LeafLink Archives - Green Market Report

StaffDecember 10, 2020
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 Cannabis wholesale marketplace operator LeafLink has closed on a $40 million Series C investment round, led by Founders Fund. Additional participants include Thrive Capital, Nosara Capital, and Lerer Hippeau. This company said that this latest round of investment brings its venture funding to over $90 million and marks Founders Fund’s largest technology investment in the cannabis space.

The proceeds will be used to expand in current markets by bringing on new brands and retailers, as well as capitalizing on new markets that legalized cannabis following the 2020 election. LeafLink said it will also continue to expand its offerings around payments, delivery, and data & analytics.

“This fundraising round is monumental for a technology company like LeafLink as we continue to define a space that shows no signs of slowing down,” said Ryan G. Smith, Co-founder and CEO of LeafLink. “We’re honored to partner with Founders Fund as we scale our marketplace technology across the growing cannabis industry. Our eyes are set on bringing efficiency and innovation to the supply chain and we’re excited for cannabis to serve as a model for more legacy industries in the future.”  

With the latest round of funding, LeafLink said it will continue to accelerate growth beyond its current $3 Billion of annualized Gross Merchandise Value (GMV).  LeafLink’s marketplace makes up an estimated 32% of U.S. wholesale cannabis commerce. Currently, LeafLink serves 27 markets across the U.S. and Canada with offices in New York City, Los Angeles, and Toronto.

“We invested in LeafLink because the team is merging best practices from e-commerce marketplaces with B2B technology to streamline an entire industry’s supply chain and operations,” said Napoleon Ta, Partner at Founders Fund. “We’re excited to make our largest investment in the cannabis space to date in LeafLink.”

LeafLink’s fundraising is notable since it is a private company. According to Viridian Capital Advisors, most of the cannabis capital that has been raised in 2020 has come from publicly traded companies. Of the 280 deals happening so far in 2020, only 49 have been private company raises, while the other 231 have come from public companies.

 


StaffNovember 25, 2020
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Predictions for 2020
Headset

Headset forecasts an even larger than usual uptick in recreational cannabis sales on Green Wednesday this year for several reasons:

–  In all adult use cannabis states tracked by Headset, the total market has grown by at least 20% in total revenue over last year (when comparing October 2019 to October 2020).

– During the COVID-19 pandemic we have seen significant changes in consumer behavior. In March and April 2020, when many states were enforcing stay-at-home orders, the cannabis market saw a decrease in total transaction volume, but a significant increase in average basket size. This makes sense because customers were likely trying to minimize their trips to the dispensary, so they bought more per trip.Through the summer and into Autumn, average baskets have stayed significantly higher than they were pre-COVID, but transaction volume has crept back up to nearly the same level it was at in February. These two trends combined indicate a ‘new normal’ in the cannabis industry driving the highest monthly revenue totals since the beginning of the legal sales.
– Additionally, with many states reinstating COVID-19 lockdown measures, and advising against travel and social get togethers, Thanksgiving 2020 will be unlike any in living memory. With millions of Americans being asked to stay at home for the holiday, frankly, what else is there to do?
– Edibles have performed well throughout the COVID-19 pandemic. That along with their usual strong sales lifts during the holiday season leads us to predict Edibles and Beverages to again be the categories with the biggest sales lifts on Green Wednesday this year. Both product formats are conducive to indoor consumption (for those that don’t want to smoke or vape in their homes), and THC infused Beverages are often associated with celebration, as they are increasingly seen as a substitute for alcoholic beverages.
Akerna

“On average, Thanksgiving tends to be one of the Top 5 sales holidays of the year, and we expect that trend to continue this year,” said James Ahrendt, Business Intelligence Architect, Akerna (NASDAQ: KERN). “In the past, we’ve seen huge spikes in sales on Wednesday and Friday since most dispensaries are closed on Thursdays.”

Akerna anticipates that the average order total will be around $82.30 for adult-use customers and $128.46 for medical consumers, representing an increase of approximately $13 compared to the average order total on any other given day of the year.

