Tag Archives: Angela Harmantas

GlobeX Data: There is no such thing as privacy in the online world anymore. Or is there?

GlobeX Data (CSE:SWIS) is on a mission to keep your data and communications safe, and in a world where each week seems to bring news of yet another large-scale data breach, it’s a mission of vital importance.

The Vancouver-based company offers a powerful product suite for cloud-based storage, document management, encrypted e-mail and secure communication with a few twists that differentiate it from the competition.  For one, data is stored in Switzerland (by Swiss partner GlobeX Data S.A.) in centres used by Swiss banks and organizations such as the United Nations. Switzerland is home to some of the strongest privacy protection laws in the world thanks to regulations such as the Swiss Federal Data Protection Act and the Swiss Federal Data Protection Ordinance.

GlobeX Data is readying a marketing push at a time when the cybersecurity market, by some counts, is set to exceed US$300 billion within five years, making the company’s recent debut on the Canadian Securities Exchange particularly timely.

In this interview with Public Entrepreneur, Chief Executive Officer Alain Ghiai explains why data is such a valuable commodity and why that means companies and individuals alike need to take more caution to protect themselves.

Can you give us a quick introduction to GlobeX Data and the company’s origins?

GlobeX Data has its origins in Switzerland and in payment processing. In 2008, during the credit crunch, most of the banks stopped lending to merchants. We used our technology to transform ourselves into a data backup company. In 2010, we started to develop a couple of products, the first of which became DigitalSafe, our secure backup file-share password manager. In 2012, I started GlobeX Data Inc. out of New York to expand in North America.

I was approached to license our technology to a CSE-listed company, which eventually became a shell company. When the licensing was supposed to be exchanged for funds the company didn’t have the money, so I called my board members and suggested listing on the CSE ourselves and formed GlobeX Data Ltd.  We raised money locally and set up an office in Vancouver. We started to receive a lot of interest from overseas and wanted to have an entity that handled everything outside of our Swiss-based private company. Vancouver was a perfect choice geographically to handle Asia and Latin America, our prime targets to start off our international business, and was also selected for the purpose of going public in an IPO on the CSE.

Our first major contract was with America Movil and its mobile division in Mexico called Telcel that has 75 million subscribers. Because they’re in 26 countries, we would eventually be able to sell services from the US all the way down through South America.  Over the last couple of years, we’ve signed deals with half a dozen partners. America Movil has close to 400 million subscribers, almost 300 million of them mobile users.

Why did it make sense to go public now?

Our goal in going public was to have a platform to raise more money and get wider recognition because when you are public it brings a level of transparency to the company that our partners like. Right now, data security and privacy is becoming a predominant subject in our society. People are the product now – the big companies are making money off our data. There is no real player that can offer the variety of services that we do when it comes to privacy and security. Our prime directive is to respect your privacy. We use the best security possible and have proprietary technology that other businesses don’t use because they think it’s too costly. Storage has become commoditized, but there’s no price for privacy.

I find that Canadians are quite conservative, almost too conservative to adopt new technologies. Also, they underestimate the value of security or privacy and the value that they hold. I think US investors value technology stocks a lot more than we do in Canada. This is why companies go to the US to get funding – investors there will pay for innovation. It’s a shame because Canada is a fantastic country with some great tech stories.  In order to attract more investors in the US, we plan to co-list in the US market by Q1 of 2020.

There’s a lot of talk out there that data is more valuable a commodity than oil. What’s your take?

I think data is even bigger than oil right now. The thing that makes it valuable is that a company or group can use it to create a profile and sell it to a third party to try and sell something to the consumer. Contrary to oil, which is a consumable, data can be repackaged and resold. Thanks to social media, the public is used to advertising their status every few minutes.

Why is it that people seem to be incredibly willing to give away their data for free?

When it comes to information, anything that is “easy” in the digital world is counterbalanced by the individual giving away more and more privacy. We live in a society where everything needs to be instant. If you want to have this instantaneous response, you are essentially giving away your data for free. Most people don’t realize the danger that this can cause because the average person doesn’t think they have anything to hide. It’s not about hiding from the government, it’s about keeping your data private so commercial companies don’t exploit you like a commodity.

How do the services work? Are they an alternative to popular instant messaging applications?

