DENVER, CO -- September 1, 2021 -- InvestorsHub NewsWire --
American Cannabis Company, Inc. (OTCQB:
AMMJ) (“ACC” or “Company”), a full-service business-to-business
cannabis and hemp consulting solutions provider and licensed owner
operator, is pleased to provide an overall update on the Company.
The following information describes the Company’s challenges,
current work efforts and future pursuits as it positions itself as
a reputable and established brand within the regulated
markets.
Summary of 2021 YTD Company
Highlights
- Successfully acquired Naturaleaf, a long-standing vertically
integrated licensed medical cannabis operation, in Colorado
Springs, Colorado.
- Continued ongoing exploration of acquisition opportunities in
all regulated markets.
- Developed working relationship with a client group in Michigan
to deploy, manage, and monitor large-scale commercial cultivation
operations.
- Developed a working relationship with a separate client group
in Michigan to develop, deploy, and manage multiple licensed retail
franchise operations throughout the state
- Contracted by client in Connecticut to finalize business plan
and financial pro forma modeling for a recreational
dispensary.
- Contracted with a client in New Mexico for pre-licensing,
design, and state application technical writing services with the
goal of building out a vertically integrated recreational cannabis
business.
- Completed a business plan and financial pro forma model for a
client in Oklahoma that has finalized a lease. ACC will be
the management company behind this operation.
- Completed a business plan and financial pro forma model for a
client in Oklahoma looking to build a medical cultivation
operation. ACC will also be the management company behind this
operation.
- Provided multiple a la carte consulting services for a client
in Florida looking to launch an indoor boutique hemp production
facility. The Company has been further retained to provide
equipment sourcing, SoHum Living Soils®, operational deployment,
and 6-month deployment and management services.
- Completed a business plan and pro forma for client cannabis
business in New Jersey looking to open a social equity-driven
recreational dispensary.
- Engaged in research and development of new products under the
SoHum Living Soils® brand line.
- Officially launched new air circulation technology, Bottoms
uP™: The Science of Air Flow.
- Signed an exclusive agreement to manufacture and distribute Her
Highness NYC products to Colorado medical and recreational
markets.
Consulting Division & The Lasting Impacts of
COVID-19
The Company has continued to experience various changes in the
volume of new business due to the impact of the COVID-19 global
pandemic. With spread of the delta variant of COVID-19 becoming
more prevalent, the economic climate continues to shift. In
addition, there has been a slow rollout of states with new Medical
or Adult-Use cannabis programs.
“It has been a challenging year for the consulting side of the
business,” said Terry Buffalo, CEO of American Cannabis Company,
Inc. “Our primary revenue driver for consulting is typically based
on new cannabis programs. However, with states not moving forward
with application processes at this time it has slowed down the need
for many client groups to pursue any pre-licensing services or
deliverables. We anticipate new programs coming online soon. The
Company increased our overall marketing efforts using platforms
targeted for decision makers, and we are starting to see a response
from these efforts. In the meantime, we will be working on current
client projects.”
The Company continues to work with groups on long-term projects
with long-term revenue potential. Currently, the Company is working
with two separate groups in Michigan to provide end-to-end
solutions in an effort to form a strategic alliance to support a
cannabis business franchise model throughout the state. The Company
is working with one group to develop, deploy and manage large
commercial-scale operations for the cultivation of recreational
wholesale cannabis. This operation will cultivate premier cannabis
cultivars utilizing the best-in-class technologies, software, and
workflow. The Company is working with another group to develop and
deploy retail franchise and microbusiness locations as well as
manage and support franchisees with the model.
Update on Recent Acquisition of
Naturaleaf
On April 30, 2021 Colorado’s Marijuana Enforcement Division
(MED) and the City of Colorado Springs granted regulatory approvals
for the Company’s acquisition and operation of Medihemp, LLC, and
its wholly owned subsidiary SLAM Enterprises, LLC, and Medical
Cannabis Caregivers, Inc., all doing business as Naturaleaf, a
long-standing vertically integrated cannabis business.
As a result of the regulatory approvals and the closing of the
asset purchase, the Company acquired Naturaleaf’s three medically
licensed retail stores, and a 10,000 square foot cultivation and
extraction facility located in the metropolitan area of Colorado
Springs. “We are very happy to have successfully completed this
first acquisition. Utilizing the expertise of Karen Thomas and her
company, Canna Support Services, ACC was able to deliver organized
documentation to all regulatory bodies in a format that not only
clearly laid out our public company organizational structure, but
also provided the necessary details to attain State and local
approval quickly,” said Terry Buffalo, CEO of American Cannabis
Company.
