This amount is a tally from the company’s Nevada and Oregon operations with gross margins estimated at 60%.
This latest news is just one part of C21’s much bigger success story.
For example, these numbers don’t factor in their acquisition of Swell Companies, which is expected to close in late April.
When the acquisition of Swell Companies closes, C21 will have 140,000 square feet of both indoor and outdoor cultivation space, with another 165,000 square feet for cultivation, extraction and wholesale distribution for THC and CBD products.
The processing capacity of Swell’s Portland facility is 5,000 pounds of raw material a month, and the numbers translate to between 220,000 and 270,000 grams of processed high-quality oil-based extracts a month.
Its in-house brand is Dab Society Extracts and Hood Oil, dealing in raw oil, encapsulates and vaporizers.
C21’s investments pay off
We’ve been covering C21’s acquisitions for months and watching as the market only took tepid interest, if it any at all. Meanwhile, C21 kept plugging away, adding dispensaries and building out farms.
- Successful track record
- Experienced management team
- Indoor and outdoor cultivation operations
- Processing and extraction facilities, bakeries
- Other branded products and dispensaries with large distribution networks.
They built-out in Oregon and moved into Nevada, snapping up Silver State Relief for USD$39 million and 12.5 million common shares on closing.
That’s a pretty good deal figuring Silver State brings in $39 million in revenue, and C21 had a $50 million market cap at the time.
They’re presently at $136 million, currently growing, and it’s still a good deal.
Some of C21’s other 2018 acquisitions in Oregon include:
The company also acquired first mover status overseas in Ukraine back in December, gaining access to the E.U. where multiple member states have already legalized CBD. This was before the passage of the farm bill made the U.S. CBD market even more viable.
This E.U. is a market with a combined population of over 700 million people, which is twice as populous as the U.S. and represents a substantial potential for market return.
Then this happened: SP has increased 159% since December.
It’s nice when hard work pays off.
“Since February 19, we’ve traded over 12 million shares at prices over $1.55. So we’re certainly creating a new level of investor interest. Everything we do is focused on creating value for our shareholders and investors on a long term basis. We don’t try to titillate the Twitter-universe with news releases that we can’t deliver on,” said Robert Cheney, CEO of C21 Investments.
Sounds like good business sense.
Here’s Robert Cheney on Midas Letter to take us out.
C21 Investments is currently trading at $2.03 has 62,995,780 issued and outstanding shares.
Full disclosure: C21 Investments is an Equity.Guru marketing client.