Sat down with Lifestyle Delivery Systems (LDS.C) CEO Brad Eckenweiler yesterday to hear an update on what’s going down at Casa Cannastrips in California, and the good news for shareholders is, the wait is over.
“The machine is literally on a forklift as we speak being taken off a flatbed – we had to find a 12 ton forklift before we could move it because the thing is heavy, but it’s being put in place now,” said Eckenweiler.
I hesitate to say this, because there have been so many hiccups and sidesteps and delays and bureaucracy along the way, but it appears the long national nightmare that is an absence of Cannastrips in the world is finally nearing an end.
For the uninitiated, Cannastrips are a product four years in the making that are essentially a breath strip delivery system for weed oil. Stick one in your mouth and the product dissolves quickly into your system. Fast delivery, accurate dose, or so the marketing material says.
But the delays in getting here have been problematic.
First, you had a complete pivot of the business model, back two years ago, when it was realized the company as planned would be illegal. Then came a stock slide that made raising money difficult. Then came permits and regulation changes and an upgrade in equipment and a machine showing up broken and more permits and inspections and due diligence and rule changes and… now? The production line needs to be tooled, and product will emerge into stores.
“We’ll start with cartridges first,” says Eckenweiler, “because the strips will take a bit more tweaking as far as the production line, but we expect product on shelves by the end of the month.”
Right now, the company is sourcing material to process into oil, which isn’t easy given their undertaking to be organic.
“90% of the weed in California right now is grown with pesticide,” he says, “So we’ve not only set up our own lab to test product at the source, but we’re also testing it after extraction to be sure no trace elements get through.”
And they’re looking to bring in a third party lab to their campus down the line, so they can process faster.
“We have some very big plans going forward that go well beyond just the strips,” says the CEO, “because we have a terrific relationship with the city of Adelanto, the Mayor is particularly proactive, and they’re very interested in anything that expands the local tax base.”
“We’ll be talking more about that in the weeks and months ahead,” says Eckenweiler, adding, “We’re aware that the road to get to this point has been a long one, and we don’t want shareholder getting fatigued by any future delays, so we’re ensuring that everything is locked and loaded before we talk about what’s coming.”
Under an NDA, Eckenweiler shared a hint of what’s to come, and I’ll only say this… it’s ambitious.
LDS stock currently sits at $0.36, down from as much as $0.67 in July when the company was still in the permitting backlog. The slow process to permitting has hurt the company on the markets, but final inspections are done and the facility is ready for California regulatory rule changes in January.
Add it to your watchlists. LDS has shot high and missed before, but they’ve also somehow got themselves in a place that few others in their region have managed, at exactly the right time, with no shortage of dough in the bank.
— Chris Parry