Building the ‘Omnichannel’ of Legal Cannabis in California
Ryan Allway
February 23rd, 2021
App, Exclusive, News, Top Story
The cannabis industry is projected to be worth more than $73 billion by 2027, according to Grand View Research, which represents an 18.1% compound annual growth rate. Within this growing market, California generates nearly a third of all cannabis sales in the United States—or roughly the combined sales of Colorado, Washington, and Oregon.
While multi-state operators, or MSOs, have been busy building vertically integrated ecosystems in various states, ManifestSeven Holdings Corporation (CSE: MSVN; OTCMKTS: MNFSF) has focused its energy on distribution and retail in California. The company believes that it can replicate the same model across other states and avoid the baggage of vertical integration upon federal legalization.
CEO Sturges Karban was interviewed recently to discuss the company’s unique business model and what differentiates it from competitors in the space:
Let’s take a closer look at ManifestSeven’s unique business model and its plans to expand beyond California over the coming year.
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Distribution & Retail Focus
Many of the largest cannabis companies in the United States are multi-state operators, or MSOs, with vertically integrated operations in different states. In other words, they have cultivation, extraction, manufacturing, distribution and retail operations in each state in order to comply with federal restrictions on interstate cannabis transactions.
When cannabis is federally legalized, these vertically integrated operations could prove to be dead weight. Cannabis cultivation will take place in states with the right climate conditions and regulations for high-quality, low-cost product—and operations in states outside of these regions will likely become obsolete over time.
ManifestSeven’s Business Model – Source: Investor Presentation
ManifestSeven has focused on building a distribution and retail presence across the state of California before replicating that model in other states. Unlike vertically integrated operators, distribution and retail operations can be easily integrated across state lines upon federal-level legalization without redundant infrastructure in different states.
In essence, the company is taking a page out of the best and brightest distribution company’s playbook, and when federal legalization occurs, the use of federal highways will make it the ‘Cannabis Superhighway’ overnight. The company’s initial focus was on on-demand retail delivery, but recently, it has also been building out a brick-and-mortar presence.
An Enterprise Built to Scale
Many cannabis companies were either founded by cannabis enthusiasts with little financial experience or Wall Street veterans with little cannabis experience. In contrast, ManifestSeven was built by a seasoned team of executives with a combined 100 years of experience on Wall Street and specialized expertise in multiple areas of the cannabis industry.
The experience of the team is evident by its navigation of the COVID-19 pandemic. Despite the impact of the pandemic, the company has managed to increase revenue, reduce its net burn and even complete a capital raise during a period of capital starvation—a testament to its robust business model and experienced leadership team.
The company’s underlying philosophy is to build an institutional-grade enterprise with the financial strength and operational best practices necessary to list on the NASDAQ or NYSE within the next five years and attract true institutional capital. If successful, the approach simultaneously paves the way for the creation of long-term shareholder value.
Click here to receive an investor presentation and corporate updates
Looking Ahead
ManifestSeven Holdings Corporation (CSE: MSVN; OTCMKTS: MNFSF) is building an omnichannel platform for legal cannabis in California and taking the model across the country. Rather than full vertical integration, the company is highly specialized in distribution and retail that positions it well for federal-level legalization. Investors may want to take a closer look at the stock given its unique model.
In recent months, the company has significantly expanded its distribution and delivery capabilities in northern California, including its recent launch of on-demand delivery in the San Francisco Bay Area. With its California footprint established, the company is ready to expand into other states this year leveraging its proven business model.
For more information, visit the company’s website or download their investor presentation.
Disclaimer
The above article is sponsored content. CannabisFN.com and CFN Media, have been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: https://cannabisfn.com/legal-disclaimer/
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
About Ryan Allway
Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.
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