Experion Provides Third Quarter 2020 Strategic Update
VANCOUVER, BC / ACCESSWIRE / SEPTEMBER 8 2020 / Experion Holdings Ltd. (the “Company” or “Experion“) (TSXV:EXP)(OTCQB:EXPFF)(FRANKFURT:MB31) is providing a Strategic Update from the CEO highlighting strategic and operational execution.
Over the last three quarters, we have been executing our focused strategic plan consisting of developing, sourcing, and distributing premium, high-quality cannabis products under a strong brand. Execution of our strategy is ultimately measured and reflected in our financial results. We have been trending in the right direction achieving higher revenue growth through increased sales, improved margins and lower operating expenses. Experion continues to lay the foundation to become a profitable and sustainable enterprise in the near-term, through our strategic execution.
Consumer Demand and Citizen Stash
The Canadian cannabis market continues to grow exponentially. Statistics Canada recently reported that national sales in 2020 are on track to double 2019 numbers with dried flower, making up 70% of revenue, continuing to drive the market. Experion continues to capitalize on this trend as we continue to gain market share in the top end of the market as competitors fight for market share at the bottom with low quality inexpensive product. Not only does this best in class positioning help protect our margins long term but allows us to enter the market with different products due to our growing brand awareness and reputation. The cannabis exchanges across the country now know which brands fit into which market segments based on quality and consumer demand at the retail level. Exchanges are becoming more selective regarding new products that they will accept, basing their decisions increasingly on recent sales history. Experion has earned a place as a top performing brand which supports our Company’s objective of growth by increasing sales of existing products as well as introducing new offerings into the Canadian market.
To date, Experion’s revenue has been derived almost exclusively from the sales of premium dried cannabis flower products. Cannabis flower defines a Company’s reputation in the market and Experion delivers some of the very best product in Canada. How you grow, select, handle, and package cannabis products ultimately defines your company and your brand. This has been proven by our success with our premium brand, Citizen Stash, which is highly recognized and in demand across Canada.
Our proprietary strain line up continues to gain market share due to its exceptional qualities and consistent performance. Citizen Stash now has 8 strains available in the market, many as first movers in their category, with a range of cannabinoid and terpene content to appeal to all consumers. For more information, please see our website, www.citizenstash.com.
To complement our flower products and appeal to consumer convenience, Experion introduced Citizen Stash premium prerolls last quarter. Our premium prerolls are made with fresh, high quality all flower product that delivers the same consumer experience as whole flower. We have sold over 92,000 premium prerolls since our launch and continue to see month over month sales growth in this product category.
Experion will soon be launching strain specific premium Hash utilizing a solventless concentration process within the next 60 days. Citizen Stash Hash will be one of the highest potency and effective products on the market.
For consumers wanting to experience the effects of our premium strains, but do not want to inhale product, Experion is also launching edible gummies. Our 5mg THC sugar coated gummies will be one of the first vegan edibles in the market and will be available in the next 60 days.
Product diversification based on a foundation of premium flower has been a key goal of the Company and we are pleased to launch these new products and generate new revenue.
Over the last nine months, we have continuously improved our facility in Mission, BC expanding our ability to develop, cultivate and process premium in demand strains as well as creating new products to meet growing consumer demand. We have continued to partner with cultivators across Canada to expand the production capacity of our unique genetics that we process and package for distribution under our Citizen Stash brand. Some of Experion’s operational successes to date include:
- Increased licensed space by adding 20% more premium cannabis flower cultivation capacity and adding 100% more processing space.
- Added the capability to produce added value products including pre-rolls, with over 92,000 pre-rolls sold to date.
- Received our amended “Health Canada” sales license to include edibles, topicals and concentrates.
- Developed a strain specific concentrate line with products scheduled to go to market in the next 60 days.
- Developed a vegan gummy edible product scheduled to go to market in the next 60 days.