Additional Thanksgiving Holiday Predictions:

Sales by product type:

  • Flower – 42%

  • Cartridge/Pens – 37%

  • Concentrates – 11%

  • Infused Edibles – 8%

  • Other – 2%

Sales by Gender

  • Male – 64%

  • Female – 36%

Sales by age group:

  • Under 30 – 28%

  • 30-40 –30%

  • 40-50 – 19%

  • 50-60 –12%

  • Over 60 – 11%

LeafLink
The cannabis industry, as measured by cumulative wholesale transaction volume growth through the LeafLink marketplace, increased by 40% between the start of the pandemic in March and October 2020. Overall, cumulative wholesale transaction volume is up 60% through the end of October compared to the start of the year, and we expect the growth trend to remain healthy through the end of the year. – Alex Feldman, General Manager of LeafLink Insights

Julie AitchesonNovember 18, 2020
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Though April 20th takes the top prize in cannabis sales year after year, Green Wednesday (Black Friday’s cannabis counterpart) has come in a strong second place since its inception in 2016, and 2020 looks to be no different. As a result of clever moves by retailers to offset pandemic-related impacts on buying behavior, starting deals and discounts earlier in the season than ever before, and tailoring the shopping experience to customer health and safety concerns, Green Wednesday sales for 2020 are poised to hit an all-time high. 

A November 16th press release from the National Retailers Federation and Prosper Insights and Analytics cited the results of an annual survey which showed that shoppers are getting an earlier start on purchasing for the upcoming holidays. According to the survey, 59 percent of holiday shoppers had already started making purchases as of early November– a 21 percent increase over figures from ten years ago. Despite the Covid crisis, consumers seem to feel confident in the efforts retailers are making to keep them Covid-free, with 70 percent saying they feel safe shopping in stores. One such safety measure includes stocking shelves with gift items earlier in the season and offering special deals to avoid overcrowding as the season progresses.

Deliveries Increase

Eaze, a cannabis delivery platform in California, posted new data showing that Green Wednesday 2019 saw a 90 percent increase in deliveries over a typical Wednesday and a 147% increase in deliveries over the previous year. Cannabis data and analytics provider Headset posted a comparison of Green Wednesday and Black Friday sales from 2019 on its blog, which showed record Green Wednesday sales, although savings lagged behind Black Friday bargains. The study attributes this to bigger discounts and lower average item prices on Black Friday.

Retailers hit hard and early with special deals and holiday gift packages to tempt those seeking to spread some cheer this holiday season and they’re not letting up as the week of Thanksgiving approaches. Beyond the standard pre-rolls, tinctures, and vape paraphernalia, companies like Her Highness, a lifestyle brand based in New York City, offer 25% off gift items like the Grindzilla Cannabis Grinder and the Lip Service Ashtray (shaped like, you guessed it, lips) while Indiana brand Cannabolish is promoting its products with a 30 percent Green Wednesday deal featuring its popular Odor Removing sprays and gels and candles to make sure cinnamon and pine are the only top notes in your holiday home. 

Caliva is also offering a variety of deals on products that will help you survive the season – whether that be teaching grandma how to get on zoom (again) or kickstarting your metabolism for the big Thanksgiving feast. On Green Wednesday (11/25) Caliva is offering up to 40% off select top brands: Caliva, DELI Nickels, Plus Gummies, KIVA, and more! On Black Friday the company said customers will receive an extra deal when they pay through Hypur, the first digital payment solution for cannabis transactions. The promotion will be available through Caliva delivery online and all Caliva / DELI retail stores.

Top Selling Products

Chart provided by Headset

According to LeafLink, a B2B e-commerce wholesale marketplace that connects retailers and brands, in 2019, sales through LeafLink increased by 5.45% during the two weeks leading up to Green Wednesday and the Thanksgiving holiday weekend. What products were the most popular as retailers stocked up for the holiday weekend? Flower was the most popular product category at the time, making up 31.2% of the market share in the week leading up to Thanksgiving. However, Disposable Cartridges and Pre-Rolls experienced the biggest sales lifts, seeing a 29% increase and a 44% increase, respectively.

