Chemesis International (CSI.C), a relative newcomer in the cannabis space, recently announced the signing of a new marketing deal with Dank City.
Dank City is a veteran cannabis marketing firm with over 100 million followers across its network of cannabis social media pages on Facebook, Twitter, Snapchat and Instagram.
Chemesis has made significant progress in the Puerto Rican and Californian legal marijuana markets this year in addition to key branding wins like its recently announced Jay and Silent Bob line of cannabis products for sale in the United States.
However, even with the company’s extensive portfolio and growing number of accretive acquisitions, it faces a mammoth challenge in marketing due to regulatory restrictions and social bias.
Advertising your weed or weed-related product in the U.S. is a tricky business. Much of the regulation varies from state to state and the threat of federal prosecution has made many traditional advertisers wary of carrying cannabis advertising at all.
This is why cannabis sector participants are turning to innovate digital marketing firms like Dank City.
Founded in 2012, Dank City offers a fully integrated set of marketing services to cannabis industry participants ranging from social media management to e-commerce and web development.
The online one-stop cannabis marketing shop also has a subscription box (Daily High Club) which claims to reach over 15,000 customers every month, a cannabis magazine (Chronic Journal) and a platform for cannabis content creators (The Weedtube).
According to the deal, Dank City will come on board for one year to provide advertising services for Chemesis.
Pursuant to the agreement, Chemesis will hand over USD$125,000 in company shares to Dank City valued at CAD$1.63 per share.
All shares issued in the deal are subject to a 36-month lock-up period.
Chemesis CEO, Edgar Montero, was eager to describe the importance of Dank City’s partnership:
“Chemesis believes this partnership with Dank City and their worldwide reach will not only generate significant interest in Jay and Silent Bob’s Private Stash, but Chemesis’s other affiliated brands. Dank City has built a media firm that has the ability to effectively target the U.S. cannabis consumer base. As Chemesis continues its growth, this vital partnership will allow the Company to quickly reach cannabis consumers with our expanding product catalogue.”
Tony Golian, Dank City CEO, affirmed Montero’s thoughts:
“We’re excited to be working with Chemesis on the launch of Jay and Silent Bobs Private Stash,” said Tony Golian, CEO of Dank City. “This marks another significant milestone for Dank City as we continue to work with the biggest brands in Cannabis.”
It seems that Chemesis has earned itself another success by pairing the company’s lucrative portfolio with an online marketing giant like Dank City.
Dank City’s reach and reputation with the weed-buying public could very well give Chemesis the visibility it needs to propel the company forward and make its branding a household name.
Shares in Chemesis dropped 11 cents this morning to settle at $1.50 per share.
Currently the company has 64,552,044 issued and outstanding shares with a market cap of $101.1 million.
–Gaalen Engen
If you are looking to do a little more research on Chemesis, Equity Guru’s own Chris Parry sat down recently with Edgar Montero to get an inside look at the company and what it intended to accomplish in 2019. Have a listen!
Full Disclosure: Chemesis International is an Equity.Guru marketing client.