#California #Cannabis
Distribution Deals Bring Good News to California Market; (CSE: $EAT.C) (CSE:
$OH.C) (CSE: $GRIN.C) (CSE: $GABY.C)
Point Roberts WA,
Delta BC – April 8, 2019 - 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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this in full at https://www.investorideas.com/news/2019/cannabis/04081Stocks-California.asp
"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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