Golden Leaf Holdings Announces Q2 2016 and June 2016 Preliminary Results For Oregon And Washington State Brands

OREGON: Golden Leaf Holdings Ltd. (“GLH” or the “Company”) (CSE: GLH), a leading cannabis oil solutions company built around recognized brands, today announced preliminary revenue results for Q2 2016 and June 2016 for the respective brands of the company in Oregon and strategic partner BMF Washington.

GLH Oregon Revenue Overview

Preliminary results show that GLH generated US$3,011,000 in estimated and unaudited revenue for Q2 2016 as compared to unaudited revenue of US$2,476,688 for Q1 2016, representing a quarter over quarter increase of 21.5%.

The Company posted preliminary results for June 2016 showing UD$923,000 in estimated and unaudited revenue as compared to US$1,067,000 (updated and revised from previously published number) in May 2016, representing a month over month decrease of 13.5%. GLH sold all of the products that it produced in the month of June.

GLH experienced lower than anticipated revenue in June 2016 due to a variety of unexpected challenges. The Company is developing plans to address these variables as shown below:

Issue Proactive Response
Production obstacles, including cash constraints that impacted trim and flower purchases, trim quality issues and product testing delays from 3rd party vendors made it more challenging to source material inputs and produce product in a timely manner. GLH is leveraging cash from current convertible debenture funding to fulfill raw material requirements. The Company has developed a strategic trim supply agreement program focused on contracting with selected farmers to obtain low cost supply of high quality flower and trim with specific strain and genetic characteristics. GLH purchased new testing equipment to ensure the quality of trim and efficiency of testing timelines. The Company is building relationships with testing vendors to effectively manage testing bottlenecks.
The Oregon cannabis market saw slower than expected recreational consumer adoption of oils and extracts. The concept of using a vape pen for delivery and usage of marijuana is still relatively new for the average recreational user. The Company is working with dispensaries to provide merchandising tools that educate the consumer on the benefits of cannabis oil and new delivery systems.
The retail buying process at medical marijuana dispensaries, including effective purchasing and supply chain management is still evolving. Not all dispensaries stocked the appropriate inventory to meet new recreational consumer demand. Dispensaries are becoming more familiar with customers buying behavior, but room for improvement exists with raising the level of sophistication as it relates to inventory management and regular purchasing patterns. GLH is working closely with dispensary customers to help manage stock levels and ordering cycles.

Don Robinson, Chief Executive Officer of GLH, commented, “While June 2016 Oregon sales results were lower than expected, we were encouraged by the strong sell through of all available inventory produced. We were also pleased with the positive consumer response to the relaunch of the Golden brand and the new product launch of Private Stash. Our sales and marketing team worked with dispensaries across the state to not only introduce new products but new merchandising tools that elevated the consumers’ shopping experience and increased brand awareness.”

BMF Washington Revenue Overview

Preliminary results show that BMF generated US$1,370,445 in estimated and unaudited revenue for Q2 2016 as compared to unaudited revenue of US$904,359 for Q1 2016, representing a quarter over quarter increase of 51.5%BMF’s June 2016 unaudited and estimated revenue in Washington state was US$537,880, a month over month increase of 13% from May 2016 of US$475,457.

New England Cannabis Convention Coming to Hynes Convention Center April 23-24

The New England Cannabis Network will be hosting the 2016 New England Cannabis Convention at the Hynes Convention Center in Boston April 23 and 24.  With over 120 industry vendors, and more than 60 local and national cannabis experts and health care speakers, this will be the N.E. Region’s largest cannabis industry event in 2016. Industry growth is explosive, with legal Cannabis sales in the U.S. projected to gross $16.7 billion dollars in 2016, and grow to over $20 billion by 2019. The Convention will focus on helping New Englanders get involved in this amazing opportunity.

Programming for the event will feature four complete tracks covering all aspects of the industry:

(1) Cannabis careers, businesses, and investment opportunities, (2) Marijuana as medicine, (3) Live demos on growing, cloning, tinctures, and more, and (4) Opportunities in the hemp industry. The event will also feature the first annual N.E. Cannabis Film Festival, showing a curated selection of short cannabis-related films from around the world.

Attendees at the event will also have the opportunity to network with the over 120 local and national cannabis industry businesses, speak with doctors and health care providers, explore investment and career opportunities, connect with advocacy groups, see the latest developments in lighting, soil, and growing equipment, and shop a huge variety of the latest smoking, vaping, and storage accessories.

“Over the last 12 months, huge progress has been made towards the normalization of cannabis use in New England, and around the country. With legalization votes possible in as many as four New England states in 2016, we want to help create a networking hub for the local caregivers, patients, advocates, businesses, investors, and entrepreneurs to meet and grow,” said Marc Shepard, Co-Founder of NECANN.

“For anyone who is interested in seeing the true scope of the local cannabis industry, including its benefits and enormous potential, this is the place to be.”   The show is 18+ (children under 18 must be accompanied by adult), and no smoking or vaping is allowed in the building. Registration for the event can be bought online at: www.NECANN.com. A limited amount of tickets will also be available at the Hynes Convention Center on show days.

Full Programming Schedule:  www.necann.com/programming

SHOW DATES/TIMES: Sat. April. 23rd, 11am-6pm.  Sun. April 24th, 11am-6pm.

Attendees can be register online at http://www.necann.com and at the event on the day of the show

$15 general admission, $35 for all programming.

 

Colorado’s Brian Vicente: What’s Next For The Silicon Valley Of Marijuana?

COLORADO: By any metric, 2014 was a monumental year for the legalization of cannabis. Colorado became the first state in the U.S. to allow recreational use and the overwhelmingly positive impact on the state’s economy, school funding, and crime rates helped to spark the nationwide domino effect we’re seeing today as more and more states look to consider legalization. Colorado saw nearly $700 million in marijuana sales last year, generating over $63 million in tax revenue.

Brian Vicente of VicenteSederberg LLC was a key advocate and campaigner for Amendment 64, which called to regulate marijuana like alcohol. As one of the primary authors of the bill, Vicente was instrumental in creating the framework and effective messaging that resonated with voters. He has been called the “the industry’s de facto spokesperson” by The Guardian (UK) and his practice dubbed “the country’s first powerhouse marijuana law firm” by RollingStone.

As part of our Future of Cannabis coverage, Equities.com caught up with Vicente to discuss the next phase of the cannabis industry, what states he thinks are next, and what went wrong in Ohio.

EQ: You were one of the primary authors of Amendment 64, which led to the monumental legalization of cannabis for recreational use in Colorado. It’s been nearly two years since that came into effect. Reflecting on the framework and its implementation, how have things progressed based on your initial expectations?

Vicente: I think they’ve really been positive from both an economic and social standpoint. With most major cultural shifts, traditionally you don’t see an opportunity for commerce. But with marijuana legalization, we really have seen that. There’s this intersection of social change. We’ve changed this policy that was illegal for 80 years, and with that, simultaneously there’s this opportunity for commerce.

We’ve see a ton of exuberance from investors looking to enter this field. We have a lot of creative ideas percolating. Colorado feels sort of like the Silicon Valley of marijuana. You’ve got 10,000-plus new jobs created since marijuana was made legal directly in the marijuana industry and probably another 10,000 ancillary jobs that are supporting that industry just in our state. Really, for what is considered as a generally down economy nationally this has really worked out quite well for Colorado.