A popular phrase generating buzz in the cannabis space is “Legalization 2.0” - the loosening of laws around cannabis edibles and beverages in Canada and the US. It is a whole new market for an audience that wants a different experience from the more common (and less healthy) consumption of smoking, which was legalized last October in Canada. To better understand what this market would look like for investors, one needs only look to California, which has set the standard for cannabis legislation a number times over.
Dalhousie University professor Dr. Sylvain Charlebois took an assessment of California’s edible market with his editorial - “The Trouble with Edibles”. The food policy expert noted that cannabis-infused snacks and beverages “stand to shake up current players in the food sector.”
Though Canada has two months until edibles are legal, possibly longer for products to make their way to market, growth is plentiful in states where cannabis is legal recreationally. In California alone, Charlebois reported that edibles accounted for 10% ($180 million USD) of the state’s entire cannabis market.
Already the US’ leading producer of agricultural products, in 2019, the US market for consumer foodservices reached roughly $611 billion and is expected to increase to more than $632 billion next year.
Not content to wait until the fall to get the ball rolling, Vancouver, BC-based TransCanna Holdings Inc. (CSE: TCAN, OTC: TCNAF, Forum) has made a move to advance its business into the lucrative California market with a distinct product.
In mid-August 2019; TCAN announced that it had finalized a definitive purchase agreement for the outstanding equity interest in SolDaze. Operating out of Santa Cruz, the company produces and sells the only all-natural cannabis-infused fruit snack in the entire state.
The transaction will absorb SolDaze's branding asset package into the Company's expanding asset portfolio. Through its wholly-owned California subsidiaries, the TCAN is focused on providing integrated branding, transportation and distribution services, to a range of industries including the cannabis marketplace.
(SolDaze products.)
Recognizing SolDaze’s efforts, achievements and dedication to the process, TransCanna President & Chair Arni Johannson stated he was determined to merge this top producer into his Company’s ecosystem.
"The SolDaze brand has a very bright future and with the support of TransCanna will be introducing a variety of new SKUs, including the much anticipated launch of 'Spicy Mango'. The Company is excited about the prospects of future growth that this acquisition will provide once consummated.”
With a vision of delivering healthy sustainable edibles to the masses on a very large scale, SolDaze founder Shawn Shevlin noted for investors that there is also a drive to support social responsibility, job creation and ethical sourcing of organic fruit in México.
SolDaze’s products are quite popular where available in the state, according to one of its distributors, Calyx Brands Inc. Its CEO, Dakota Sullivan, stated that while working in the California cannabis market since legalization, rarely has she had such strong interest in a new SKU as what she is seeing for SolDaze's Spicy Mango. She added, “We are beyond excited for this highly anticipated product to hit the market.”
Under the agreement, the purchase price will be comprised of an aggregate cash payment of $350,000 and 810,000 common shares in the capital of the Company at $1.14 per share.
TransCanna.com
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.