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Ventura Cannabis Releases Results of AGM; Announces Updated Plan to Become a California Cannabis Branded Product Company
LOS ANGELES, April 23, 2019 (GLOBE NEWSWIRE) — Ventura Cannabis and Wellness Corp. (CSE:VCAN) (“Ventura Cannabis” or the “Company”) is pleased to announce the results of its annual general meeting of shareholders held on Thursday, April 18, 2019.
Along with re-electing all directors, the shareholders overwhelmingly supported the change of the Company’s business to a cannabis company. All measures passed with a minimum of 86.8% of the shares voted in support.
Upgrade to the Business Plan
With the support of its shareholders at its recent AGM, Ventura Cannabis can begin to execute on an upgraded plan to generate growth through cannabis sales. Ventura Cannabis plans to be a vertically integrated, branded cannabis product company selling into several niche markets in the California market, the largest and most diverse cannabis market in the United States.
In addition to focusing its resources and cash on developing and acquiring cannabis products and brands in the California market, the Company is considering divesting its remaining detox businesses ($10 million in annual revenue) to raise additional cash for its new California branded cannabis product strategy. Ventura Cannabis has already executed binding agreements to divest the outpatient businesses, representing about 60% of 2018 revenues of the Company will report in its audit of the past business.
To highlight these updated plans, along with releasing a new investor presentation, Ventura Cannabis will hold a conference call on Wednesday, May 1st, 2019 at 4:30 pm EDT to detail the plans going forward and how they have changed since the shareholder approval was granted.
“I am pleased that our shareholders overwhelmingly supported our change in business from an addiction treatment company to a cannabis company, as well as our team of leaders,” said Jacob Gamble, CEO of Ventura Cannabis. “This change allows us to vastly improve our business plan. While we still plan to focus on acquisitions of existing, revenue-generating companies and products, we are now free to hone our model in several ways.
First, we will now focus on vertical integration specifically in the California market, building a foundation on branded products.
Second, we will look to reduce our focus on our past business of owning addiction centers by looking to sell them, perhaps increasing our cash position as a result. We continue to be interested in providing cannabis products to this population and believe we can do that without the ownership of addiction centers.
Lastly, in the last several months of working with the cannabis dispensaries, we have under contract, we have identified several other underserved cannabis markets in California where we will focus on acquiring or developing branded cannabis products that can be sold to customers in these underserved niches within the state.”
“We look forward to a busy spring,” continued Mr. Gamble. We plan to use our strong balance sheet to secure additional cannabis revenues through the acquisition and development of businesses generating revenues from dispensing, distribution, branded products, and targeted cannabis strains. I am looking forward to executing quickly on these plans now that we have the shareholders support to focus exclusively on cannabis.”
For more information contact:
Ventura Cannabis and Wellness Corp.
CEO and Executive Director
Certain statements contained in this presentation constitute “forward-looking information” as such term is defined in applicable Canadian securities legislation. The words “may”, “would”, “could”, “should”, “potential”, “will”, “seek”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect”, “confident” and similar expressions as they relate to the Company. Such statements reflect the Company’s current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties and assumptions. The forward-looking information included are made as of April 22, 2019 and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law. VCAN holds or is acquiring marijuana assets in the United States. Previously disclosed acquisitions are still subject to closing. Marijuana is legal in each state VCAN is looking to operate, however marijuana remains illegal under US federal law and the approach to enforcement of US federal law against marijuana is subject to change. Shareholders and investors need to be aware that adverse enforcement actions could affect their investments and that VCAN’s ability to access private and public capital could be affected and or could not be available to support continuing operations. For additional information about forward looking statements and the risks of investing, please refer to the page on our website with the conference call transcript.