DENVER, CO, Sept. 01, 2021 (GLOBE NEWSWIRE) — via NewMediaWire — American Cannabis Company, Inc. (OTCQB: AMMJ) (“ACC” or “Company”), a full-service business-to-business cannabis and hemp consulting solutions provider and licensed owner operator, is pleased to provide an overall update on the Company. The following information describes the Company’s challenges, current work efforts and future pursuits as it positions itself as a reputable and established brand within the regulated markets.
Summary of 2021 YTD Company Highlights
Successfully acquired Naturaleaf, a long-standing vertically integrated licensed medical cannabis operation, in Colorado Springs, Colorado.
Continued ongoing exploration of acquisition opportunities in all regulated markets.
Developed working relationship with a client group in Michigan to deploy, manage, and monitor large-scale commercial cultivation operations.
Developed a working relationship with a separate client group in Michigan to develop, deploy, and manage multiple licensed retail franchise operations throughout the state
Contracted by client in Connecticut to finalize business plan and financial pro forma modeling for a recreational dispensary.
Contracted with a client in New Mexico for pre-licensing, design, and state application technical writing services with the goal of building out a vertically integrated recreational cannabis business.
Completed a business plan and financial pro forma model for a client in Oklahoma that has finalized a lease. ACC will be the management company behind this operation.
Completed a business plan and financial pro forma model for a client in Oklahoma looking to build a medical cultivation operation. ACC will also be the management company behind this operation.
Provided multiple a la carte consulting services for a client in Florida looking to launch an indoor boutique hemp production facility. The Company has been further retained to provide equipment sourcing, SoHum Living Soils®, operational deployment, and 6-month deployment and management services.
Completed a business plan and pro forma for client cannabis business in New Jersey looking to open a social equity-driven recreational dispensary.
Engaged in research and development of new products under the SoHum Living Soils® brand line.
Officially launched new air circulation technology, Bottoms uP™: The Science of Air Flow.
Signed an exclusive agreement to manufacture and distribute Her Highness NYC products to Colorado medical and recreational markets.
Consulting Division & The Lasting Impacts of COVID-19
The Company has continued to experience various changes in the volume of new business due to the impact of the COVID-19 global pandemic. With spread of the delta variant of COVID-19 becoming more prevalent, the economic climate continues to shift. In addition, there has been a slow rollout of states with new Medical or Adult-Use cannabis programs.
“It has been a challenging year for the consulting side of the business,” said Terry Buffalo, CEO of American Cannabis Company, Inc. “Our primary revenue driver for consulting is typically based on new cannabis programs. However, with states not moving forward with application processes at this time it has slowed down the need for many client groups to pursue any pre-licensing services or deliverables. We anticipate new programs coming online soon. The Company increased our overall marketing efforts using platforms targeted for decision makers, and we are starting to see a response from these efforts. In the meantime, we will be working on current client projects.”
The Company continues to work with groups on long-term projects with long-term revenue potential. Currently, the Company is working with two separate groups in Michigan to provide end-to-end solutions in an effort to form a strategic alliance to support a cannabis business franchise model throughout the state. The Company is working with one group to develop, deploy and manage large commercial-scale operations for the cultivation of recreational wholesale cannabis. This operation will cultivate premier cannabis cultivars utilizing the best-in-class technologies, software, and workflow. The Company is working with another group to develop and deploy retail franchise and microbusiness locations as well as manage and support franchisees with the model.
Update on Recent Acquisition of Naturaleaf
On April 30, 2021 Colorado’s Marijuana Enforcement Division (MED) and the City of Colorado Springs granted regulatory approvals for the Company’s acquisition and operation of Medihemp, LLC, and its wholly owned subsidiary SLAM Enterprises, LLC, and Medical Cannabis Caregivers, Inc., all doing business as Naturaleaf, a long-standing vertically integrated cannabis business.