Here are the top 5 selling Pre-Rolls of 2020, according to LeafLink List:

  • Caviar Joint from Kaviar (CO)
  • Mini Fuzzies from Sublime, CA
  • Wedding Cake Pre-Rolls from Pacific Stone, CA
  • Relax & Chill Pre-Rolls from Exotic Blendz, OR
  • Bubble Joints from the Flower COllective, CO

So whether you go for some fancy swag, all-natural home care products, or perhaps a cozy fireside read like Bong Appetit (a weed cookbook from the editors of Munchies), there are ample ways to cross some friends and family off of your shopping list this year. If consumer behavior and favorable legislation continue on their current trajectory and retailers keep ably adapting to these uncertain times, Green Wednesday could give Black Friday and Cyber Monday some serious competition when the sales numbers come through for 2020.


Debra BorchardtJuly 31, 2020
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Oklahoma has essentially been shunned by the largest multi-state operators (MSO’s) in the country. Most legal states tend to have a handful of MSO’s who plant their flags and make a big showing. Cresco Labs in Illinois or Trulieve in Florida and great examples of this. However, Oklahoma is a massively fractured market when it comes to ownership and the jury is out on whether it’s a good idea or not.

Oklahoma’s Market Size

Medical marijuana was legalized in Oklahoma through a ballot referendum in 2018. The state looked like it was on track to move forward for full legalization, but that has been delayed by the pandemic. The state has been on a licensing frenzy with over 7,000 businesses approved. 

Oklahoma is now forecast to make it to the top ten list of states for per capita spending on cannabis. The per capita spending as per a recent ArcView/BDSA report showed Oklahoma at $90.40 in 2019 spending and that is projected to grow to $226.40 by 2025. 

The state recorded $365 million in sales in 2019, the first full year, and that number is estimated to grow to $950 million by 2025. That will be even bigger than Pennsylvania’s estimated $770 million in 2025. The legit market took 30% away from the illicit market almost immediately. 

These numbers would seem to be enough to entice a big MSO to head to the Sooner State, but that hasn’t happened. According to Cannabiz Media, 6,088 license holders only have one license, while 619 held multiple licenses. There are none of the familiar names in the top 25 license holders list. 

Everyone Gets A License

One of the biggest differences for Oklahoma’s program is the liberal approach to licensing and the low 4% tax rate. Unlike the millions of dollars that it costs in most states to procure a cannabis license. it only costs $2500 to get a license in this state. A refreshing difference, but as one unnamed cultivation vendor put it, “I expect to see my products for sale in two years on CraigsList or eBay.” 

The state has registered 5.8% of the population for medical marijuana patient cards. That is expected to grow to 10% in 2025. By comparison, Nevada only registered 1.2% and Oregon was at 2.5% in 2014 at its peak. With no qualifying conditions, doctors are free to recommend medical marijuana for any reason they deem fit. Like other states, many of these patients are actually recreational users and if full legalization happens, they are likely to drop their medical cards.

Producers Paradise

The numerous dispensaries though are great for brands. Oklahoma is home to the second most dispensaries per capita, which equals 15.6 dispensaries per 100,000 residents. A new report from Verilife wrote, “It’s interesting to note that while Oklahoma has the most marijuana dispensaries per capita, it has generated the least amount of tax revenue from cannabis out of all the states where marijuana is legal. The state is home to nearly 600 dispensaries but generated only $70,000 from marijuana in 2018.”

According to LeafLink, Smokiez Edibles is the number one brand in the state. The brand also sells its products in California, Washington, and Oregon and comes from a California-based privately-held company called LoudPack Inc. This quiet brand has been amassing numerous awards for its quality and quickly looked to the state as a place to dominate. 

Top Oklahoma Brands on LeafLink in 2020 – 7/29/20

  • Smokiez Edibles
  • US Cannabis Pharma
  • Pharmicated
  • Cartel Oil Co
  • Sublime Brands OK

Top Oklahoma Products on LeafLink in 2020

  • Maui Waui Outdoor Flower from Argent Cannabis
  • KIMBO KUSH from Happy Hour Medicinals
  • Sublime 100mg Caramel Chew from Sublime Brands OK
  • Multi-Piece Watermelon 250mg Sweet Fruit Chews from Smokiez Edibles
  • 500mg GANJA GUMMIES from CANNA BASICS

Colorado-based edible brand 1906 said it was choosing to enter into the Oklahoma market in lieu of California and Oregon, due to the state’s burgeoning cannabis scene within its major cities such as Tulsa, Oklahoma City, and Norman. The brand is aiming to become not only the largest edibles company in Oklahoma but west of the Rocky Mountains. The promise Oklahoma holds is the brand’s first foray into becoming the market leader in the emerging region.

