Two days ago, Green Growth Brands (CSE:GGB) (OTC:GGBXF) debuted on the Canadian Securities Exchange (CSE). Two days into trading and the company is already gaining over 17%—currently selling for $3.16 CAD.
Let's check out the debutant and see if this upward trajectory is likely to continue. It's been a volatile few weeks for cannabis stocks so will this affect GGB's first week on the exchange?
Green Growth Brands: CSE Debut
Green Growth Brands (CSE:GGB) (OTC:GGBXF) is an Ohio-based company that began trading on Tuesday under the stock ticker GGB, after completing a reverse takeover of Toronto-based Xanthic Biopharma Inc.
The company managed to raise $140 million CAD through private funding before going public.
It already has five other leading cannabis brands under its belt: The Camp, Seventh Sense, Meri + Jayne, Green Lilly, and The Source. Each brand produces a selection of cannabis products from CBD therapy products to straight up dried leaf.
The most recent takeover has been of Xanthis Biopharma. This acquisition will allow GGB to utilize Xanthic's patent-pending proprietary process to make THC and CBD. The result should see GGB using this process to create innovative new cannabis-infused products.
An Exceptional Team
Its six strong brands are obviously vital to success, but who's behind those brands is what's really exciting. GGB is made up of retail masterminds who've come from different areas of the retail sector and arrived at the same conclusion—"that every single [cannabis] store was underperforming against its potential."
So this team has the advantageous experience of running multi-billion dollar businesses, and "operating as No. 1's in their respective categories, competing for customers in saturated mature markets."
Now, GGB is "eager to do it again in the burgeoning North American cannabis industry.”
>> CannTrust Holdings Up 22% Today After NYSE Listing News
Confidence
But can Green Growth Brands (CSE:GGB) (OTC:GGBXF) do it again? Well, from the get-go, investors may have confidence that Green Growth Brands (CSE:GGB) (OTC:GGBXF) will produce top-selling cannabis brands because, let's be honest, its team already has decades of experience building successful brands. It is safe to assume that GGB knows exactly what to look for from a business retail perspective and, importantly, understands the vitals that are missing:
“What [customers] do want is localization and authenticity, and that is what we’ll deliver, as we build our stores and complete deals with large retail partners.”
Spearheaded by Peter Hovarth—whose credentials include L Brands, American Eagle Outfitters, and DSW—the plan is simply to reshape cannabis retailing in North America.
All in good timing considering adult-use cannabis has been legal across Canada just shy of one month now.
Featured Image: Depositphotos/© SergeyNivens
