Golden Leaf's April revenue at $1.02-million (U.S.)
2016-05-17 08:49 ET - News Release
Shares issued 94,540,673
Mr. Don Robinson reports
GOLDEN LEAF HOLDINGS LTD ANNOUNCES UPDATE ON DETAILS OF EXTRACTS AND EDIBLE SALES IN OREGON AND APRIL SALES REVENUE
Golden Leaf Holdings Ltd. is providing an update to its shareholders on the status of the rollout of the early-start program in Oregon that allows for sales of cannabis-infused edibles and extracts. Golden Leaf Holdings will be able to sell single containers of its Golden and Proper brand extracts, effective June 2, 2016. The sales will be allowed in the Oregon Health Authority-regulated (OHA) medical dispensaries until the Oregon Liquor Control Commission (OLCC) implements the recreational or adult-use program in fourth quarter 2016.
The early-start program has allowed Oregonians to purchase recreational marijuana flower since Oct. 1, 2015; however, extracts and edibles were not initially included in the early-start program. Industry leaders have long asserted that edibles and extracts should be included in the early-start program for public safety reasons as well as for the tax benefits law enforcement and other public services would receive from the additional tax allocations.
Given new regulatory requirements relating to edibles production and the recreational market, GLH's edible strategy is temporarily delayed due to regulatory change. The company is in the process of developing a plan for launching edibles into the recreational market that will be compliant with the recently announced OHA and Oregon Department of Agriculture rules.
By some estimates, the extracts and edibles sectors make up between 25 per cent to 40 per cent of the total Oregon market, numbers consistent with both Washington and Colorado. In Oregon this conservatively represents between $100-million (U.S.) to $175-million (U.S.) in the regulated market.
Update on April sales revenue
GLH generated $1,021,000 (U.S.) in unaudited revenue for the month of April, 2016, as compared with $843,000 (U.S.) in March, 2016, representing a month-over-month increase of 21 per cent. These revenues were notable considering that the company was unable to produce and sell extracts to dispensaries for almost half the month of April.
Chief executive officer Don Robinson stated: "We are pleased with the April results considering the regulatory challenges we faced. It is expected that we will continue to see positive momentum when the early-start program kicks off in June. It's a tremendous development for the industry and for the citizens of the state of Oregon. The legislators partnered closely with the industry to develop the legislation to make this happen. This makes complete and total sense and we cannot wait to get started.
"Now that the regulatory dust is settling, we are going to hit the market strong, utilizing our formidable arsenal of extractor and refinement equipment, and extraction experts."
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