TORONTO, ONTARIO – Golden Leaf Holdings Ltd. (“GLH” or the “Company”) (CSE:GLH), is pleased to update its shareholders on the status of the roll out of the “Early Start Program” in Oregon that allows for sales of cannabis-infused edibles and extracts.
Golden Leaf Holdings will be able to sell single containers of its Golden and Proper brand extracts effective June 2, 2016. The sales will be allowed in the Oregon Health Authority (“OHA”) regulated medical dispensaries until the Oregon Liquor Control Commission (“OLCC”) implements the recreational or “Adult Use” program in Q4 2016.
The Early Start Program has allowed Oregonians to purchase recreational marijuana flower since October 1, 2015, however extracts and edibles were not initially included in the Early Start Program. Industry leaders have long asserted that edibles and extracts should be included in the Early Start Program for public safety reasons, as well as for the tax benefits law enforcement and other public services would receive from the additional tax allocations.
Given new regulatory requirements relating to edibles production and the recreational market, GLH’s edible strategy is temporarily delayed due to regulatory change. The Company is in the process of developing a plan for launching edibles into the recreational market that will be compliant with the recently announced OHA and Oregon Department of Agriculture rules.
By some estimates, the extracts and edibles sectors make up between 25% to 40% of the total Oregon market, numbers consistent with both Washington and Colorado. In Oregon this conservatively represents between US$100M to US$175M in the regulated market.
Update on April Sales Revenue
GLH generated US$1,021,000 in unaudited revenue for the month of April 2016 as compared to US$843,000 in March 2016, representing a month over month increase of 21%. These revenues were notable considering that the Company was unable to produce and sell extracts to dispensaries for almost half the month of April.
CEO, Don Robinson stated, “We are pleased with the April results considering the regulatory challenges we faced. It is expected that we will continue to see positive momentum when the Early Start Program kicks off in June. It’s a tremendous development for the industry and for the citizens of the state of Oregon. The legislators partnered closely with the industry to develop the legislation to make this happen. This makes complete and total sense and we cannot wait to get started.”
Robinson added, “Now that the regulatory dust is settling, we are going to hit the market strong, utilizing our formidable arsenal of extractor and refinement equipment, and extraction experts.”
About Golden Leaf Holdings:
Golden Leaf Holdings Ltd. is one of the largest cannabis oil and solution providers in North America. It’s a leading cannabis products company in Oregon built around recognized brands. GLH leverages a strong management team with cannabis and food industry experience to complement its expertise in extracting, refining and selling cannabis oil.
For further information, please contact:
Golden Leaf Holdings Ltd. Investor Relations:
Disclaimer: This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the Company’s future business operation, expectations of gross sales, the opinions or beliefs of management, and future business goals. Generally, forward looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to general business, economic and competitive uncertainties, regulatory risks including risks related to the expected timing of the early roll out of oils and edibles, market risks, risks inherent in manufacturing operations and other risks of the cannabis industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking information is provided herein for the purpose of presenting information about management’s current expectations relating to the future and readers are cautioned that such information may not be appropriate for other purpose. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
Copyright © *2016* *Golden Leaf Holdings Ltd*, All rights reserved.