Vancouver, BC, July 6, 2019 - (ACN Newswire) - Below is a summary of the conference call held July 3, 2019 with investors, and TransCanna Holdings Inc. (CSE: TCAN) (OTC PINK: TCNAF) (FSE: TH8) ("TransCanna" or the "Company") CEO, Jim Pakulis, outlined the Company's five phase strategy and the progress made to date:
1) Acquire physical assets and be poised to scale;
2) Find and retain top-tier management;
3) Identify quality brands for purchase;
4) Create internal distribution system;
5) Create and implement proprietary software platform;
- In Q2 the Company acquired the Modesto facility for US$15 million - a 196,000 sq ft. former food processing facility that had recently undergone a US$8M conversion to a vertically integrated cannabis operation. The Modesto facility is ready to scale and is designed for a nursery, cultivation, manufacturing, kitchen, bottling, and transportation division. Licensing at the facility remains pending.
- Chad Swan, an advisor to the Company and the vendor of the facility, has been a significant contributor to the ongoing success of TransCanna and continues to oversee the buildout of the Company's cannabis facilities. In addition, his relationships with the city and county officials have been invaluable as we continue to move forward with our licensing processes.
- Alan Applonie joined the Company this past month as general manager. Alan brings with him over 30 years' experience growing national brands and managing all aspects of supply chain and operations for CPG products. Alan's most recent position was for a multi-billion-dollar enterprise in which his division oversaw 1,500 employees and regularly produced greater than $300 million in annual revenues. Alan currently oversees all activities at the Modesto facility.
Management Team Through Proposed Acquisitions:
- Each of the principals at Soldaze, Lyfted and Goodfellas have significant industry experience and will bring that experience to TransCanna subject to the closing of each transaction.
Acquiring and Creating Brands:
- Having reviewed over 100 branded products in California, TransCanna has been extremely selective in its proposed acquisition vetting process. The Company's three mandatory acquisition criteria include SKU velocity, strong management, and products that differentiate themselves in the marketplace. TransCanna will also build its own brands over time, but is focused on the integration of its proposed acquisitions.
- The audit of Goodfellas Group was just recently completed, allowing for the completion of definitive agreements. The Company anticipates this transaction will close in the next ten days. The Company anticipates closing the proposed acquisitions of SolDaze and Biovelle (a CBD based cream) and Lyfted Farms within the next sixty days.
- Adelanto - TransCanna received permanent manufacturing and permanent transportation licenses from the city of Adelanto and anticipates receipt of its state licenses later this month. The build out of the facility is approximately 60% complete and hoping to be operational by month's end.
- Modesto - Although the Company's primary property is located in Modesto, it is legislated by the county. The license application process is pending.
Guest speaker Brad Eckenweiler, CEO of Lifestyle Delivery Systems, spoke to the synergies between TransCanna and LDS with regards to manufacturing, transportation, distribution, nursery and genetics coupled with LDS's delivery and dispensary business. The positive alignment of these two organizations should be evident within the next sixty days giving shareholders ample time to make an informed decision about the upcoming proposed acquisition.
"Everything we had hoped to accomplish within the first year of taking TransCanna public, we've fortunately been able to accomplish almost all of it within the first six months," said Jim Pakulis, CEO of TransCanna. "The team has been going at an accelerated pace to complete the first three phases of our strategy: finding physical assets, finding top-tier management and finding the right enterprises to acquire. Now it's closing those acquisitions and getting us to the revenue stage."
For further information, please visit the Company's website at www.transcanna.com.
About TransCanna Holdings Inc.
TransCanna Holdings Inc. is a Canadian-based company focused on providing integrated branding, transportation and distribution services, through its wholly owned California subsidiaries, to a range of industries including the cannabis marketplace.
For further information, please visit the Company's website at www.transcanna.com or email the Company at [email protected].
On behalf of the Board of Directors
Chief Executive Officer
Telephone: (604) 609-6199
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This news release contains "forward-looking statements" and "forward-looking information" as such term is defined in applicable Canadian securities laws. Except for statements of historical fact relating to Transcanna, information contained herein constitutes forward-looking statements. Forward-looking statements are characterized by words such as "plan," "expect", "budget", "target", "project", "intend," "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements in this news release include, but are not limited to, statements relating to completion of transactions involving Goodfella, Soldaze, Biovelle and Lyfted, completion of the acquisition of LDS and the expected timing of those transactions, statements regarding the expected benefits to Transcanna of the various transactions if completed, timing for state and county licensing and other governmental approvals required for operation and timing for completion of capital expenditures at the Adelanto facility. Forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include (i) that Transcanna will complete the proposed acquisitions described herein, (ii) that Transcanna will be granted the licensing required to conduct its operations as proposed or at all, and (iii) developments, whether generally or in respect of the cannabis industry specifically, in the United States, not consistent with Transcanna's current expectations, as well as those risk factors discussed or referred to in Transcanna's continuous disclosure filings available at www.sedar.com. Although Transcanna has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended.
There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Transcanna does not undertake any obligation to update forward-looking statements if circumstances or management's estimates, assumptions or opinions should change, except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking statements.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/46112
July 6, 2019 23:00 HKT/SGT
Topic: Press release summary
Sectors: Retail/eCommerce, Food/Beverage, HealthCare, Alternatives
From the Asia Corporate News Network
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