Mr. James Pakulis reports
HIGHLIGHTS FROM TRANSCANNA INVESTOR CALL; ACCELERATED EXECUTION AGAINST STRATEGY
Transcanna Holdings Inc. has provided a summary of the conference call held July 3, 2019, with investors, and Transcanna Holdings chief executive officer Jim Pakulis outlined the company's five-phase strategy and the progress made to date.
Acquire physical assets and be poised to scale;
Find and retain top-tier management;
Identify quality brands for purchase;
Create internal distribution system;
Create and implement proprietary software platform.
- Physical assets
- In Q2 the company acquired the Modesto facility for $15-million (U.S.) a 196,000-square-foot former food processing facility that had recently undergone an $8-million (U.S.) 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.
- Top-tier management
- Chad Swan, an adviser to the company and the vendor of the facility, has been a significant contributor to the continuing 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 the company continues to move forward with its licensing processes.
- Alan Applonie joined the company this past month as general manager. Mr. Applonie brings with him over 30 years of experience growing national brands and managing all aspects of supply chain and operations for consumer packaged good products. Mr. Applonie's most recent position was for a multibillion-dollar enterprise in which his division oversaw 1,500 employees and regularly produced greater than $300-million in annual revenues. Mr. Applonie currently oversees all activities at the Modesto facility.
- Management team through proposed acquisitions
- Each of the principals at Soldaze, Lyfted and Goodfellas has 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.
- Closing transactions
- 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 10 days. The company anticipates closing the proposed acquisitions of SolDaze and Biovelle (a cannabidiol-based cream) and Lyfted Farms within the next 60 days.
- Adelanto -- Transcanna received permanent manufacturing and permanent transportation licences from the city of Adelanto and anticipates receipt of its state licences later this month. The buildout of the facility is approximately 60 per cent complete and hoping to be operational by month-end.
- Modesto -- Although the company's primary property is located in Modesto, it is legislated by the county. The licence application process is pending.
Guest speaker Brad Eckenweiler, chief executive officer of Lifestyle Delivery Systems, spoke to the synergies between Transcanna and LDS with regard 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 60 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, chief executive officer 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."
About Transcanna Holdings Inc.
Transcanna Holdings 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.
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