1906 CEO Peter Barsoom said, “Oklahoma is the most “free market” of medical and adult use markets with low barriers to entry for patients and business owners. As a result, you have a vibrant market with one of the highest per capita patient counts, competitive prices, and high accessibility (lots of dispensaries). Which had translated into one of the largest medical marijuana markets.”

He added, “The financial success of MSOs is dependent on regulatory arbitrage. Keeping competition out, prices high, and vertical integration requirements. So if those are the requisites of success for an MSO, Oklahoma is not an attractive market. The business model of most MSOs is dependent on a supply-constrained large arbitrage between the cost to cultivate cannabis and the cost the consumer/patient pays.” 


StaffJuly 22, 2020
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Cannabis wholesale marketplace, LeafLink announced that its cannabis supply chain financing arm LeafLink Financial has closed a $250 million senior secured credit facility with a private commercial lender. The company said that the capital will be used to provide liquidity directly to licensed businesses. 

“We are excited to announce this milestone – it’s a huge leap forward for the cannabis industry, and marks a major advancement in the way LeafLink is able to serve and support our community,” said Doug Gordon, EVP and Head of LeafLink Financial. “As the cannabis industry’s wholesale marketplace, we are in the ideal position to support our customers with the liquidity they need to efficiently run their businesses, and closing this facility allows us to accomplish just that.”

The cannabis industry has always struggled with access to capital due to the legal nature of the product. LeafLink Financial said it is able to offer an on-demand liquidity option for the $2.8 billion in orders placed annually on LeafLink’s wholesale marketplace, which represents an estimated 30% of all US wholesale cannabis. 

LeafLink Financial is LeafLink’s proprietary digital supply chain financing product. Customers that assign invoices to LeafLink Financial, brands and distributors can rely on upfront payments, broadly extend net terms to their retail customers, receive payment via ACH, and digitally reconcile invoices. The company said that retailers benefit from access to the flexibility of net terms, centralized accounts payable, and cash flow management tools. 

 


Anne-Marie FischerOctober 2, 2019
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As the platform that processes 21% of all wholesale orders of cannabis products in the U.S., LeafLink had gotten a birds-eye view of the preferences and spending habits of cannabis retailers, allowing them to compile insightful data into one source. 

The United States of Cannabis is a new data source developed by LeafLink, which is the largest online marketplace for wholesale cannabis in the country. Using the information about the wholesale orders placed by 3,800+ retailers in 12 states, The United States of Cannabis presents comprehensive information about who’s buying what in the legal cannabis states. 

Suzannah Rubinstein, Director of Marketing for LeafLink calls their concept and platform “the industry standard of connecting wholesale orders”, where the platform serves as a connection between retailers and manufacturers for regulated cannabis products. “We process $1.4 billion in orders placed annually through the marketplace,” states Rubinstein.

This intel, achieved through tracking wholesale orders state-by-state, has allowed LeafLink to gain insights about who’s buying what, and why, in 12 legal cannabis states, as presented in the interactive cannabis map entitled The United States of Cannabis.

Most Favorite Products

Here are some of the best selling products according to the platform with some surprises:

  • California – Dosist Bliss Vape Pen
  • Colorado – Wana Sour Gummies
  • Washington – Happy Apple Beverage
  • Oregon – Winberry Farms – Tropical Trainwreck cartridge
  • Nevada – District Edibles – Tropical Punch
  • Michigan – Platinum Vape – Alien OG
  • Pennsylvania – Vireo Health – Red Cartridge
  • Arizona – Timeless Vapes – Lemon Faderade
  • Alaska – Red Run Cannabis Company – Hashade

Here are some overall insights that The United States of Cannabis reveals:

  • There are 18 product types on the LeafLink marketplace, but three main categories account for 67% of total sales in the country: Flower, Cartridges, and Edibles, yet these product categories differ distinctly state-by-state;
  • Every market that was tracked by LeafLink has a distinct cannabis identity, that can be viewed state-by-state;
  • In newly legalized cannabis states, there is less product and brand diversity; newer states’ packaging and marketing are more “medical” in look and feel, while states with a long-established legal market are more diverse in products available, and in branding.

