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.
Forward-Looking Statements
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Third Party Information
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