Visionstate’s (VIS.V) subsidiary Freedom Cannabis entered into a joint venture to add an extraction services revenue stream.
The new JV will be called Cannabis Tolling Solutions, and the company will add extractions to the list of verticals, which include production, retail, packaging, in the vape market.
“We are excited to collaborate with CTS to deepen our vertical integration, broaden our product range into extraction solutions, and create exciting new revenue streams with experienced, innovative and award-winning partners,” said John Frank Potestio, chief executive officer of Freedom Cannabis.
The curious thing is that Visionstate isn’t a weed company. They’re a tech company involved in R&D surrounding Internet of Things, big data, analytics and sustainability. They help businesses optimize efficiencies, reduce costs and make their customers happier through devices that monitor guest activities and requests.
So what’s Visionstate doing getting involved in a cannabis JV?
They’re an investor and partner in Freedom Cannabis. They have four million shares of the private company and is working with them to install IoT tech to monitor growing conditions. They’ve brought in Andrew Freedman, who’s well known in the space as an author and cannabis expert and apparently an international reputation as a “cannabis sommelier” for his pairing of cannabis, beer, cocktails, wine and gastronomy. He also has a podcast called ‘Beers with Buds.’
Freedom Cannabis anticipates extracting revenue as they position themselves as a vertically integrated cannabis producer and in January they pulled down $1 million in retail sales in Canada’s largest market. Month over month sales have grown, with December of last year showing a 45% increase over the month prior.
“Vertically integrated cannabis producers are becoming the leaders in this industry,” said Visionstate CEO John Putters. “With diverse revenue streams serving several different sectors of the market, these companies are showing that they can be sustainable and show significant revenue growth.”
According to Grand View Research Inc., the value of the market for extracts globally is expected to reach $27-billion (U.S.) by 2027 based on increased consumer demand and the application of the product in medical research.
—Joseph Morton