Naturaleaf has earned a strong reputation for its quality
products and patient experience, having served its loyal and
growing patient base since 2009. Since acquiring Naturaleaf many
changes have been implemented within the cultivation operation.
Ellis Smith, President of American Cannabis Company, Inc.,
commented: “In just the short amount of time that we have taken
ownership of Naturaleaf, our team has implemented multiple new
processes and facility changes to improve overall facility
cleanliness, quality of work life for employees, and environmental
conditions for enhanced flower production. From re-painting walls
to switching old equipment for state-of-the art LED lighting and
highly efficient HVAC solutions, the upgrading process is just
getting started. We have also integrated task management software
to improve employee and team workflow at each stage of cultivation
and post-harvesting. Soon we will incorporate automated watering
throughout the facility coupled with our geoponics grow methodology
to further increase biomass and flower yields. Until then we are
still harvesting plants from previous ownership, as it takes time
to move through the plant cycles. Brand integration on the
cultivation side will continue through this year as we maintain
rollout of our preferred technologies, standard operating
procedures, and methodologies for growing clean, cage-free
cannabis.”
In addition to the various modifications taking place at the
cultivation facility, many improvements are being made to the three
(3) licensed retail locations. Tyler Schloesser, Chief Operating
Officer of American Cannabis Company, Inc., commented: “When it
comes to the brand integration, much of our focus on the retail
side has been on product analysis and customer purchase behavior.
This year many medically licensed retailers in the area experienced
a dip in average daily sales, and Naturaleaf has also felt this
effect. To increase awareness of new brand ownership and promote
updated daily specials, pricing and other incentives, the team has
targeted well known channels with digital and print advertising
diversified throughout the city of Colorado Springs and surrounding
areas. Recently, we updated the Naturaleaf logo to fall more
aesthetically in line with the ACC brand platform. This logo
change, along with other upcoming aesthetic changes to the retail
stores, will further serve to tell the story of our brand and our
mission, which is to bring quality products and service to our
patients. Furthermore, we have made changes on the technology side
of the retail experience, including the deployment of a new
vertically integrated point-of-sale software this month to
streamline transactions and a text-based marketing platform to
better communicate with our members. We will continue to assess
each retail location along with customer demographics and
purchasing patterns to further refine and enhance the customer
experience.”
Update on Acquisition Targets
In December of 2020, the Company executed a non-binding letter
of intent (LOI) with Andina Gold Corporation/Rocky Mountain High to
purchase assets of its Good Meds and BOSM Labs operating division,
a fully licensed cultivation and extraction operation in Colorado.
The Company decided to not complete this transaction.
The Economics of Agriculture & SoHum Living
Soils®
SoHum Living Soils® was created to combat complex cannabis
cultivation strategies, both on a home and commercial scale.
Originating from Southern Humboldt, California, this potting mix is
a complete blend that optimizes a plant’s genetic potential. Last
year, the Company experienced significant growth in product sales,
and many steps were taken internally to scale production in order
to meet the demand.
This year, sales have leveled off from the surge seen in 2020,
and operations. While the audience of SoHum Living Soils® has
maintained during the pandemic, certain economic factors have
hindered the advancement of overall brand growth and sales.
Primarily, soil manufacturers across North America have been
impacted negatively by increased costs of material inputs and
heightened labor costs.
“The Company is pleased to report that despite these industry
hurdles, it has maintained inventory of SoHum Living Soils®. The
Operations team has worked closely with its soil manufacturing
partners to produce and palletize soil on larger scales to ensure
product availability across the country,” said Jon Workman, Vice
President of American Cannabis Company. “With the price of
individual inputs climbing, increased pressure is being put on soil
manufacturers on a national scale. Notwithstanding such challenges,
our Operations and Sales teams have worked closely to reduce the
impact on our retailers, distributors, and customer base. We strive
to preserve and maintain product quality as well as brand
integrity, and it is important to us to maintain product
availability.”
Those looking to purchase SoHum Living Soils® can do so by
contacting an official distributor or visiting the official
website. The SoHum Living Soils® potting mix is also available for
purchase on the Walmart, The Home Depot and Amazon online store
platforms.
