Exactus Inc (OTCMKTS:EXDI) is calling 2019 “transformational” for the company as it looks to 2020 “to be a breakout year.”
In a letter to shareholders on Wednesday, the Florida company said last year it was able to successfully navigate a downbeat year for most of the industry to position itself for growth in 2020.
In fact, Exactus told investors it is on track for gross sales in the first quarter to exceed gross sales of the entire 2019 calendar year.
The company sells its CBD products through its own Exactus brand and white label products to third-party resellers. It is also engaged in producing industrial hemp from farms in Oregon and plans to extract and manufacture directly through certified good manufacturing practice (cGMP) facilities.
“Before we talk about our growth strategy for 2020, we will recap how we were able to navigate the uncertainty in a challenging year for the industry as a whole,” the company said. “2019 was a transformational year for Exactus as we shifted our entire business into a new industry, replaced the legacy executive team, and built out a diverse board of directors.”
Following the passage of the 2018 Farm Bill that legalized hemp, the company engaged in product development, supply, and management agreements with Ceed2Med LLC to penetrate the emerging hemp industry. Through these agreements, Exactus secured an annual supply of industrial-scale hemp products (CBD) along with key industry experts and vast industry relationships.
During the first half of 2019, the company also acquired a 50.1% ownership interest in a 200-acre hemp farming operation located in the renowned Emerald Triangle in Oregon. This allowed Exactus to secure a consistent and high-quality source of flower and biomass to expand its portfolio of hemp-derived products.
Throughout 2019, the company noted it planted the seeds for a foundation for long term success in the hemp industry. Exactus established high-quality sources of supply, forged partnerships with top-tier manufacturers to expand our offerings and presence in the market, with the goal to develop and acquire brands to expand the product offerings and increase market share.
“While 2019 was a challenging, yet successful year for the company, we have positioned ourselves for what is trending to be a breakout year for 2020,” Exactus said.
“We started 2020 strong by entering into a supply and distribution agreement with the CBG market leader Hemptown USA, opening a new revenue source to distribute Hemptown’s specialized cannabinoids, including top-flower, biomass and raw materials (crude, isolates, distillates, and water-soluble).”
Exactus said it has a clear vision and its team is moving forward towards executing its plan and building the foundation to create long-term shareholder value. With the current structure in place, the company has attracted industry-leading talent such as Derek Du Chesne, who was recently named chief growth officer.
“The company is pleased that we are on track for Q1 gross sales to exceed gross sales of the entire prior 2019 calendar year. Overall we are excited for the pipeline of new developments, and are confident we have the right people in place to execute on our strategy," the company said.
Exactus added: “We will continue to expand our production, diversify product offerings, launch a white label platform, and improve processes as we develop new partnerships that will enable accelerated growth for years to come. As the hemp industry continues to evolve, Exactus has been deliberate in our approach to build a global enterprise that will remain at the forefront of brand and product development leading the hemp industry towards mainstream consumer markets for decades to come.”
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