Gilla, Inc. (fka GLLA)

[JKAGS]

Gilla Seizes Opportunity To Expand European Distribution

Gilla Inc. (OTCQB: GLLA), the fast-growing designer, manufacturer and marketer of E-liquid for vaporizers announced recently that they had landed a leading online retailer based out of The Netherlands to sell and market the Company's Vinto Vape E-cigarette brand.

The online retailer, V.O.F. Novus Fumus ("Novus Fumus"), which operates www.novusfumus.nl, has been focused on the distribution of cig-a-like products in Europe since 2014. The addition of the Vinto Vape brand, with its "high smoke volume and rich aromatic flavors", to their product line is a great opportunity for Gilla to work with an established online distributor in the European markets.

Building off a multi-branded business model that has been made famous by such successful companies as Diageo Plc (NYSE: DEO) and The Coca-Cola Company (NYSE: KO); Gilla offers a one stop comprehensive solution to vape shops and online distributors by offering 14 separate brand labels. Just like Diaego Plc, Gilla's suite of products consists of both premium and value E-liquids brands, and in this case also cig-a-like products.

To those unfamiliar with vaping products currently on the market, there are both cig-a-like products that are meant to imitate the actual look and feel of traditional cigarettes, and then there is a wide variety of refillable vaporizers, who Gilla has mostly targeted with their high-margin, award winning E-liquid product portfolio.

With gross margins reaching 62% in their last quarterly report, an increase of 25% quarter over quarter, and having already acquired their own manufacturing, sales, and distribution platforms, Gilla appears to be well positioned to further its international growth. With plans to target Russia, the Middle East, and Asia, Gilla's stated goals of focusing on operational synergies, taking advantage of low cost jurisdictions for talent retention, and efficiently spreading out marketing costs across multiple brands should help the company going forward.

In closing, Graham Simmonds (CEO and Chairman) had this to say, "The Company's strategic plan is coming to fruition very quickly and it's exciting to see our broad brand portfolio now enjoying success across multiple markets, from Asia to North America and from Europe to Africa. Our growth in international sales demonstrates Gilla's significant progress in becoming a leading player in the global vape market." Continuing on Simmonds stated, "The higher margin business has been our primary focus and our numbers demonstrate major growth in the second quarter for that segment of our operations. This will be our continued focus into the second half of the year as we continue to grow sales domestically while also exploring the opportunities to expand our global footprint."

For additional information on Gilla Inc. please visit http://gilla.com/?page_id=4124.

https://finance.yahoo.com/news/gilla-seizes-opportunity-expand-european-130000304.html