- Cannabis sales in California, the world’s largest market, are expected to reach $7.7 billion by 2022, with an extended economic impact of almost $15 billion
- TransCanna Holdings has established the beginnings of a statewide California distribution network with its hub in Modesto and a satellite near San Bernardino and Los Angeles
- The company is rapidly pursuing a variety of state and local licenses for the facilities as part of a plan to provide up to 15 “reliable, consistent branded products”
- TransCanna’s in-process acquisition of marketing agency GoodFellas will provide it with brands that include the already competitive pre-rolls of Daily Cannabis Brands, which the company expects to distribute from its satellite facility
TransCanna Holdings Inc. (CSE: TCAN) (FSE: TH8) is continuing its explosive burst of cannabis distribution empire building efforts, launched when it completed its IPO on the Canadian Securities Exchange in January. In addition to its April acquisition of a three-story, 196,000-square-foot Northern California facility that will serve as the hub for its operations, TransCanna is sub-leasing a 10,000-square-foot satellite facility in the Southern California city of Adelanto, as well as pursuing the necessary licensing and increasing its portfolio of brands.
“As we’ve represented since the commencement of TransCanna, it’s crucial to have a main facility, which we now have with the acquisition of the 196,000 square foot vertically integrated facility in Modesto, and up to five satellite facilities located strategically throughout the state,” CEO Jim Pakulis stated in a news release (http://ibn.fm/46TFg). “This is in preparation for TransCanna to provide our clients with up to fifteen reliable, consistent branded products in a timely manner. In order to do that to scale, we needed to have a significant size nursery, grow, manufacturing, bottling, baking, extracting, and transportation and distribution facility and satellite offices, which we now have.”
The Adelanto facility has existing armed guards in place for security and a four-year lease on terms of $2 per square foot per month. Its Southern California location gives it easy access to the San Bernardino and Los Angeles regions. The company is rushing to get its state and city licenses for the facility in place as soon as possible, and it announced at the close of April that it had begun the application process for a permanent manufacturing, distribution and transportation license (http://ibn.fm/vJbDo).
TransCanna expects to announce developments for the Modesto facility in the coming days, including license applications and decisions on who will serve in day-to-day leadership roles (http://ibn.fm/o6YVB).
When TransCanna began the process of acquiring full-service cannabis advertising and marketing agency GoodFellas Group LLC in January, the company already had 23 branding agreements in place (http://ibn.fm/5tE5I). Its acquisition of GoodFellas added another brand that has already established consumer demand and ‘SKU velocity’ – Daily Cannabis Goods, also known simply as the Daily brand.
“The Daily brand has seen a steady consistent increase in sales since it commenced in August 2018,” Pakulis added (http://ibn.fm/k5Rr7). “The first month shipments of units exceeded 2,100 and by December the number of units shipped for the month exceed 10,000. We anticipate closing the acquisition of GoodFellas by May 20th, and then we’ll budget accordingly in order to work on increasing units sold.”
TransCanna plans to begin by adding three more SKUs once the acquisition is complete. The Daily pre-rolls will be prepared and packaged at the Adelanto facility and delivered to dispensaries without the need for a third-party distributor.
“Our goal is to provide not only the Daily Cannabis Brand with the necessary resources to continue and grow, but to use the Adelanto facility as the first TransCanna satellite distribution network facility throughout the state in an effort to provide reliability, consistency and quality to the dispensaries, and just as importantly scale TransCanna’s ecosystem as expeditiously as possible,” Pakulis continued.
California is currently the world’s largest cannabis industry market. Research firm Cannabis Business Plan forecasts that California’s cannabis market will reach $7.7 billion in annual revenues by 2022, with a total economic impact of nearly $15 billion in the next four years (http://ibn.fm/hM5qd).
For more information, visit the company’s website at www.TransCanna.com
NOTE TO INVESTORS: The latest news and updates relating to TCAN are available in the company’s newsroom at http://ibn.fm/TCAN