“Our data shows that in states with more maturity, there is greater product diversification,” says Rubinstein, “Where there’s product diversification, it means that people are experimenting with different methods of consumption.”

The United States of Cannabis allows users to examine state-by-state marketplaces, to see what product types, and what products reign supreme. Here are a few examples of legal states and what LeafLink uncovered:

  • In Colorado, the longest-established legal cannabis market, the top 3 product categories are cartridges, concentrates, and disposable vapes, with pre-rolls rising up as the fastest-growing category;
  • In Pennsylvania, one of the newer medical cannabis states, the top 3 product categories are cartridges, edibles, and flower, with flower being the fastest growing product category in the state;
  • In Alaska, the top product categories are cartridges, concentrates, and vapes, with concentrates being the fastest growing product category;
  • In Michigan, a new recreational cannabis state, the top product categories are cartridges, flowers, and edibles, with cartridges being the fastest growing product category for that state;

In addition to top product categories and fastest-growing product categories, the United States of Cannabis contains information on the biggest brands, product superlatives, most unique products, and even the state flower and producer.

LeafLink’s wholesale marketplace is unique in that each state has a closed marketplace. Retailers access only the products and brands that are available in their state, across 24 different markets. “This allows in-state communities to be built,” says Rubenstein, “Brands are able to promote products in-state directly to retailers,” she says, which helps quite a bit when marketing and advertising regulations are so tight in every state.

Emerging brands can use each state’s distinct cannabis identity to find niche markets and new opportunities to create products in product categories they know people of different states are interested in. 

More about the LeafLink platform can be found at https://leaflink.com/

 


William SumnerAugust 7, 2019
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It’s time for your Daily Hit of cannabis financial news for August 7, 2019.

On the Site

LeafLink

Online cannabis wholesale marketplace, LeafLink announced the completion of a $35M Series B round of funding. The round was led by Thrive Capital. Current investors Nosara Capital, Lerer Hippeau, Wisdom VC, and Thought Into Action Ventures also participated in the round alongside L2 Ventures.

Columbia Care

Columbia Care Inc. (NEO: CCHW) (OTCQX: CCHWF) reported financial results for its second quarter ending June 30, 2019, with revenue increasing 102% to $19.3 million and 50% sequentially. The net losses grew to $33.7 million versus $4.2 million for the same time period in the previous year. The company blamed the losses on the “recognition of listing fee and share-based compensation expense, as well as higher operating expenses related to the company’s expansion in both new and existing markets.”

The Green Organic Dutchman

The Green Organic Dutchman Holdings Ltd. (TGOD)  (TSX: TGOD) (US: TGODF) has submitted an application to list its common shares on the NASDAQ according to a statement from the company. “This is an important step in the growth of TGOD, one that will broaden our investor base and increase access for international investors as we build the leading global organic cannabis brand”, commented Brian Athaide, CEO of TGOD.

Guest Post: The Legal Status of CBD Oil in Italy

The issue of legalisation of cannabis and its derived products has been under discussion for decades in Italy. However, with each passing year, the legal status of cannabis and CBD products only gets murkier.

In Other News

Pasha Brands

Pasha Brands Ltd. (CSE: CRFT) (OTC:CRFTF) (FSE:ZZD) announced that it has secured eligibility from the Depository Trust Company (DTC) to list its shares on the OTC Markets. “We are very pleased to have obtained DTC eligibility,” said Patrick Brauckmann , Executive Chairman of Pasha Brands. “This status will make the process of trading our stock in the United States much easier. We expect that this will make our shares available to a larger percentage of the investment market, which should improve the liquidity of our shares and therefore benefit Pasha and our shareholders.”

