Cannabis One Holdings Inc. (CSE:CBIS) (OTC:CAAOF) released some exciting news on Monday when it revealed the opening and rebranding of its new state-of-the-art The Joint™ dispensary location in Denver.
The Joint is Cannabis One's award-winning cannabis dispensary, which was ranked as the #1 dispensary in Denver for three consecutive years by Leafly, and offers one of the largest varieties of premium cannabis strains, edibles, concentrates, drinks, topicals, tinctures, and accessories.
"The introduction of our new retail concept location signals Cannabis One's tireless pursuit of excellence throughout all facets of operations by improving upon what was already an industry-leading concept," said Cannabis One CEO Jeffery Mascio. "The Denver location provides a platform from which Cannabis One - through The Joint brand - can continue to execute on our plan to develop additional retail assets in other state-legal jurisdictions."
The Joint's rebranded dispensary location will feature an inviting mid-modern interior decor with an upscale vibe. Moving forward, the company will be using this blueprint for further The Joint locations.
Following the reopening of The Joint's flagship location, Cannabis One anticipates this location to reach several key milestones based on management projected estimates. These include realizing annual revenue of approximately $8.5 million USD, with a gross margin of approximately 51% and an EBITDA margin of approximately 35%; achieving an average "ticket" or spend per customer of $70 USD due to its welcoming nature and educational proposition; and garnering an industry-leading $7,083 USD per square foot.
The company's management team also expects to increase store level economics of top-line revenue at its acquired locations by approximately 25–30%, while maintaining industry standard general and administrative costs.
Building Brand Awareness Across the US
This new state-of-the-art location is just the beginning of the company's expansion plans. In fact, CBIS plans to grow its retail footprint to 200 locations over the next three years across state-legal jurisdictions.
"Witnessing this tangible result of our commitment to quality is an exciting visualization of what is to come as we continue our progressive state-by-state retail expansion strategy," Mascio added.
Cannabis One already gained entrance into the California market in March when it signed a letter of intent (LOI) to acquire majority ownership in 420 Express Delivery Inc., which operates the Green Leaf Wellness dispensary in the Coachella Valley of California, from Liht Cannabis Corp. (OTCQX:LIHTD).
CBIS plans to rebrand Green Leaf Wellness to The Joint™ and expects to add another four The Joint stores in California in the next few months. What's more, the company expects The Joint™ to be firmly established in Colorado, California, Nevada, Washington, and Oregon by the end of this year.
Investors will want to keep an eye out for the opening of new The Joint location on July 1 and further dispensary openings from CBIS later this year.
Cannabis One's share price reacted favorably to the news Monday, up 12.7% to $1.27 CAD. However, the stock saw a decline on Tuesday, tumbling 13.6% to $1.08 CAD by 2:25 pm EST.
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