Yield Growth (BOSS.C) is making good on its promise to strengthen its distribution pipeline.
On Tuesday, Yield Growth announced it is launching same-day deliveries for its Urban Juve product line, and has selected Vancouver as the catalyst city for the new initiative.
Basically, Yield Growth customers in Vancouver will soon be able to get their Urban Juve skin-care products delivered the same day through ParcelPal Technology (PKG.C).
In an official press release, Yield Growth announced that it is partnering with ParcelPal to fulfill same-day and on-demand delivery of its Urban Juve products. Beginning in Vancouver, the same-day distribution network is expected to scale up rapidly to include other Canadian cities.
Track your hemp
ParcelPal is creating an exclusive new category on its platform for Health and Beauty, where Urban Juve goods can be purchased. Orders over $65 that are placed before 3 p.m. will arrive the same day.
Customers can use ParcelPal to track the entire life cycle of their order, from purchase to delivery.
Kelly Abbott, ParcelPal president and CEO, said his company is thrilled to be participating in one of the fastest-growing segments of the marijuana industry.
“This marks a milestone at ParcelPal, launching a new vertical with substantial growth potential. It’s also a unique opportunity to be at the forefront of an exciting new industry with our unique logistics solutions,” Abbott said.
ParcelPal is an interesting company. The on-demand local delivery service provides a mobile application for retail, restaurants and liquor stores that allow customers to shop locally and have their products delivered the same day. The company expanded south of the border in 2018 through a partnership with amazon.com.
Clearly, Yield Growth did its homework.
“ParcelPal is a great service, and our partnership will lay the groundwork for us to eventually offer same-day delivery service for pain management cannabis topicals and other cannabis products in jurisdictions where they’re legal,” Penny Green, Yield Growth CEO, said in a statement.
Tapping into the $4.2 trillion wellness market
Urban Juve offers Yield Growth a strong foothold into one of the fastest-growing segments of the marijuana landscape. CBD and hemp-based products are going mainstream at an even quicker rate than psychoactive THC, and everyone from Tilray (TLRY.Q) to Martha Stewart is jumping in.
The global wellness market was valued at $4.2 trillion in 2017, having grown 12.8% over the previous two years, according to the Global Wellness Institute. The component that Urban Juve serves is worth roughly one-quarter of that total.
Nobody is pretending that hemp-based products represent a sizable portion of the wellness economy, but the market is clearly trending in that direction. The global cannabis industry is expected to reach USD$57 billion by 2027, and the synergies between legalization and mainstream acceptance of hemp-based therapeutics could do wonders for companies like Urban Juve.
Yield Growth stock well off its peak
Shares of Yield Growth declined after the open Tuesday, extending a monthslong slump that has inflicted most of the cannabis industry. The value of BOSS.C was down by about 2.5% and was last seen trading just below CAD$0.29 share.
BOSS.C peaked at $0.63 back in February, three months after commencing trading on the Canadian Stock Exchange.
As a major cannabis player, BOSS.C will likely see greater volatility in the near term as the industry copes with inconsistent regulations, supply shortages and other quandaries.
The great thing about Yield is that it is vertically integrated, has a sound financial position and owns some of the industry’s leading brands. As a choppy penny stock, it could be worth the risk for investors poised on capitalizing on the cannabis boom.
— Sam Bourgi
Full Disclosure: Yield Growth is an equity.guru marketing client.