Sunniva, a North American provider of cannabis products and services, announced it has secured more than $2.4 million in future sales of Sunniva branded cannabis products through one of the Company’s existing retail relationships to be completed in the first four months of 2019. This marks Sunniva’s first cannabis product sales in the state of California. The Company anticipates securing additional sales contracts in the near term.
Sunniva’s current product inventory consists of ultrapure cannabis distillate, premium concentrates and flower, which, based on current wholesale market prices in California, has a current estimated value in excess of $5 million. The Company anticipates launching additional Sunniva branded product lines during the first quarter of 2019 which will include:
- Ultra-pure distillate: vape cartridges, live resin vape cartridges and disposable pens in 0.33 mL, 0.5 mL and 1.0 mL sizes;
- Premium concentrates: live resin extracts, shatters, and waxes; and
- Flower: various sized packages (initial delivery and first sales commenced this week)
“We look forward to demonstrating our ability to manufacture and sell premium cannabis products in California as we build our Sunniva house of brands,” stated Dr. Anthony Holler, CEO of Sunniva. “The recent LTYR Logistics acquisition has provided us with the final vertical business segment required to sell our branded products. Their existing relationships throughout California provide the key component for us to recognize the full value of our licensed and operational extraction facility, our device and hardware business, Vapor Connoisseur, and ultimately the purpose-built, high technology 325,000 square foot greenhouse in Cathedral City.”
Sunniva will leverage its strategic relationships for the purchase of clean biomass for extracted products and clean flower until the large-scale greenhouse is operational. Purchased flower will be packaged utilizing Sunniva’s large-scale automated sorting, batching and packaging machines, branded, and then sold, allowing Sunniva to capture significant margin in the flower category prior to processing its own premium flower.
The Company will continue to manufacture products at the extraction facility, adding to the current inventory daily. At full capacity, monthly output from the extraction facility is estimated at 180,000 grams of distillate and 125,000 grams of live resin extracts, which will supply all Sunniva branded product categories. Expansion plans beyond the current manufacturing capacity are underway to accommodate future sales growth.