TransCanna’s Suite of Cannabis Brands Are Driving Sizable Growth and Creating Value For TCAN Shareholders
TCAN Stock Achieves TCI Price Target in Only 8 Days, Shows No Signs of Slowing Down
Consumer spending the world over is driven primarily by brands. These brands influence the clothes we wear, the cars we drive and even the food we eat. If a company wishes to be successful, they will need to develop a brand that users enjoy and can identify with. This is especially true in the emerging cannabis industry, where a clear leader has yet to emerge. With federal regulations preventing inter-state cannabis commerce, most cannabis brands are confined to one state. When companies are deciding which state to use as a foundation for building their cannabis brands, there is one state that stands tall above the rest.
With a projected $3.1 billion in sales for 2019, California is home to the largest cannabis market in the world. The state’s “Emerald Triangle” has been the epicentre of cannabis in the U.S. for the last 60 years. In 1996, the Golden State was the first state to legalize cannabis for medical purposes. In 2016 cannabis for recreational use was passed, with sales beginning in 2018. The state allows for the sale of just about every cannabis product on the market, including concentrates, edibles and pre-rolls. These forms of cannabis lend themselves to branding better than flower, which is fairly generic.
TransCanna Holdings (CSE: TCAN) (OTC: TCNAF) (FRA: TH8) is building a suite of cannabis brands by buying out smaller producers with strong brands across several product types. TransCanna’s acquisitions are already starting to bear fruit as the company reported earlier this month that its November revenues grew by 90% over the previous month. Looking to build on its early success, TransCanna released a new 4 phase California expansion strategy on December 13, 2019, which the company has already implemented.
TransCanna’s first step toward building its suite of cannabis brands was to find a location where they could both produce cannabis and manufacture their packaged goods. With the goal of distributing its products throughout the state, the company identified centrally located Modesto, California as a prime location to set up shop. The company plans to grow cannabis, process the cannabis into various forms and then create packaged goods ready for retail, all under one roof, so they purchased a 196,000 sq ft manufacturing and distribution facility. Prospective investors can view the full video of the facility tour of here. The facility is in an area dominated by agriculture, so the labour pool of those familiar with working with food and consumer goods is quite strong. Management considers this labour pool a competitive advantage over competitors located in more urban parts of the state.
Let’s Get Lyfted
TransCanna’s management team made the intelligent decision to team up with experienced marijuana growers when the company purchased local producer, Lyfted Farms, to supply the cannabis needed to produce its products. Lyfted has a strong history of sales in the region, with its cannabis strains being considered among the best in California. TransCanna will produce a line of Lyfted Farms dry flower, pre-rolls and concentrates at its new large-scale production facility. The experienced management team of Lyfted Farms will remain with the company to oversee cannabis production. TransCanna recently announced that it would also offer crop management services allowing the company to collect a fee to run other growing operations while boosting revenues in the process. TransCanna received more great news recently after it was announced that the Lyfted Farms Daly project garnered unanimous support from the Stanislaus County Planning Commission to approve its new facility use permit. The Daly project is described as a 196,000 sq ft cannabis cultivation, manufacturing and distribution facility located in Modesto, California.
Dazed and Confused
TransCanna’s management knew they wished to establish a leading brand of healthy cannabis edibles in California. Instead of going through the painstaking and expensive process of developing its own branded product, the company opted to purchase an existing high-quality cannabis brand with name recognition. After exhaustive market research, the company decided to purchase SolDaze Snacks, a Santa Cruz company that offers a line of cannabis-infused fruit snacks. The fruit snacks, in particular, the dried mango, have proven to be extremely popular and successful, with strong growing sales. Nutritious as well as delicious, the company’s products will give health-conscious edible consumers an alternative to chocolates and other candies. TransCanna will manufacture SolDaze-branded products at its 196,000 sq ft facility, with SolDaze’s management staying on board to oversee the operation and accelerate the brand’s growth. The SolDaze brand is already gaining national recognition after it was announced this month that SolDaze CBD Edibles won 1st and 3rd place at the prestigious 2019 Emerald Cup.
An Offer They Couldn’t Refuse
To assist with building a cannabis brand from the ground up, TransCanna purchased GoodFellas Group, a cannabis-focused marketing and branding firm with several successful products on the market. The addition of GoodFellas will work synergistically with existing management to bring to market a line of pre-rolls under the “Daily” brand. This brand will offer mid-level cannabis at an affordable price and will target everyday users.
