Toronto, Ontario--(Newsfile Corp. - October 15, 2020) - SLANG Worldwide Inc. (CNSX: SLNG), (OTCQB: SLGWF) ("SLANG" or the "Company"), a leading global cannabis consumer packaged goods (CPG) company with a diversified portfolio of popular brands, and Natura Life + Science ("Natura"), a vertically integrated cannabis contract manufacturing company, today announced a strategic partnership to introduce SLANG-branded products to consumers in California.
Pursuant to the partnership, Natura has been granted an exclusive license to produce and distribute the SLANG product suite in California, including its category-leading brands O.penVAPE, Firefly, Pressies, District Edibles, and Bakked. SLANG will also provide sales consulting services and will receive royalty payments for each branded product sold in the state.
"California presents the perfect opportunity for us to lean into our emerging markets model. By partnering with a best-in-class operator like Natura, we are confident that we will be positioned for long-term growth and success within the Golden State," said SLANG President & CEO Chris Driessen. "Our brand District Edibles was at one point the top selling gummy product in California, and represented nearly $2 million dollars per month in retail revenue at its peak. We expect to achieve similar success across all SLANG brands as a result of this new partnership."
Natura is set to begin production at one of the largest cannabis centers in the United States in Sacramento. The 11.4 acre campus includes a 200,000 square foot cultivation facility and a 65,000 square foot processing, manufacturing, distribution and delivery facility. The facilities are built to adhere to GAP, GMP, FDA, and LEED standards, and employ sophisticated technology including full automation, micro-climate controls, traceability and analytics.
"We are pleased to partner with SLANG in our first true licensing agreement in California," said Sid Gupta, Natura VP of Strategy. "They have a collection of proven brands spanning multiple categories with solid recognition among consumers in the state."
SLANG has previously enjoyed success in the California market before making a strategic decision to recalibrate its supply chain relationships in the state. Sales of SLANG-branded products in California totaled nearly 1.3 million branded units and 57 million branded servings in 2019, as previously reported in the Company's financial disclosure(1). SLANG-branded products earned top 10 rankings in California in both the gummy and distillate categories in 2019, according to BDSA.
California is the largest cannabis market in the U.S., generating sales of nearly $3 billion USD in 2019 and growing by 15% in the first eight months of 2020 compared to the same period last year, according to BDSA.
For Further Information:
SLANG media and investor inquiries: Investors@SLANGww.com
Natura media inquiries: Renee Cotsis, firstname.lastname@example.org
(1) Non-IFRS Measures
Branded Unit volume and Branded Servings volume are non-IFRS financial measures that the Company uses to assess operating performance. See the heading "Operations Overview - Branded Volume" in the Company's management's discussion and analysis for the quarter ended June 30, 2020 for a description of how each of Branded Unit volume and Branded Servings volume is calculated. This data is furnished to provide additional information and are non-IFRS measures and do not have any standardized meaning prescribed by IFRS. The Company uses these non-IFRS measures to provide shareholders and others with supplemental measures of its operating performance. The Company also believes that securities analysts, investors and other interested parties, frequently use these non-IFRS measures in the evaluation of companies, many of which present similar metrics when reporting their results. As other companies may calculate these non-IFRS measures differently than the Company, these metrics may not be comparable to similarly titled measures reported by other companies.
About SLANG Worldwide Inc.
SLANG Worldwide Inc. is a global leader in the cannabis CPG sector with a diversified portfolio of popular brands distributed across the United States. The Company specializes in acquiring and developing market-proven regional brands as well as launching innovative new brands to seize global market opportunities. SLANG is listed on the Canadian Securities Exchange under the ticker symbol SLNG and on the OTCQB under the symbol SLGWF. For more information, please visit www.slangww.com.
About Natura Life + Science
Natura's vertically integrated platform enables the company to bring cannabis products to the emerging California marketplace, while also creating trust in the industry through reliable service, supply-chain integrity and quality assurance. Natura is committed to delivering quality, consistent, trusted cannabis products to consumers on a global scale by commercializing the industry in the most responsible manner. Natura believes in supporting the community and its employees through a set of core values every employee embodies. For more information about Natura visit http://www.natura.io/.
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 news release include, but are not limited to, statements regarding the anticipated benefits of the relationship between SLANG and Natura, and the introduction and distribution of SLANG branded products in California.
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, risks related to the COVID-19 global pandemic, 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, 2019 and six months ended June 30, 2020, each as filed on SEDAR at www.sedar.com. SLANG is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
The Canadian Securities Exchange has not reviewed, approved or disapproved the content of this news release.