Adam JacksonApril 27, 2023
The company has been able to capitalize on its early entry into Vermont.
SLANG Worldwide Inc. Archives - Green Market Report
Adam JacksonApril 27, 2023
Debra BorchardtNovember 16, 2021
SLANG Worldwide Inc. (CNSX: SLNG) (OTCQB: SLGWF) announced the departure of several top executives and a new financing deal with Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) along with two existing significant shareholders, Pura Vida Investments and Seventh Avenue Investments for $17.3 million.
Executive Overhaul
Slang’s CEO Chris Driessen has resigned and Drew McManigle has been appointed interim CEO and Chairman. McManigle also succeeds Peter Miller as Chairman of the Board and while Miller remains a director of the Company. Driessen has been with the company since its early days as the Organa Vape brand, which commanded a big market share in Colorado in the early days of adult-use sales. McManigle is the Founder and Chief Executive Officer of MACCO Restructuring Group, LLC and he plans on tapping Macco’s resources for rapid strategic reviews and business plan implementation.
In addition to those changes, Driessen, Chris Donnelly, Kelly Ehler, Keith Stein, and Robert Verdun have all resigned from the Board, effective immediately.
“I’m excited about the opportunity to lead SLANG and further develop its established operating platform in the cannabis industry. My focus is on assuring SLANG is both operating efficiently and profitably capitalizing on new growth opportunities” said interim CEO and Chairman Drew McManigle. “Our top priority is the evolution of SLANG and its strategic positioning. The concurrent financing round represents a vote of confidence from a leading industry partner, Trulieve, and two of our largest shareholders, Pura Vida and Seventh Avenue.”
Downsizing Oregon
Slang also decided to reduce its Oregon operations and will consolidate production to its Colorado facility. Thus, Slang is pivoting its strategic agenda and focusing on its core markets of Colorado and Vermont. McManigle is said to lead the company to success by leveraging its core platform to drive near-term profitability and tactfully guide the company’s long-term strategy in connection with his appointment.
Trulieve Loan
Trulieve, Pura Vida, Seventh Avenue, and other investors will provide SLANG a loan of $17.3 million, which is subject to an original issue discount of 3% and will have a three-year term and a PIK interest rate of 9.75%, compounded quarterly, with the entire outstanding balance, including interest, becoming due and payable on third anniversary of the Loan Transaction . Additionally, SLANG will pay the Lenders an aggregate total amount equal to $3.6 million on the earlier of: (i) the Maturity Date; and (ii) any date of prepayment of the Initial Loan Amount. At least 50% of the loan proceeds will be allocated to the development of operations in Vermont to achieve long-term profitability and further execute strategic growth objectives.
“Our investment in SLANG underscores the success of our strategic partnership, as well as our commitment to providing the trusted and reliable brands our customers rely on,” said Kim Rivers, CEO of Trulieve. “Since beginning our exclusive partnership in Florida, we have been able to bring SLANG to additional markets, expanded into wholesale, and now look forward to continued growth at scale and mutual success as we strive to provide our customers with the highest-quality products and unparalleled experience they can expect at Trulieve.”
StaffNovember 19, 2020
Slang Worldwide Inc. (OTCQB: SLGWF) reported preliminary, unaudited financial results for the third quarter ending September 30, 2020. with revenue rising 73% to $7.9 million. The company said that the primary driver of sequential growth was a rebound in demand in its core markets of Colorado and Oregon, following the COVID-related shutdowns in the second quarter. Similar strength in the company’s emerging markets also contributed to sequential growth, as did the successful launch of new products.
“I am proud of the way our company has responded to the pressures we faced in the first half of the year,” said SLANG President & CEO Chris Driessen. “In the third quarter, we capitalized on rapidly evolving market conditions while also reducing costs, leading to significant improvements in both revenue and EBITDA. I am particularly pleased with how we are tracking in regards to profitability and expect even greater momentum to build in subsequent quarters as our acquisitions close and we begin to recognize both revenue and profit from plant-touching operations.”
Slang also noted that its adjusted EBITDA of $57,000 was positive for the first time since it became a public company and represented an improvement over a loss of $1.6 million in the third quarter of 2019 and a loss of $1.8 million in the second quarter. Cost reductions from streamlining activities at Slang and within the Slang Network have resulted in approximately $10.5 million of annualized cost savings. The company said it expects to file complete financial results for the third quarter of 2020 on the morning of November 30, 2020.
In October, Slang announced a strategic partnership to introduce its branded products in California with Natura. Natura was given an exclusive license to produce and distribute the Slang product suite in California, including its category-leading brands O.penVAPE, Firefly, Pressies, District Edibles, and Bakked. Slang will also provide sales consulting services and will receive royalty payments for each branded product sold in the state.
