs, in the country by focusing on major investments in U.S. markets, including Michigan, Illinois, Massachusetts and more recently in California and Oklahoma with the Platinum deal. The Company has also publicly stated they are keen on doing a deal in Florida as well, also evidenced by their exclusive store and product branding rights from “High Times” for the entire sunshine state. The company hopes to continue its growth trajectory to become a top three MSO through smart mergers and acquisitions as well as organically.

Red White & Bloom’s Growing Footprint – Source: Red White & Bloom

Currently, the company has pro-forma revenues from closed and binding acquisitions exceeding USD $100m and has projections to reach over $160 million in revenue and strong EBITDA margins between 25-30% this year.

From a branding standpoint, the company’s exclusive licensing agreement with High Times combines the largest Midwest cannabis operation with the world’s most iconic cannabis brand for over 46 years.

Click here to download an investor presentation and receive corporate updates

Beyond its retail footprint, the company has a large and expanding cultivation footprint that helps improve margins and ensure a consistent product. The company’s existing footprint of over 3.6 million square feet of CBD cultivation in Illinois, coupled with their plans to reach over 1 million square feet of indoor and outdoor cannabis cultivation over the coming quarters, will easily make them the largest in the US.

Looking Ahead 

Red White & Bloom has become one of the most preeminent cannabis operators in the United States thanks to its ability to pick partners with significant retail dominance, brand offering and cultivation footprint. The planned acquisition of Platinum Vape underscores management’s commitment to an accretive M&A strategy.

Of course, RWB’s management team has also demonstrated its ability to execute in the past with two successful, strategic exits valued at $2.5 billion, including the second license in Canada and first EBITDA-positive Canadian licensed producer.

For more information, visit the company’s IR website at www.ir.redwhitebloom.com, their website at www.redwhitebloom.com or download their investor presentation here.

Disclaimer

The above article is sponsored content. CannabisFN.com and CFN Media, have been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.

The legalization of cannabis in Canada on October 17, 2018 was seen as a progressive and forward-thinking development.It put Canada at the forefront of this exciting new industry, as the only country other than Uruguay to legalize cannabis on a federal level. However as dynamic as this legislation was, it was limited in terms of what was initially included. Although flower was covered under these new laws, they excluded a huge part of the industry; edibles and concentrates.

A report by Arcview Market Research estimated that cannabis-based food and drink reached an estimated $1 billion in 2017 in North America. The same report estimates the edibles market could reach an astounding $4.1 billion in the US and Canada by 2022.

Canadian Edibles Market

The Canadian market is preparing to capitalize on this trend. In late December, Health Canada released draft regulations, which dictate that edible cannabis products should be fully legalized by October 17 of this year. A recent report from Deloitte entitled ‘Nurturing new growth: Canada gets ready for Cannabis 2.0’ estimates the annual market for alternative cannabis products to be $2.7 billion, with edibles contributing to over half of that.

Click here to see the company’s investor presentation

With this incredible business opportunity, producers and distributors are looking at ways to capitalize on this vast new sector of the market. One company which looks to be well-positioned in this category is Indiva Limited(TSXV:NDVA) (US:NDVAF).

As a Licensed Producer of medical grade cannabis, Indiva is perfectly positioned for Cannabis 2.0. It has a growing roster of brands which already produce and distribute a wide variety of cannabis products to users across Canada. As an established company, Indiva plans to use its Canadian operations as a platform to launch into the edibles market, once the surrounding legislation is finalized.

Facilities and Distribution

Indiva has a 100%-owned, 40,000 square foot indoor production facility in London, Ontario. Its facility is world class, with quality assurance and control. A clean product is ensured by its climate controlled system, as well as pest and pathogen control. Its GMP-compliant, aeroponic grow systems are environmentally friendly and highly advanced. Already producing medical grade THC, CBD and hybrid strains, Indiva is positioned to use this facility to produce equally high-grade edible cannabis products.

In early June Indiva received an amended license from Health Canada for three additional grow rooms and three additional processing rooms, bringing the company’s annual cultivation capacity to approximately 1,000kg. The increased flower capacity will serve as raw material for Indiva’s 70 tonne extraction facility which is scheduled for completion in Q3 of 2019. Indiva’s extraction system will produce some 4 million grams of distillate annually at full capacity with the potential to be more profitable than flower at current market conditions. The three newly licensed rooms will be immediately populated with plants, using advanced aeroponic grow technology, with the first harvest expected in less than 10 weeks.

Click here to see the company’s investor presentation

Indiva has a supply agreement in place with the Ontario Cannabis Store (OCS) and has been delivering on the order since February and is preparing to deliver gel capsules.The agreement with the OCS has resulted in Q1 net revenue gains for Indiva. The company is executing on plans to grow its facilities and product offerings and awaits approval and licensing from Health Canada. Going forward, the company aims to add further distribution agreements with retailers in other provinces in 2019, using its active sales team already located across the country.

In the longer-term, Indiva plans to use its Canadian operations as a blueprint to launch globally into new markets, as cannabis laws around the world continue to come into play.

Indiva already has agreements with US based companies to distribute internationally, and it has issued a Letter of Intent to acquire a cultivation license in Denmark, where a four year pilot program which began in January 2018 allows the sale of medical cannabis. This would give Indiva an early advantage in the European market, which should become particularly lucrative as laws liberalize across the continent.

Impressive Product Line

Among its brands, Indiva has aligned itself with high-quality and experienced edible companies, namely Ruby and Bhang. Both companies are powered by Indiva, and will use the company’s cannabis oil extractions as the basis for edible products.

Ruby is the world’s first edible brand made with organic and all-natural ingredients. The product line will consist of infused sugar and salt crystals, which allows users to easily incorporate them into food and drink for the ultimate in personalized edible cannabis consumption. The line also offers fruit-based chews, pancake and drink mixes, candies and prebiotic supplements. The line will be infused with Indiva’s THC, CBD or a hybrid combination of both, offering a wide selection for those who wish to ingest cannabis, not inhale it.

Bhang Chocolate is one of the most recognised cannabis brand houses on the planet. Drawing from its diverse team, Bhang brings together over a decade of experience in the cannabis industry to create its award-winning product line. With reliable dosing and a cannabis-free taste, Bhang’s products are the ultimate in premium edibles. In addition to its range of cannabis-infused chocolates, Bhang also offers vapes, gums and mouth sprays.

Experienced Leadership

Indiva is led by CEO, Director and Co-Founder Niel Marotta. Niel managed a portfolio of over $1 billion as a fund manager at a notable US firm. He was also Vice President of a TSX listed natural resource focused company, and subsequently worked as an investment banker. As a graduate of McGill University’s commerce programme, Niel is the perfect leader to guide Indiva into this exciting new branch of the cannabis industry.

Click here to see the company’s investor presentation

Between its state of the art facility, calculated distribution network and expanding product offering, Indiva has set its sights high as Canada’s legal market enters the next phase of its development, the cannabis 2.0 revolution. With analysts predicting this to be a multi-billion dollar segment of the marijuana industry, Indiva has taken intelligent and bold steps to lay the groundwork for its success as edibles are legalized in Canada.

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

About Joy Crosby