Going Back to Cali; Success for #Cannabis
Companies Continues in #California; (CSE: $EAT.C) (CSE: $OH.C) (CSE: $GRIN.C)
(CSE: $GABY.C)
Point Roberts, WA and Delta, BC - April 9, 2019
(Investorideas.com Newswire) Investorideas.com, a leading investor news
resource covering hemp and cannabis stocks releases a market snapshot
discussing the success of recent distribution agreements in the California
cannabis space.
Nutritional
High International Inc. (CSE: EAT) (OTCQB: SPLIF), a company focused on developing, manufacturing and
distributing products under recognized brands in the cannabis products industry,
with a specific focus on edibles and oil extracts for medical and adult
recreational use, recently congratulated Cresco Labs Inc. on their
agreement to acquire Origin House.
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"We are pleased that another California distribution
and manufacturing company with many similarities was acquired at such a healthy
multiple," commented Adam Szweras, Co-Chair of the Nutritional High board.
"This acquisition and the valuation of Origin House are a vote of
confidence for companies like Nutritional High, signaling that the market
values companies who are able to control shelf space and realize greater
margins and market penetration through ownership of the distribution
pipeline."
Nutritional High recently released their Q2 2019 Financials with some of
the highlights of $6.1 million from the sale of Cannabis related products in
California, primarily via its wholly owned distributor, Calyx Brands Inc. which
represents an annualized revenue run rate of $24.2 million.
At the end of January 31, 2019, the Company has now
recognized a trailing twelve-month revenue from Cannabis sales of approximately
$17.6 million, making Nutritional
High's Calyx now one of the largest distributors in California.
Cresco Labs Inc. and CannaRoyalty
Corp., d/b/a Origin House (CSE: OH) (OTCQX: ORHOF) recently announced that they have entered into a definitive
agreement in which Cresco Labs will acquire all of the issued and outstanding
shares of Origin House, representing a total consideration of approximately
C$1.1 billion on a fully-diluted basis, or C$12.68 per Origin House Share.
The Transaction
represents the largest public company acquisition in the history of the US
cannabis industry. The combined entity will be: one of the largest
vertically-integrated multi-state cannabis operators in the United States; a
leading North American cannabis company, by footprint; and one of the largest
cannabis brand distributors.
Grown
Rogue International Inc. (CSE:GRIN) (OTC: NVSIF), a vertically-integrated, multi-state cannabis company
with licenses and operations in Oregon, California, and now Michigan recently released its financial and operating results for
the three months ended January 31, 2019.
Some of the first Quarter 2019 highlights included: a
first quarter revenue growth of 388% year-over-year to $834,309 which is
expected to continue as the Company proceeds with its expansion plans in
Oregon, California and Michigan, gross margin improved to 31% compared to
negative gross margin Q1-2018, and Grown Rogue products in over 220 dispensaries
in Oregon.
"Our Fiscal 2019 Q1 represents the first full quarter
for Grown Rogue as a public company and marks the Company's 5th
consecutive quarter of revenue growth since launching first in the state of
Oregon in late 2017," said Obie Strickler, President and CEO of Grown
Rogue. "To have gained this brand recognition and sales traction, in what
is arguably the world's most competitive legalized cannabis market, bodes very
well for our expansion into California and particularly the newly legalized market
in Michigan. We've grown very quickly from controlling just 3 licenses in one
state a year ago to assets allowing us to have 22 licenses in three states
today."
Gabriella's
Kitchen Inc. (CSE: GABY), an innovative and leading-edge cannabis wellness
company is ensuring its own distribution throughout the state having recently announced the completion of its acquisition of all
of the issued and outstanding shares of Sonoma Pacific Distribution, Inc.,
California's premier, independently-owned cannabis distribution company, which
was previously announced on October 23, 2018.
With the closing of the Acquisition, GABY gains an expansive
distribution reach across the state of California, which currently represents
the world's most thriving cannabis market as well as a permanent cannabis
distribution license that was issued to Sonoma Pacific by the California Bureau
of Cannabis Control and the County of Santa Rosa on March 14, 2019.
"With the support of GABY and its executive team as
well as the ability to leverage GABY's infrastructure, Sonoma Pac realized a
record-breaking first quarter of 2019.
For the three month period ending March 31, 2019, it is estimated that
Sonoma Pac generated revenue that exceeds CDN$8 Million from the sale of our
proprietary products," stated Aaron Browe, President of Sonoma Pac. "That number represents a massive 1,200%
increase over the same quarter last year."
As California is
currently the world’s largest regulated cannabis market, the market trends and
developments that occur there will have a large impact on how the rest of the
cannabis industry operates. These recent developments show that strong
financials and a solid distribution channel have become necessities in this
maturing market.
The California Senate
voted last Thursday, April 4th (voting 32-4), passing a bill that
would allow the state to extend temporary licenses to cultivators until
replacements are approved, removing a potentially large obstacle and showing it
wants to maintain its market share.
For investors
following cannabis stocks, Investor Ideas has created a stock directory of publicly
traded CSE, TSX, TSXV, OTC, NASDAQ, NYSE, ASX Marijuana/Hemp Stocks
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