Buds for Brews
Consumers have made it clear that there is a strong demand for cannabis-infused beverages, with CBD popping up in bars all over the country. TransCanna’s management decided to enter the beverage market by partnering with local brewer Persuasion Brewing. Rather than buying the brewery, management built a beverage line at its facility and signed an agreement for Persuasion Brewing to operate it. The company initially plans to offer a CBD-infused, non-alcoholic beer, with a possible THC-infused, non-alcoholic beer to follow.
TransCanna’s Proven Management
President & CEO | Steve Giblin: Mr. Giblin has a strong background in hospitality, serving as a senior executive with industry titans Marriot, Hilton and Radisson. His strong customer service skills will prove vital to building a company that is more inviting and receptive to the consumer’s wants and needs. He also has experience managing multiple established brands as part of a single portfolio. During his time as the CEO of Silverbirch, Mr. Giblin grew the company’s revenues from $280 million to $500 million while increasing the portfolio’s value by over 50%.
Director | Peter Vitulli: Previously, Peter worked in the health & wellness industry and oversaw Gatorade North America at one point earlier in his career. Since edibles and beverages are core parts of TransCanna’s business plan, having an executive with such a strong background in overseeing a large beverage brand will give the company a decided advantage.
Lyfted Farms Founder | Bob Blink: Bob has worked in the California cannabis industry for over 20 years. He has been a grower and distributor since 1997, having previously been instrumental in passing medical cannabis legalization the year prior. He formed Lyfted Farms in 2016 after California legalized recreational cannabis. His extensive knowledge of the California cannabis space will allow the company to efficiently navigate the rapidly expanding Golden State market.
SolDaze Co-Founder | Shawn Shevlin: Before co-founding SolDaze Snacks, Mr. Shevlin worked at canned food giant Dole. He has extensive experience with selling fruit-based snacks, which led to the popularity of SolDaze’s products.
The company announced that it would be expanding into San Francisco and Sacramento markets, two of the largest cities in California. With a combined population of over 1.3 million and many times more tourists, the two cities will provide a significant revenue boost for the company. TransCanna also announced that it would be refinancing its manufacturing facility, with the goal of receiving better terms and freeing up working capital.
A ‘Golden State’ Opportunity
The California cannabis market is still in its infancy and is already a multi-billion dollar juggernaut. The opportunity to establish a leading cannabis brand is a great one and with no clear leader in California, many agree the market is up for grabs. TransCanna has built a management team that has the necessary skills and experience to identify a quality brand, integrate that brand into a larger portfolio and grow that portfolio of high-quality cannabis brands while creating considerable value for its shareholders. TransCanna’s decision to become a vertically integrated cannabis producer will allow the company to reduce costs while giving it the ability to total control of the entire supply chain, from seeds to packaged goods ready for sale. Look for TransCanna to become a major player in the burgeoning United States cannabis industry in 2020 and beyond.
TCAN Stock Price Action & Chart
Shares of TransCanna’s CSE listed stock closed trading this week on a high note. TCAN stock closed Friday’s trading session at $1 per share, up another 8.7% on the day. TCAN has been on a roll since bottoming at $0.39 on November 1, 2019, with the stock rising as much as 164% in the process.
In the United States, TransCanna’s OTC Markets listed ‘TCNAF’ shares closed Friday at $0.77 per share, up 14.55% on the day. Overseas in Germany, the company’s Frankfurt listed ‘TH8’ shares closed Friday up 15.49%, at $0.69 per share.
In our previous article dated December 20, 2019, we placed a potential price target of $1 on TCAN stock which closed at $0.80 that day. We are pleased to report, in only 8 days, TCAN has officially reached the target price and is showing no signs of slowing down anytime soon.
With U.S. cannabis stocks starting to heat up, will investors see a repeat of the 873.75% run TCAN went on during the first 4 months of 2019 ($0.80 – $7.79)? Only time will tell, but as we prepare to embark on the 2020 new year, the situation is looking more bullish than ever for TransCanna and its shareholders.
TransCanna (CSE: TCAN) Chart | December 20, 2019
Learn more about TransCanna: Website | IR Website | Investor Deck | TCAN Chart
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