New & Upcoming
The Company has worked diligently to remain on the cutting edge
of the fast-paced cannabis industry. In this pursuit, many
additions have been made to the company portfolio in effort to
advance the Company’s long-term goals and vision to expand brand
assets and strengthen industry alliances.
Research and development functions have increased tremendously
with the Company now having a 10,000 square foot cultivation
facility to perform testing functions and grow trials. Trials on
new soil blends and solutions are currently underway to expand the
SoHum Living Soils® product line. Furthermore, the Company has been
able to officially roll out a proprietary air circulation
technology for cannabis cultivation. This solution, called Bottoms
uP™ The Science of Air Flow, is essentially a means to move
"conditioned" air that is coming from HVAC unit vertically from
beneath the plant leaves. This vertical air flow forces the water
leaves (which are interlocked late in the flower cycle) apart so
that the trapped air beneath the canopy can rise. This trapped air
is the water vapor that is transpired through the plant's stomata
which is on the underside of the water leaves. This solution not
only makes air flow more efficient, it also increases transpiration
rates and allows for more effective plant growth.
Additionally, the Company recently finalized an exclusive
manufacturing and distribution agreement with Her Highness NYC
within the state of Colorado. Her Highness NYC features premier
designer cannabis products and accessories designed and engineered
thoughtfully for women by women who are passionate and determined
to expand the ever-growing market of female consumers. In a recent
mid-year report, Akerna highlighted trends showing that since 2019,
females have steadily increased their percentage of cannabis
purchases, and while men still purchase a majority of cannabis and
related products, women are increasing purchases at a steady pace,
and challenging the industry to up its game in order to compete for
their business. (https://www.greenmarketreport.com/15-million-women-have-bought-cannabis-in-2021/)
“Securing this opportunity with Her Highness marks a significant
accomplishment for American Cannabis Company,” said Terry Buffalo,
Chief Executive Officer of American Cannabis Company. Buffalo
continued, “Our team is very excited for the potential market
demand and is enthusiastic to launch this brand locally starting
this September. We will initially offer these products on the
medical side via our Naturaleaf retail channels, and then look to
bring Her Highness NYC to the rest of the Colorado market. For many
years there has been a gap in this industry, as most products have
been marketed to male-focused demographics. With female consumers
making up an increasingly large portion of the market, brands like
Her Highness have established themselves to provide premier
products that are made to deliver experiences that elevate and
celebrate women.”
The Her Highness collection of products include bespoke long
crutch pre-roll cones packed in gold boxes with refillable gold
lighters, the brand’s famous Pleasure Oil, gluten free 2.5mg
micro-dose THC mints, luxuriously engineered gold Giggle and High
Priestess vape pens, deluxe ashtrays constructed with marble and
brass, gold tone luxe herb grinders and elegant smoking
accessories.
About American Cannabis Company, Inc.
American Cannabis Company, Inc. offers end-to-end solutions to
existing and aspiring participants in the cannabis and hemp
industries. We utilize our industry expertise to provide business
planning and market assessment services, assist state licensing
procurement, create business infrastructure and operational best
practices. We are continuing to grow the company by promoting our
operational management services and license the American Cannabis
Company brand as well as continuing to analyze acquisition
opportunities worldwide. The Company currently owns and operates
Naturaleaf in Colorado Springs, Colorado. This medically licensed
entity consists of three (3) retail dispensaries, one (1)
commercial cultivation facility, and one (1) non-volatile
extraction operation. American Cannabis Company has also developed
and currently owns a portfolio of branded products including: SoHum
Living Soils® – Winner of the High Times S.T.A.S.H. Award for “Best
Potting Mix,” The Cultivation Cube™ and the High-Density
Cultivation System™. American Cannabis Company also designs and
provides other industry-specific custom product solutions.
For more information about American Cannabis Company, please
visit:
www.theacclife.com
www.americancannabisconsulting.com
www.americancannabiscompanyinc.com
www.sohumsoils.com
www.americanhempservices.com
www.thenaturaleaf.com
Video Links:
https://americancannabisconsulting.com/resources/video/ (ACC
Site)
https://www.youtube.com/watch?v=aENC4aeNZis (High
Density Cultivation System)
https://www.youtube.com/watch?v=e9rNxFph_tQ&t (Cultivation
Cube)
https://www.youtube.com/watch?v=XoIcopO2yE8&t (SoHum
Living Soils®)
ACC Contact:
IR@americancannabisconsulting.com
303-974-4770
About Canna Support Services
At Canna Support Services, your business success is our
priority. Our mission is to provide the highest level of
integrity, confidentiality, professionalism and customer service to
you while never compromising our reputation
or yours. We provide a suite of support services to the
cannabis industry, from license renewals to project management,
implementing ultra-efficient work processes through personalized
contracted services. Canna Support Services is ready to tackle
any challenge and put you on the path to success, and we aim to
partner with you to provide the foundation to achieve your business
goals.
