- Marijuana
Company of America Inc. has returned to its roots with a joint venture to
launch a cannabis delivery service targeted at California’s recreational
market
- Market
researchers predict that California’s cannabis sales will hit $5.1 billion
this year and $7.7 billion by 2022
- MCOA’s
year-end financial report noted an increase of 840 percent in annual
revenues, thanks primarily to the company’s proprietary hempSMART brand
Marijuana Company of America Inc. (OTCQB: MCOA) is
solidifying its position as an innovative pioneer in the cannabis industry as
it forms a strategy for new growth and celebrates significant revenue gains
over the past year.
Marijuana Company of America has long developed a presence
in the hemp-derived product market, edifying a framework of cannabidiol (CBD)
cultivation and distribution opportunities primarily through its proprietary
hempSMART brand. However, as legislative and industry opportunities open up,
MCOA is re-establishing its root identity as the Marijuana Company of America,
as exemplified by its recent acquisition of a 20 percent interest in a licensed
manufacturer, distributor and retail delivery service for volatile cannabis
products in California (http://ibn.fm/wphq0).
“We have aspirations of becoming a major distributor,
delivery service and manufacture in California,” MCOA CEO Don Steinberg stated
in announcing the agreement with Natural Plant Extract of California (“NPE”).
Together, the companies aim to form a premier cannabis
delivery company named ‘Viva Buds’, which will serve as the marketing arm for
the new retail cannabis delivery service launched by NPE subsidiary Northern
Lights Distribution in California. The joint venture is expected to begin with
Los Angeles-area distribution before extending to other parts of the state.
A year into California’s legalization of recreational
marijuana use, more than half of the municipalities in the state still did not
have laws governing the industry entering 2019 (http://ibn.fm/i6dD0), and regulatory differences between
the state’s varied municipalities have stymied efforts to legally deliver
cannabis products to some areas, although a contested court ruling in January
opened the way for companies to bypass local limitations (http://ibn.fm/XZqQu).
Analysts with plant industry advisory firm Cannabis
Business Plan predict that California’s cannabis market will reach
yearly revenues of $7.7 billion by 2022, with 61.5 percent of the overall
market driven by recreational-use marijuana (http://ibn.fm/MrfhL), while BDS Analytics researchers
forecast California cannabis sales of $5.1 billion this year (http://ibn.fm/vhPAA).
The Viva Buds rollout follows on the heels of MCOA’s
financial successes in 2018. The company recorded an 840 percent year-over-year
increase in total revenues, rising from $26,830 to $252,135 (http://ibn.fm/Cahq7). Its gross
profit for 2018 increased from a 47 percent gross margin to a 68 percent gross
margin, while the company’s net loss from operations decreased by 82 percent
from the prior year.
“Our financial results were better than many other cannabis
public companies in our sector, which are still in the development stage and
not yet producing revenue,” CFO Jesus Quintero stated in the news release.
“Marijuana Company of America, through our hempSMART brand, has experienced a
dramatic increase in sales, most of which occurred in fourth quarter. This
trend is continuing to grow in first and second quarter of 2019. We think our
shareholders are going to be very satisfied with the execution of our highly
aggressive growth and restructuring plans in 2019.”
CEO Don Steinberg added that the company expects to complete
the acquisition of a California marijuana manufacturing and distribution
license shortly, which could allow Marijuana Company of America to capture
additional market share.
For more information, visit the company’s website at www.MarijuanaCompanyofAmerica.com
NOTE TO INVESTORS: The latest news and updates
relating to MCOA are available in the company’s newsroom at http://ibn.fm/MCOA
About QualityStocks
QualityStocks is
committed to connecting subscribers with companies that have huge potential to
succeed in the short and long-term future. It is part of our mission statement
to help the investment community discover emerging companies that offer
excellent growth potential. We offer several ways for investors to learn more
about investing in these companies as well as find and evaluate them.
QualityStocks (QS)
Please see full terms of use and disclaimers on the
QualityStocks website applicable to all content provided by QS, wherever
published or re-republished: http://www.qualitystocks.net/disclaimer.php
No comments:
Post a Comment