The US cannabis market has been growing significantly in recent years, as more and more states move to legalize recreational cannabis. It’s not surprising if you consider how much money marijuana sales are bringing in. California brought in an estimated $2.75 billion in legal recreational marijuana sales since 2012, while Washington and Oregon pulled in $975 million and $500 million, respectively, since becoming legal. It makes sense, then, why Vancouver-based cannabis investment company Chemistree Technology Inc. (CSE:CHM) (OTCQB:CHMJF) is focusing on establishing itself south of the border.
Chemistree has been making strategic purchases in cannabis-friendly states to establish a first-mover advantage in the growing US cannabis marketplace. The company purchased the reputable Washington-based Sugarleaf brand in 2018 for $1 million USD and has since begun expanding it into California.
Let’s take a look at Chemistree’s premium cannabis brand, the company’s cultivation expansion plans, and why its highly experienced management team will lead the company to success.
Expanding its Premium Cannabis Brand into New Markets
When Chemistree acquired Sugarleaf, the brand was already well-established in Washington state with over 50 dispensaries selling its 18 different strains. But Chemistree has its eye on growing the brand significantly this year.
Its expansion plan for Sugarleaf includes increasing the brand’s presence in over 100 stores by the end of 2019. CHM has also been working to double the size of its 5,000 square foot Washington-based facility this year to increase output and support new product offerings, which will include oils, extracts, and edibles.
Chemistree quickly moved to become a multi-state operator (MSO) by establishing the Sugarleaf brand in California through a strategic collaboration with a cannabis processing company in Humboldt County.
Chemistree has also been granted a conditional use permit by the City of Desert Hot Springs for its 9.55-acre property, which has two huge greenhouses that total 128,000 square feet and includes an additional 40,000 square foot facility for the processing, manufacturing, and distribution of cannabis goods. A facility of that magnitude would be capable of producing approximately 50,000 pounds of cannabis flower per year once fully developed.
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Leveraging Its Experienced Management Team
Apart from expanding its operations and brand presence, Chemistree has also been working to strengthen its management team. The company already boasted a highly-skilled management team with an impeccable track record and decades of experience under its belt, yet CHM has continued to add industry experts to its roster.
Most recently, Chemistree added Sheldon Aberman as its Chief Cannabis Officer. Aberman, who has a well-earned reputation as one of the leading experts on commercial cannabis cultivation, brings over 15 years of experience in managing and designing thousands of grows worldwide to the team.
Before that, CHM added industry expert Nicholas J. Zitelli to its board of directors. Zitelli, who writes under the pen name “Nico Escondido,” is currently part-owner, director, and Chief Cannabis Officer of Trans High Corporation (THC), the parent company for High Times’ 45-year-old flagship magazine, the Cannabis Cup, and other related media and event platforms.
Since 2007, Zitelli authored hundreds of articles covering cannabis science and technology, offering expertise in cultivation, genetics, lab testing, garden technologies, as well as regulatory and compliance measures. He is also the founder and CEO of a well-established research and development institute, the Cannabis Genetics Institute (CGI) in Amsterdam.
Chemistree’s President and CEO Karl Kottmeier also offers over 25 years of experience that will aid the company in its goals. He has directly raised more than $150 million in equity capital for global development projects throughout his career and has a track record for building growth companies.
Investors who are interested in the cannabis space will definitely want to keep an eye on Chemistree’s continued expansion and how it will allow the company to increase Sugarleaf’s brand presence.
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