Weekend Unlimited Inc. President and CEO Mr. Chris Backus provides shareholders with an important update.
Dear Weekend Unlimited Shareholder:
The purpose of this letter is to provide shareholders with a thorough understanding of the Company’s operations, and the progress we are building upon as we advance into the new year. After a year of significant change, the Company is in position to take advantage of multiple opportunities for revenue generation as we transition into 2020.
Establishing the Conditions for Sustainable Growth
Since the spring of 2019 when I stepped into the role of President and CEO, I have been clear in all my communications to shareholders that the focus would be on revenue generation that is sustainable and that provides significant upside. With this goal in mind it was critical to create and advance assets that had capability to produce significant value for shareholders, and transition away from assets that did not.
In that effort I have taken decisive action to restructure our management team with talented people in total alignment with our strategy, streamline and reduce operating costs, establish a long-term branded product development process, and recover shares from assets that did not align with our future vision, to name a few. Refocusing the Company has required considerable determination and effort in the face of an ever changing and challenging market conditions in this sector.
As such, I would sincerely like to extend my utmost gratitude to our shareholders for their patience and loyalty along the way. As we move forward into 2020 we have functioning assets in place to make next year a breakthrough year in revenue growth for Weekend Unlimited. The following is a summation of our current operational assets and strategies that will pave the way to our successful growth in 2020.
Focal Points for Advancement
A) BRANDED PRODUCT GROWTH IN USA
In the US, Weekend Unlimited’s progress is squarely centred upon the development and sales of branded products in multiple states. The strategy is aimed at establishing national brands, utilizing a strong network of licenced producers and sales experts, while developing efficient distribution capacity in each region. We have engineered our operations to maximize opportunity by creating an agile and dynamic platform that was initially rolled out in Washington state and most recently replicated in Oklahoma.
It is critical to realize that the US cannabis industry is a rapidly evolving environment. Each state requires dynamic operational frameworks, consumer analysis, and adherence to legislative/regulatory frameworks. Through the experiences and lessons learned in Washington and Oklahoma, we have developed a process that will allow for future expansion into other states moving into 2020 and beyond. We believe this is the best strategy for long-term growth and brand penetration across the US.
Within a six-month time frame our team has created, developed, and launched our WKND! flagship and Orchard Heights branded product lines. This includes a highly diverse and rich mixture of flower, vapes, pre-roll, and edible branded products. These lifestyle brands, the WKND! flagship brand at the more premium end of the market, and the Orchard Heights brand holding a mid-market position, are the first in a set of brands designed to target the multiple demographic profiles that make up the full spectrum of cannabis consumers in the US. Having progressed through research, design, and production stages we are now fully operational, with sales launched and products being sold in stores in both Washington and Oklahoma.
Being our first state to launch, Weekend Washington had a disciplined “crawl-walk-run” focus on a first phase of growth with the objective of selling into 18 retail stores. In doing so, all aspects of the supply chain, distribution, and customer relationship management was successfully optimized to serve these first 18 stores. As we move into the new year we will expand into phase 2, which is taking on an additional 32 stores. Recent sales meetings have taken place with dozens of new potential stores over the past weeks to showcase our branded products, including our participation at the MJ Interchange Event which brought together the top retailers and brands in the State.
B) ONLINE CBD SHOP
With the passage of the US Farm Bill, we believe it is essential to tap into the incredible opportunity presented with on-line CBD sales in the United States. As such our team researched sales analytics from across the country to formulate the WKND! Wellness CBD branded product line. These products are presently available for purchase at our on-line store at www.wkndwellness.com. Bringing this asset to fruition required creating product formulation, design rendering, payment processing and banking all in a very short period of time with very strict regulatory requirements.
This was not an asset in existence or even under consideration six months prior, so I am very proud of my team for their dedication and hard work to bring this to fruition in such a short period of time.
The store is in early stages and we are focused on developing the most effective online marketing programs, using multiple levers, to generate a growing and dependable revenue line item in addition to increasing brand value overall with exposure and reach. At the present time we are fine tuning our advertising campaigns to ensure maximum return on investment and sales conversions.
C) NORTHERN LIGHTS ORGANICS – CANADIAN REVENUE GENERATOR
Northern Lights Organics farm in Fort St. James British Columbia is our pristine Canadian asset focusing on the cultivation of certified organic hemp for production of organic CBD. Recently, Northern Lights Organics announced significant milestones having achieved certified organic status, in addition to being granted an industrial hemp license. This puts Northern Lights in a very unique position, with the asset now poised to grow certified organic hemp at scale in 2020.
- Received Health Canada industrial hemp license allowing Northern Lights Organics to cultivate and sell its industrial hemp crop
- The license is issued in accordance with the Cannabis Act and the Industrial Hemp Regulations
- Hemp grown on the farm will carry the coveted Certified Organic designation, as previously announced
- Certified Organic hemp derived CBD allows for premium pricing and margins
With Northern Lights Organics we have structured and put in place an operating plan to plant 40-60 acres of organic hemp in the 2020 – the plan includes detailed steps to plant, harvest, dry and sell certified organic hemp biomass. We are also currently exploring the revenue opportunity in both grain and pedigree seed sale.
The sale of Northern Lights Organics biomass presents a compelling value proposition. Based on extrapolating 2019 research test plots, dried biomass yield per acre should fall within the range of 400-580 kgs. Recent market data indicates transactions taking place from $140 – $200 per kilogram for non-organic biomass. We fully anticipate that the markets for hemp biomass will fluctuate, however, noting the important premium that is intrinsic with the certified organic designation, we anticipate that the sale of Northern Lights Organics biomass will offer Weekend shareholders a unique value proposition.
The Company’s concerted efforts over the last six months have put in place the foundations for sustainable growth. Our board, leadership team and advisors are exploring multiple options to attract new shareholders, including reviewing the cap structure with the overall goal to realize the asset potential in the most expedient fashion. In reference to the recent shareholder meeting package that was mailed out, there are a number of proposed processes we are considering moving into the new year, one of which is a share consolidation. We are at a very pivotal moment for the Company in which the assets in place can grow exponentially faster with outside capital investment. However given our current share structure of over 440 million shares outstanding, it becomes very difficult for potential new investors to see a value opportunity over share dilution. We firmly believe that the proposed consolidation of shares will open the door for capital investment that will allow us to achieve revenue and stock growth that would not be possible if we stayed at the status quo.
As CEO, I have always put shareholder value first, and as someone who holds all my shares at a $0.20 cost base, I firmly believe this is a move that is necessary to maximize overall long-term share value.
President & CEO
For further information, please contact:
Mr. Chris Backus, President & CEO, Director
Telephone: 1(236) 317-2812
About Weekend Unlimited Inc.
Weekend Unlimited is a lifestyle-based recreational cannabis and CBD wellness company. We are developing and launching premium cannabis and CBD brands to deliver life’s highs – anytime, anywhere. Our CBD products are available online and at a retailer near you. Weekend Unlimited is well-positioned to launch and scale the brands that will define cannabis and CBD. Learn more at www.weekendunlimited.com
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding future financial position, business strategy, use of proceeds, corporate vision, proposed acquisitions, partnerships, joint-ventures and strategic alliances and co-operations, budgets, cost and plans and objectives of or involving the Company. Such forward-looking information reflects management’s current beliefs and is based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “predicts”, “intends”, “targets”, “aims”, “anticipates” or “believes” or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be achieved. A number of known and unknown risks, uncertainties and other factors may cause the actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company including, but not limited to, the impact of general economic conditions, industry conditions and dependence upon regulatory approvals. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by securities laws.