TransCanna Looks to Streamline Production and Distribution

TransCanna Holdings Inc. (CSE: TCAN) (XETR: TH8) has been cementing its leadership position in California with the moves to acquire Goodfellas Group LLC, a full-service advertising and marketing agency, and to license its Adelanto facility. With the addition of new distribution channels and brands, the company is taking a massive leap forward as it looks to eventually become a leading cannabis distributor in the Golden State.

Let’s take a closer look at the Goodfellas acquisition and the licensing of its Adelanto facility to see how both events could lead to significant growth opportunities.

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Building Relationships with Goodfellas

TransCanna signed a non-binding letter of intent to acquire Goodfellas Group in January, which contributes to both its production and distribution profile. With 25 cannabis clients in its roster, the full-service advertising and marketing firm leverages its extensive relationships with dispensaries and retailers throughout California to help clients succeed. Always on the lookout to add value to its portfolio, TransCanna will be vetting some of the existing clients of Goodfellas for potential future acquisitions.

“It’s critically important that in order for our future brands to be successful in the cannabis and hemp space, we have to have relationships with the dispensaries and retailers, who in turn have the relationships with the end users,” says TransCanna CEO Jim Pakulis. “Through GoodFellas, we’ll have immediate access to many of the most successful dispensaries in California, and retailers throughout the US.”

TransCanna has also moved to acquire two brands in conjunction with the acquisition, including the Simple Kit™ and Daily Cannabis Goods. The Simple Kit™ is designed for first-time cannabis users that are unsure about how to consume cannabis, while Daily Cannabis Goods is a successful brand of pre-rolls that has already shipped more than 2,000 units per month to dispensaries throughout the state.

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Expanding In-House Distribution

In addition to making acquisitions, TransCanna continues to build out its internal projects, including its Adelanto, CA facility. The company applied for a permanent manufacturing, distribution, and transportation license in late-April 2019 with the goal of putting city and state licenses in place as quickly as possible. The move could open the door to significant distribution potential for its own goods and other third-party brands.

The company intends to prepare and package the Daily Cannabis Brand pre-rolls at the facility once the Goodfellas acquisition is closed, and then deliver the products to dispensaries without the need for any third-party involvement. By cutting out the middleman, the company will have greater flexibility in expanding its distribution footprint and growing its state-wide distribution network for in-house and third-party products.

“[Our goal is to] use the Adelanto facility as the first TransCanna satellite distribution network facility throughout the state in an effort to provide reliability, consistency and quality to dispensaries, and just as importantly scale TransCanna’s ecosystem as expeditiously as possible,” said Mr. Pakulis in a press release announcing the news. The same press release mentioned that investors can expect an update on its Modesto facility in the near-term.

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Looking Ahead

TransCanna Holdings Inc. (CSE: TCAN) (XETR: TH8) has been making significant progress in its quest to become a leading cannabis distributor in California. With the potential acquisition of Goodfellas, the company could begin generating near-term revenue and have immediately distribution capacity for its Adelanto facility. Investors may want to keep an eye on the stock as it continues to make progress over the coming quarters.

For more information, visit the company’s website at www.transcanna.com.

Disclaimer

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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.