Gilla Provides Corporate Update
By Gilla Administration on Sep 24, 2014
MIAMI, FLORIDA - (Marketwired – Sept. 24, 2014) – Gilla Inc. (“Gilla” or the “Company”) (OTCQB:GLLA), a designer, marketer and distributor of electronic cigarettes (“e-cigarettes”), vaporizers and related accessories, is pleased to provide an update on its recent corporate developments.
White Label Business Unit
The Company is pleased to announce that during the current quarter it has shipped over $500,000 in product under its white label business unit. The Company is achieving its targeted gross margin of between 30-40% on these sales. With the white label business unit ramping up its clients and pipeline, the Company expects to achieve positive cash flow in 2015, assuming the cost and operational structure of the Company remains consistent.
“Our white label business unit is now beginning to demonstrate the revenue and profitability potential we believed it could achieve,” stated Mr. Danny Yuranyi, President. He added, “We now have a very strong client base under multi-year exclusive contracts and we continue to aggressively add to this base.”
Mr. Graham Simmonds, CEO, added, “Given our existing operating cost structure and very limited direct marketing costs within the white label business unit, profitability in 2015 is very achievable, even with our focus on growth.”
Charlie’s Club Subscription-based E-Cig Unit
During the quarter, the Company launched Charlie’s Club (“Charlie’s Club”), an online subscription-based e-cigarette membership (www.charliesclub.com). Charlie’s Club is the first online e-cigarette subscription service to provide free hardware and accessories to its members. Similar to the popular razor blade and mobile phone business models, Charlie’s Club subsidizes the costs of the hardware for its members, with no contracts or minimum terms. The Club’s first independent review was very positive and can be viewed here (please scroll to the bottom of the review page).
Charlie’s Club has also developed a robust affiliate program. The fully integrated affiliate solution is designed to rapidly grow an online sales network, support affiliate marketing activities and track and measure affiliate performance and ROI. The Company anticipates that there will be a significant number of affiliates in place by the end of October. To become a Charlie’s Club affiliate and begin earning commissions today, join here.
“I am very thrilled with our Charlie’s Club product,” stated Mr. Simmonds. “All of the feedback has been very positive and the affiliate marketing network is now in place, allowing us to ramp up subscribers in the fourth quarter. We also continue to work towards our forecasted European launch later this year,” he added. “This unit becomes profitable at just two thousand subscribers, and management believes this is very achievable in the near term.”
About Charlie’s Club
Charlie’s Club was created with tobacco smokers in mind. It is the first e-cigarette online subscription service to provide free hardware and accessories to its members. Similar to the popular razor blade and mobile phone business models, Charlie’s Club subsidizes the costs of the hardware for its members, with no contracts or minimum terms.
In the United States, members choose one of the three membership packages delivering monthly refills based on a member’s consumption preferences:
Silver (15 cartridges/month)
Gold (25 cartridges/month)
Platinum (50 cartridges/month)
Charlie’s Club also has a dynamic Affiliate Program, offering industry-leading incentives and compensation in return for advertising and lead generation. Affiliates have access to free professional marketing materials, including banners, videos, text links, coupons and more, along with monthly payment generation and sub-affiliate tracking.
Who is Charlie and why did he create this excellent e-cigarette club? Charlie’s identity has been intentionally hidden for his protection. Join the club to learn more.
For more information visit: www.charliesclub.com
