Have you ever been in a situation of sickness where you felt utterly helpless? The instituting of Rubicon Organics Inc. was at the height of the lack of high-quality, organic cannabis products for medicinal use. Its founders spent several years perfecting the art of organic cannabis greenhouse cultivation, and before long, the company became a household name. It is one of the only six Organic Certified cannabis producers in Canada with Fraser Valley Organic Producers Association (FVOPA) certification. And over the years, the company has invested in innovative and sustainable practices, from using only organic inputs to minimizing its waste and packaging.
As the Canadian cannabis market continues to increase, Rubicon Organics is also registering incredible milestones. While unveiling its operational update, the company outlined several milestones, including a 132% increase in the number of new products its Q3, 2021. Additionally, the company’s 1964 Supply Co. premium brand was introduced to New Brunswick in June 2021, listing in seven provinces. As well, five provincial distributors accepted Homestead, a mainstream brand developed for the avid cannabis consumer.
The Organization’s Corporate Highlights Demonstrating Significant Growth Potential
Rubicon Organics is focused on achieving industry-leading profitability and has a keen eye for innovation and the development of brands. Some of its flagship super-premium brands include Simply Bare Organic with a launch of 10 new SKUs and super-premium concentrate brand LAB THEORY, among others.
In its first half of 2021, the company launched Wildflower CBD Topicals, a closed organic certified extraction services’ deal with The Valens Company. In addition, it stepped into Yukon territory through a Cannabis Purchase and Sale Pact with Cannabis Yukon for the distribution of its cannabis products.
In other news, Rubicon Organics announced Cannabis Cultivators of B.C. (CCBC), a non-profit industry association. With the incorporation of Pure Sunfarms and Tantalus Labs, CCBC will work with policymakers to advocate for the growth of a responsible cannabis industry in British Columbia (B.C.). This can be viewed as a timely move given the thriving and fast-growing legal cannabis industry in B.C.
WeedMD Inc. Integrates Change of Name to Entourage Health Corp (OTCMKTS: WDDMF) and Enters into a Definitive Acquisition Agreement with CannTx Life Sciences
It was founded in 2013 under the name WeedMD Inc. Today, it is known as Entourage Health Corp (OTCMKTS: WDDMF). The change of name was necessitated by a need to demonstrate tremendous growth over time. Some of its accomplishments include the launch of an award-winning Color Cannabis brand, adopting the Saturday Cannabis brand for expanded adult use, the acquisition of Starseed Medicinal, and licensing Mary’s Medicinals for Canadian production and distribution.
The licensed producer of medical-grade cannabis has recently inked a deal with renowned craft cultivator CannTx Life Sciences Inc. The deal expected to close in late August 2021 gives WeedMD Inc. the right to acquire all issued and outstanding shares for CannTx. Nonetheless, this is subject to approval by CannTx shareholders and other customary closing conditions.
Benefits of the Acquisition of CannTx by Entourage
Entourage’s Board of Directors has unanimously endorsed the collaboration with CannTx, which began over the past year. According to Interim CEO of Entourage George Scorsis, the partnership will enhance the consistent delivery of innovative products and cannabis experiences to a growing Canadian consumer base.
“This is an exceptional period of growth and opportunity for our company. Following a year of reflection, transformation and evolution, today… we are emerging as a differentiated cannabis operator under Entourage Health….” Scores conveyed.
In agreement to the testament by Scorsis, the CEO of CannTx, Mike Abbott, added that they were excited to move forward as a team. Integrating each other’s cultivation and production philosophies would help solidify the business, including expanding the more than 2,000 current product listings across the nation. In addition, the entourage will have an opportunity to explore CannTx’s international relationships to market its new and advanced consumption methods to developing cannabis markets.
Meanwhile, CannTx will retain its indoor craft cultivation operations in Guelph, Ontario, as its craft and specialty production site for rosin and hash processing. In addition, the entourage’s outdoor cultivation operations will continue at its low-cost, state-of-the-art greenhouse in Strathroy. At the same time, its Aylmer extraction facility will remain the primary biomass processing facility.
