Los Angeles, CA – May 28, 2020 – Cannabis Strategic Ventures (OTCQB:NUGS) (“NUGS” or the “Company”), an emerging leader in the U.S. cannabis marketplace, is pleased to announce that recent sales from its latest harvest have earned unit pricing at a strong 11 percent premium to current industry standard benchmarks for cannabis sales on a per pound basis.
According to cannabisbenchmarks.com, cannabis sales in the US currently average roughly $1,525 per pound. The Company has transitioned from selling at a discount relative to benchmark levels six months ago to now selling at a premium to benchmark levels, with pricing in recent sales coming in at approximately $1,700 per pound.
“We have seen a steady improvement in per pound pricing driven by improving quality mostly as a consequence of better operational execution at Nugs Farm,” remarked Simon Yu, CEO of Cannabis Strategic Ventures. “It also represents another signal that we are heading in the right direction in terms of our core objectives: expanding production capacity, expanding sales volume, and expanding profitability on a per unit basis.”
The Company has recently successfully expanded its production capacity by as much as 150%, more than doubling harvest size as a result. That expansion was necessary to keep up with demand as overall top line sales have increased rapidly during calendar Q2, with the monthly pace of sales this quarter on pace to average more than 800% above the average monthly pace seen in calendar Q1, leaving the Company now on a pace to exceed $10 million in annualized sales of cannabis products.
Management notes that the recent improvement in pricing on a per unit basis has positive implications for both top and bottom line numbers. The Company is also in the process of preparing for the launch of its branded cannabis product line, which is expected to further contribute to growth in margins.
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About Cannabis Strategic Ventures
Cannabis Strategic Ventures Inc. (OTC: NUGS) is one of the largest publicly traded marijuana cultivators in the United States. The Company is Los Angeles-based and incubates, develops and partners with category leaders within the cannabis and ancillary sectors. The Firm’s NUGS brand experience provides operational and financial strategic partnerships and a range of essential services to emerging and existing Cannabis consumer brands.
For more information, visit http://www.CannabisStrategic.com
FORWARD-LOOKING STATEMENTS: This release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements also may be included in other publicly available documents issued by the Company and in oral statements made by our officers and representatives from time to time. These forward-looking statements are intended to provide management’s current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid. They can be identified by the use of words such as “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “would,” “could,” “will” and other words of similar meaning in connection with a discussion of future operating or financial performance.
Examples of forward-looking statements include, among others, statements relating to future sales, earnings, cash flows, results of operations, uses of cash and other measures of financial performance.
Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and other factors that may cause the Company’s actual results and financial condition to differ materially from those expressed or implied in the forward-looking statements. Such risks, uncertainties and other factors include, among others such as, but not limited to economic conditions, changes in the laws or regulations, demand for products and services of the company, the effects of competition and other factors that could cause actual results to differ materially from those projected or represented in the forward-looking statements. Any forward-looking information provided in this release should be considered with these factors in mind. We assume no obligation to update any forward-looking statements contained in this report.
Source: Cannabis Strategic Ventures