The news keeps coming at Lifestyle Delivery Systems (LDS.C), as the announcements of the past week involving their deal for extraction tech from Quality Resources has been followed by today’s info drop, that they have their first white label cannabis oil order.
Lifestyle Delivery Systems Inc. affiliate, CSPA Group Inc., has received an open purchase order for 300 litres of high-quality distillate per month through to December, 2018.
There’s no price information in the news release, so how much CSPA will make out of it, and how much LDS will make as a result, is not known.
But what we do know, from looking at cannabis oil wholesale prices in California, is that $7,000 per litre is what the independent Home Depot gift card-financed garage-based garbage operators are charging. Primo CBD slushee is going for $10-12k per litre wholesale.
So even if we assume the worst, that the LDS crew are getting bottom dollar for their product, that would put CSPA’s monthly revenue at around $2.1 million on the low end, or over $12m over the remainder of the year.
CSPA will supply the biomass and the processing for the extraction and distillation. The finished high-grade distillate will be capable of filling up to 300,000 one-gram vape pen cartridges.
Lifestyles’ chief executive officer, Brad Eckenweiler, stated: “This purchase order emphasizes the acceptability in the market for a dependable, high-quality white label producer. A producer capable of supplying established brands with the highest-quality finished material and allowing those brands to focus their resources on marketing and building their brand with the assurance that they have the highest-quality ingredients.” The company will continue its development of processes and product lines as well as building its white label business.
Sing it, Brad.
— Chris Parry
FULL DISCLOSURE: LDS is an Equity.Guru marketing client