“California presents the perfect opportunity for us to lean into our emerging markets model. By partnering with a best-in-class operator like Natura, we are confident that we will be positioned for long-term growth and success within the Golden State,” said Driessen. “Our brand District Edibles was at one point the top-selling gummy product in California and represented nearly $2 million dollars per month in retail revenue at its peak. We expect to achieve similar success across all SLANG brands as a result of this new partnership.”
Also in October, Slang launched a new concentrate product called the Gyro. It’s the latest addition to the Bakked product line and is billed as the first spill-proof, gyroscopic container for live resin concentrates used for dabbing. “The Gyro innovates the way that cannabis consumers who prefer to dab transport their extracts. Because the Gyro is always right side up, dabbers never have to worry about spilling their costly extracts. The Gyro is designed to withstand shaking, tossing and even dropping, all without any spills.”
“The Gyro makes dabbing simpler and more convenient so that our customers can enjoy their dabbing experience,” said Driessen. “Full credit goes to the SLANG product team for once again developing an innovative product that is truly unique in the cannabis CPG space. The Gyro marks our third product in the hydrocarbon extract space, with more on the way.”
Kaitlin DomangueFebruary 13, 2020
Its time for your Daily Hit of cannabis financial news for February 13th, 2020.
On the Site
Meet the Weedy Award Finalists
The founder and Editor of WeedWeek, Alex Halperin, has created the Weedy Awards, with winners being announced on February 28th in Hollywood. Awards will be presented in categories like best grow, the most socially responsible company, the best delivery company, the best edibles, and the people’s choice cannabis celebrity.
Aurora Cannabis Stock Slides as Revenue Falls
Canadian-based Aurora Cannabis Inc. (NYSE: ACB) saw its shares falling in early trading after the company said that revenues fell in the second quarter of fiscal 2020 ending December 31, 2019. Aurora reported that its total net revenue reported in Canadian dollars fell 26% sequentially to $56 million in the second quarter from $75 million in the first quarter of 2020. It was higher than the 2018’s second quarter, which delivered net revenue of $54 million.
Neptune Wellness Delivers Solid Quarter as Sales Increase
Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT) announced its financial results for its fiscal third-quarter ending December 31, 2019. Total revenues for Neptune were $9.1 million, a sequential increase of $2.6 million or 41% over the second quarter ended September 30, 2019. This was also an increase of $2.6 million or 40% compared to $6,538 for the three-month period ended December 31, 2018.
In Other News
SLANG Worldwide Partners with Cali Cannabis Cookie Company
SLANG Worldwide Inc. (CNSX: SLNG), leading cannabis consumer packaged goods company, has partnered with Cookies, a leading California-based cannabis brand.
Pursuant to the deal, SLANG will bring Cookies’ products to the Oregon market.
Cresco Labs Expands C-suite
Cresco Labs will name marketer Greg Butler as its first-ever Chief Commercial Officer. Butler has past supported the brand in a CMO capacity, developing the commercial growth strategy for the brand. He has strong plans to develop Cresco’s market in 2020, as well as promoting diversity and social equity in the cannabis space.
AxisWireMay 2, 2019
TORONTO- May 2, 2019 /AxisWire/ SLANG Worldwide Inc. (CNSX: SLNG), (Frankfurt: 84S), (“SLANG” or the “Company”), a leading global cannabis consumer packaged goods company with a robust portfolio of renowned brands distributed across 2,600 stores in 11 US states, is pleased to announce the establishment of its new wellness-focused business division, SLANG Health and Wellness. The new business unit will develop and market a portfolio of plant-based cannabidiol (“CBD”) products that will be distributed in partnership with Greenlane Holdings, Inc. (NASDAQ: GNLN) (“Greenlane”) through their extensive distribution network.
“Consumers are increasingly interested in natural plant-based wellness products, and we’ve only scratched the surface of the opportunity within cannabinoid-supported wellness,” said SLANG CEO Peter Miller. “Health and Wellness represents a new market segment for SLANG and is a natural extension for our portfolio of top selling products across the US and internationally. We expect early sales to be supported by the brand awareness and customer loyalty that we’ve developed within our existing portfolio over many years of innovation and consumer focus.”
SLANG Health and Wellness products will target a rapidly expanding and promising consumer market that is expected to grow from US$591 million in 2018 to US$22 billion by 2022, according to The Brightfield Group. The Company will initially focus on extending SLANG’s existing industry leading portfolio of THC-dominant products into the CBD space and will immediately launch sales of the Company’s best-selling O.penVAPE Reserve brand, to be sold as a half gram hemp-based CBD cartridge.
Reserve CBD products will be distributed in partnership with Greenlane, a leading global distributor of ancillary and hardware products to smoke shops and dispensary channels. Greenlane currently delivers products into over 9,600 brick and mortar retail locations around the world and has a significant e-commerce presence. Greenlane already distributes SLANG’s Firefly vaporizer line and the O.penVAPE battery, and the addition of SLANG’s new CBD products marks the expansion of the two companies’ strategic partnership.