GlobeX’s services don’t use open source coding; instead, we use our own technology to add privacy and security by design. We try to offer what businesses and people need, which is a backup for their data and a file share and secure e-mail. DigitalSafe is like a Dropbox, e-mail and a password manager all in one. Our e-mail engine, Custodia, lets you send a message to an unsecured e-mail address and that service will not be able to read the content. PrivaTalk is a secure communications suite with chat, voice, video and e-mail. Our chat has a self-destruct timer that will disappear on the device. We never require your phone number because the minute you do that, hackers have an even higher ability to access your data.

We are also launching a product called Sekur, a service for high net worth individuals and corporations, in the fourth quarter of 2019. We were inspired to create the product from the Sony hack that happened a few years ago. This service is for any business for management to communicate without the in-house IT department knowing what’s going on.

What else is coming down the pipeline in the next few months?

We’ve already released DigitalSafe and PrivaTalk and plan to launch Sekur before the end of the year. In Mexico, we’ve launched and integrated DigitalSafe with America Movil and are planning to release PrivaTalk by the end of the year. Another product we’re excited about is PrivaTalk Messenger, which is similar to BlackBerry Messenger in that it’s a server-based closed-loop system. We’re going to launch PrivaTalk Messenger by the end of the year as well.

We’ve talked at length about the dangers of leaving data unsecured. What are some simple steps that we as individuals can take to protect our information?

The question that we need to be asking ourselves is how much is our data worth to us? The first thing I would advise is to reduce your social media footprint. Essentially, you are announcing to the world where you are and what you’re doing, and eventually artificial intelligence will put together a profile on you that can lead to hacking.

The second thing is to use secure services. There’s no free privacy or security. Use a paid service that will secure your information because at least then you have some sort of comfort or recourse that your data is safe.

This story was featured in the Public Entrepreneur magazine.

Learn more about GlobeX Data Ltd. at https://globexdatagroup.com/.

Acreage Holdings: The most transformative deal in cannabis history is worth taking the time to understand

A lot has been written about the game-changing deal between Canopy Growth and Acreage Holdings (CSE:ACRG.U) announced on April 17 of this year. Much of it is complex.

Most observers assume that final consummation of the megadeal is predicated on a single, very specific occurrence: federal legalization of cannabis in the United States. But Acreage Chief Financial Officer Glen Leibowitz and Vice President of Communications Howard Schacter say this actually is not quite the case.

One thing for sure, though, is that once the acquisition of Acreage Holdings by industry giant Canopy Growth Corporation is finalized, it has the potential to cause a sea change in the way companies structure business deals in the cannabis space.

Deal structure

Here are the facts as they stand today.  Canopy and Acreage have entered into an agreement that will grant Canopy the right to acquire 100% of Acreage’s shares at such time that cannabis production and sale becomes federally permissible (remember that term) in the United States.

As part of the transaction, Acreage shareholders will receive an aggregate payment of US$300 million, which works out to approximately US$2.51 – $2.63 per share.  The payment is to be made immediately following the receipt of approval from shareholders of both Acreage and Canopy, plus the Supreme Court of British Columbia.

Later, once the “federally permissible” condition is met, Acreage shareholders would receive 0.5818 of a common share in Canopy for each Acreage share held. Canopy has stated that it intends to waive the requirement when a change in rules policing the New York Stock Exchange and Toronto Stock Exchange would enable the acquisition to occur.

US footprint

To understand how the deal came about, a bit of background is necessary. Acreage’s roots started in 2011 when Chairman and Chief Executive Officer Kevin Murphy, a Wall Street veteran, began making moves in cannabis with a minority investment in Maine. By 2017, the company, at the time called High Street Capital, was rebranded as Acreage Holdings, welcoming former US Speaker of the House John Boehner to its board. There were several rounds of private raises, including a US$119 million financing that represented the largest in the industry at the time, culminating in a reverse takeover on the Canadian Securities Exchange last year.

Today, the multistate operator has a footprint in 20 states, making it one of the largest cannabis companies in the US. Its April 2019 acquisition of Form Factory, a manufacturer and distributor of virtually any type of ingestible cannabis product, propelled Acreage into the big leagues of the mainstream consumer packaged goods industry for cannabis products. With the acquisition under its belt, Acreage hopes to become the first port of call for traditional CPG companies like Kraft and Mars if they decide to enter the cannabis space.

In that context, it’s easy to see why Canopy saw Acreage as an ideal partner in its US expansion plans. Canopy’s $5 billion deal with Constellation Brands, which manufactures spirits such as Corona Extra, Modelo Especial, Robert Mondavi, Kim Crawford and SVEDKA Vodka, is a clear sign that global CPG companies are already making moves into cannabis.

