To accomplish this, LDS is teaming with Rise Logistics to expand distribution of Reveur products in California, the largest and cannabis market in the US.
LDS has overcome a number of challenges to reach this point, dealing with more than the usual fare of logistical and regulatory hoops required to get the product to market since they went public several years ago. Machines for production have shown up broken, rules have changed several times, and recent regulatory rule changes demanded the production line be retooled before the product could be released.
Despite these impediments, the company has nailed down its agreement with Rise, a subsidiary of DionyMeds Brands (DYME.C).
“Rise Logistics is a well-established distribution company in California and our agreement will certainly strengthen the Reveur business model. The company’s entire product line will be available to dispensaries throughout California beginning this month from Rise Logistics, strengthening one of Reveur’s major objectives to supply its products through legal, fully licensed and regulatory compliant distribution,” said Reveur’s chief executive officer, Kelly Christopherson.
One of the larger issues LDS dealt with in 2018 on the path to distribution included the fact that 90 percent of California’s weed supply entering the year was covered in pesticides. Getting around this problem led them to a discovery that they could extract the impurities from the oil without ruining the oil, and this led to increased and improved Cannastrip production.
Here is CEO Brad Eckenweiler with the details on extraction:
The next step came in February, when they initially launched Rêveur, which was called “a new luxury brand of cannabis products for the California market,” by LDS.
The company test marketed the product in California retail stores, and has now set production projections for 15,000 grams of Rêveur live resin products in February, promising deliveries to targeted California retailers.
Rêveur deals mainly in oil extracts and distillates, with the company now focusing on production for CannaStrips – LDS’s breath strip delivery system for cannabinoids.
Rêveur is also the primary reason for LDS’s recent financial windfall. On November 7, LDS reported revenues of $1,171,380 thanks to sales of extracted distillate and white label distillate production.
“The distribution agreement with Reveur aligns with DionyMed’s strategy of supporting the growth and expansion of leading brands in the growing legal cannabis market in California. We are excited to be working with Reveur Corp. and leveraging our industry-leading platform to support the success of their product lines,” said Peter Hilliard, CEO and executive vice-president of DionyMeds Brands.
LDS says it will continue to develop its product lines as well as build its white-label business and contract manufacturing capabilities.
Full disclosure: Lifestyle Delivery Systems is an Equity Guru marketing client.