Our conservative boots-on-the-ground analysis estimates our cannabis sales to exceed the $5 million revenue threshold next year.
LOS ANGELES, Dec. 04, 2019 (GLOBE NEWSWIRE) — via NetworkWire – Cannabis Strategic Ventures (OTCQB:NUGS), an emerging leader in the U.S. cannabis marketplace, is pleased to provide shareholders with production and financial performance expectations for year-end through the Company’s 2020 fiscal year based on a quantitative analysis of resources, capacity, and harvest timelines for NUGS FARM, the company’s flagship cannabis cultivation farm.
“2019 was transformative for Cannabis Strategic Ventures,” commented Simon Yu, CEO, Cannabis Strategic Ventures. “We are excited for our progress in laying the foundation for our transition into a significantly expanded scale of operational output and hope that our stakeholders are pleased with our forward momentum.”
Cannabis Strategic Ventures recently reported fiscal Q2 sales above $700K (for quarter-ended Sept. 30, 2019), representing more than 1,300% growth on a quarterly year-over-year basis. Based on expanded resources and capacity, the Company now projects sales in excess of $1 million through year-end 2019. Furthermore, the Company expects revenues during 2020 will exceed a minimum of $5 million.
These projections are derived from a conservative analysis of the Company’s production capacity and the timing of planned harvests. Cannabis Strategic Ventures currently owns and operates 275,000 square feet of premium cannabis cultivation capacity, which is capable of yielding 178,750 square feet of canopy flower space. According to industry standard assumptions, the company expects at least four harvests per year with each square foot generally assumed to yield 30-50 grams of cannabis flower. Based on these industry assumptions, the cultivation capacity has the potential to yield an annual harvest volume of between 21.5 million to 35.8 million grams.
With a market rate of $2-$3 per gram of cannabis, fully constructed and optimized facilities, ideal environmental conditions and operating execution, Cannabis Strategic Ventures has an upside potential to drive well in excess of $50 million in total cannabis sales per year. Accordingly, the Company is currently projecting a baseline expectation of a minimum of $5 million in 2020 revenues from cannabis cultivation.
Yu added, “Our conservative boots-on-the-ground analysis estimates our cannabis sales to exceed the $5 million revenue threshold next year. We will have more precise performance guidance for investors before the end of calendar Q1 2020.”
The Company also notes that the carry-on impact of this accelerating production level will sharply reduce cash burn over the next four quarters, leading to a base-line projection of operational profitability over the intermediate-term horizon.
About Cannabis Strategic Ventures
Cannabis Strategic Ventures Inc. (OTC: NUGS) is one of the largest publicly traded marijuana cultivators in the United States. The Company is Los Angeles-based that incubates, develops and partners with category leaders within the cannabis and ancillary sectors. The Firm’s NUGS brand experience provides operational and financial strategic partnerships and a range of essential services to emerging and existing Cannabis consumer brands.
For more information, visit http://www.CannabisStrategic.com
FORWARD-LOOKING STATEMENTS: This release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements also may be included in other publicly available documents issued by the Company and in oral statements made by our officers and representatives from time to time. These forward-looking statements are intended to provide management’s current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid. They can be identified by the use of words such as “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “would,” “could,” “will” and other words of similar meaning in connection with a discussion of future operating or financial performance.
Examples of forward-looking statements include, among others, statements relating to future sales, earnings, cash flows, results of operations, uses of cash and other measures of financial performance.
Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and other factors that may cause the Company’s actual results and financial condition to differ materially from those expressed or implied in the forward-looking statements. Such risks, uncertainties and other factors include, among others such as, but not limited to economic conditions, changes in the laws or regulations, demand for products and services of the company, the effects of competition and other factors that could cause actual results to differ materially from those projected or represented in the forward-looking statements. Any forward-looking information provided in this release should be considered with these factors in mind. We assume no obligation to update any forward-looking statements contained in this report.