Weekend Unlimited Inc (CSE:POT) (OTCMKTS:WKULF) CEO Chris Backus published an end-of-year letter to shareholders on Thursday outlining the company’s progress in his first seven months as the head man and putting forth his plans for future revenue generation.
Backus emphasized three “focal points for advancement” for Weekend: branded product growth in the US, an online CBD shop and Northern Lights Organics as a Canadian revenue generator.
In the US, the company launched in Washington State earlier this year and recently established a similar presence in Oklahoma. In six months, Backus said, the company created, developed and launched its WKND! and Orchard Heights branded product lines.
“Being our first state to launch, Weekend Washington had a disciplined ‘crawl-walk-run’ focus on a first phase of growth with the objective of selling into 18 retail stores,” Backus said. “As we move into the new year we will expand into phase 2, which is taking on an additional 32 stores.”
“Through the experiences and lessons learned in Washington and Oklahoma, we have developed a process that will allow for future expansion into other states moving into 2020 and beyond,” he added.
Backus also stressed the importance of taking advantage of online CBD sales in the US and praised his team for a quick turnaround in getting the wkndwellness.com marketplace up and running.
“Bringing this asset to fruition required creating product formulation, design rendering, payment processing and banking all in a very short period of time with very strict regulatory requirements,” Backus said. “This was not an asset in existence or even under consideration six months prior, so I am very proud of my team for their dedication and hard work to bring this to fruition.”
In Canada, the company’s Northern Lights Organics farm in Fort St. James, British Columbia received certified organic status this year and is poised to grow organic hemp at scale in 2020, Backus said.
“We have structured and put in place an operating plan to plant 40-60 acres of organic hemp in 2020 — the plan includes detailed steps to plant, harvest, dry and sell certified organic hemp biomass,” Backus said. “We are also currently exploring the revenue opportunity in both grain and pedigree seed sale.”
According to company estimates, dried biomass yield per acre should fall within the range of 400 kilograms to 580 kilograms, and recent market data shows transactions taking place between $140 and $200 per kilogram.
The CEO ended the letter by addressing a proposed share consolidation, which he argued could bring in new capital investment.
“We are at a very pivotal moment for the Company in which the assets in place can grow exponentially faster with outside capital investment,” Backus concluded. “However, given our current share structure of over 440 million shares outstanding, it becomes very difficult for potential new investors to see a value opportunity over share dilution. We firmly believe that the proposed consolidation of shares will open the door for capital investment that will allow us to achieve revenue and stock growth that would not be possible if we stayed at the status quo.”
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