- Marijuana Company of America Inc. has returned to its roots with a joint venture to launch a cannabis delivery service targeted at California’s recreational market
- Market researchers predict that California’s cannabis sales will hit $5.1 billion this year and $7.7 billion by 2022
- MCOA’s year-end financial report noted an increase of 840 percent in annual revenues, thanks primarily to the company’s proprietary hempSMART brand
Marijuana Company of America Inc. (OTCQB: MCOA) is solidifying its position as an innovative pioneer in the cannabis industry as it forms a strategy for new growth and celebrates significant revenue gains over the past year.
Marijuana Company of America has long developed a presence in the hemp-derived product market, edifying a framework of cannabidiol (CBD) cultivation and distribution opportunities primarily through its proprietary hempSMART brand. However, as legislative and industry opportunities open up, MCOA is re-establishing its root identity as the Marijuana Company of America, as exemplified by its recent acquisition of a 20 percent interest in a licensed manufacturer, distributor and retail delivery service for volatile cannabis products in California (http://cnw.fm/8zoNC).
“We have aspirations of becoming a major distributor, delivery service and manufacture in California,” MCOA CEO Don Steinberg stated in announcing the agreement with Natural Plant Extract of California (“NPE”).
Together, the companies aim to form a premier cannabis delivery company named ‘Viva Buds’, which will serve as the marketing arm for the new retail cannabis delivery service launched by NPE subsidiary Northern Lights Distribution in California. The joint venture is expected to begin with Los Angeles-area distribution before extending to other parts of the state.
A year into California’s legalization of recreational marijuana use, more than half of the municipalities in the state still did not have laws governing the industry entering 2019 (http://cnw.fm/8JzjU), and regulatory differences between the state’s varied municipalities have stymied efforts to legally deliver cannabis products to some areas, although a contested court ruling in January opened the way for companies to bypass local limitations (http://cnw.fm/X2hon).
Analysts with plant industry advisory firm Cannabis Business Plan predict that California’s cannabis market will reach yearly revenues of $7.7 billion by 2022, with 61.5 percent of the overall market driven by recreational-use marijuana (http://cnw.fm/t4HR3), while BDS Analytics researchers forecast California cannabis sales of $5.1 billion this year (http://cnw.fm/yOk1j).
The Viva Buds rollout follows on the heels of MCOA’s financial successes in 2018. The company recorded an 840 percent year-over-year increase in total revenues, rising from $26,830 to $252,135 (http://cnw.fm/3vKSH). Its gross profit for 2018 increased from a 47 percent gross margin to a 68 percent gross margin, while the company’s net loss from operations decreased by 82 percent from the prior year.
“Our financial results were better than many other cannabis public companies in our sector, which are still in the development stage and not yet producing revenue,” CFO Jesus Quintero stated in the news release. “Marijuana Company of America, through our hempSMART brand, has experienced a dramatic increase in sales, most of which occurred in fourth quarter. This trend is continuing to grow in first and second quarter of 2019. We think our shareholders are going to be very satisfied with the execution of our highly aggressive growth and restructuring plans in 2019.”
CEO Don Steinberg added that the company expects to complete the acquisition of a California marijuana manufacturing and distribution license shortly, which could allow Marijuana Company of America to capture additional market share.
For more information, visit the company’s website at www.MarijuanaCompanyofAmerica.com
NOTE TO INVESTORS: The latest news and updates relating to MCOA are available in the company’s newsroom at http://cnw.fm/MCOA
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