The US cannabis market has continued to grow as more states move to legalize recreational cannabis. This isn’t surprising if you consider the amount of money US cannabis sales are bringing in. It also makes sense why Canadian cannabis investment company Chemistree Technology Inc. (CSE:CHM) (OTCQB:CHMJF) is focused on establishing itself in the US cannabis market.
California alone has brought in roughly $2.75 billion in legal recreational marijuana sales since state legalization in 2012. Meanwhile, Washington and Oregon have pulled in $975 million and $500 million, respectively, since becoming legal.
Chemistree has already established itself in the state of Washington, through the purchase of the reputable Washington-based brand Sugarleaf for $1 million USD and quickly began working on expanding the brand into California. The company also has a 50% interest in a cannabis processing company in Humbolt County and prospective cannabis cultivation lands in Southern California.
Let’s take a look at Chemistree’s expansion plans and how the company’s highly experienced management team is leading it to success.
Expanding its Premium Cannabis Brand into New Markets
When Chemistree acquired Sugarleaf, the brand was already well-established in Washington, selling 18 different cannabis strains at over 50 dispensaries. The company has since launched an expansion plan to grow the Sugarleaf brand significantly this year by increasing Sugarleaf’s presence to over 100 stores by the end of 2019.
Chemistree has also been working to double the size of its 5,000 square foot Washington-based facility to increase output and support new product offerings, which will include edibles, oils, and extracts.
Chemistree quickly moved to become a multi-state operator (MSO) by establishing the Sugarleaf brand in California through a strategic collaboration with a cannabis processing company in Humboldt County.
The company was also granted a conditional use permit by the City of Desert Hot Springs for a 9.55-acre property where it is building two massive greenhouses that total 128,000 square feet, as well as an additional 40,000 square foot facility for processing, manufacturing, and distributing cannabis goods. Once fully constructed, the facility will be capable of producing approximately 50,000 pounds of cannabis flower annually.
Chemistree moved into the New Jersey medical cannabis market recently as well after signing a letter of intent with New Jersey-based medical retail dispensary applicant Applied Cannabis Sciences.
Leveraging Its Highly Skilled Management Team
Aside from expanding its operations and brand presence, Chemistree has also continued to strengthen its management team by adding industry experts to its roster.
Most recently, Chemistree made Sheldon Aberman its Chief Cannabis Officer. Aberman has a well-earned reputation as one of the leading experts on commercial cannabis cultivation with more than 15 years of experience in managing and designing thousands of grows worldwide.
CHM also added industry expert Nicholas J. Zitelli to its board of directors this year. Zitelli, who writes under the pen name “Nico Escondido,” is part-owner, director, and Chief Cannabis Officer of Trans High Corporation (THC), the parent company for High Times’ flagship magazine and creator of the Cannabis Cup.
Zitelli has expertise in cultivation, genetics, lab testing, garden technologies, as well as regulatory and compliance measures and has authored hundreds of articles covering cannabis science and technology. He is also the founder and CEO of well-established research and development institute, the Cannabis Genetics Institute (CGI).
And let’s not forget about Chemistree’s President and CEO Karl Kottmeier. Kottmeier boasts over 25 years of experience listing, financing and administering companies on the TSX and TSX Venture, has a track record for building growth companies and has directly raised more than $150 million in equity capital for global development projects.
Investors interested in the cannabis space will definitely be keeping an eye on Chemistree Technology and its ongoing expansions.
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