The legal marijuana market has grown exponentially over the past few years for a number of reasons. A growing list of conditions are being treated with medicinal cannabis and recreational consumer demand has been escalating at a rate that suppliers have struggled to keep up with. In the US, there has been a major shift in the attitude towards cannabis, 10 states have fully legalized cannabis with more and more states falling in line. In the last year alone there have been several bills passed through congress which have accelerated legislation and bolstered the market's growth.
In fact, the market is expected to reach $146.4 billion USD by the end of 2025. Although there is an increasing number of companies operating in the space, the extensive variety of cannabis products being offered by Cannabis One Holdings Inc. (CSE:CBIS) (OTC:CAAOF) has put them ahead of the game.
Cannabis One is a vertically-integrated, seed-to-sale recreational and medical marijuana company that is focused on aggregating and optimizing popular cannabis brands throughout North America. The company's plan to grow into a globally recognized premier house of brands stems from its desire to become the definitive source for unparalleled product selection in an otherwise fragmented market. Since joining the cannabis space, the company has continued to expand its portfolio of award-winning products and refine its own franchise-ready retail brand, The JointTM.
Let's take a look at what Cannabis One has been doing to become the premier "house of brands" and what we can expect from the cannabis retailer moving forward.
"If You Brand It, They Will Come"
Cannabis One's The JointTM retail store opened its doors in Colorado in 2016 and now offers one of the largest selections of premium cannabis strains, concentrates, edibles, drinks, tinctures, topicals, and accessories. In fact, The Joint was named Colorado’s number one dispensary in 2016, 2017 and 2018 by Leafly thanks to its extensive menu and passionate and personable budtenders.
The Joint moved into the California market recently; a market that is expected to reach a $5.1 billion value in the coming months. Cannabis One executed a letter of intent to acquire majority ownership in 420 Express Delivery, a California license holder that operates Green Leaf Wellness in the Coachella Valley. The cannabis retail location, which is currently owned by Liht Cannabis Corp. (CSE:LIHT), will be rebranded to The Joint and sets Cannabis One up to get in on that $5 billion piece of action. The company expects to add four additional The Joint stores in California in the coming months, along with another 20 locations planned in state-legal jurisdictions across the US later this year as well.
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Naturally, Cannabis One's CEO Jeffery Mascio very excited about the acquisition, which will give them access to what he considers to be "one of the world’s most vibrant markets."
Cannabis One's proprietary vaporizer brand INDVR has also gained a lot of attention for its sleek design. The INDVR products are the world's first line of incognito vaporizers and contain a premium blend of CO2 extracted THC, organically cultivated therapeutic essential oils and food grade terpenes. Not only are these vaporizers fashionable, functional and discreet, they come in a variety of tasty flavors, from chocolate mint to ruby red grapefruit.
Becoming North America’s Premier “House of Brands”
Apart from expanding its retail reach and refining its proprietary products, Cannabis One (CSE:CBIS) (OTC:CAAOF) has also been growing its product portfolio through strategic acquisitions and licensing agreements with prominent companies. Most recently, Cannabis One acquired the Fat Face Farms brand through Colorado-based JBC Enterprises LLC. Fat Face Farms is a family owned recreational cannabis grower in Denver, Colorado and has become a perennial favorite amongst consumers due to its commitment to growing the highest quality products.
The company's acquisition of Fat Face Farms will add an impressive list of quality dried cannabis flower strains to its product portfolio. Cannabis One also added a famous line of cannabis products to its shelves recently, when it signed an exclusive, multi-state territorial licensing and royalty agreement with Cheech’s Private Stash (CPS). Cheech’s Private Stash is a premium cannabis brand that was created by stand-up comedian, actor and long-time cannabis advocate, Cheech Marin, who is most well-known as part of the comedy duo Cheech and Chong.
The 1970s movie star teamed up with master growers from Nevada-based cultivation facility, Redwood Cultivation, to create a line of products in 2018, focusing on his favorite strains - Sour Diesel, Cookie Glue, Do Si Dos, and Platinum OG.
The licensing and royalty agreement gives Cannabis One exclusive rights to produce, market and distribute a variety of specific cannabis products under the CPS brand, a brand that is already established among veteran cannabis consumers. Some of these products include pre-rolls under the Big CheecharrónTM label, a collection of CPS edibles, including chocolates and gummies with unique flavors, a unique line of CPS vape pens and vape-cartridge refills, along with a breadth of CPS wellness topicals and tinctures.
Cheech Marin went to Denver to celebrate the expansion of its brand in March.
“I am very happy to be joining with the Cannabis One team and am looking forward to a great partnership," he said. "I’m thrilled to get our product into the hands of the people of Colorado and soon Oregon and Washington and fulfill our promise that, “It will always be good.”
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Future Product Acquisitions on the Horizon for Cannabis One
Moving forward Cannabis One (CSE:CBIS) (OTC:CAAOF) will be focused on continuing to build value by acquiring brands that are impacting consumers at the ground level. This year, the company plans to integrate a number of brands into its portfolio including Evergreen Organix, West Edison Cannabis Concentrates, Fleur Cannabis, Strainz, Bronner and Honu.
The brands on Cannabis One's radar all offer different advantages to the company if they are successfully acquired. Honu is a Washington-based company that produces an array of premium hand-made edibles. In 2016, the company won the Dope Industry Award for Best Edible Company of 2016, making this an optimal choice for Cannabis One to add additional edibles to its brand portfolio.
Evergreen Organix is a Las Vegas-based producer that offers a wide variety of products, from cannabis edibles and vaporizers to skin care and pain relief products. They use the finest ingredients and premium cannabis and offer vegan-friendly and sugar-free options, making them another attractive choice for the premier house of brands. Fleur Cannabis is also located in Nevada and is a licensed sustainable, organic cannabis cultivator, which would provide Cannabis One with additional growing power should they sign a deal.
If acquired, West Edison Cannabis Concentrates would offer Cannabis One a portfolio of cannabis concentrates that range from live resin and shatter to cannabis wax and THCa, one of the strongest cannabis concentrates ever produced.
Strainz is another Las Vegas company that considers itself the leading national cannabis brand management company. This privately held company would be another great addition to the Cannabis One brand portfolio if acquired.
As mentioned, Cannabis One has already grown its presence significantly in its home state of Colorado and has begun moving into the California market, but the company's sights are set on expanding further across the United States. The company is currently licensed in five states, including Colorado, Nevada, California, Oregon, and Washington, and is looking to add another five states by the year 2020. The targeted states include Alaska, Vermont, Michigan, Massachusetts, and Maine.
About Cannabis One Holdings
Cannabis One, formerly Metropolitan Energy Corp. (TSXV:MOE.H), completed a business combination with Bertram Capital Finance and began trading on the Canadian Securities Exchange in late February 2019. The company entered the public market on February 26, 2019, trading at a volume of 1.14 million at a share price of $2.29 and has since hit a high of $3.75.
