Home to over 12% of the U.S. population, California is undoubtedly home to one of the largest legal cannabis markets in the world. One of the companies getting a piece of that pie is Sunniva Inc. (CSE:SNN) (OTC:SNNVF), a vertically integrated cannabis company with cultivation and extraction facilities in California.
Sunniva just announced that it has secured more than $2.4 million USD in future sales of Sunniva branded cannabis products through one of the company’s existing retail relationships, and they expect these sales to be completed in the first four months of 2019.
This marks Sunniva’s first cannabis product sales in the state of California, although the company anticipates securing additional sales contracts in the near term.
Sunniva’s current product inventory consists of ultrapure cannabis distillate, premium concentrates and flower, which, based on current wholesale market prices in California, has a current estimated value in excess of $5 million USD.
“The recent LTYR Logistics acquisition has provided us with the final vertical business segment required to sell our branded products. Their existing relationships throughout California provide the key component for us to recognize the full value of our licensed and operational extraction facility, our device and hardware business, Vapor Connoisseur, and ultimately the purpose-built, high technology 325,000 square foot greenhouse in Cathedral City,” stated Dr. Anthony Holler, Chief Executive Officer of Sunniva.
Sunniva will leverage its strategic relationships for the purchase of clean biomass for extracted products and clean flower until the large-scale greenhouse is operational. Purchased flower will be packaged utilizing Sunniva’s large-scale automated sorting, batching and packaging machines, branded, and then sold, allowing Sunniva to capture significant margin in the flower category prior to processing its own premium flower.
Also, Sunniva will continue to manufacture products at the extraction facility, adding to the current inventory daily. At full capacity, the monthly extraction output is estimated at 180,000 grams of distillate and 125,000 grams of live resin, which will supply all Sunniva branded product categories.
As if that wasn’t enough, expansion plans beyond the current manufacturing capacity are underway to accommodate future sales growth.
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