Valens Company Inc. (OTCMKTS: VLNCF) Announces a 7% Increase in its Q2 2021 Revenue Financial Results
When Valens Company Inc. (OTCMKTS: VLNCF). entered the US market, the aim was to gain a footprint in the health and wellness sector. Little did it know that it would end up being a leading manufacturer of cannabis products. We have seen the cannabis industry massively expand globally as more countries legalize marijuana and cannabis-related products. Valens has had a first-hand positive impact on this expansion.
In its Q2 2021 financial results, the company highlighted a 16.1% increase of its gross revenue, settling at $20.5 million compared to $17.6 million in Q2 2020. Additionally, the new revenue increased to $18.8 million in Q2 2021, over and above the $17.6 million in Q2 2020. The SKU listings were the most celebrated, increasing 76.0% to 132 in Q2 2021 compared to 75 in Q1 2021. Expectations are high to have a total of 181 SKU listing by the end of Q3 or Q4 2021. Thanks to the acceptance of 40 of them by provincial distributors.
The CEO of the Valens Company, Tyler Robson, described the material growth in SKU listings as a testament to the innovation and quality the company is bringing to consumers and retailers. And that despite ongoing challenges presented by the pandemic, their business model demonstrated resilience. They gained significant market penetration across the country.
The Continued Drive of Corporate Strategies to Advance its Global Footprint
With the momentum into the third quarter and with the addition of 40 SKUs, the Valens Company says it is not leaving anything to chance. Instead, they are quickly embracing execution of strategies, which will enhance their capabilities, including innovation. As a result, the company is well-positioned to capitalize on new products, specifically in the flower, pre-roll, beverage, concentrates, and edibles categories.
Other strategies and initiatives include acquisitions, which will strengthen its capabilities to supply global markets with an expanded product offering. Some of its acquisitions include LYF and Green Roads. Meanwhile, The Valens is already benefiting from an expanded Canadian distribution network incorporating Alberta, British Columbia, Ontario, and Saskatchewan.
CLS Holdings USA Inc. (OTCMKTS: CLSH) Announces 63.1% YoY Net revenue Increase for its Nevada Subsidiaries
CLS Holdings USA Inc. (OTCMKTS: CLSH) has announced operational and financial results for June 2021 for its wholly-owned subsidiaries in Nevada, where net revenue was $1.8 million with a gross margin of 56.2%. In addition, the results indicated 8.9% gross margin increases and 63.1% revenue increase YoY.
Oasis Cannabis reported 48.9% revenue growth in June.
Oasis Cannabis, a retail subsidiary, reported a 48.9% monthly revenue increase YoY and a 36% increase in processed transactions. The branded wholesale unit, City Trees, reported a 110.7% monthly increase in YoY net revenue. The combined monthly net revenue from both units was up 63.1% YoY. Although the market is extremely competitive, the company’s performance has exceeded Nevada’s average.
The exceptional results are a high number of local Oasis customers estimated to be around 80%, with only 20% attributed to tourists. Most importantly, there was a 10% increase in tourist numbers visiting dispensaries compared to a year ago.
Andrew Glashow, CLS COO & President, said, “This first month of our fiscal year was full of incredible opportunities for our company’s growth. Oasis is buzzing with consistent local and tourist traffic, and our City Trees brand has maintained huge year-over-year sales increases each month for the last year. We’re optimistic that our successes with City Trees and Oasis will enable us to grow our portfolio of brands significantly over the coming months.”
Sasha Palatnikov endorsed CLS
CLS announced through the City brand a limited endorsement of Sasha Palatnikov, UFC welterweight fighter, following the organization’s easing of restrictions in the use of cannabis for fighters. The Nevada State Athletic Commission bolstered the endorsement following its decision to stop restrictions on marijuana use by UFC fighters. In addition, the market interest is growing for the City Trees brand and CLS’ toll processing capabilities of its North Las Vegas extraction facility. As a result, the company is charting a path for future growth and business strategy execution.