American Cannabis Company, Inc. Announces Approval for Suitability by Colorado’s Marijuana Enforcement Division (MED) and Provides Company Update
DENVER, CO / ACCESSWIRE / October 7, 2020 / American Cannabis Company, Inc. (OTCQB: AMMJ) (“ACC” or “Company”), a full-service business-to-business cannabis and hemp consulting solutions provider, is pleased to announce its approval for suitability by Colorado’s Marijuana Enforcement Division (MED) as well as providing an overall update on the Company.
Awarding of Colorado MED Suitability License
On September 18, 2020, Colorado’s Marijuana Enforcement Division (MED), approved the Company’s application for suitability, establishing the Denver-based company as one of the few publicly traded companies authorized to acquire and operate various cannabis licenses throughout Colorado, in both the recreational and medical markets. The approval is essential in ACC’s plans to effectively implement its growth strategies for company acquisitions and to expand into cannabis operations throughout the state.
The Company has been evaluating numerous turn-key Colorado opportunities in anticipation of potential acquisitions for 2020, including cultivation operations, product manufacturing operations and retail dispensaries. The Company is working diligently to align its available liquidity with the right Colorado acquisition opportunities. Terry Buffalo, Chief Executive Officer of American Cannabis Company commented, “We are excited to finally be able to pursue license ownership opportunities in our own backyard here in Colorado, which is especially important as we pivot from a full-service cannabis consulting firm to a national cannabis brand.”
Overall Company Update
The Company is also pleased to provide an overall update on its progress year-to-date. The following information describes the Company’s experience, current work and future plans as it positions itself as a reputable and established brand within the regulated markets.
Anticipating the need to adopt to the ever-changing landscape of the industry, the Company made several internal adjustments to maximize business efficiencies. Mr. Buffalo commented, “The first part of this year was all about focusing on our long-term growth. We streamlined many of our processes, reconfigured roles internally, and in turn created significant cost savings, the effects of which we should see in Q4. These changes have been significant, and we hope to be able to further reduce base operational costs in the future.”
With longevity in mind, the Company continually looks for means by which it can reduce operational costs to improve processes. Mr. Buffalo commented further, “The Company continues to grow and evolve, and changing conditions have had an impact on how we plan for success in the years to come. Our decisions will position us to take maximal advantage of market opportunities as we move forward, and we are committed to drive improvements to our business along with the metrics that will contribute to overall success.”
Impact of COVID-19
The Company has experienced various changes in the volume of new business due to the impact of the COVID-19 global pandemic. Mr. Buffalo, commented: “There’s an old adage, ‘Don’t waste a crisis.’ The Company adapted our thinking of this pandemic to see it as an opportunity to rethink how we can conduct more business effectively and create a healthier company overall.
Sales of the Company’s proprietary all-natural potting soil, SoHum Living Soils®, have increased significantly. Chief Operations Officer, Tyler Schloesser, commented, “Many steps have been taken in the past several weeks to modify processes, ramp up production, and keep a proper amount of inventory on hand and ready to ship. Additionally, implementation of a new inventory tracking system has contributed in helping the team to further streamline efforts, boost efficiencies and increase forecasting capacities related to order fulfillment. We have taken the time to analyze components of our processes with the purpose of scaling up production of SoHum Living Soils® and we have worked closely with our network of vendors to address not just the current needs of the market during this pandemic, but we have also gained the ability to source ingredients and produce our proprietary just-add-water potting mix in larger capacities.”
Prior to the economic impact experienced globally due the COVID-19 pandemic, a dozen or more states were predicted to legalize cannabis in some form or fashion by means of legislature or ballot measure. Mr. Buffalo, commented, “2020 was set to be a big year for the cannabis industry in terms of growth, and then the markets experienced in impact of COVID-19. As of today, there are only five potential states with the opportunity for cannabis legalization measures to pass this year. Residents in New Jersey, South Dakota, Arizona, and Montana are set to vote for recreational cannabis in November, with South Dakota set to vote simultaneously on both medical and recreational. Mississippi also qualified a business-friendly cannabis initiative for the November ballot as well.”
The Company will continue to market to and analyze prospective consulting opportunities that come from these regions of the country, so that it can align with client groups who have a competitive edge to win licenses. We will also continue to provide our full suite of long-standing and proven consulting services to existing markets as the industry continues to mature. While this pandemic has slowed down the growth timelines of some in this industry, we feel as though we are strongly positioned as a reputable and established consulting brand to withstand the future economic effects brought on by COVID-19.
Company 2020 Highlights
- Developed dispensary and cultivation conceptual designs for a Michigan client;
- Submitted craft cultivation, infuser, and transportation license applications on behalf of four (4) clients in Illinois;
- Finalized dispensary design for social equity client in Oakland, California;
- Ongoing exploration of acquisitions in Colorado after HB 19-1090 passed;
- Contracted to design, deploy, and manage cultivation facility in Michigan;
- Contracted to complete business plan and financial pro-forma modeling for project in Arizona;
- Contracted to complete pre-licensing work and hemp consulting for client project in Indiana;
- Added expert witness services to the Company’s consulting platform;
- Successfully awarded MED Suitability License to be able to qualify under Colorado HB19-1090 which allows the Company to make acquisitions of cannabis operations within the state;
- Successfully submitted Licensed Operator applications to the Colorado MED which will allow for the Company to manage commercial and retail cannabis operations throughout the state;
- Added ninety-three (93) SoHum Living Soils® retail/distribution outlets to date;
- Establishing Advisory Board with purpose to gain further knowledge, understanding and advice from successful professionals related to a multitude of industries;
- Added accounting and bookkeeping services to the Company’s consulting platform; and,
- Began work on a 24,000 square foot cultivation project for a client in Michigan to provide construction support, deployment services, and full-scale operational management services
The Company is continually evaluating various strategic acquisition opportunities for existing licenses across the country, as it seeks to both diversify and expand the overall brand footprint.
