Fourth new U.S. market entry announced in 2019
TORONTO, June 26, 2019 /CNW/ - SLANG Worldwide Inc. (CNSX: SLNG), ("SLANG" or the "Company"), a leading global cannabis consumer packaged goods ("CPG") company with a robust portfolio of renowned brands, has announced a new strategic partnership with licensed processor Elite Cultivation LLC ("Elite") to offer its branded cannabis products to patients throughout the State of Oklahoma.
Pursuant to the partnership, Elite has been granted a license in Oklahoma to produce and distribute the SLANG product suite in Oklahoma, including its category-leading products O.penVAPE, Pressies, District Edibles, Bakked, and Magic Buzz. SLANG will receive royalty payments for each branded product sold in the state.
Oklahoma legalized cannabis for medical use in 2018 and has seen rapid growth in licensing activity. More than 138,000 registered patients and 1,500 licensed dispensaries have been approved by the State as of June 17, 2019. Historical Oklahoma medical cannabis sales topped $23 million in May 2019, based on recent reports from the Oklahoma Tax Commission.
"We are pleased to be able to offer our products to medical cannabis patients in Oklahoma," said SLANG CEO Peter Miller. "We have demonstrated that we can be flexible in structuring our relationships with partners as we enter a new state, depending on the circumstances of the local market. Our expansion continues to be executed in a very capital efficient manner, with the goal of growing our branded unit sales."
SLANG's products will be manufactured by Elite and distributed and sold broadly in medical cannabis dispensaries throughout Oklahoma. Sales are expected to commence in the third quarter of 2019, starting with selected vaporizers, concentrates and edibles, with all SLANG products eventually available for sale.
"We are excited to partner with such a strong organization to bring the best products possible to the Oklahoma market," said Richard Freeman of Elite Cultivation. "With their proven brands and leadership across multiple markets and our relationships in the state of Oklahoma, we feel that we have put together a solid team and a recipe for success."
Oklahoma is the fourth new U.S. market SLANG has announced entry into in 2019. The Company has previously established operations through licensing agreements in Florida and Puerto Rico, and also anticipates entering the State of Washington pending the completion of a proposed acquisition, which would extend the Company's U.S. footprint to 13 states. SLANG's goal is to grow its brand share and demonstrate brand leadership in Oklahoma, as measured by branded unit sales and servings, similar to its performance in several other markets.
About SLANG Worldwide Inc.
SLANG Worldwide Inc. is a leading global cannabis consumer packaged goods company with a robust portfolio of renowned brands distributed across 2,600 stores in 12 US states. The Company is focused on acquiring and developing market-proven regional brands as well as creating new brands to meet the needs of cannabis consumers worldwide. SLANG is listed on the Canadian Securities Exchange under the ticker symbol SLNG. For more information, please visit www.slangww.com.
About Elite Cultivation
Elite Cultivation, LLC is an Oklahoma limited liability corporation owned by Richard Freeman, his brother Royce Lee Freeman, D7 Holdings, LLC and other close friends and business associates of the Freeman family. Richard Freeman also owns and operates Elite Motorsports, LLC, which operates a world class drag racing program having won back-to-back world championships in NHRA's Pro Stock class in 2014 and 2015. Erik Danielson, the owner of D7 Holdings, LLC, also holds a medical marijuana dispensary license in Arkansas. The Denver-based law firm, Vicente Sederberg LLP and the Arkansas-based Danielson Law Firm, PLLC both advised Elite on the SLANG transaction.
This news release contains statements that constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Forward-looking statements in this document include, but are not limited to, statements regarding the anticipated benefits of the relationship between SLANG and Elite, the introduction and distribution of SLANG branded products in Oklahoma, SLANG's proposed acquisition and entry in Washington and the anticipated growth of the Oklahoma medical cannabis market generally
Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management of SLANG at this time, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies that could cause actual results to differ materially from those expressed or implied in such statements. Investors are cautioned not to put undue reliance on forward-looking statements. Applicable risks and uncertainties include, but are not limited to regulatory risks, changes in laws, resolutions and guidelines, market risks, concentration risks, operating history, competition, the risks associated with international and foreign operations and the other risks identified under the headings "Risk Factors" in SLANG's final long form prospectus dated January 17, 2019 and "Risks and Uncertainties" in the management discussion and analysis for the year ended December 31, 2018,
The Canadian Securities Exchange has not reviewed, approved or disapproved the content of this news release.
SOURCE SLANG WORLDWIDE