Results Out The long await results are now available on SEDAR. I had a look and it was clearly a challenging year for them financially due to Covid and certain legislative hurdles. That being said, the summary below is where significant growth will occur now that we are getting out of this pandemic:
California: Bhang took over operation of the brand in California in the first quarter of Q1 after terminating its license agreement with Origin House. Bhang’s co-packer Trava launched the new packaging in Q2 of 2020 and it was well received as was Bhang’s collaboration with DJ Muggs and the Soul Assassins. The additional advantage of Bhang controlling operations is the increased and improved ability to provide a “walk a mile in your shoes” level of operational support for its licensees.
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Nevada –Bhang chocolate hit Nevada shelves in early Q3 2020. Cannavative, Bhang’s licensee in Nevada, has a sales presence in all 72 Nevada retail and delivery outlets in the state. Revenue from Nevada began in September of 2020 and as of the date of this MD&A, we are currently in over 50% of all NV dispensaries including Planet 13 and Silver State Relief.
Florida – Bhang has a top-tier licensee in Trulieve Cannabis Corp. (CSE: TRUL) to manufacture and distribute Bhang chocolate across their Florida retail locations as well as through their state- wide home delivery service. The State of Florida announced legal edibles in September 2020 and Bhang and Trulieve immediately went to work to get the molds and packaging compliant with the new regulations and approved by the State of Florida. Trulieve is slated to begin manufacturing Bhang in FL by Q3 2021.
Illinois is currently manufacturing and selling out of Bhang chocolate so far in every month of 2020. Bhang’s licensee, Bedford Grow, completed a major facility expansion in Q2 of 2020. We expected their increased ability to manufacture to translate into more robust sales and revenue in 2020, however, they experienced major setbacks including the inability to purchase chocolate raw ingredients due to shortages caused by COVID.
Canada: Bhang entered into an amended license agreement with Indiva, replacing the previous joint venture agreement, giving Indiva the exclusive right to manufacture and sell Bhang THC- infused chocolate products in Canada. Indiva has secured an agreement with Medical Cannabis by ShoppersTM,a subsidiary of Shoppers Drug Mart Inc., which will make Bhang Chocolate available through the Medical Cannabis by ShoppersTM platform. Bhang chocolate products continue to be among the top edibles in Canada.
New Mexico: Bhang New Mexico continues to be the dominant chocolate in the state of New Mexico. We look forward to the launch of our new packaging in New Mexico and are very confident about our licensee and what they will be able to do with a more favorable legislative climate now that New Mexico has officially voted for adult-use legalization.