The Canopy-Acreage deal is about creating a multinational cannabis brand, gaining consumer recognition and customer loyalty in the same way as a company like Constellation has with its product portfolio. According to Leibowitz, Acreage’s main focus prior to combining the entities is to be the number one player in every state and every market that Acreage operates in. Canopy’s intellectual property and flush treasury would certainly make it easier to reach those goals.

“We’re seeing the birth of a global cannabis brand, which doesn’t exist,” says Leibowitz. “Long term, that consumer loyalty and brand recognition is the value of the deal.”

Trigger events

There are clear synergies between Canopy and Acreage, but investors are still trying to wrap their heads around how a multibillion-dollar deal can hinge on US federal permissibility of cannabis.

The truth is there are multiple pathways, or “trigger events,” that could see the final combination of the companies take place.

“The trigger event would spur Canopy’s obligation to complete the acquisition, but they have said they would do it at their discretion if the exchanges indicate that they will approve the deal,” explains Schacter.

In terms of permissibility, the STATES Act in its current form would not necessarily constitute a trigger event, according to Acreage. The trigger event is about change to federal law, which could include new law that would make it permissible to cultivate and/or distribute cannabis in the US. That’s not necessarily federal legalization but rather a change in law that speaks to permissibility.

That’s not to say that the decision is entirely in Canopy’s hands. If Acreage believes that the trigger event has occurred, it can put the shares to Canopy. “It’s not just an exclusive option for Canopy to pull the trigger,” Leibowitz says.

Valuation

Many investors have also voiced confusion as to the value of the transaction. At the time the deal was signed, it was valued at nearly US$3.4 billion, a 41.7% premium over the 30-day volume weighted average price of Acreage shares.

The figure only illustrated the value of the deal if it were to close on the day the announcement was made, says Schacter. “Admittedly, our news release could have been more explicit in that regard,” he acknowledges. “The true value of the deal won’t be known until it closes.”

A host of factors that affect the share price of either company could change that valuation by the time the deal is finalized, one of the clarifications that Leibowitz wants investors to understand.

“There’s a lot of confusion around the value that the transaction was agreed to,” he says. “I want to be clear that the shares of Canopy and Acreage do not move in tandem. There could be opportunities where Acreage shares will move up in value and don’t necessarily correlate to Canopy’s share price.”

To calculate the implied value, take the Canopy stock price on the closing date and multiply by 0.5818 to reach the ascribed value of the Canopy shares. Add the approximate $2.51 – $2.63 upfront per-share payment to Acreage shareholders, then multiply that by Acreage’s current outstanding fully diluted shares (currently 117 million fully diluted outstanding shares). The resulting amount will be the implied value of the acquisition.

The value has fluctuated since the April announcement in a possible sign that not all investors are keen on the transaction. According to Leibowitz, that is likely a result of the groundbreaking structure of the deal.

“A lot of the conversations that we have on the institutional side are people asking about the models we used,” says Leibowitz. “They can model a lot of these transactions pretty easily. The problem is this doesn’t have any certainty to it, so they can’t calculate the premium and arbitrage. The result is that institutions will say the risk is too great.”

On the retail side, investors have never seen a transaction structured this way before. “It’s a game changing, innovative deal that has taken time to digest in order to effectively understand the value to both companies,” Schacter explains.

Once the deal is agreed to by Acreage and Canopy shareholders, Acreage becomes Canopy’s exclusive pipeline in the US, ascribing value to the shareholders of both companies.

Global cannabis brand

Whether the trigger is federal legalization, or relaxed restrictions on the New York Stock Exchange, or the passage of a new law, it’s clear that Acreage and Canopy are committed to acting together to create a global cannabis brand.

In the meantime, Acreage maintains the flexibility to conduct further acquisitions through the ability to issue 63 million new shares that will be convertible to the more liquid Canopy stock.  That amounts to approximately “$1.4 billion of dry powder for M&A activity,” says Leibowitz.

Leibowitz says the phones are ringing with calls from companies wanting to be a part of the promise of an Acreage-Canopy merger.

“The combination of the number one player globally with the number one player in the US creates a superpower in this industry.”

This story was originally published at www.proactiveinvestors.com on June 14, 2019 and featured in the Public Entrepreneur magazine.

Learn more about Acreage Holdings at https://www.acreageholdings.com/.

Curaleaf Holdings: Vertical integration, national retail reach position this early cannabis entrant as industry leader

Joe Lusardi is a self-styled “reluctant pioneer” in cannabis.

