North American Cannabis Holdings Inc. this week published a shareholder update with details on the company’s plans for adding $20 million in sales on top of the company’s growing sales from its expanding ecommerce business. The update from CEO Steven Rash is included in its entirety below:
USMJ’s launch into 2022 following the business refresh organized at the end of last year has gone better than we could have imagined.
Our relaunch of the EVERx CBD Sports Nutrition Beverage acquired from Puration, Inc. (OTC Pink: PURA) has us taking measure of our original sales forecasts as we now see an even bigger opportunity, and New York’s new adult use marijuana law is a welcome and potentially game changing surprise.
Adult Use Marijuana
In February, New York passed a new law to provide provisional marijuana cultivation licenses to existing hemp businesses.
USMJ has a subsidiary that has been growing hemp for CBD for the past four years. The subsidiary has received an invitation from the New York Office of Cannabis Management (OCM) to apply for the provisional adult-use cannabis license.
We are planning on partnering with an experienced marijuana cultivator and distributor from out of state. The intent of the partnership is to accelerate our learning curve to fully optimize the 2-year window afforded in the new New York law.
We have engaged in negotiations with two experienced out of state marijuana cultivators. In the course of our negotiations, we have learned that under the license afforded by New York, USMJ could produce adult use marijuana generating from $5 million to $11 million per year in revenue. Given the 2-year window and start up time needed, we are optimistic USMJ could generate approximately $15 million in revenue from an adult use marijuana program within the 2-year window. We are certainly intent on building a program that would continue beyond the 2-year window, but only targeting revenue potential within the 2-year window at this time.
EVERx CBD Sports
The EVERx formula and packaging has been updated. The new formula and packaging was recently introduced at Arnold Schwarzenegger’s Arnold Sports Festival. The new formula and packaging were well received.
EVERx has historic retail distribution channels established by PURA prior to USMJ’s acquisition. The recent Arnold Sports Festival participation open new distribution opportunities. The overall distribution opportunity for EVERx, in light of the reaction at the Arnold, is bigger than anticipated. Accordingly, we recently initiated a new EVERx production order with our co-packer partner Alkame Holdings, Inc. (OTC Pink: ALKM).
Considering PURA’s EVERx distribution history and taking into account the new opportunities coming out of the Arnold, we believe it is possible to see EVERx generate $5 million in revenue over the next two years.
In addition to our ongoing efforts to expand our ecommerce business, the adult use marijuana opportunity and EVERx relaunch, we believe, have the potential to generate $20 million in revenue over the next two years.
I look forward to keeping you up to date on our quickly developing new adult use marijuana and EVERx opportunities.
USMJ is founded on the core belief that cannabis makes people’s lives better. Cannabis can fight disease, improve wellness and do so in an environmentally sustainable manner. North American Cannabis Holdings is dedicated to finding the best possible applications for cannabis to serve consumers. The company operates USMJ.com and is dedicated to Ongoing Cannabis Consumer Product Development that it can incubate into Future Spin-offs.