For more information about Canna Support Services, please
visit:
www.cannasupportservices.com
Canna Support Services Contact:
karen@cannasupportservices.com
720-237-2500
Forward-Looking Statements
This news release contains "forward-looking statements," which
are not purely historical and may include any statements regarding
beliefs, plans, expectations or intentions regarding the future.
Such forward-looking statements include, among other things, the
development, costs and results of new business
opportunities and words such as "anticipate",
"seek", intend", "believe", "estimate", "expect", "project",
"plan". These or similar phrases may be deemed "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Actual results could differ from those
projected in any forward-looking statements due to numerous
factors. Such factors include, among others, the inherent
uncertainties associated with new projects, the future U.S.
and global economies, the impact of competition, and the Company's
reliance on existing regulations regarding the use and development
of cannabis-based drugs. These forward-looking statements are made
as of the date of this news release, and we assume no obligation to
update the forward-looking statements or to update the reasons why
actual results could differ from those projected in the
forward-looking statements. Although we believe that any beliefs,
plans, expectations and intentions contained in this press release
are reasonable, there can be no assurance that any such beliefs,
plans, expectations or intentions will prove to be accurate.
Investors should consult all of the information set forth herein
and should also refer to the risk factors disclosure outlined in
our annual report on Form 10-K for the most recent fiscal year, our
quarterly reports on Form 10-Q and other periodic reports filed
from time to time with the Securities and Exchange Commission. For
more information, please visit www.sec.gov.
Cannabis Remains an Illegal Schedule 1 Drug Under
Federal Law
Thirty-five states, including Colorado, the District of Columbia
and four U.S. Territories currently have laws broadly legalizing
cannabis in some form for either medicinal and/or recreational use
governed by state specific laws and regulations. Although legalized
in some states, cannabis is a “Schedule 1” drug under the
Controlled Substances Act (21 U.S.C. § 811) (“CSA”) and is illegal
under federal law. Cannabis and its derivatives are viewed as being
highly addictive and having no medical value. The United States
Drug Enforcement Agency enforces the Controlled Substances Act, and
persons violating it are subject to federal criminal
prosecution.
As a result of the November 2020 federal elections, and the
election of Joseph R. Biden as president, it is expected that the
federal government will move to amend parts of the CSA and
de-schedule cannabis as a Schedule 1 drug.
In late January, 2021, Senate Majority Leader Chuck Schumer said
lawmakers are in the process of merging various cannabis bills,
including his own legalization legislation. He is working to enact
reform in this Congressional session. This would include the
Marijuana Freedom and Opportunity Act, that would federally
de-schedule cannabis, reinvest tax revenue into communities most
affected by the drug war, and fund efforts to expunge prior
cannabis records. It is likely that the Marijuana Opportunity,
Reinvestment, and Expungement (MORE) Act would be incorporated.
Other federal legislation under review for possible submission
includes the SAFE Banking Act (or Secure and Fair Enforcement Act),
a bill that would allow cannabis companies to access the
federally-insured banking system and capital markets without the
risk of federal enforcement action, and the Strengthening the Tenth
Amendment Through Entrusting States Act (or STATES Act), a bill
that seeks protections for businesses and individuals in states
that have legalized and comply with state laws.
Notably with respect to our business, on November 1, 2019,
Colorado Bill HB-19-1090, was passed and made effective. This law
allows publicly traded corporations to apply for and qualify for
the ownership of Colorado cannabis licenses. Other states that have
legalized cannabis for recreational and/or medicinal use restrict
public companies from owning interests in state cannabis licenses
altogether, or have enacted regulations which make it difficult for
corporations to comply with application requirements, including all
shareholders submitting to and passing background checks.
On September 18, 2020, Colorado’s Marijuana Enforcement Division
(MED), approved the Company’s application for suitability,
establishing the Company as one of the few publicly traded
companies authorized to acquire and operate various cannabis
licenses throughout Colorado, in both the recreational and medical
markets.
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