Slang receives Colorado gov't approval for suitability
2020-08-18 07:46 ET - News Release
Mr. Chris Driessen reports
SLANG WORLDWIDE RECEIVES REGULATORY APPROVAL REQUIRED TO CONSOLIDATE ITS SUPPLY CHAIN IN COLORADO
The Colorado Department of Revenue's marijuana enforcement division (the MED) has approved Slang Worldwide Inc.'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 chief executive officer Chris Driessen. "A fully integrated model will allow us to run a traditional wholesale operation and realize more favourable 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 toward 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.
About Slang Worldwide Inc.
Slang Worldwide is a global leader in the cannabis CPG (consumer packaged goods) 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.
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