SLANG plans to release additional products and brands throughout 2019 under the SLANG Health and Wellness banner. The Company may also evaluate selective acquisition opportunities to accelerate its growth in the health and wellness space.
About SLANG Worldwide Inc.
SLANG Worldwide Inc. is a leading global cannabis consumer packaged goods company with a robust portfolio of renowned brands distributed across 2,600 stores in 11 US states. The Company is focused on developing and marketing branded cannabis products to meet the needs of cannabis consumers worldwide. SLANG is listed on the Canadian Securities Exchange under the ticker symbol SLNG and on the Frankfurt Stock Exchange under the trading symbol 84S. For more information, please visit www.slangww.com.
About Greenlane Holdings, Inc.
Greenlane is a leading distributor of premium vaporization products and consumption accessories in the United Statesand has a growing presence in Canada. Greenlane’s customers include over 6,600 independent smoke shops and regional retail chain stores, which collectively operate approximately 9,700 retail locations, and hundreds of licensed cannabis cultivators, processors and dispensaries. Greenlane also owns and operates two of the most visited North American direct-to-consumer e-commerce websites in the vaporization products and consumption accessories industry, VaporNation.com and VapeWorld.com, which offer convenient, flexible shopping solutions directly to consumers. Greenlane is developing a unique e-commerce platform, Vapor.com, into which its existing e-commerce websites will be consolidated. Through Greenlane’s expansive North American distribution network and e-commerce presence, Greenlane offers a comprehensive selection of premium vaporizers and parts, cleaning products, grinders and storage containers, pipes, rolling papers and customized lines of premium specialty packaging. Following the passage of The Agriculture Improvement Act of 2018 in February 2019, Greenlane commenced distribution of premium products containing hemp-derived cannabidiol in those states in which the distribution and sale of such products are authorized by, and can be effected in compliance with, applicable state laws and regulations.
Forward-Looking Statements
This news release contains statements that constitute “forward-looking statements.” Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Forward-looking statement in this news release include, but are not limited to, statements regarding the establishment of SLANG Health and Wellness, the development and distribution of CBD products, the growth of the CBD consumer market, the release of additional products and the evaluation of selective acquisition opportunities.
Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management of SLANG at this time, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies that could cause actual results to differ materially from those expressed or implied in such statements. Investors are cautioned not to put undue reliance on forward-looking statements. Applicable risks and uncertainties include, but are not limited to regulatory risks, changes in laws, resolutions and guidelines, market risks, concentration risks, operating history, competition, the risks associated with international and foreign operations and the other risks identified under the headings “Risk Factors” in SLANG’s final long form prospectus dated January 17, 2019 and “Risks and Uncertainties” in the management discussion and analysis for the year ended December 31, 2018, each as filed on SEDAR at www.sedar.com. SLANG is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
For further information: Media inquiries: Media@SLANGworldwide.co; Investor inquiries: Kelly Ehler, Chief Financial Officer, Investors@SLANGworldwide.co / 833.752.6499
William SumnerMarch 11, 2019
SLANG Worldwide Inc. (CNSX: SLNG) is heading to Puerto Rico. Yesterday, the company announced that it has entered into a strategic partnership with Southern Development Holdings (SDH) to sell its branded products to medical cannabis patients in Puerto Rico. As part of the partnership, SDH has been granted an exclusive license to sell SLANG branded products in the province.
“We are excited to bring our high-quality brands to consumers in Puerto Rico and the Latin American market,” said SLANG CEO Peter Miller. “Building global brands requires teamwork. Leveraging partnerships with the highest calibre operators enhances SLANG’s brand share and revenue with impressive scalability.”
Medical cannabis was first legalized in Puerto Rico in 2015 when then-Governor Alejandro Garcia Padilla legalized the substance through executive order. The province recognizes 14 qualifying conditions for medical cannabis; including multiple sclerosis, cancer, and depression.
The market took a major hit in 2017 when Hurricane Maria destroyed much of the island’s infrastructure, but after more than a recovery, some semblance of normalcy has returned.
Although typically not thought of as a major medical cannabis market, Puerto Rico has one of the highest rates of patients per capita in the United States. Out of the province’s 3.3 million population, roughly 59,000 individuals are patients; the majority of which, according to Marijuana Business Daily, are over the age of 55.
Puerto Rico also offers reciprocal access to its 71 dispensaries for visiting patients from other medical cannabis states.
SLANG’s entry into the Puerto Rican market represents the company’s second market expansion this year. Last month, SLANG announced that they would partner with the medical cannabis chain Trulieve Cannabis to offer its products to patients in the state of Florida. SLANG products are now available in 11 U.S. states and 2,600 retail locations.
Under the agreement, SDH will manufacture SLANG products in its GMP certified manufacturing facility. Sales of SLANG products in Puerto Rico are expected to begin in the second quarter of 2019.
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