As a result of the regulatory approvals and the closing of the asset purchase, the Company acquired Naturaleaf’s three medically licensed retail stores, and a 10,000 square foot cultivation and extraction facility located in the metropolitan area of Colorado Springs. “We are very happy to have successfully completed this first acquisition. Utilizing the expertise of Karen Thomas and her company, Canna Support Services, ACC was able to deliver organized documentation to all regulatory bodies in a format that not only clearly laid out our public company organizational structure, but also provided the necessary details to attain State and local approval quickly,” said Terry Buffalo, CEO of American Cannabis Company.
Naturaleaf has earned a strong reputation for its quality products and patient experience, having served its loyal and growing patient base since 2009. Since acquiring Naturaleaf many changes have been implemented within the cultivation operation. Ellis Smith, President of American Cannabis Company, Inc., commented: “In just the short amount of time that we have taken ownership of Naturaleaf, our team has implemented multiple new processes and facility changes to improve overall facility cleanliness, quality of work life for employees, and environmental conditions for enhanced flower production. From re-painting walls to switching old equipment for state-of-the art LED lighting and highly efficient HVAC solutions, the upgrading process is just getting started. We have also integrated task management software to improve employee and team workflow at each stage of cultivation and post-harvesting. Soon we will incorporate automated watering throughout the facility coupled with our geoponics grow methodology to further increase biomass and flower yields. Until then we are still harvesting plants from previous ownership, as it takes time to move through the plant cycles. Brand integration on the cultivation side will continue through this year as we maintain rollout of our preferred technologies, standard operating procedures, and methodologies for growing clean, cage-free cannabis.”
In addition to the various modifications taking place at the cultivation facility, many improvements are being made to the three (3) licensed retail locations. Tyler Schloesser, Chief Operating Officer of American Cannabis Company, Inc., commented: “When it comes to the brand integration, much of our focus on the retail side has been on product analysis and customer purchase behavior. This year many medically licensed retailers in the area experienced a dip in average daily sales, and Naturaleaf has also felt this effect. To increase awareness of new brand ownership and promote updated daily specials, pricing and other incentives, the team has targeted well known channels with digital and print advertising diversified throughout the city of Colorado Springs and surrounding areas. Recently, we updated the Naturaleaf logo to fall more aesthetically in line with the ACC brand platform. This logo change, along with other upcoming aesthetic changes to the retail stores, will further serve to tell the story of our brand and our mission, which is to bring quality products and service to our patients. Furthermore, we have made changes on the technology side of the retail experience, including the deployment of a new vertically integrated point-of-sale software this month to streamline transactions and a text-based marketing platform to better communicate with our members. We will continue to assess each retail location along with customer demographics and purchasing patterns to further refine and enhance the customer experience.”
Update on Acquisition Targets
In December of 2020, the Company executed a non-binding letter of intent (LOI) with Andina Gold Corporation/Rocky Mountain High to purchase assets of its Good Meds and BOSM Labs operating division, a fully licensed cultivation and extraction operation in Colorado. The Company decided to not complete this transaction.
The Economics of Agriculture & SoHum Living Soils®
SoHum Living Soils® was created to combat complex cannabis cultivation strategies, both on a home and commercial scale. Originating from Southern Humboldt, California, this potting mix is a complete blend that optimizes a plant’s genetic potential. Last year, the Company experienced significant growth in product sales, and many steps were taken internally to scale production in order to meet the demand.
This year, sales have leveled off from the surge seen in 2020, and operations. While the audience of SoHum Living Soils® has maintained during the pandemic, certain economic factors have hindered the advancement of overall brand growth and sales. Primarily, soil manufacturers across North America have been impacted negatively by increased costs of material inputs and heightened labor costs.
