SEATTLE, May 31, 2018 (GLOBE NEWSWIRE) -- CFN Media Group (“CFN Media”), the leading agency and financial media network dedicated to the North American cannabis industry, announces publication of an article covering the strategy and positioning of BlissCo Cannabis Corp. (CSE:BLIS) (BLIS.CN) (CNSX:BLIS), a licensed producer that recently went public in Canada.
As the landscape of Canadian licensed producers becomes a bit more crowded, there are some characteristics that may help identify those with a better chance of succeeding than others. Partnerships, licenses, management, and location are among these differentiating factors, and BlissCo is one of the young producers with a strong resume in all of these areas. With adult-use legalization on the horizon and the legal cannabis market set to explode, BlissCo looks ready to carve out its niche in the multi-billion dollar industry.
Recently Licensed, Recently Public
BlissCo went public through a reverse merger and began trading on March 2, 2018 following an oversubscribed financing of about C$5.6 million. That financing helped the company put some finishing touches on its level 10 security production facility in the Metro Vancouver area, and Health Canada granted the company its ACMPR cultivation license on March 29. BlissCo is in the process of applying for a cannabis oil extraction license, and anticipates applying for a sales license this summer.
Watch a short video featuring the BlissCo facility here: https://www.youtube.com/watch?v=zrIzuswu50M&feature=youtu.be
The Supreme Cannabis Company participated in the financing to the tune of C$3 million. The investment gives Supreme an approximate 10% ownership of BlissCo, and comes along with a supply agreement for dried cannabis which will enable BlissCo to begin sales and distribution immediately following receipt of its sales license. This 3,000 kilo, two year supply agreement with Supreme has the potential to generate over C$25 million in medical cannabis revenue for BlissCo.
Not All LPs Need Huge Production
Many licensed producers have undertaken massive expansion projects over the last year or so, spending huge amounts of capital to increase production ahead of full legalization. The approach makes sense in light of the anticipated initial shortfall of supply for the greatly expanded market, but comes with its own set of risks. These include problems associated with scaling agricultural production on an industrial level, like crop failure and quality control. They also include issues that could arise as a result of market forces, like the eventual commoditization of cannabis flower causing a significant price decrease.
BlissCo, while not eschewing its own production capacity, is taking a different approach. The company is more focused on packaging, branding, and distribution. Its facility is designed from the ground up as a center for high volume extraction, processing, packaging and distribution in addition to its cultivation capacity. Set in the Metro Vancouver area, it is ideally located for efficient and low-cost distribution.
The supply agreement with Supreme allows BlissCo to jumpstart its operations and revenue while it scales its own production. BlissCo hopes to have a sales license by September, which is coincidentally about the time that adult-use is anticipated to be legalized. With supply assured, the company should be able to hit the ground running at that point.
"Over the past year, we have revised our business model to concentrate on our core strength: in-province cannabis distribution," said Damian Kettlewell, CEO and Founder of BlissCo. "British Columbia will be a competitive retail market where quality will be a differentiating factor. Our focused business plan has allowed us to avoid the time and capital commitments of developing massive cultivation infrastructure, and instead pursue partnerships with leading quality-focused cultivators such as Supreme Cannabis' 7ACRES."
BlissCo recently purchased CO2 cannabis oil extraction equipment that it can use, when properly licensed, to make high quality extracts and eventually products (like edibles, creams etc.) based on those extracts. Recent data from Health Canada shows sales of cannabis oil as of April 2017 on par with dried flower. But demand for quality cannabis oil is on the rise. Fast forward to the most recent data from December 2017, and cannabis oil sales are almost 50% higher by volume than dried flower sales. BlissCo recognizes this explosive trend and is positioning to take advantage. As of now, only 6 of the 22 licensed producers in British Columbia are approved to produce and sell oil.
Management Offers Varied Experience
CEO Damian Kettlewell has a deep background in alcohol sales and distribution that should serve BlissCo exceedingly well as the cannabis model evolves. He is a director of British Columbia’s Alliance of Beverage Licensees (ABLE BC) and was also involved in a recent public-private partnership called the Responsible Marijuana Retail Alliance of BC. Prior to founding BlissCo, he was a partner for 11 years with a major BC liquor store chain. Undoubtedly Mr. Kettlewell knows how to distribute and sell adult-oriented products in British Columbia.
The public side of the company is in good hands with CFO Rob Kang. He is well-versed in all aspects of the regulatory side, with over 20 years of experience at TMX Group prior to joining BlissCo. Shawn McDougall heads up the production side with over 10 years of experience as a Health Canada certified cultivator. Vipin Vikraman adds more than 10 years of experience in quality assurance, with a background in the packaged foods, poultry, and dairy industries.
The Upshot
Developments have been coming fast and furious for BlissCo, as the company has gone public, been licensed, inked a major partnership, and begun cultivation all in the last three months. There are plenty of potential catalysts in the next few months as well, with more licenses anticipated and the pending legalization of cannabis in Canada. BlissCo bears watching as it is taking a slightly different tack from many licensed producers. By focusing less on production and more on creating a processing, distribution, and branding company, BlissCo appears positioned to deliver value both in the near term and over the long haul.
Please follow the link to read the full article: http://www.cannabisfn.com/blissco-new-public-licensed-producer-focused-distribution/
Forward-Looking Statements
This article contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). The use of any of the words “may”, “will”, “in the process” and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such forward-looking statements should not be unduly relied upon. This article contains forward-looking statements and assumptions pertaining to the following: the ability to execute on the strategic plans and the impact on future operations, capital expenditures, receipt of a cannabis oil license and a license to sell dried cannabis, the generation of revenue from the sales of cannabis, the anticipated benefits of the location of the company’s facilities, the production of products based upon extracts, the relevance of management’s experience to the cannabis model, the ability of the company to deliver value and other objectives. Actual results achieved may vary from the information provided as a result of numerous known and unknown risks and uncertainties and other factors. It is believed that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct. Neither we nor the company undertake to update these forward-looking statements, except as required by law.
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