SLANG Worldwide Inc.
The firm produces a range of vape pens, edibles, beverages, hardware, and flower and it has picked up listings at 2,600 stores across 11 U.S. states. Now it is planning to live up to its name by going international through a deal with Colombia-based Blueberries
It gives Blueberries the exclusive licence to market and distribute SLANG’s diverse portfolio of consumer packaged goods across Colombia and Argentina. The two firms will also join forces to create a number of new products designed specifically for the Latin American cannabis market, which is expected to be worth $28 billion by 2028, according to analysts at research firm Prohibition Partners.
“This partnership represents the jumpstart of our expansion in the rapidly growing Latin American market,” said Peter Miller, chief executive at SLANG. “Blueberries’ unique industry expertise and CPG experience makes them the ideal partner for SLANG as we begin to extend our products beyond North America.”
He promised that his company would continue to seek opportunities to increase its global distribution footprint in future.
The Bogota Savannah
Earlier this year, Blueberries invested $1.5 million purchasing a 37-acre cultivation plot in the Bogota Savannah. It will spend a further $2 million constructing the first phase of a facility there and that project will be complete this year.
Blueberries will then be able to produce 30,000 kg of cannabis per year at this Colombian facility once the first phase is wrapped up. It will then need to raise further cash to complete the build-out, which is expected to yield 68,000 kg on an annualized basis once it is complete.
It has multiple facilities in Colombia, where it benefits from favourable growing conditions and cheap labour. It is targeting the Latin American market and also exports to major economies around the world.
Blueberries believes SLANG’s brands will go down a storm in Colombia and Argentina – the second and third largest economies in South America – and it is also looking forward to tapping into SLANG’s experience as a commercial partner.
Expansion Drive Continues
SLANG went public in January with a valuation of $480 million and a share price of $1.90, following the acquisition of NCG and its Organa Brands intellectual property.
It peaked on Apr. 22, when SLNG hit $2.80, but the share price has since decreased significantly to $1.74 when trading opened today.
It claims its products brought in $32 million in retail value sales during Q1 2019, citing third-party market tracking data, but it only sees a small portion of that, as its revenue for that three-month period was $4 million. Its Q1 results showed an operating loss of $12.6 million and a comprehensive loss of $16.4 million
Its model is to mainly sell product bases, ingredients, and packaging to network companies, which have a license to manufacture finished goods. Those companies then wholesale the SLANG goods to retailers, who sell them on to consumers.
It is still on an ambitious expansion drive and last month it snapped up LBA Global Corporation and its portfolio of Lunchbox Alchemy products. Its edibles are popular in California and Oregon, while its CBD-based products are sold in 40 states.
SLANG now has 11 cannabis brands covering flower, concentrates, edibles, and beverages.
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