At the helm of Curaleaf Holdings (CSE:CURA), the largest multistate operator in the United States, Chief Executive Officer Lusardi has overseen the company’s expansion into 15 states and driven blockbuster acquisitions, all while remaining at the forefront of advocacy work toward federal legalization.

But when he opened the first vertically integrated cannabis shop in Maine in 2010, the landscape was much less certain. “We were out on the risk curve, I’ll just say that,” he jokes during an interview with Public Entrepreneur in early May.

Things are much different in 2019. Cannabis is a multibillion-dollar industry and savvy early investors are seeing exponential returns. Canada has legalized cannabis at the federal level and, with two milestone bills being debated in the House of Representatives, signs point to the US eventually following suit. What’s more, public sentiment toward the plant and the substances derived from it is drifting positively.

“Every day the public sentiment around cannabis continues to improve,” says Lusardi. “It’s beyond a tipping point.”

In an industry where winners and losers are starting to emerge, Massachusetts-based Curaleaf clearly belongs in the former group. Over the last three years, Lusardi and his team have established not only the largest US cannabis company by market capitalization, but also a national brand. Now with two game-changing acquisitions under its belt, Curaleaf is a driving force in the cannabis space.

For Lusardi, the goal is to be the biggest cannabis brand in the country. Curaleaf-branded products are currently available in 47 states representing over 600 SKUs. Its product line is comprised of oils, flower, lotions, tinctures and edibles. Last year, the company launched Curaleaf Hemp, offering a range of premium, natural hemp-based products.

Execution Matters

Curaleaf has a vertically integrated model, meaning it controls the cultivation, manufacturing, processing, distribution and retailing of its products. That model can be challenging for a company no matter its size, but for Curaleaf it means control of product consistency throughout the value chain.

“Execution really matters,” says Lusardi. “We have to be a good grower, manufacturer, distributor and retailer, which all contribute to brand identity.”

If running a vertically integrated business is challenging, expanding it can be even more so. It should be no surprise that acquisitions are a cornerstone of Curaleaf’s growth strategy. The challenge for one of the biggest cannabis companies in North America is finding those opportunities that make the most strategic sense and creating incremental value for shareholders.

Funding the acquisitions is not a problem. In 2018, when Curaleaf went public on the Canadian Securities Exchange, the company raised US$400 million from investors around the world. Private equity firm Blackrock recently took an US$11 million stake in the company.

Revenues during 2018 were approximately US$88 million. The company has nearly doubled its share price since the beginning of the year, giving it added currency to grow the business.

Acquisition Trail

When Curaleaf set out to look for acquisitions, they knew that they needed to be in California, the largest market for cannabis in the US. The acquisition of Monterey County-based Eureka Investment Partners fit that requirement immediately. Although small in value – the total deal is worth just under US$31 million – the acquisition of Eureka’s 110,000 square foot greenhouse facility allowed for seamless integration with Curaleaf’s manufacturing facility in the state.

Calling the acquisition the “first step in a multistep California strategy,” Lusardi says the deal gives Curaleaf a platform to build more manufacturing and dispensaries on the West Coast.

The company plans to launch three dispensaries as part of its retail expansion strategy to eventually cover the state.

According to Lusardi, Curaleaf has a full acquisition pipeline and will continue to make deals that strengthen its position as a market leader.

The next acquisition came hot on the heels of Eureka and represented a sea change for the company. At the beginning of May, Curaleaf announced it had acquired Cura Partners, makers of the Select oil and CBD brands, in a CDN$1.3 billion deal.

Based in Oregon, Select is one of the most well-known cannabis wholesale brands in the US with its products on the shelves of around 900 retailers. For Curaleaf, the deal gives it a stronger foothold on the West Coast as a complement to the company’s dominance in the eastern part of the country.

Lusardi calls the acquisition a “perfect fit” for the cannabis leader. “We intend to meaningfully accelerate our topline growth trajectory with the addition of the Select Oil product range,” he stated in a press release about the deal. “In addition, we intend to create significant operational synergies from the integration of Select’s wholesale business with our vertically integrated cultivating, processing and retail platform.”

Bay Street analysts love the transaction, with Cormark Securities calling it a good fit with nice synergy potential. “We see particular potential in Curaleaf’s ability to introduce the Select brand on the East Coast, while the integration of Select’s wholesale and distribution platform with Curaleaf’s cultivation and processing capacity should drive material cost reductions in Western markets,” Cormark analysts Jesse Pytlak and Sam Fraser noted in a May 2 report.