Path to Profit
We continue to build for the future based on our premium flower, diversified product line, strategic partnerships, growing distribution footprint in new markets and strong positive financial position. Our immediate objective remains the same: to increase revenue and return a profit. We are targeting to reach this objective by the end of fiscal 2020. To support of our path to profitability, we have now completed the following:
- Fully utilizing our processing space to ramp up volume and revenue. We have completed all improvements within the facility with all fully licensed space now operational.
- Received our amended sales license to include topicals, edibles and concentrates.
- Diversified our product lines, selling over 92,000 pre-rolls with increasing demand and developed new concentrates and edibles products scheduled to come online in the next 60 days.
- Increased our distribution footprint by signing a master agreement with Ontario and shipping to the province within the next 30 days. We now service BC, Alberta, Saskatchewan, Manitoba, Yukon, NWT and Ontario and are in the process of entering Quebec and the Maritimes by year end.
- Selected a sales agent to represent Citizen Stash nationally to drive sales at the retail level.
- Partnering with key craft grow partners cultivating our genetics and increasing our capacity with our top strains. We now have 5 strategic partners, increasing capacity by 400% with several more partnerships in negotiation. This will add thousands of kilograms of high quality cannabis annually without any capital deployment.
- Right sizing operations. Experion continues to make significant steps in recent quarters, reducing expenses by over 30%, the effects of which will continue to be realized throughout the remaining months of 2020 and beyond.
- Financials and revenue trending significant growth. For more information on operational and specific revenue achieving ending Q2, please see our news release July 29, 2020 “Experion Reports Record Revenue Growth in Q2 and Reports on Financial and Operational Highlights.”
Why Invest in Experion
Experion continues to be a robust and focused company with significant potential – some key differentiators and highlights:
- Healthy balance sheet and cash on hand to execute its business plan. (See financial on SEDAR for more information).
- Premium product distribution model executing with 100% growth since Q4 2019.
- Targeting to be profitable by the end of fiscal 2020.
- Nationally recognized and fastest growing premium brand.
- Fully licensed and capitalized.
- Under valued with a market cap below cash and assets on hand.
- Significant upside as we continue our growth and market the company to the investment community.
Experion is committed to keeping both the consumer and investment community informed of new developments and milestones. We plan to implement an improved communication and marketing program over the next quarter to keep our current shareholders informed and reach a wider investor audience.
As we look forward to the remainder of 2020, we are confident that we will continue to be recognized as a national leader of top branded cannabis products as we seek to become a logical choice for cannabis investors seeking a profitable growth driven opportunity.
For more information about our company, plans and frequently asked questions, please email to [email protected].
On behalf of the Management team, we thank you for your continued support,
Jarrett Malnarich, CEO
Experion granted 156,250 restricted stock units (RSUs) to its directors where the RSUs will vest 12 months after the directors resign, for their contribution during the third quarter of fiscal 2020.
About Experion Holdings Ltd.
Experion Holdings Ltd. is the parent company of Experion Biotechnologies Inc., a Health Canada licensed cultivator and processor of Cannabis, based in Mission, BC.
Experion Holdings Ltd. is invested in a portfolio of products to address a wide spectrum of consumer needs’ including Adult-use, Wellness and Therapeutic, and Medical products.
Experion trades on the TSX Venture Exchange as a Tier 1 issuer under the symbol “EXP” on the OTCQB Venture under the symbol “EXPFF” and on the Frankfurt Stock Exchange under the symbol “MB31”
This press release contains forward-looking information within the meaning of Canadian securities laws. Although the Company believes that such information is reasonable, it can give no assurance that such expectations will prove to be correct.
Forward looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, forecast, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking information provided by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking information as a result of various factors, including, but not limited to: the state of the financial markets for the Company’s equity securities; recent market volatility; the Company’s ability to raise the necessary capital or to be fully able to implement its business strategies; the risks identified in the Filing Statement, and other risks and factors that the Company is unaware of at this time. The reader is referred to the Filing Statement dated September 25, 2017 and/or the most recent annual and interim Management’s Discussion and Analysis for a more complete discussion of such risk factors and their potential effects, copies of which may be accessed through the Company page on SEDAR at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies ofthe TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Experion Holdings Ltd.