“The Company is pleased to report that despite these industry hurdles, it has maintained inventory of SoHum Living Soils®. The Operations team has worked closely with its soil manufacturing partners to produce and palletize soil on larger scales to ensure product availability across the country,” said Jon Workman, Vice President of American Cannabis Company. “With the price of individual inputs climbing, increased pressure is being put on soil manufacturers on a national scale. Notwithstanding such challenges, our Operations and Sales teams have worked closely to reduce the impact on our retailers, distributors, and customer base. We strive to preserve and maintain product quality as well as brand integrity, and it is important to us to maintain product availability.”
Those looking to purchase SoHum Living Soils® can do so by contacting an official distributor or visiting the official website. The SoHum Living Soils® potting mix is also available for purchase on the Walmart, The Home Depot and Amazon online store platforms.
New & Upcoming
The Company has worked diligently to remain on the cutting edge of the fast-paced cannabis industry. In this pursuit, many additions have been made to the company portfolio in effort to advance the Company’s long-term goals and vision to expand brand assets and strengthen industry alliances.
Research and development functions have increased tremendously with the Company now having a 10,000 square foot cultivation facility to perform testing functions and grow trials. Trials on new soil blends and solutions are currently underway to expand the SoHum Living Soils® product line. Furthermore, the Company has been able to officially roll out a proprietary air circulation technology for cannabis cultivation. This solution, called Bottoms uP™ The Science of Air Flow, is essentially a means to move “conditioned” air that is coming from HVAC unit vertically from beneath the plant leaves. This vertical air flow forces the water leaves (which are interlocked late in the flower cycle) apart so that the trapped air beneath the canopy can rise. This trapped air is the water vapor that is transpired through the plant’s stomata which is on the underside of the water leaves. This solution not only makes air flow more efficient, it also increases transpiration rates and allows for more effective plant growth.
Additionally, the Company recently finalized an exclusive manufacturing and distribution agreement with Her Highness NYC within the state of Colorado. Her Highness NYC features premier designer cannabis products and accessories designed and engineered thoughtfully for women by women who are passionate and determined to expand the ever-growing market of female consumers. In a recent mid-year report, Akerna highlighted trends showing that since 2019, females have steadily increased their percentage of cannabis purchases, and while men still purchase a majority of cannabis and related products, women are increasing purchases at a steady pace, and challenging the industry to up its game in order to compete for their business. (https://www.greenmarketreport.com/15-million-women-have-bought-cannabis-in-2021/)
“Securing this opportunity with Her Highness marks a significant accomplishment for American Cannabis Company,” said Terry Buffalo, Chief Executive Officer of American Cannabis Company. Buffalo continued, “Our team is very excited for the potential market demand and is enthusiastic to launch this brand locally starting this September. We will initially offer these products on the medical side via our Naturaleaf retail channels, and then look to bring Her Highness NYC to the rest of the Colorado market. For many years there has been a gap in this industry, as most products have been marketed to male-focused demographics. With female consumers making up an increasingly large portion of the market, brands like Her Highness have established themselves to provide premier products that are made to deliver experiences that elevate and celebrate women.”
The Her Highness collection of products include bespoke long crutch pre-roll cones packed in gold boxes with refillable gold lighters, the brand’s famous Pleasure Oil, gluten free 2.5mg micro-dose THC mints, luxuriously engineered gold Giggle and High Priestess vape pens, deluxe ashtrays constructed with marble and brass, gold tone luxe herb grinders and elegant smoking accessories.
About American Cannabis Company, Inc.
American Cannabis Company, Inc. offers end-to-end solutions to existing and aspiring participants in the cannabis and hemp industries. We utilize our industry expertise to provide business planning and market assessment services, assist state licensing procurement, create business infrastructure and operational best practices. We are continuing to grow the company by promoting our operational management services and license the American Cannabis Company brand as well as continuing to analyze acquisition opportunities worldwide. The Company currently owns and operates Naturaleaf in Colorado Springs, Colorado. This medically licensed entity consists of three (3) retail dispensaries, one (1) commercial cultivation facility, and one (1) non-volatile extraction operation. American Cannabis Company has also developed and currently owns a portfolio of branded products including: SoHum Living Soils® – Winner of the High Times S.T.A.S.H. Award for “Best Potting Mix,” The Cultivation Cube™ and the High-Density Cultivation System™. American Cannabis Company also designs and provides other industry-specific custom product solutions.
