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Core One Labs, Inc. (CSE: COOL, OTCQX: CLABF), a Scientific Approach to the Marijuana Sector

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Core One Labs, Inc. (CSE: COOL, OTCQX: CLABF), formerly Lifestyle Delivery Systems, changed its name on Aug. 15, 2019 to better reflect the Marijuana company’s plans in becoming a fully integrated business.   The Board of Directors also approved a 6-to-1 reverse, which lowered the issued and outstanding shares from 139,465,194 to 23,244,199 shares.

Earlier this summer, Core One Labs had inked a letter-of-intent to merge with TransCanna Holdings Inc. (CSE: TCAN) in a deal that would have valued Core One Labs, Inc. (CSE: COOL, OTCQX: CLABF), at $56 million (CAD).  But the management of Core One Labs thought better of the deal and on July 15, 2019 withdrew from the amalgamation of the two marijuana companies – and for good reason – COOL, CLABF is worth far more than that.

As the Marijuana sector consolidates, those companies engrained in all aspects of the trade will carry a higher market value, given time to develop and deploy their plans and Core One Labs, Inc. appears to be heading in the right direction.

Core One Labs, Inc. (CSE: COOL, OTCQX: CLABF),  developed a patented Marijuana product – CannaStrips, which are now being sold in 42 stores in California and Nevada.   The Corporation is also working with Rise Distribution to put its product into 200 stores, according to a story post on Equity.guru.

Marijuana Consumer/Medical Products

According to a story in The Street published earlier this year, seven cannabis products are leading the pack in Marijuana consumables, both in CBD and the more-controlled THC products.  Cannabis oil is at the root of this explosion in Marijuana consumables, yet its consistency in manufacturing varies, both in CBD and THC production.    Core One Labs notes that its Cannabis oil is consistent in its makeup and that supports an efficient manufacturing approach that can be interpreted into controlling costs – and margins.  Core One Labs starts at the seedling stage, delivering a plant that genetically has an identical makeup and once harvested, it produces a laboratory-level Cannabis oil that is consistent in its makeup.

Beauty and skincare products run a close second to cannabis oil with a diverse group of manufacturers that for the most part are niche manufacturers who compete for shelf space in the Marijuana retail sector, opting mostly for online sales.   But let’s face it, few consumers think of wrinkle cream when they visit their local Marijuana dispensary.  That’s not to say that beauty products infused with CBD are peanuts when it comes to their potential market.   But more likely, most of those niche manufacturing and marketing companies will not survive given the consolidation in the Marijuana space.  For some companies that could mean growth through acquisition or merger.  For others, it could fall back on regional sales and limitations to growth.

Edibles are also growing in popularity, from drinks to chocolates and even gummy bears laced with CBD and THC have been coming on strong as more consumer options become available.   Yet despite their growing popularity, few have as much of a mass appeal to Marijuana consumers than Core One Labs’ patented CannaStrips.   That is evidenced by retail chains on the West Coast so readily accepting the Cannabis-laced strips, which are placed in the mouth and enter the bloodstream through the mucus membrane.  In just minutes, consumers feel the benefits.

Cash is King

In 2018 Core One Labs generated over $4 (CDN) million in revenue.  The bulk of those sales came in the fourth quarter, generating over $3.1 (CDN) million.  COOL, CLABF CEO, Brad Eckenweiler, credited much of the increase to both the City of Adelanto and the state of California reducing its tax on Cannabis.   “The taxes on cultivation, manufacturing, transportation, distribution and sales in 2018 amounted to a significant portion of the cost of sales, said Eckenweiler.  We believe that our numbers in 2019 will be significantly better.”

While Core One Labs lost $1.6 (CDN) million in fiscal 2018, its acceptance by Cannabis store operators of its CannaStrips could put the Company in the black.  Yet costs are still being incurred as COOL, CLABF looks to open its first store in Adelanto, California later this year.

Core One Labs obtained permission to build its Marijuana dispensary from the Adelanto City Planning Commission earlier this year.   Yet construction of the dispensary has yet to be completed, though the Highway 395 Cannabis dispensary appears to be moving forward.  The City Counsel is the last authority to grant COOL, CLABF its license and with the City’s cooperation in aiding the fully integrated Marijuana company it is unlikely that the Hwy 395 Dispensary will stall in its opening.

