Blinc Group Archives - Green Market Report

Video StaffVideo StaffMay 3, 2021

1min7770

This year’s New York City annual cannabis parade brought out a who’s who of New York politicians and activists. Senator Chuck Schumer told the Green Market Report that he and Senator Booker will be introducing legalization legislation in a few weeks. In addition to Schumer, NY Attorney General Tish James spoke about social equity, Steve DeAngelo reminisced about his first NYC cannabis parade when he was 17. Vlad Bautista from Happy Munkey spoke for legacy operators, Tonya Osbourne represented cannabis women, Grizzzly BoCourt spoke on behalf of social equity applicants and Blinc CEO Arnaud Dumas de Rauly voiced his excitement over the soon to be legal market in New York. Thank you for watching the Green Market Report! Be sure to subscribe to stay up to date.


Julie AitchesonJulie AitchesonJune 11, 2020
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6min14130

The summer of 2019 pales in comparison to the turmoil of pretty much every month of 2020 thus far, but was still notable for at least one high-profile public health crisis. August 2019 saw a noted rise in vaping-related illnesses. The vaping crisis prompted the Food and Drug Administration to initiate comprehensive laboratory testing and ongoing investigations of cases in order to regulate the use of vaping products.

Vape sales for key states hit a high of $160 million in August 2019 according to the new State of Legal Cannabis report by Arcview and BDSA. By September, those sales dropped to $126 million.  Once it was determined that illegal manufacturers were the root of the problem, branded vape sales started to slowly recover. Fourth-quarter 2019 sales still showed signs of decline, but in December sales picked up by 11%.

States and the vaping industry are still waiting on concrete federal guidelines, and in the meantime, many manufacturers of vaping hardware and associated products are downsizing or disbanding due to the one-two punch of the vape crisis and Covid-19. 

Blinc Remains Resilient

There is at least one hopeful story on the vape industry horizon, however, and that is the resilient growth and success of The Blinc Group. The Blinc Group’s business model is built on a tripartite foundation of innovation, quality, and safety, and it seems to be working. Where many companies suffered lethal blows from the vape crisis and Covid-19, The Blinc Group has maintained a focus on expansion and upgrading their facilities to improve safety standards. I recently had the opportunity to speak with Arnaud Dumas du Rauly, CEO of The Blinc Group. 

Arnaud Dumas du Rauly is also the ISO (International Organization for Standardization) Chairman of Standards on Vaping Products and the Chairman of the European Commission on Standards on Vaping Products. In other words, The Blinc Group is serious about safety. This focus led to slower initial growth and higher product pricing than the industry standard, but with earnings for 2020 already matching earnings for all of 2019, The Blinc Group is seeing a major return on its investment. 

During our interview, du Rauly spoke passionately about emissions, one of the industry’s primary safety issues. Because oils can undergo a change of state when they are vaporized, it is not possible to fully assess the potential toxicity of a product without testing emissions, typically using something called a “puffer machine”. This type of testing is not yet required in the U.S., but du Rauly is evangelical about its importance, not just for his company but industry-wide.

When the Covid-19 crisis hit and customers became more health-conscious in their buying behavior, The Blinc Group found itself in high demand with its start-to-finish supply chain control, a ten-year relationship with manufacturing facilities in China (which enabled them to keep their production on track as Covid-19 peaked there), and components that are ISO and GMP (Good Manufacturing Practice) compliant. It also allowed them to consolidate a position in the Canadian market, which is a highly regulated environment that few vaping product manufacturers in the U.S. are prepared to navigate. 

Arnaud Dumas du Rauly admits that research has not yet caught up with the cannabis industry in terms of product safety, but in his own words, “the DNA of the company is making sure that safe products get out there.” The Blinc Group’s current trajectory suggests that success is also part of their genetic makeup.

 


Debra BorchardtDebra BorchardtFebruary 11, 2020
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5min15120

2019 proved to be a challenging year for the companies tied to vape products. Now it looks as if there could be strength in numbers as TILT Holdings Inc. (CSE: TILT) (OTCQB: TLLTF) and its vape subsidiary Jupiter Research, LLC  has partnered with vape device company The Blinc Group, LLC.

“Jupiter has always taken pride in being at the forefront of innovation,” said Mark Scatterday, interim CEO at TILT and Founder/CEO of Jupiter.  “As the market continues to grow we are excited to announce our partnership with The Blinc Group, enabling bespoke solutions for our clients and leveraging their expertise when it comes to vaporization regulatory and legal compliance legislation.” Just a few weeks ago, TILT was given DTC clearance to trade on the OTCQB Venture Market using the symbol TLLTF.

The Blinc Group makes proprietary cannabis vaping solutions for MSOs and focuses on control of the entire value chain from R&D to product design, to compliance and manufacturing at ISO and cGMP certified facilities with oversight by Blinc’s China-based quality control team.  Blinc’s Co-Founder and CEO Arnaud Dumas de Rauly said, “We look forward to working closely with Jupiter and bringing additional value and expertise to their extensive network of clients,” said Mr. Dumas de Rauly. “I am excited to see what the future of cannabis vaping landscape holds when two companies like Jupiter and Blinc work closely together to help shape the new standards and set an example for regulatory compliance as a whole.”

TILT acquired Jupiter Research at the beginning of 2019 in a deal valued at $210 million. At that time Founder Bob Crompton said, “Jupiter Research’s monthly sales continue to increase 15 percent month over month, and we already have US$28M of booked orders going into Q1. The opportunity to combine the synergies of the TILT portfolio of companies is expected to add to our rapid growth.”

For the quarter ending in September 2019 which was reported in November 2019, Jupiter accounted for $32 million in revenue and for the nine months ending in September it was $92 million.  It is the largest segment of the TILT Holdings family.

Stock Plunge

Like other cannabis stocks, TILT has seen its shares in the market. It was lately trading at 24 cents on the OTC and 31 cents on the CSE. Canaccord Analyst Bobby Burleson has continued to believe in the company even though he lowered his price target to C$1.50, which seems overly optimistic in hindsight. He wrote, “We believe TILT’s Q3/19 earnings result reflects solid execution of management’s strategy to enhance profitability and grow the company’s core businesses. While we are trimming our near-term estimates on vape related headwinds, with a shored up balance sheet and overall profitability driven by the company’s Massachusetts wholesale business, we continue to expect strong growth and enhanced profitability next year.”

Looking ahead to 202o, the company is focusing on expanding its Jupiter brand and the software company Blackbird. Scatterday said in a recent letter to shareholders, “While 2019 was a challenging year for public companies in our industry, l am encouraged and reassured knowing that we have such a strong and supportive group of people working together with us and toward the same goals.”


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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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