- TransCanna
Holdings has signed an LOI to acquire Soldaze cannabis-infused fruit
snacks, one of its 15 planned premium cannabis brands
- TransCanna’s
recently acquired 196,000-square-foot self-contained production and
distribution facility in Modesto, California, was featured in a new video tour
of the site
- The
facility is being developed as a hub for statewide distribution to various
company satellite facilities in premium markets
- The
company has plans for developing a still-larger cultivation facility on
the 5.5-acre Modesto site as it grows and obtains more funding
TransCanna Holdings Inc. (CSE: TCAN) (FSE: TH8) has
signed a non-binding letter of intent, dated May 15, to acquire the branding
asset package Soldaze from Santa Cruz, California-based Tres Ojos Naturals LLC.
The move is part of TransCanna’s plan to put 15 premium cannabis brands on
store shelves in the next 24 months, utilizing the company’s new
196,000-square-foot California facility as the hub for its operations. SolDaze
produces cannabis-infused fruit snacks in California.
“Having reviewed over 100 branded products in California,
we’ve been extremely selective in our acquisition vetting process,” TransCanna
CEO Jim Pakulis stated in a news release about the LOI (http://ibn.fm/Gj4pE). “Our three
mandatory acquisition criteria include SKU velocity, upward trending revenues,
and products that differentiate themselves in the marketplace. The snack
line from SolDaze, and specifically the cannabis-infused mango products, meets
all three requirements.”
The Modesto facility will serve as a production hub that
enables TransCanna to cultivate and deliver the 15 brands to scale as the
company grows over time. TransCanna recently produced an eight-minute video as
a quick tour of the facility (http://ibn.fm/2O53U),
which is part of a larger 5.5-acre property purchase that the company can
develop with an additional, still-larger structure to grow its own biomass. As
it is, the current facility has space for a significant-sized nursery, as well
as grow, manufacturing, bottling, baking, extraction and transportation
operations.
“The benefit here is that we have better temperature
control, better humidity control. We don’t bring any outside air into any of
the controlled environments inside the facility. So it really differentiates us
from anybody else in the industry,” Pakulis said during the video tour of the
existing structure. “And it was specifically designed for this facility by the
sellers. And the sellers, for the last 25 years, have designed these systems
for food-grade processing facilities throughout the United States… It is truly
a vertically integrated facility.”
“It’s just a matter of time before the USDA and the federal
(government) realize that this (cannabis) is a food consumable item and needs
to be treated in that fashion,” developer Chad Swan, vice president and general
manager of Cold Storage Manufacturing, said in a BTV video report on the
company and the Modesto facility (http://ibn.fm/mEoVN). “So we’re ahead of the curve on most
of the people that are building their facilities – they’re not building it to
food grade standards and when this (regulatory environment) changes, everything
they’ve done they’re going to have to redo.”
Additionally, the terms of site purchase – about a 79
percent discount to market – allow TransCanna to plan for potential future
expansion at unusually cost-friendly terms.
“Adjacent to the facility, we have five acres that – once we
tranche up – we’ll be able to build up to a three-story facility with
approximately 400,000 square feet of indoor grow,” Pakulis added. “The
wonderful part about that is because we got such a steep discount on acquiring
the building and the land next to it, and because the sellers of the building
specialize in building large-box, HVAC food processing facilities throughout
the United States, and they’re part of the TransCanna team now, they will be
building the 400,000-square-foot (facility) basically at their cost… It means
that we’re going to be able to grow superior cannabis at a steep discount.”
The company expects to provide an update in the near future
on its candidate selection process for the facility’s senior management (http://ibn.fm/tp2D1).
“We have so much growth ahead of us, it’s crazy,” Pakulis
concluded.
For more information, visit the company’s website at www.TransCanna.com
NOTE TO INVESTORS: The latest news and updates
relating to TCAN are available in the company’s newsroom at http://ibn.fm/TCAN
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