The Company raised capital through its equity line, and continues looking for additional capital to provide funding for its ongoing acquisition plans. Central to its growth plans, the Company is targeting markets providing easier means for publicly traded companies to own and operate licenses. As of today, the markets of most interest include Colorado, Massachusetts, Nevada, Michigan, and Arizona.
Operational Management Services
In 2019, the Company unveiled a more robust platform of facility on-site and remote operational management services to cannabis business operators seeking assistance with general oversight to improve underperforming assets. The Company has taken on a management contract in Michigan since rolling out this service, and currently the company is working to actively secure additional opportunities in other states. This platform is open to any existing operator throughout the country who is licensed in a regulated cannabis market and is interested in end-to-end facility management services.
SoHum Living Soils®
SoHum Living Soils® was created to combat complex cannabis cultivation strategies, both on a home and commercial scale. Originating from Southern Humboldt, California, this potting mix is a complete blend that optimizes a plants genetic potential. Revenues based on SoHum Living Soils® have increased 190% from Q2 of 2019 to Q2 2020. The Company has experienced exponential growth in product sales this year, and many steps have been taken internally to scale production in order to meet seemingly continuous demand. Much effort has been put forth in selecting and adding members to the sales team, upgrading inventory tracking solutions, and coordinating with vendors on production and forecasting.
Ellis Smith, Co-founder and Chief Development Officer of American Cannabis Company, Inc., commented, “The SoHum Living Soils® line of products has truly taken off this year. We are excited to see such explosive growth in this sector of our business and it is rewarding to receive consistent testimonials from growers who indicate that they experienced amazing results when using SoHum. This soil, designed to grow a cannabis plant from its early life all the way to harvest, also works perfectly for the hobbyist gardener who wishes to cultivate premiere fruits and vegetables. Having worked on perfecting the formula for many years, the team and I will continue to perform soil and crop analyses in effort to continually fine-tune and expand our soil product line in the future. As we continue to remain on the cutting edge of cannabis cultivation, new products are being developed and rigorously tested with hope that we will be expanding the overall SoHum product line very soon. I am very grateful to the sales team for their efforts and appreciate all the hard work that is put into the SoHum brand. Amazing teams produce and sell amazing soil, and I look forward to the continued growth of each as this product line continues to accelerate along with demand in this sector.”
Those looking to purchase SoHum Living Soils® can do so by contacting an official distributor or visiting the official website. The SoHum Living Soils® potting mix is also available for purchase on the Walmart, The Home Depot and Amazon online store platforms.
About American Cannabis Company, Inc.
American Cannabis Company, Inc. offers end-to-end solutions to existing and aspiring participants in the cannabis and hemp industries. We utilize our industry expertise to provide business planning and market assessment services, assist state licensing procurement, create business infrastructure and operational best practices. We are continuing to grow the Company by promoting our operational management services, and license the American Cannabis Company brand, as well as continuing to analyze acquisition opportunities worldwide. American Cannabis Company also developed and owns a portfolio of branded products including: SoHum Living Soils® – Winner of the High Times S.T.A.S.H Award for “Best Potting Mix”, The Cultivation Cube™ and the High-Density Cultivation System™. We also design and provide other industry specific custom product solutions.
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Forward Looking Statements
This news release contains “forward-looking statements” which are not purely historical and may include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities and words such as “anticipate”, “seek”, intend”, “believe”, “estimate”, “expect”, “project”, “plan”, or similar phrases may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects, the future U.S. and global economies, the impact of competition, and the Company’s reliance on existing regulations regarding the use and development of cannabis-based drugs. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time to time with the Securities and Exchange Commission. For more information, please visit www.sec.gov.
Cannabis Remains an Illegal Schedule 1 Drug Under Federal Law
Cannabis and its derivatives are considered illegal “Schedule 1” drugs under the Controlled Substances Act (21 U.S.C. § 811). As such, Cannabis and its derivatives are viewed as being highly addictive and having no medical value. The United States Drug Enforcement Agency enforces the Controlled Substances Act, and persons violating it are subject to federal criminal prosecution. The criminal penalty structure in the Controlled Substances Act is determined based on the specific predicate violations, including but not limited to: simple possession, drug trafficking, attempt and conspiracy, distribution to minors, trafficking in drug paraphernalia, money laundering, racketeering, environmental damage from illegal manufacturing, continuing criminal enterprise, and smuggling. A first conviction under the Controlled Substances Act can generally result in possible fines from $250,000 to $50 million dollars, and incarceration for periods generally from five and up to forty years. For a second conviction, fines increase generally from $500,000 to $75 million dollars, and incarceration for periods generally from ten years to twenty years to life.