Suitability approval clears the way for Company to complete pending acquisitions
Toronto, Ontario--(Newsfile Corp. - August 18, 2020) - SLANG Worldwide Inc. (CNSX: SLNG) ("SLANG" or the "Company"), a leading global cannabis consumer packaged goods (CPG) company with a diversified portfolio of popular brands, today announced that the Colorado Department of Revenue's Marijuana Enforcement Division (the "MED") has approved the Company's application for suitability. The approval is a required step for the Company to own "plant-touching" operations such as manufacturing and distribution facilities in the state.
"Suitability approval is the key to executing our consolidation strategy in Colorado," said SLANG CEO Chris Driessen. "A fully integrated model will allow us to run a traditional wholesale operation and realize more favorable unit economics, including higher revenue and gross profit."
Colorado enacted House Bill 19-1090 in November 2019 to encourage greater investment in the state's cannabis sector. The legislation permits publicly traded companies to own cannabis businesses, provided they successfully complete the MED suitability application process and comply with various other requirements. Ownership of such businesses was previously restricted to private companies with 15 or fewer owners.
SLANG considers Colorado to be a core market and has a strategy to consolidate its supply chain in the state. The Company currently focuses on managing intellectual property and employs third parties, such as Allied Concessions Group, Peoria Partners LLC and Pleasant Valley Ranch, LLC, to manufacture and distribute cannabis products within Colorado. A finding of suitability allows the Company to obtain an ownership interest in plant-touching businesses and represents a significant step towards consolidating supply chain assets in Colorado.
The Company anticipates that consolidation of its Colorado supply chain would deliver several benefits, including increased revenue and gross profit per unit sold, greater control over production and distribution planning, improved efficiency across the organization and a strengthening of its leadership position in the state. SLANG-branded products have frequently ranked among Colorado's top sellers across multiple categories, including the all-time best-selling vape brand in O.penVAPE, according to BDS Analytics data since tracking began in 2014.
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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. For more information, please visit www.slangww.com.
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 potential consolidation of entities in the Company's Colorado supply chain and the expected benefits of such consolidation.
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 three months ended March 31, 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.
Third Party Information
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