Aims to become a premier house of brands in North America
Focuses on aggregating cannabis retail distribution and brand manufacturing across North America
Targets, acquires, and legitimizes legacy cannabis assets purchased at discounted purchase prices
What Cannabis One does:
Cannabis One Holdings Inc (CSE:CBIS) is a Denver-headquartered cannabis company that focuses on aggregating cannabis retail distribution and brand manufacturing.
The company is poised to expand its footprint across North America as it tackles the goal of becoming a premier house of brands, embodied by its tagline: "If we brand it, they will come."
Cannabis One is focused on a house of brands approach, meaning it is home to numerous brands, independent of one another.
In short, the company aims to capitalize on a unique arbitrage opportunity. Its goal is to target, acquire, and legitimize (and grow) legacy cannabis assets.
Currently, Cannabis One is focused on expansion into a number of cannabis-legal states - Nevada, Washington, Colorado, California - and is primed to bring a portfolio of established brands to new markets. The firm currently has more than 30 targets in the pipeline.
The company is aiming to bolster its business model nationally through the aggregation of premium cannabis brands and operations, as it aims to become a globally recognized house of brands with a portfolio of clients that offer award-winning products, with extensive markets.
How is it doing?
The company has had a host of news lately, as it continues to expand its reach under its brand umbrella.
In July, the company boosted its footprint in the Pacific Northwest with an agreement to acquire Green Lady IP Inc, via a Cannabis one subsidiary.
Green Lady provides infrastructure services to three dispensaries operated by Green Lady Inc and Green Lady Westside Inc with two locations in Olympia and one in Lynnwood in Washington State. The deal provides Cannabis One with diversified exposure — adjacent to the direct sale of cannabis or cannabis-related products — to the highly regulated Washington State cannabis industry, which currently prohibits out-of-state ownership of licensed assets.
According to CEO Jeffery Mascio, the move will build on the company's expansion program and tap into a compelling but often-overlooked cannabis market.
Cannabis One is also looking to Nevada, and in May announced a series of agreements to acquire Evergreen Organix, a Nevada-based cultivation, manufacturing and brand house. The company has three definitive agreements to acquire certain assets of Nevada-based LV 3480 Partners LLC, 3480 Investors, Inc., and Agro Finance LLC, collectively known as Evergreen Organix.
The company also announced this spring it was acquiring a well-known Washington State cannabis-infused products company, Honu Enterprises. The award-winning company offers products, such as edibles, like Coconut Snowball, and a line of cannabis-infused topicals under the Honu Naturals line.
Cannabis One says the Honu brand line has continued to exceed management’s expectations and believes the addition of the 'Honu' brand family to its growing intellectual property catalogue "further validates the firm's strategy of securing 'Best-of-Breed' brands," according to Mascio.
The company is poised to expand in to further North American jurisdictions where cannabis is legal.
Initially, the company will use its experience in Colorado cultivation, production, and retail to then expand to a number of US states, while anticipating further expansion to other North American jurisdictions which have legalized medical and/or recreational cannabis.
The firm is well on its way, with its franchise-ready retail brand, The Joint, as it continues to target acquisition and partnership opportunities.
The firm also places a data-driven focus on its growth plan, as it can leverage consumer-demand data collected from its franchise-ready retail arm, to help identify acquisition targets.
The company is projecting revenue of around US$116 million in 2019, broken down into cultivation, manufacturing and retail. It is aiming to have 25 dispensaries in five states under its umbrella by 2019, with all eyes on 2020, where it's aiming to have 50.
What the boss says:
President and CEO Jeffery Mascio said: "We're more of a house of brands rather than a branded house... we really believe that there's going to be selection and choice that dominates the cannabis space."
"The philosophy was born out of really understanding how the consumer shops for cannabis. We've found that the shopping habits of cannabis consumers is very similar to that of the alcohol space, and that's where we adopted that model of the house of brands."
Contact Katie Lewis at [email protected]