“The establishment of the Highway 395 Dispensary will allow the Core One Labs subsidiaries a significant marketing advantage to more than twenty million Southern California customers for in-store shopping as well as home delivery,” said Eckenweiler.

Ready for Market

Eckenweiler and his management team have been gearing up for expansion, having subleased 10,000 sq ft of its 20,000 square foot Adelanto, Calif. warehouse to TCM Distribution Inc., a wholly owned subsidiary of TransCanna Holdings Inc.

“The 10,000 square feet that we are retaining will accommodate inventory of both raw material and finished products, even seeds and seedlings which will have specific environmentally controlled storage. The close proximity to our 9501 Commerce Way facility allows for easy and seamless coordination of transportation and distribution saving us not only time, but tens of thousands of dollars in transportation and security costs,” noted Eckenweiler.

Core One Labs, Inc. (CSE: COOL, OTCQX: CLABF), also owns a licensed transportation company, allowing Core One Labs to begin home delivery of Cannabis products when its Hwy 395 Dispensary opens.

Core One Labs boast its third event sell-out of CannaStrips shortly after announcing the sub-lease of half its warehouse space to TCM Distribution.  Core One Labs President, Casey Fenwick, stated, “CannaStrips popularity continues to grow. I was personally present at the High Times 4/20 Sacramento event and the interest and acceptance of the CannaStrips product line was amazing, everyone wanted to know more about CannaStrips and details of the product line. There wasn’t a moment that the booth didn’t have multiple visitors.”

Eckenweiler noted that a local retailer at the Event sold out twice.

The production equipment COOL, CLABF uses to manufacture CannaStrips is constructed from pharmaceutical grade stainless steel and built to FDA specifications. At a 40% run rate, the equipment has the capacity to produce 500,000 CannaStrip per day.

Core One Labs, Inc. (CSE: COOL, OTCQX: CLABF), has also contracted with growers, having supplied them with enough seeds to grow 10,000 plants.   That supports COOL, CLABF plans to meet demand in California where 50% of the U.S. consumption of medical Marijuana, CBD and THC products are concentrated.

The Company’s new releases show a methodical, deliberate corporate development strategy to focus on the highest consumer market in America – California – first, though COOL, CLABF’s plans of expanding distribution through the Rise Distribution group will open more of the Nevada Market for its products, where Core One Labs is currently only in one Las Vegas retail distributor.

Core One Labs, Inc. (CSE: COOL, OTCQX: CLABF), is now a fully integrated Marijuana company that can deliver a seed-to-consumer product in a capital efficient manner, which is quite a feat for an operator in the consolidating Marijuana industry and investors appear to be taking notice.   Shares of COOL closed up $0.20, or 27.4%, Friday November 29th to close at CDN$0.93.  While in the US, CLABF rose $0.15, or $0.32, finishing the week up at $0.625.

 

 

 

 

 

 

 

 

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Terrascend Corp (OTCMKTS:TRSSF) Speaks Out About Its Two Year Term Loan

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Terrascend Corp (OTCMKTS:TRSSF) has today announced the extension of its credit facility. It has also disclosed that JW Asset Management LLC will be entrusted with the management of funds. The maturity date for the mentioned faculty, which is said to be worth US$75 million, will be on December 18, 2019.

Ackerman’s take

The Executive Chairman of TerrAscend Jason Ackerman says that they have been hoping to witness the improvement of the banking, regulatory, and capital markets. He says that this is the best time for the company to obtain a non-dilutive source of business financing.

The Chief Investment Officer of JW Asset Management Jason Wild has been very supportive, according to this leader. He adds that they are putting in efforts targeted at expanding their hemp CBD market opportunities in New Jersey, Canada, Pennsylvania, and California.

Analysts have also aired out their views saying that TerrAscend has got all that it needs to uphold organic growth and profitability.

Wild’s remarks

Jason Wild has also spoken about the matter. The official says that he was impressed by JW Asset Management’s move last year to provide the original credit facility. He remembers quite well that this was the same time that TerrAscend had just kick-started its U.S. growth strategy after attaining third-quarter revenues amount to $1.8mm. The company upheld remarkable performance considering that it fetched $100mm in its previous quarter.

