As investors continue to see the maturation of the cannabis public markets, more options are appearing for niche and subdivisions within the entire space.
Damian Kettlewell, CEO of BlissCo Cannabis (CSE:BLIS), spoke to the Investing News Network (INN) following his panel at the recent Cannabis Trade Show in Vancouver about the path of the company and its state as a pre-revenue venture in the public markets.
BlissCo is a licensed producer (LP) that obtained its license to cultivate medical cannabis in Canada on March 29 and began trading on the Canadian Securities Exchange (CSE) in March 2.
BlissCo, like many new cannabis companies, is attempting to build out its business plan with partnerships and a specific strategy for the market.
According to documents from the company, BlissCo plans to sign up new patients of medical cannabis under the ACMPR, develop partnerships with private retail shops across B.C., Alberta, Manitoba and Saskatchewan and explore the options to export medical cannabis into Europe.
Kettlewell told INN the decision to bring his company into the public space was made, despite BlissCo still existing in a pre-revenue stage, since it was part of an agreement with their merchant bank.
“If it wasn’t for the public markets there’s no guarantees that the company would be where it is now,” Kettlewell said, explaining when the company launched on the CSE it was targeting its licensing and hiring employees.
According to the executive the benefit of taking its company public through a reverse takeover is that it provided investors a chance at liquidity. Kettlewell explained:
People are making that investment [knowing] that they will be able to after their four month hole start selling their shares and they can really follow the journey and so the decision to list was part of the agreement with our merchant bank and it enabled us to raise the money we needed to raise to grow the company.
How effective brands will be constructed?
As Canada moves closer to legalization of recreational cannabis,companies in the public space are launching a variety of brands targeted at consumers on this space. Overall, observers of this space have determine branding will become a key metric to evaluate these companies.
During his panel at the Cannabis Trade Show, Kettlewell told the audience BlissCo is not focussed on being the world’s biggest growers; instead the licensed producer will take a more targeted approach.
Kettlewell told INN the brand of the company is designed to represent an activist healer. He explained consumers will have to get to know the story and archetype of the upcoming cannabis brands hoping to form a relationship.
“[W]e are really going to be walking the talk with that strong ecological focus and wellness focus and really the healing focus because I do believe that cannabis, when used responsibly, is a part of a wellness lifestyle.”
However, during his panel Kettlewell didn’t shy away from the hopes he has for his brand, telling the audience he wants to see BlissCo become a large Canadian brand.
Partnerships pave the way for BlissCo
The Supreme Cannabis Company (TSXV:FIRE) made a C$3 million strategic investment in the company for an approximate 10.1 percent stake. This partnership also extended to a supply agreement with 7ACRES, Supreme Cannabis’ subsidiary.
Since July 7ACRES has been supplying BlissCo with a minimum of 1,000 kilograms of dried cannabis on a take-or-pay basis over the next year.
John Fowler, CEO of Supreme Cannabis said they had been watching BlissCo’s development closely and were impressed with the vision of its top executive for the Western Canada market.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.