Cormark also raised its price target to CDN$18 a share, from $15, calling Curaleaf a “must-own” US cannabis name.

Advocacy Leaders

With Curaleaf an established cannabis leader, Lusardi and his team are doubling down on the advocacy and policy work that is a pillar of the company’s ethos. On the policy front, Curaleaf is front and centre advocating for federal legalization of cannabis in the US. Lusardi notes that the majority of Americans are in favour of legalization, citing statistics showing that over 90% of the population supports medical cannabis use and nearly 66% supports recreational use.

“Elected leaders can’t avoid the will of the people,” says Lusardi. “It’s a question of when, not if, legalization will occur. Every elected official is trying to formulate a thoughtful position on cannabis because they’re hearing from their constituency that they want legal access to cannabis. The ‘when’ is not clear, but I think you’ll see the House of Representatives take significant initiative this year, which will put pressure on the Senate and the White House to move forward the cannabis agenda.”

A key feature of Curaleaf’s corporate strategy is creating opportunities for underrepresented communities to participate in the industry. “Minority groups need to have a seat at the table,” Lusardi says. “We want to make sure that the industry is as diverse as its customer base. It’s something that we think about a lot, and we plan to be a part of that solution.”  Curaleaf also launched an initiative this year called the Veterans Cannabis Project, dedicated to improving US military veterans’ quality of life through access to cannabis.

These initiatives are part of Curaleaf’s long-term strategy to build a trusted, recognizable brand that consumers can interact with legally. At the moment, the company is comfortable remaining US-focused. Lusardi is optimistic on federal legalization but is building the company and creating value for shareholders regardless of the outcome.

“The long-term value in this industry will rest in the brand value and the relationship with your customer,” he says. “We feel we have all the makings of a national brand and we’re going to work hard to nurture that relationship.”

This story was originally published at www.proactiveinvestors.com on June 19, 2019 and featured in the Public Entrepreneur magazine.

Learn more about Curaleaf Holdings at https://www.curaleaf.com/.

SLANG Worldwide: Brands at core of efficient business model that naturally scales with cannabis industry growth

The power of a brand is an amazing thing. A good brand touches our heart, gets people to buy more, to pay more, and the best of them can even become everyday words that transcend the boundaries of the company that created them. SLANG Worldwide Inc. (CSE:SLNG) is well aware of this potential and that’s why brands are its thing…lots of brands. Some, such as O.penVAPE, District Edibles, and Firefly rank among the top-performing brands in the entire cannabis industry.

Public Entrepreneur spoke recently with Peter Miller, SLANG’s co-founder and Chief Executive Officer, to explore this fascinating side of the cannabis market. From developing strategies to suit specific jurisdictions to the wisdom of pursuing growth through acquisitions, Miller speaks with the experience of an executive who has been there from the beginning, yet in terms of the potential to take SLANG to new heights is perhaps only just getting started.

Give us a brief introduction to SLANG.  How did you and your partner build the company into such a force in the cannabis consumer packaged goods space?

SLANG Worldwide is a consumer packaged goods company that owns, licenses, and markets 11 cannabis brands serving the flower, concentrates, edibles, and beverage categories. Our portfolio is one of the highest selling of all time, as tracked by a third party, with over $250 million in sales at retail. SLANG is a multistate and multinational operator, with brands and products available in over 2,600 retail stores – one of the largest distribution footprints in the cannabis industry. Our brands are more widely distributed than any portfolio I’m aware of. We source biomass, extract it and manufacture it into finished goods with our brands and formulations, then wholesale and distribute to retail accounts. That focus has allowed us to scale quickly and grow to where SLANG is today.

My co-founder Billy Levy and I previously founded a vertically integrated limited-licenses cannabis business in Canada. We came from the tech world and didn’t have a lot of experience in cannabis, so we spent a lot of time visiting markets that were maturing. We got to watch cannabis retail go from unbranded jars of bud to more sophisticated form factors like edibles and vaporizers, which really excited us. Our licensed producer was sold to Canopy Growth and we thought about where we wanted to be, so we started making investments and formalizing partnerships in the US.

SLANG recently launched a CBD-focused health and wellness division. How does this fit within your strategy going forward? Is it better to acquire brands or build them up on your own?