Wild says that he is amazed by the pace of the acquisitions and the organic growth as well. The other thing he has spoken about is the super license buildout in NJ.

He has also promised that the JW Asset Management won’t stop in its efforts to support Jason Ackerman, together with his team, achieve immense business success. He asserts that it is of the essence, adding value both as a shareholder and a lender as well.

The signing of this loan deal is set to take place at a later date. That is when Terrascend Corp will move ahead to unveil the definitive terms associated with the deal.

The company has also disclosed that it is looking into ways to enhance its products and services further.

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Lift & Co Corp (OTCMKTS:LFCOF) To Expand Business Operations In The US

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Lift & Co Corp (OTCMKTS:LFCOF) is quite pleased about the addition of the adobe advertising capabilities to its business undertakings. The Adobe Advertising Cloud demand-side-platform (DSP) is quickly getting adopted across the expansive and fast-growing digital marketing landscape. This cloud solution is growing quite popular among the various media and digital platforms for its effectiveness in reaching out to customers.

Details about the business strategy

It is also worth noting that this solution is powered by Nielsen. Its power lies in its capabilities in terms of helping the cohesion clients strike a much better understanding of their target consumer segments. One of the aspects that clients would like to know is the purchase habits of the consumers. This helps in making proper plans as well as in proper delivery to these particular segments.

The CEO of Lift & Co Matei Olaru has been closely watching cannabis companies that have been successful in establishing legacy brands. He has seen how they have been going about the whole act of introducing new products into the market. One thing that is quite clear to him is that they have been failing massively when it gets to the leveraging of outstanding CPG-like approaches.

The state of affairs

According to the official, actionable consumer insights are important for business growth and expansion. He has termed the Cohesion Segmentation an outstanding strategy for the modern business. He adds that any progressive businesses in the cannabis segment need to take it up to reach consumers effectively.

The targeted digital advertising capabilities are taking over the business world by storm, according to analysts. It was back in 2019 that the company announced the unveiling of its Cohesion platform. After just a short while, major changes are being witnessed already. Quite a significant number of licensed producers are resorting to it on a countrywide scale to enjoy the associated benefits.

Lift & Co has also announced its plan to expand more into the United States. It has termed the business collaboration with Enlighten a major step forward towards attaining success. The partnership is going to help Lift succeed in its efforts in the development of leading cannabis products.

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Zelira Therapeutics (OTCMKTS:ZLDAF) Intends To Expand HOPE® Distribution In The US

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Zelira Therapeutics (OTCMKTS:ZLDAF) has disclosed details about its plant to move its HOPE® Franchise to Louisiana. The company hopes to generate instant revenues through licensing arrangements. It will be asking for an up-front fee, after which it will expect to be paid some ongoing royalties.

A close outlook

The business guru has said that it is not going to speak out about the commercial terms of the deal. It intends to keep the terms of the deal confidential.

It was in May 2019 that the company unveiled its Franchise in Pennsylvania, and this deal was with Ilera Healthcare. This agency is known to hold a state license.

HOPE® has been showcasing outstanding performance since its introduction to the market. It has been fetching high revenues all along. This makes it stand out in a great way as the best selling formulated medicinal cannabis product in the state of Pennsylvania.

The current state of affairs

Zelira Therapeutics Ltd is a product of the merger between Ilera Therapeutics LLC and Zelda Therapeutics Limited. Zelda Therapeutics is a biopharmaceutical company based in Australia, whereas Ilera Therapeutics is a cannabinoid and medicinal cannabis company in Pennsylvania.

Reports indicate that these two companies will benefit from having direct access to the US, which is undoubtedly the biggest medicinal cannabis market globally.

The other thing about the US is the fact that it has over four million registered patients, and this spells out the presence of a huge market for products. This is not the only market these companies have access to. There are other markets in the United Kingdom, Germany, and Australia.

Analysts have applauded this merger, outlining that it is all about fostering a long-term supply and distribution relationship. A lot of people are now resorting to cannabis products for their general wellness needs, and there is a need to ensure they access enough of the pharmaceutical-grade medicinal cannabis. Companies are competing to develop wide-ranging products to supply large populations, and this is resulting in the development of top quality products.

Zelira says it has plans underway to unveil its global strategy in Louisiana. If all moves according to plan, it will have accomplished this by its first-quarter of 2020.

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