There are two things investors like to see: good deals and good people.
On June 17, 2019 Biome Grow (BIO.C)’s 100%-owned subsidiary, Highland Grow received conditional approval to begin retail sales of cannabis in Saskatchewan.
That’s a good deal for Biome.
Equity Guru’s Sam Bourgi states that, “University of Regina professor Jason Childs expects Saskatchewanians will soon be lighting up 25 million joints per year as demand surges. That’s equivalent to about 25 tons of product.”
Strong sales and customer satisfaction of Highland Grow’s various strains in Atlantic Canada has led to private retailers and end consumers asking for our products to be made available in Saskatchewan. Biome values customer feedback and looks forward to supplying the province’s 36 licensed cannabis retailers in the coming weeks.
Biome’s westward expansion follow a disciplined roll-out in the maritime provinces.
Earlier this year, Highland Grow fulfilled its first purchase order with Nova Scotia Liquor Corp (NSLC). The initial shipment consisted of three genetic varieties targeted specially for the local market.
Highland Grow intends to expand its “genetic and product offerings” – validating its “localized approach to its domestic market”.
At that point, Biome Grow was exclusively focused on Atlantic Canada.
- Back Home – a late-stage applicant which will service both Newfoundland and Labrador.
- Highland Grow – a licensed producer in Antigonish, Nova Scotia. Highland Grow was Biome’s first licensed producer under Canada’s ACMPR guidelines.
Highland Grow’s Nova Scotia Facility is 6,500 square feet and resides on 19 acres of farmland and is a cost-effective way to achieve Highland Grow’s first license. The Nova Scotia Facility will ultimately be expanded to 100,000 square feet in two phases.
The Phase I expansion will be 50,000 square feet and was completed in the first quarter of 2019.
The Phase II expansion of 50,000 square feet is targeted for completion during the second quarter of 2019.
“Our high quality, premium flower and pre-rolls have proven very popular with discerning consumers in Atlantic Canada,” stated Biome’s CEO, Khurram Mali, “and we’re excited to introduce our brands to cannabis connoisseurs in the Prairie Provinces.”
By mid-morning trading the Biome chart looked like this:
On June 18, 2019 TransCanna (TCAN.C) announced that it has hired Alan R. Applonie as General Manager.
Applonie is a good person for TransCanna.
He spent 18 years helping to growing a privately held consumer packaged goods company from start-up to greater than $2 billion dollars in annual revenues.
A supply chain & operations guy, he also has infrastructure systems experience with companies like Amazon, Starbucks, 7-11, Walmart and Krogers.
“Alan will be responsible for all activities in the manufacturing operations of the Company’s recently acquired 196,000 sq. ft. vertically integrated cannabis-focused facility, as well as other facilities and operations the Company may acquire in Stanislaus County,” stated TransCanna.
TransCanna’s 4-pronged business model:
- Procurement – leveraging relationships with California farmers to access biomass.
- Branding & Design – music and beverage industry vets creating 15 premium brands.
- Transportation and Distribution – unified network includes 5 strategic facilities throughout California.
- Sales & marketing: acquiring and creating premium products with in-house sales team selling directly to dispensaries
The 196,000 sq. foot facility in Modesto, California has the same footprint as 70 regulation tennis courts.
So yah, it’s gunna need a savvy general manager.
“I’ve spent over six months interviewing for top-tier talent to oversee our operations,” stated Jim Pakulis, CEO of TransCanna, “Alan’s most recent position was for a multi-billion-dollar enterprise in which his division regularly produced greater than $300 million in annual revenues.
Applonie has decades of experience growing national brands and managing all aspects of supply chain and operations for Consumer Packaged Goods (CPG) products.
“We have no doubt Alan will add significant value to the TransCanna family of brands,” added Pakulis.
By mid-morning trading the TransCanna chart looked like this:
Full Disclosure: TransCanna and Biome are Equity Guru marketing clients, and we own stock in both companies.
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