GW Pharmaceuticals

After the market close yesterday, GW Pharmaceuticals (NASDAQ: GWPH) announced that it has released its financial results for the second quarter, ending on June 30, 2019. Revenue for the quarter was $72 million, the vast majority of which was generated from sales of CBD-based drug Epidiolex ($68.4 million). Net income was $79.7 million, up from a net loss of $84 million in the same period of the previous year. “We are pleased to report a strong second quarter of sales of Epidiolex in the US, reflecting high demand by US patients, increased prescribing by healthcare providers, and ongoing progress in payor coverage determinations,” said GW CEO Justin Gover. “In Europe, we are pleased to have recently received the positive opinion from the CHMP which clears the way for an expected approval in October.”

CV Sciences

CV Sciences, Inc. (OTCQB:CVSI) announced the release of its financial results for the second quarter, ending on June 30, 2019. Revenue for the quarter was $16.9 million, representing an increase of 36% over the same period in the previous year. The gross margin improved slightly, rising from 70.8% to 70.9%. Operating income was $1.3 million. “We remain highly confident in the long-term growth of hemp-based CBD and will continue to lead the industry in quality, innovation and both regulatory adherence and support as the market develops,” commented CV Sciences CEO Joseph Dowling.


StaffAugust 7, 2019
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Online cannabis wholesale marketplace, LeafLink announced the completion of a $35M Series B round of funding. The round was led by Thrive Capital. Current investors Nosara Capital, Lerer Hippeau, Wisdom VC, and Thought Into Action Ventures also participated in the round alongside L2 Ventures.

LeafLink has changed the way cannabis retailers work with product manufacturers. It used to be that dispensary owners would have to contact as many as 50 different companies to make orders and track shipments. Now they can do it online with an e-commerce marketplace. The company was launched in 2016 and since then has processed more than $1 billion in annualized orders through its marketplace. This means approximately 16% of all the wholesale cannabis orders are happening on LeafLink.

Proceeds To Be Used For Expansion

With the additional funding, LeafLink said it will accelerate its expansion roadmap while enhancing its marketplace technology. The company has begun a massive recruiting effort for new members across all teams and in both their New York and Los Angeles offices.

In addition to expanding the company’s core product and its footprint, LeafLink will be focused on scaling LeafLink Financial, which provides licensed retailers and brands with a safe, compliant, payment and credit management solution. The service is currently live in four US states and is LeafLink’s answer to industry-wide challenges caused by the lack of financial services in the cannabis space.

“We are excited to announce this huge capital milestone and our partnership with some of the most prolific venture capitalists in technology. This funding speaks not only to the incredible growth of our company and the value we provide to our client base but also to the professionalization of the cannabis industry at large,” said Ryan G. Smith, Co-founder, and CEO of LeafLink. “Two years ago, we welcomed Lerer Hippeau to the cannabis industry in our seed round, and we are proud to now welcome Thrive Capital to the space through their investment in LeafLink. We look forward to solidifying our place as a leader in this rapidly evolving industry by bringing the best products and solutions to the LeafLink community and beyond.”

The company said that retailers use LeafLink to order inventory from multiple brands in one cart, view up-to-date brand menus, review orders, request samples, and discover new products. LeafLink further serves vendors with tools such as order management, customer relationship management (CRM), inventory tracking, and customized reporting.

Since 2016, LeafLink has expanded its network to connect more than 1,200 licensed cannabis brands to over 3,500 cannabis retailers across 22 territories in the U.S. and Canada. In most markets, four out of five cannabis retailers order inventory through LeafLink.

“As some form of cannabis use is now legal in 33 states, it is essential to build professional tools that provide the same operational support, financing, compliance, and ease of use found in other industries,” said Jared Weinstein of Thrive Capital. “LeafLink is setting a new standard for the cannabis industry to expand responsibly and we are excited to support their development.”


William SumnerJune 26, 2019

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The cannabis e-commerce platform LeafLink has achieved an auspicious milestone. Earlier this month, the company announced that it had reached $1 billion in annualized orders through its platform.

LeafLink is a software-as-a-service B2B marketplace that aims to simplify the cannabis supply chain. Using the platform, cannabis brands and retailers can manage wholesale inventory, review orders, shop vendors, and more. First launched in 2016, LeafLink connects over 3,000 cannabis retailers to more than 1,000 cannabis brands spanning across 20 territories in both the United States and Canada.

