2018 was a monumental year for C21 Investments (CXXI.C).
After acquiring a tonne of subsidiaries in Oregon and Nevada over the past few months, C21 learned in November it was awarded a CBD licence in Ukraine.
So, after a quiet first half of the year, and a frenetic second half of the year, here’s a rundown of the company’s achievements in 2018 (and a little of what’s to come for C21 in 2019):
C21 announced it was de-listing its common shares from the TSX-V and listing on the CSE under the trading symbol CXXI.
C21 announced it planned to acquire Phantom Farms in Oregon. Established in 2008, Phantom Farms is a “Clean Green Certified” cannabis company that has products in almost 200 dispensaries throughout Oregon.
C21 announced it was expanding in Oregon by acquiring three new dispensaries, with one location in Portland and two in Salem.
The two Salem locations operate under the name 7 Leaf, which are a 1,250 square foot location and 2,000 square foot location. The Portland location operates under the name Pure Green Dispensary, which is a 3,000 square foot retail dispensary located in the Hollywood neighbourhood of Portland.
In July, the company expanded operations again by acquiring Swell Companies, a cannabis extraction and consumer packaged goods company. In Oregon alone, Swell sold more than 500,000 product units in 2017.
Consumption of cannabis concentrates, such as vapes and edibles, saw a 49% increase in 2018. This segment is quickly becoming the most significant component in cannabis consumption and with the support of C21, Swell will have the necessary resources to further expand its extraction and manufacturing capabilities to new markets.
— Swell CEO Alleh Lindquist
C21 expanded again by acquiring Silver State Relief. The acquisition was one of the largest investments in the US cannabis industry by any Canadian pubco.
The Silver State transaction is the first transaction in a larger plan by C21 to significantly expand cultivation, processing, wholesale distribution of branded products and retail operations throughout the State of Nevada. The Silver State Nevada partnership will establish C21’s competitive position in the Nevada market. C21’s investment and expansion of Silver State’s operations will generate new high-quality jobs and economic development within the State of Nevada.
C21 announced it had been listed on the Frankfurt Stock Exchange under the ticker C6QP.
“Our listing on the FSE will expand our profile internationally, and make it easier for European investors to participate in our rapid growth,” said CEO Robert Cheney.
We look forward to receiving our U.S. ticker symbol and making it easier for American investors to trade our stock.
— Robert Cheney
Finalizing the nuts and bolts of its deal with Phantom Farms, C21 announced it entered into definitive agreements for the acquisition.
Phantom Farms has outdoor cannabis cultivation facilities totalling 80,000 square feet plus an additional 40,000 square feet under development in Southern Oregon. In addition, they operate a 5,600-square foot facility which includes a wholesale distribution warehouse and an extraction laboratory, plus a 7,700 square foot state of the art indoor grow facility in Central Oregon.
C21 announced it entered into definitive agreements for the acquisition of Pure Green in Portland, Oregon. Pure Green is a 3,000 square foot retail dispensary located along Portland’s “Green Mile” which caters to medical and recreational users.
C21 announced it entered into definitive agreements for the acquisition of Swell. Swell is an extraction, manufacturer and distributor of THC and CBD products in Oregon.
Swell is C21 Investment’s 4th U.S. operation within its asset portfolio to sign a definitive agreement. Acquiring Swell fulfills a critical segment in the Company’s expansion strategy making C21 Investments a leading force in processing and manufacturing in the United States.
— Robert Cheney.
C21 was granted the first CBD licence ever issued in Ukraine. The company will be allowed to import CBD to produce consumer products, such as edibles and other products. C21 has also opened an office in Kyiv.
This is a significant opportunity for us to build a new industry, create new high-quality jobs and to leverage the competitive advantages of Ukraine to access the EU and global markets. C21 team is in the process of applying for additional licences, including for the cultivation of both hemp and cannabis.
— Robert Cheney.
With all that upward movement, what’s in store for 2019? Expansion.
C21 is “aggressively pursuing acquisitions in California, Colorado and New Mexico,” according to their website.
So, C21’s stock price is in the value basket right now and their market cap is at $32 million. They’ve been expanding and then expanding and then expanding. After acquiring multiple US operations, they went out and got a CBD licence in Ukraine, and CEO Cheney told the Canadian Securities Exchange’s Anna Serin California is next on the expansion hit list.
With all of C21’s movement, expansion, and acquisition, this may be a time of opportunity for investors.
Full Disclosure: C21 Investments is an Equity Guru marketing client.