For more information about American Cannabis Company, please visit:
https://americancannabisconsulting.com/resources/video/ (ACC Site)
https://www.youtube.com/watch?v=aENC4aeNZis (High Density Cultivation System)
https://www.youtube.com/watch?v=e9rNxFph_tQ&t (Cultivation Cube)
https://www.youtube.com/watch?v=XoIcopO2yE8&t (SoHum Living Soils®)
About Canna Support Services
At Canna Support Services, your business success is our priority. Our mission is to provide the highest level of integrity, confidentiality, professionalism and customer service to you while never compromising our reputation or yours. We provide a suite of support services to the cannabis industry, from license renewals to project management, implementing ultra-efficient work processes through personalized contracted services. Canna Support Services is ready to tackle any challenge and put you on the path to success, and we aim to partner with you to provide the foundation to achieve your business goals.
For more information about Canna Support Services, please visit:
Canna Support Services Contact:
This news release contains “forward-looking statements,” which are not purely historical and may include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities and words such as “anticipate”, “seek”, intend”, “believe”, “estimate”, “expect”, “project”, “plan”. These or similar phrases may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects, the future U.S. and global economies, the impact of competition, and the Company’s reliance on existing regulations regarding the use and development of cannabis-based drugs. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time to time with the Securities and Exchange Commission. For more information, please visit www.sec.gov.
Cannabis Remains an Illegal Schedule 1 Drug Under Federal Law
Thirty-five states, including Colorado, the District of Columbia and four U.S. Territories currently have laws broadly legalizing cannabis in some form for either medicinal and/or recreational use governed by state specific laws and regulations. Although legalized in some states, cannabis is a “Schedule 1” drug under the Controlled Substances Act (21 U.S.C. § 811) (“CSA”) and is illegal under federal law. Cannabis and its derivatives are viewed as being highly addictive and having no medical value. The United States Drug Enforcement Agency enforces the Controlled Substances Act, and persons violating it are subject to federal criminal prosecution.
As a result of the November 2020 federal elections, and the election of Joseph R. Biden as president, it is expected that the federal government will move to amend parts of the CSA and de-schedule cannabis as a Schedule 1 drug.
In late January, 2021, Senate Majority Leader Chuck Schumer said lawmakers are in the process of merging various cannabis bills, including his own legalization legislation. He is working to enact reform in this Congressional session. This would include the Marijuana Freedom and Opportunity Act, that would federally de-schedule cannabis, reinvest tax revenue into communities most affected by the drug war, and fund efforts to expunge prior cannabis records. It is likely that the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act would be incorporated.
Other federal legislation under review for possible submission includes the SAFE Banking Act (or Secure and Fair Enforcement Act), a bill that would allow cannabis companies to access the federally-insured banking system and capital markets without the risk of federal enforcement action, and the Strengthening the Tenth Amendment Through Entrusting States Act (or STATES Act), a bill that seeks protections for businesses and individuals in states that have legalized and comply with state laws.
Notably with respect to our business, on November 1, 2019, Colorado Bill HB-19-1090, was passed and made effective. This law allows publicly traded corporations to apply for and qualify for the ownership of Colorado cannabis licenses. Other states that have legalized cannabis for recreational and/or medicinal use restrict public companies from owning interests in state cannabis licenses altogether, or have enacted regulations which make it difficult for corporations to comply with application requirements, including all shareholders submitting to and passing background checks.
On September 18, 2020, Colorado’s Marijuana Enforcement Division (MED), approved the Company’s application for suitability, establishing the Company as one of the few publicly traded companies authorized to acquire and operate various cannabis licenses throughout Colorado, in both the recreational and medical markets.