The company now accounts for approximately 16% of all B2B wholesale cannabis orders in the United States, which is remarkable when compared to the broader consumer market. Currently, B2C e-commerce accounts for only 9.6% of all retail sales in the U.S., and it has taken more than a decade for it to reach those heights. LeafLink, on the other hand, has only been in operation for the last three years.

According to the company, its most popular products are typically vaporizer cartridges, although its overall top-selling product is sour gummy edibles made by Wana Brands, followed by pre-rolls produced by Pacific Stone.

Hoping to deepen its market penetration, the company is working with Canopy Rivers (TSXV: RIV) to bring its e-commerce platforms to international retailers. Dubbed LeafLink Services International (LeafLink International), the company will offer non-US marketplaces a royalty-free license for their proprietary B2B software platforms and service solutions. Under their agreement, LeafLink has made an initial $1 million investment, while Canopy Rivers has committed an initial equity investment of $2 million, with an option to incrementally increase that investment to $6 million.

“We are excited to join forces with Canopy Rivers – combining our industry-leading, B2B marketplace technology with their expertise and strategic network in the global cannabis market,” said Ryan G. Smith, CEO, and Co-founder of LeafLink, in a statement. “Together, we are creating the first seamless e-commerce experience across the global cannabis supply chain to further empower members of the LeafLink community.”

 

 


StaffJune 14, 2019
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Doug Gordon, Executive Vice President and Head of LeafLink Financial, is a recognized leader and innovator with more than 10 years of experience in the financial technology sector. He is an expert at utilizing analytics and technology to create specialized products that meet the capital needs of various asset classes.  Since joining the LeafLink team in October 2018, Doug has overseen the development and implementation of a specialized payment and credit management platform that allows cannabis brands and retailers to transact through the LeafLink marketplace.

Prior to LeafLink, Doug co-founded and served as the Executive Vice President of Fundation, a leading small business digital lender backed by the likes of Garrison Investment Group, Goldman Sachs, and Sun Trust Bank. Fundation provides businesses with loans and lines of credit through partnerships with banks, B2B vendors, and online platforms. As Executive Vice President, Doug was directly responsible for driving the company’s growth efforts through large scale strategic partnerships and product innovations while publicly representing Fundation in the media and at industry events.

Doug studied Neuroscience and Economics at Bucknell University. 

 

Green Market Report Executive Spotlight Q&A:

Full birth name: Doug Gordon

Title: Executive Vice President & Head of LeafLink Financial

Company: LeafLink (https://leaflink.com/)

Time at current company: 8 months

Education profile:

Doug studied Neuroscience and Economics at Bucknell University.

Most successful professional accomplishment before cannabis: Doug co-founded Fundation as an undergraduate at Bucknell University and served as the company’s Executive Vice President for over 8 years as it grew to be one of the leading small business digital lenders backed by the likes of Garrison Investment Group, Goldman Sachs, and SunTrust Bank. Fundation provides businesses with loans and lines of credit through integrated partnerships with banks, B2B vendors, and online platforms. To this day, Fundation powers the small business lending programs of major banks and vendors throughout the country.

Company Mission: As the cannabis industry’s wholesale marketplace, LeafLink’s mission is to provide solutions that define how compliant cannabis companies do business.

Company’s most successful achievement: This week we announced that $1B in wholesale cannabis orders are placed through the LeafLink marketplace every year. This is a huge milestone for us because it means that we’re facilitating around 16% of all the wholesale cannabis commerce in the U.S., and making business easier for over 1,000 cannabis brands and 3,000 cannabis retailers.

Has the company raised any capital (yes or no): Yes

if so, how much?: We’ve raised $14M in venture capital to date. In March we also announced the launch of LeafLink International, a joint venture with Canopy Rivers bringing LeafLink’s technology to global cannabis markets. The deal came with a $2M investment from them.

Any plans on raising capital in the future?

We’re growing quickly and will continue to explore interesting deals with strategic partners that allow us to scale, like the deal with Canopy Rivers.

Most important company 5 year goal:

In 5 years, we will have digitized and streamlined the cannabis supply chain in every viable, legal cannabis market in the world. This includes providing tech-first payment and supply chain financing tools that enable cannabis companies to operate successful businesses.

 

 


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