Cannabis Strategic Ventures Inc. (OTC: NUGS) is an emerging leader in the U.S. cannabis marketplace as a publicly traded cannabis
cultivator. The company is based in Los Angeles, with a 6-acre cannabis farm in Northern California called NUGS Farm North. The company’s vision is to acquire and scale assets in the legal cannabis market while achieving efficiencies through economies of scale and vertical integration.
Cannabis Strategic Ventures recently expanded its portfolio by completing the transfer process for cultivation, retail, distribution and manufacturing licenses issued by the City of Los Angeles and the State of California, and it is now working toward taking operational control of each license. The company also recently announced the upcoming grand opening of its cannabis dispensary,
MDRN Tree. Following that launch, Cannabis Strategic Ventures intends to deploy another of its new licenses to establish an indoor cultivation facility with capacity to produce two to three pounds of premium exotic cannabis flower per light per harvest. The facility will have up to 1,200 grow lights and is anticipated to yield 5.75 harvests per year, bringing it to a total production capacity of over 15,000 pounds of cannabis flower annually.
Brand Portfolio
The company owns multiple brands under the Cannabis Strategic Ventures umbrella. The firm’s NUGS brand provides operational and financial strategic partnerships and a range of essential services to emerging and existing cannabis consumer brands.
The NUGS Farm North brand operates as a six-and-a-half-acre cannabis cultivation property located in northern California. The company believes that the key to success in its business is consistent quality and reliable supply to fit growing consumer demand. Cannabis Strategic Ventures addressed these consumer needs by building NUGS Farm North. At NUGS Farm North, the company’s
process is customized, and its product is consistent. Located in the heart of an agricultural mecca for globally distributed produce, NUGS Farm North finds power in its product, not in its size. Decades of agricultural experience and a dedication to consistency ensure quality cannabis.
MDRN Tree is Cannabis Strategic Ventures’ customer-facing dispensary brand. MDRN Tree will open its first Los Angeles location sometime in the fall of 2021. MDRN Tree will be the company’s factory retail store – a direct interface with the end-market community – where Cannabis Strategic Ventures plans on showcasing the cannabis flower produced at its NUGS Farm
North cultivation site. This farm-to-sale model offers the potential to drive simultaneous gains in quality control and profitability.
Investment Considerations
- Cannabis Strategic Ventures’ 2020 revenue jumped 517% year-over-year to $14.6 million.
- 2020 revenues from cannabis sales were $14.1 million, up 975% compared to fiscal 2019.
- The company’s gross profit spiked 483% year-over-year, reaching $2.78 million in 2020, while gross margins held steady at about 20 percent.
- Cannabis Strategic Ventures will launch its first Los Angeles dispensary in Q4 2021.
- The company will open an indoor cultivation facility with capacity to produce up to 15,000 pounds of premium cannabis flower annually.
Recent Coverage
420 with CNW - Cannabis Flower Still Rules US Market, But Dominance Is Waning
February 18, 2022 4:20 PM
Flower is the largest category for cannabis products on the U.S. cannabis market. However, its influence is slowly waning as the shift in demand for adult-use products grows.
Recent sales figures from Headset, a research institute based in Oregon, reveal that the prices for flower are dropping in Colorado, California, Michigan, Oregon, Nevada and Washington state. Data shows that the price per gram of flower dropped in the six states by 14%. In January, the flower fetched around $6.78 per gram, dropping to $5.82 in December. The market share in those six states grew from about $5 billion in 2020 to almost $5.5 billion in 2021.
Sector players such as Cannabis Strategic Ventures Inc. (OTC: NUGS) are aware of these changes in customer preferences, and the industry is seeing a burst of innovation aimed at addressing those evolving customer needs.
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