SLANG’s goal is to offer cannabis products to a wide variety of consumers. CBD products have proven to be extremely compelling and popular to consumers, but just producing CBD products doesn’t necessarily guarantee success at the cash register. CBD products require a different set of skills and relationships than THC. We identified a powerful opportunity with Greenlane to distribute our products into retail environments that aren’t your core cannabis retail environments. Greenlane is the largest online and smoke shop distributor in the industry. It represents an exciting go-to-market strategy for us. SLANG will continue to round out the products that we offer within the health and wellness verticals, initially on the inhalable side, and in the near term moving to the edibles side as well.

A number of SLANG products are best sellers. How do you develop these brands into winners? What lessons can be learned from your experience?

No two markets are the same. Canada has strict rules on promotion and advertising, but brands aren’t built solely through promotion and advertising. Brands benefit most from being trusted by customers, and you establish that trust over time. SLANG products have been leading in the most competitive and oldest legal markets in the US. How do we do that? SLANG establishes trust with our retail customers by consistently delivering them exactly what we say we will, which makes them inclined to continue carrying our products on their shelves. You start developing a subconscious attachment between your brand and the consumer. That’s when you really form that close relationship.

SLANG’s head of sales likes to say that the best ability to create a brand is to make it as broadly available as possible. Making our products widely available and then ensuring that our customers are aware of that availability are the keys to developing these brands.

When it comes to the question of organic growth versus acquisitions, which approach do you prefer?

The US is really a series of markets within a market. Each state is at a different point in its market maturity, so you have to use a tailored approach. In the more mature states like Washington or Colorado, we can look at acquiring brands that are proven winners that have been operating at scale for years in competitive environments. In new markets, it’s difficult to say who’s going to win it all. The deal SLANG announced with Arbor Pacific in Washington and Oregon was a situation where we were picking winners.

When we looked at other exciting markets like Florida, which is a limited-license market, it wasn’t as simple as picking a winner, so we decided to grow organically through a partnership with Trulieve, the largest retailer in the state.

Trulieve is an example of how we go about buying into a market. Instead of acquiring a Florida operator, we partnered with one who would help us get our brands on the shelf in the near term.  SLANG can help drive more customers to their stores to buy our brands, but we could also help support and share our product knowledge with them. We’ve been extracting cannabis for many years and can help them avoid some of the pitfalls of starting an extraction unit. We saw that as the best way to address new markets that are limited license.

What do you think makes the most sense for shareholders in the current environment?

As this market continues moving toward a consumer packaged goods framework, investors will pay close attention to branded unit sales. It is the most apples-to-apples way to understand the competitive landscape. How are consumers voting with their dollars and whose brands are driving the most sales? Consumers spent $32 million on SLANG branded products in the quarter.

Another key metric for investors is branded servings, which measures the number of experiences consumers have with cannabis brands. Quantified by 5mg servings, 52 million SLANG branded servings were purchased by customers in Q1. By branded servings sold, SLANG is one of the largest cannabis companies in the world.

How can investors make sense of the frenetic pace of M&A activity that’s going on in the sector right now?

There’s always going to be the temptation of the new shiny object and the trend of the moment. I think investors need to look at the kinds of assets people are putting together and support a cohesive thesis and strategy, rather than just looking at revenue figures or exciting markets and thinking it will be better together. In fact, it’s rarely the case if you look at M&A across other industries historically. It’s easy to get distracted. I think it’s important to make sure that there’s a central mission or strategy around all the M&A.

What are a few upcoming catalysts for SLANG shareholders?

I’m incredibly encouraged by the macro tailwinds we see in our industry, generally, but as each state-level market matures, we’re seeing validation of the SLANG business model. From the manufacturing process through the marketing of finished goods, SLANG’s business is scalable, capital efficient, and its success is repeatable in new markets. In fact, our business model improves with more competition, meaning the more retailers that open their doors, the more points of sale for our brands. Our business model lends itself to growing with the industry and we’re doing everything possible to grow more quickly than the broader industry. All the catalysts we have a line of sight on right now provide net benefits to our business model and our strategy.

Is there anything you’d like to add?

SLANG’s business model is simple and focused on sourcing biomass. We’re extracting and formulating it into finished goods and distributing our brands to as many stores as possible. It’s the same business model that has allowed some of the biggest consumer package goods companies in the world to scale up operations. A level playing field, in terms of regulation and unit economics, will only highlight our approach and the value of our brand portfolio.

This story was originally published at www.proactiveinvestors.com on June 19, 2019 and featured in the Public Entrepreneur magazine.

Learn more about SLANG Worldwide at https://www.slangww.com/.