On April 10, 2019 Lifestyle Delivery Systems (LDS.C)entered into a 5-year lease agreement for 20,000 square feet of warehouse space at $2 per sq. ft. per month, proximal to its existing facility in Adelanto California.
Two hours east of Los Angles, Adelanto (pop. 30,000) is famous for having three prisons inside its city limits – two of them owned by the $2.4 billion Geo Group (GEO.NYSE) who offer “enhanced in-prison offender rehabilitation programs.”
LDS’s lease rate is about 80% cheaper than industrial space in Vancouver, but similar to lease rates in Las Vegas and Denver, Colorado .
The new space will be used to expand the LDS’s transportation and distribution operations in Adelanto, California.
The lot is adjacent to the current Adelanto manufacturing facility. LDS will not require 3rd party transportation services. As production and distribution ramps up, LDS will employ its current armed security services.
“The warehouse will hold inventory of both, raw material and finished products, and will include an environmentally-controlled storage space for seeds and seedlings,” stated Brad Eckenweiler, CEO of LDS, “The proximity to our manufacturing space will allow us to easily coordinate transportation and distribution of our products saving us time and tens of thousands of dollars in transportation and security costs.”
LDS infused strips (similar to breath strips) offer superior bioavailability of cannabis constituents. Some strips will also include supplemental co-active ingredients such as nutraceuticals, vitamins and peptides.
LDS is an Equity Guru marketing client.
They pay us to track their progress and update our investors.
Every new client is told by Equity Guru principal Chris Parry, “You are paying us to put you in our conversation, not to praise you.”
Example?
Have a listen to Parry’s March 27, 2019 confrontational (but respectful) interview with LDS boss, Eckenweiler. It’s fascinating.
On April 9, 2019 LDS provided shareholders with an update on the latest stores carrying the “flagship product”, CannaStrips.
LDS has been distributed CannaStrips into various dispensaries in the Southern California Region, but is also collaborating with the Rise Distribution sales team to support the roll out into their 200+ stores.
The new stores scheduled to receive LDS products this week are:
- The Lift
- Leaf & Lion
- BARE Dispensary (Delivery 4/9/18)
- Cathedral City Care Collective (Delivery 4/10/19)
- Palm Royal Collective (Delivery 4/10/2019)
- One Love Beach Club
All dispensaries are not created equal, we like the flavour of this retail expansion.
Established in 2009, One Love Beach Club is a family owned and operated dispensary in Long Beach California. On Weedmaps, 553 reviewers give it a 4.6/5 rating.
“As a medical patient that needs help finding the best items for chronic pain, they know their stuff and will be completely honest on what will work for your body,” wrote weirdmindedsoul, “Love them!”
You’ve probably heard of CBD – a non-psychoactive cannabis compound – derived from both marijuana plants and hemp.
It is gaining traction in the health and wellness sector for treating a dazzling array of ailments including inflammation, chronic pain and arthritis.
LDS is moving into the CBD space.
The first batch of CBD CannaStrips has been delivered for State Certified Compliance Testing. Once LDS receives product approval, CBD CannaStrips will roll out to all current distribution channels.
“I have received tremendous feedback from the retailers that currently carry our CannaStrips,” stated Casey Fenwick, President of LDS, “With the upcoming cannabis industry holiday this April 20th, we are making sure that our retailers can meet the expected demand.”
A few days ago, LDS announced that this year’s April 25, 2019 AGM will be in Adelanto, California, giving shareholders the opportunity to meet Mr. Eckenweiler, the LDS team and visit the facility “to have a greater understanding of the LDS vision.”
There won’t be a brigade of Canadian investors flocking south to attend an AGM in the middle of the California desert, but for anyone stateside who can tour the facility, we highly recommend it (having toured it ourselves in November, 2017).
The facility has expanded operations considerably since then, including the development of a modern Isogenic nursery which can grow seedlings (not clones) into mature, ready-to-harvest cannabis plants with precise genetics for extraction and distillation.
“In Q3, 2019 LDS will have eliminated every middleman mistake and cost margin in its market,” states LDS, “The result will be increased margins at every level of production and distribution with net profits increasing up to 200%. In a market sector full of uncertainty LDS will control its variables and its profitability.”
Full Disclosure: LDS is an Equity Guru marketing client, and we own the stock.
Disclaimer: ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.
FULL DISCLOSURE: Lifestyle Delivery Systems is a client of Stockhouse Publishing.