As the cannabis industry gains more traction across the globe, more and more companies are looking to gain a share of the multi-billion dollar market. This feverish push to capitalize on cannabis has led to overcrowding in a very fragmented market, which in turn causes uncertainty amongst investors. Luckily, companies like Cannabis One Holdings Inc. (CSE:CBIS) (OTC:CAAOF) are working to become a definitive source of unparalleled product selection.
Cannabis One provided an operational update on Thursday to report on its continued growth and brand reach, which highlights the company’s ability to aggregate and optimize popular brands.
One example is its award-winning Honu brand line, which has continued to exceed the company’s expectations. Cannabis One acquired Honu brand assets in May and has seen massive success with it already.
Cannabis One Ramps Up Sales in Washington State
Cannabis One’s licensed partner (LP) commenced production of concentrates under the Honu brand label in Washington State and has reported that based on pre-orders received to-date and current sales channel data, Honu-branded concentrates are anticipated to generate approximately $850,000 USD per year in annualized brand manufacturing contract fee revenue, at an estimated EBITDA margin of about 35%, assuming product demand aligns with the LP’s forecasted manufacturing and sales goals.
The company’s LP also introduced and launched sales of Cannabis One’s INDVR Strains disposable vaporizer products in the Washington market, which is expected to offer annualized brand manufacturing contract fee revenue that exceeds $1.2 million USD per year, at an estimated EBITDA of 30%, again assuming the LP meets its manufacturing and sales targets.
Cannabis One’s Washington-based LP has also been given state approval to commence the production and sale of certain infused products under the Evergreen Organix brand label, which is expected to bring in approximately $4 million USD yearly, at an estimated EBITDA of 35% upon the closing of the definitive agreement.
Cannabis One Continues to Grow Brand Presence in Oregon
Cannabis One is also seeing a lot of progress and success from its LPs in Oregon, which just received approval for 18 SKUs labeled under the Honu brand. This includes nine THC-based products and nine CBD-based products.
According to initial sales orders already received, Cannabis One can anticipate annualized brand manufacturing contract fee revenue to generate roughly $1.1 million USD annually.
Oregon State has also approved a 50-milligram edible Honu-branded SKU. This unconventional, but popular Honu-branded edible is expected to produce an estimated $1.2 million USD per year, at an estimated gross margin of about 77%.
Cannabis One is also making progress with the development of its proposed Oregon manufacturing and processing facilities, which it intends to use for the production of both THC and CBD products. The company has received the necessary governmental and regulatory approvals and anticipate the development of the 21,000 square foot facility, which will be designed and built in accordance with GMP (Good Manufacturing Practices) standards, to commence in July.
Meanwhile, on the other side of the nation, Cannabis One Holdings just revealed the opening and rebranding of its new state-of-the-art The Joint™ dispensary in Denver, which will feature an inviting, mid-modern interior decor that has an upscale vibe.
It is evident that Cannabis One did its homework when it decided to acquire these brands, as both Honu and Evergreen products are already gaining traction within just a month.
Investors who are interested in the cannabis space will definitely want to watch for what Cannabis One Holdings does next. The exciting update from the company caused its share price to increase by 3.06% to $0.70 USD as of 2:30 pm EST on the OTC. Meanwhile, CBIS’s share price was down 1.12% on the CSE at $0.88 CAD.
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