Cannabis One Holdings Inc. Reports on Significant Growth of its Honu Brand in Pacific Northwest and Launch of New Brands in Washington
Cannabis One Holdings Inc. (CSE:CBIS) (“Cannabis One”, “CBIS” or the “Company”), an emerging, premier “House of Brands” in North America, is pleased to report on its 100% owned brand Honu’s significant growth in the Pacific Northwest and the launching of new brands in Washington by utilizing its established sales channel with over 650 retail partners.
As of August 2019, the retail penetration in Washington State by the Honu brand has grown from 298 stores in August 2018 to 412 retail stores, representing a year-over-year increase of 38%. Through this growth, Honu products are now represented in 93% of dispensaries in Washington.
Honu branded edibles now make up approximately 8% of the total Washington edibles market and produced 222,301 chocolates in August 2019, up 41% from 157,414 in the same month of 2018. Honu’s total product line in Washington state now comprises 40 different product line SKUs. The total system-wide brand retail sales in the last three months have been over $1.8 million, further contributing to the continued growth and dominance of the Honu brand in the competitive but opportunity filled Washington cannabis infused products market.
As of August 2019, the retail penetration of Honu branded edibles in Oregon State has increased to 357 stores from only 13 stores in August 2018, representing more than a 27 times increase in just the last year. Currently, Honu products are now represented in 54% of dispensaries in Oregon with contracted licensed manufacturers distributing 17 different product line SKUs of Honu branded edibles in Oregon.
Continuing its focus on expanding its licenced brands in the edibles and infused cannabis products space, the Company is pleased to report that — and to complement the growth experienced by its Honu branded edible products in the Pacific Northwest — it has projected the launch dates for both the Evergreen Organix EGO edibles brand and the Cheech’s Private Stash edibles product lines for late 2019 or early in 2020.
The Company expects its Oregon and Washington infused brands to contribute system-wide revenue of up to $24 million with an estimated EBITDA contribution of $5.0 million in calendar year 2020.
Jeffrey Mascio, CEO, and Joshua Mann, President of Cannabis One, jointly commented: “Our continued focus on licensing cannabis infused product brands to licensed manufacturers and distributors in the established states of Washington and Oregon have started to provide significant returns. Through our brand licensing arbitrage strategy, the Company will now focus on increasing EBITDA through introducing other established top-tier brands, such as the Evergreen Organix EGO edibles brand, in this opportunistic corridor that is often overlooked by the larger operators and manufacturers in the United States.”
About Cannabis One
Cannabis One Holdings Inc. (CSE: CBIS) is focused on aggregating and optimizing popular cannabis brands throughout North America. With its unique, franchise-ready retail brand, The JointTM, and through targeted acquisition and partnership opportunities, Cannabis One intends to become the premier, globally-recognized “House of Brands”, holding a client portfolio of award-winning products with an extensive market footprint. Through the Company’s The JointTM retail concept, Cannabis One intends to leverage the consumer and brand data harvested from its retail locations to bring data-driven analytics to an emerging, branded industry. For consumers, Cannabis One desires to become the definitive source for unparalleled product selection and renowned service in an otherwise fragmented market.
Disclaimer and Forward-Looking Information
Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words “anticipate”, “could”, “intend”, “expect”, “believe”, “will”, “projected”, “potential”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the parties’ current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. These statements are only predictions. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company assumes no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
The forward-looking information contained in this release is made as of the date hereof and the parties are not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward looking information. The foregoing statements expressly qualify any forward-looking information contained herein.
To the extent any forward-looking information in this press release constitutes “future-oriented financial information” or “financial outlooks” within the meaning of applicable Canadian securities laws, such information is being provided to demonstrate the anticipated product sales of the Company and the reader is cautioned that this information may not be appropriate for any other purpose and the reader should not place undue reliance on such future-oriented financial information and financial outlooks. Future-oriented financial information and financial outlooks, as with forward-looking information generally, are, without limitation, based on the assumptions and subject to the risks set out above under the heading “Disclaimer and Forward-Looking Information”.
Cannabis is legal in certain States in the United States (“U.S.”), however cannabis remains illegal under U.S. federal laws. Cannabis One intends to conduct its U.S. cannabis operations in a manner consistent with the applicable State laws and in compliance with regulatory and licensing requirements applicable in the applicable State. However, the readers should be aware that any change in federal guidance on enforcement actions could adversely affect Cannabis One’s ability to access private and public capital required in order to support continuing operations and its ability to operate in the U.S.
Unlike in Canada which has Federal legislation uniformly governing the cultivation, distribution, sale and possession of cannabis under the Cannabis Act (Federal), readers are cautioned that in the U.S., cannabis is largely regulated at the State level. To the knowledge of Cannabis One, there are to date a total of 33 states, plus the District of Columbia, that have legalized cannabis in some form. Notwithstanding the permissive regulatory environment of medical cannabis at the State level, cannabis continues to be categorized as a controlled substance under the Controlled Substances Act in the U.S. and as such, cannabis-related practices or activities, including without limitation, the manufacture, importation, possession, use or distribution of cannabis are illegal under U.S. Federal law. Strict compliance with State laws with respect to cannabis will neither absolve Cannabis One of liability under the U.S. Federal law, nor will it provide a defense to any Federal proceeding, which may be brought against Cannabis One. Any such proceedings brought against Cannabis One may materially adversely affect its operations and financial performance in the U.S. market.
This press release is not an offer of the securities for sale in the United States. The securities may not be offered or sold in the United States absent registration or an available exemption from the registration requirements of the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) and applicable U.S. state securities laws. The Company will not make any public offering of the securities in the United States. The securities have not been and will not be registered under the U.S. Securities Act.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Further Information: For investment inquiries, please contact Scott Koyich, Investor Relations at Scott@briscocapital.com or (403) 619-2200.
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