Branding, Transporting and Distributing Cannabis in California
This profile is part of a paid investor education campaign.*
TransCanna Holdings Inc. (TransCanna) (CSE:TCAN) through its California subsidiaries manages cannabis branding, transportation and distribution companies in California that assists cannabis cultivators and manufacturers in getting recognized by end-users and consumers. Currently, the Company offers their client’s branding and design services, but intends to roll-out distribution, transportation and sales services in the near future.
TransCanna develops effective brand strategies for their clients including messaging, social media, packaging and outreach programs with the goal of providing a competitive edge in the marketplace. To date, the company has acquired 23 revenue-generating branding and design contracts from Goodfellas Group Inc. (Goodfellas), a cannabis branding agency.
Pending the approval of their licenses and permits, TransCanna intends to develop a large distribution network across California. The network will be comprised of up to five leases or acquired facilities in North San Diego, Adelanto, Culver City, Los Angeles and Sacramento. Once the company has established its network and presence in California, they intend to expand their operations into Canada, Washington, Oregon, Nevada, Colorado and Arizona.
TransCanna’s management team has significant experience in California’s cannabis industry. Leading the way in experience, is TransCanna’s CEO James Pakulis who in 2010 to 2012 oversaw the growth of General Cannabis to over $16 million in annual revenue in two years. Recently he had been president of Lifestyle Delivery Systems and assisted in raising CDN$20 million for the company.
- California’s cannabis industry is expected to reach $6.5 billion by 2020
- 23 revenue-generating branding and design contracts have been acquired from Goodfellas.
- Establishing a vast distribution network in California.
- Planned future expansion into Canada, Washington, Oregon, Nevada, Colorado and Arizona.
- Management has over 60 years of combined experience in California’s cannabis industry.
California’s Cannabis Market
California has a total population of nearly 40 million and receives approximately 263 million tourists annually. Since legalizing recreational cannabis in January 2018, California’s cannabis market has faced challenges with licensing and the supply chain, among others. In California, the medical and recreational cannabis markets are regulated by a dual licensing structure, whereby companies must obtain licenses from both the state and their municipal district before they can open their doors for business.
The challenges of getting licenses is included in the distribution side of the industry. Many cultivators can obtain transport-only distribution licenses, which allows them to sell directly to dispensaries. However, they are not required to conduct third-party testing, which has led to quality and scalability issues. Despite these challenges, California’s cannabis industry is expected reach $6.5 billion by 2020.
TransCanna’s Business Model
TransCanna, through its California subsidiaries, operates under a business-to-business model (B2B) that will allow them to consolidate the various aspects of California’s cannabis industry. To do this, TransCanna will provide branding and design, distribution and transportation and marketing and sales services to cultivators and manufacturers. Currently, TransCanna is offering their branding and designing services to cultivators and manufacturers and is developing their transportation and distribution network within California.
Branding and design
TransCanna through its California subsidiaries develops effective brand strategies for their clients including messaging, social media, packaging and outreach programs with the goal of giving their clients a competitive edge in the marketplace. The company also intends to develop its own in-house brand in the future. To this aim, TransCanna has acquired 23 revenue-generating branding and design contracts from Goodfellas, a cannabis branding agency, that will allow the company to offer its distribution, transportation, marketing and sales services to their manufacturing clients.
Distribution and transportation
Transporting and distributing cannabis in California can be difficult as each municipal district can set their own regulations and laws and these may differ from the laws and regulations set forth by the state. By establishing a large distribution network that covers the state, TransCanna intends to be able to swiftly and efficiently distribute cannabis. Pending the approval of the appropriate licenses and permits, the Company’s subsidiaries intend to lease or acquire up to five facilities throughout the state so as to have at least one facility within a three hour drive to the majority of their clients, ensuring ease of transportation.
Sales and marketing
In California, buyers for dispensaries are approached by dozens of manufacturers and producers wanting to sell their wares, but many do not provide evidence that they can meet the demands of the dispensary or that they have high-quality products. TransCanna is preparing to remove this uncertainty by vetting their clients for both quality and scalability before offering buyers with a catalog of tested products to choose from.
Once TransCanna has established itself in California, the company intends to expand its business offerings to each or all of the following states; Washington, Oregon, Nevada, Colorado and Arizona within the coming year. The company also intends to expand its services into Canada as well.
James Pakulis — CEO & Chairman
James Pakulis has three decades of experience working with public and private entrepreneurial companies in a variety of emerging and high growth sectors. He is a former President and a Director of Lifestyle Delivery Systems Inc., a vertically-integrated cannabis related entity operating in California. Previously, Mr. Pakulis was chairman and chief executive officer of General Cannabis Inc., which owned WeedMaps. From 2010 to 2012 Mr. Pakulis oversaw the growth of General Cannabis from zero to over $16-million in annual revenue in twenty-four months.
Arni Johannson — President
Arni Johannson has over thirty years operating and investing in both private & publicly traded companies throughout Canada and the USA. Mr. Johannson’s has had numerous successful exits across a number of different sectors and has served on more than 20 corporate board of directors during this time.
Nam Tran — Brand Director
Nam Tran has been in the brand and business development fields for over 20 years specializing in marketing, sales, distribution, production and events. He has garnered nationwide recognition for his brand recognition in the music, fashion and action sports industries. In 2007, he entered the cannabis industry and has since provided bold, aggressive branding and cutting-edge marketing campaigns for cannabis-related entities including Raw Rolling Papers. He currently oversees an expanding portfolio of 29 cannabis centric brands. Several of his past clients include: Redbull, The Big Industry Show, Gopro, Bear Mtn, Hightimes, Pay Per View, 420 Rally, Simple Farms and Fresh Water, among others.
Greg Louie — IT Advisor
Greg Louie has over 20 years of experience in IT and business intelligence as a software developer and project manager. He is a specialist in distribution-level innovation and synthesizing efficiencies among various platforms and has had successes in designing, coding and programming cannabis warehouse management systems with over 26,000 SKUs.
Tyrell Rohrer — Senior Supply Chain Executive
Tyrell Rohrer has an extensive background in supply chain management as it relates to the cannabis sector. Over the past ten years, he has become a seasoned liaison between manufacturers, farmers, acquiring agents and consumers throughout California. He is noted as an expert and is known for his pragmatic insight into farming, which he did for several years, and for orchestrating complicated transactions among independent cannabis-related organizations. His deep rooted understanding of the complex cannabis ecosystem has allowed him to streamline the distribution process resulting in significantly improved turn-around times and cost savings.
Tanya Marie Pascua — Sales Director
Tanya Pascua has significant sales and marketing experience in the cannabis sector. During the past seven years, she has provided her sales and marketing experience to many of the high-profile retail dispensaries. Specifically, educating store owners, organizing merchandise and implementing customer-related marketing strategies. Over the last three years, she was a principal of a private cannabis entity that she started, developed and grew the sales force to 20 representatives throughout five states. She has an exceptional understanding of cannabis consumers and the knowledge to connect the consumers to retail outlet stores.
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