Next Green Wave Holdings Inc (CSE:NGW) (OTCQB:NXGWF) told investors Monday that its acquisition of SD Cannabis Ventures LLC and its investment in Organic Medical Growth is set to drive revenues in 2019 and help with the execution of its distribution and product development in California.
Next Green Wave continues to ride an expansion wave in California, announcing earlier this month that it has reached an agreement to acquire SD Cannabis, a California-based cannabis brand and consumer-product leader, for C$27 million.
SDC is a premium cannabis consumer-goods, manufacturing and extraction leader with eight leading cannabis brands and 45 cannabidiol and tetrahydrocannabinol products.
In an update to investors Monday, CEO Leigh Hughes said the Vancouver cannabis company is already integrating SDC’s eight brands and 45 THC and CBD products, as well as taking on its extraction and manufacturing team. Next Green Wave is also working on moving ahead with integrations efforts required for its recently-completed 35,000 square foot processing Facility A, which is still awaiting final occupancy approval.
"This is a very exciting but important time for Next Green Wave as we now enter the execution phase of our wider strategy of being a premium producer of high quality downstream products into the California market," said Hughes in a statement. "Our recent acquisition of SDC fast tracks our vision to be a powerhouse in consumer products goods in cannabis, and the whole combined team is focused on activating operations, generating revenue through sale of our first products, and establishing our distribution network."
SDC specializes in developing extraction and manufacturing methods that focus on maintaining the quality and natural benefits of cannabis.
The team is made up of brand building, cannabis consumer product goods, manufacturing and extraction professionals, that have decades of experience in cannabis in California.
SDC has a selection of exclusive licensing relationships with a range of brand partners that cater to the entire cannabis user market, including pets, in California and other parts of the world.
In the coming months, the new brand partner product lines will be introduced in California and online in the US. The brand partners include Carey Hart, Loki the Wolf Dog, King Louie, Sketchy Tank, Junkyard LA, SD Cannabis and Thorn St. Beer.
Next Green Wave cements deal with Organic Medical Growth to enter Colombia
Also this month, the Vancouver company signed a definitive agreement for a strategic investment in Organic Medical Growth OMG3 INC, a Montreal company whose wholly-owned Colombian unit, Proymed SAS, produces non-psychoactive cannabidiol products.
Next Green Wave will now buy two million shares of Organic Medical Growth at C$0.25 per share for C$500,000, under a subscription agreement.
In Monday’s update, Hughes said the closing of the company’s investment and strategic partnership with Organic Medical Growth would widen its distribution channel to over 7,000 pharmacies in Colombia. Hughes also noted that next Green Wave would take steps to make sure OMG’s nursery, cultivation and extraction techniques are of a high standard. This year, Next Green wave will provide a range of products to be sold via Organic Medical Growth’s distribution channels.
Headquartered in Vancouver, Next Green Wave is a medicinal and recreational cannabis company operating in California. Construction of the company's first indoor facility (35,000sf) is complete and nearing production and the company has acquired a seed library of over 120 cannabis strains.
Contact Ellen Kelleher at [email protected]