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Jacksam/Convectium Corp announces the appointment of Robert Hagen to the Board of Directors
PR Newswire
ORANGE COUNTY, Calif., April 10, 2019
ORANGE COUNTY, Calif., April 10, 2019 /PRNewswire/ -- Jacksam/Convectium Corporation (OTCQB: JKSM), a workflow automation company focused on developing solutions in the cannabis and CBD industry, announced today that Robert Hagen has joined the Board of Directors.
Robert Hagen, 52, joined our Board of Directors on April 3, 2019. Mr. Hagen is also a director of DMO Holdings, a private company providing research services in the cannabis industry. In addition, since August 2018 he has served as the CEO of Jujube International, Inc., an Irvine, California based private company which is a global leader in direct to consumer sales of motherhood accessories, including diaper bags and other related products. Previously, from 2015 through 2018, Mr. Hagen was employed as the President and Chief Operating Officer of BRB / Sherline, a private company that develops and markets carbon removal technologies.
"We believe that Mr. Hagen's extensive twenty year plus management and finance background, including his involvement in multiple M&A transactions, and his current focus on cannabis industry research, provides valuable expertise and insight for us and our Board", said CEO Mark Adams.
Mr. Hagen holds a Bachelor of Science degree in Accounting and Finance, awarded by Cal Poly San Luis Obispo in 1990.
Another red day. I couldn't resist adding a few, though. A lot of tickers were in the red today. Hoping the rest of the week is greener!
It’s good to see some volume here tho. Hopefully that continues and we build a strong base.
Bummer. Looks like that bid was sold into...
Freaking great revenue news.
They are increasing at rapid growth. A 4x fold in net revenue. They own most of the market in automatic refill machines. They really should focus on making it the best machine while they are in prime position.
Love what I am seeing!
10k out. Some good info in it. They also adress the quality issue (see under revenue)
Item 1. Business
We are a technology company focused on developing and commercializing products utilizing our proprietary technology platform. We service the medical and recreational cannabis, hemp and CBD segments of the larger e-cigarette and vaporizer markets with our oil vaporizer focused products. At present, we have three principal product lines consisting of the 710 Shark cartridge filling machine, the 710 Captain cartridge capping machine, and our proprietary cartridges. Our customers are primarily businesses operating in jurisdictions that have some form of cannabis legalization. These businesses include medical and recreational dispensaries, large and small-scale processors and growers, and distributors. We expect continued growth as we take measures to invest in our own molds and intellectual property. We utilize a direct sales force, independent sales representatives, a referral network of manufacturers of related equipment, and our website, convectium.com, to sell our principal products.
Our flagship product is the 710 Shark vaporizer cartridge filling machine. It is designed to inject oil into various cartridges (glass, plastic and PODS) while also having the capability to fill bottles and other form factors. The 710 Shark is based on a pneumatic system and has a heating mechanism that allows the oil to be injected and processed. It can fill 100 traditional cartridges in less than 30 seconds, saving our customers the valuable time and labor expense of hand filling cartridges - which is currently the industry norm. We estimate that, in most applications, the 710 Shark will have a 60x faster rate than hand filling. The 710 Shark is currently produced in China and the machine is now on its eighth version.
In the second quarter of 2018 we introduced our 710 Captain capping machine. It is designed to affix caps to the cartridges filled by our 710 Shark filling machine and matches the production capacity of the 710 Shark at 100 cartridges in 30 seconds. It is pneumatically operated. The 710 Captain is currently produced in Irvine, California, by a contract manufacturer.
A much smaller portion of our business consists of our sales of non-proprietary vaporizer cartridges with core materials ranging from plastic to glass and heating technology from cotton wicks to ceramic and wickless materials. We also offer a selection of batteries to match the cartridges. Batteries range from button-less standard heating to push-button adjustable heating settings. Most of the vaporizer cartridge and battery units can be customized to our customers’ specifications, including adjusting colors, materials, and adding logos and images per the customer’s request. We deliver the vaporizer products unassembled and deliver the hardware directly to customers where the product is then filled and assembled at customer’s place of business by their personnel. We maintain relationships with packaging manufacturers who offer sophisticated labeling and customization capabilities, allow us to add value to our customers’ packaging design processes.
We have two distinct distribution platforms for our products, traditional direct sales and online sales. The majority of our sales are direct B2B sales of our principal products, namely the 710 Shark, the 710 Captain and our proprietary cartridges in North America. We generate these sales through our employed sales force, outside independent sales representatives, and our referral network of related equipment manufacturers and resellers. Our primary customers for our principal products are medical and recreational dispensaries, large and small-scale processors and growers, and distributors. We utilize our convectium.com website to support these sales channels and products.
Separately, and at a much smaller scale, we sell non-proprietary cartridge and battery units both B2B and B2C using our BlackoutX.com website with limited support from our inside sales staff. While we have sold these collateral products into 52 different countries, most sales are into North America. We do not intend to devote substantial resources to expand this business over the next twelve months.
Our employed sales force consists of seven direct sales representatives and three inside sales representatives. The inside sales representatives are prospecting for leads and pass along larger leads to the outside representatives. We anticipate continued expansion of our sales team throughout North America as the demand for our products continues to expand.
Our marketing efforts include attending industry trade shows. In 2018, we participated in fourteen such trade shows which we believe helped generate a significant amount of business and marketing opportunities. We typically have a 10’ x 20’ booth with demo machines and various pens and cartridges that we sell.
We also advertise in industry magazines and at other regional events where both B2B and B2C opportunities exist. We plan to expand our marketing efforts to new jurisdictions as they pass medical and recreational cannabis use laws. We also believe we have a large opportunity in the Canadian marketplace which plans to be recreationally legal for oils sometime in 2019.
We also have entered into referral and reseller agreements to expand our market footprint across North America. Our partners include extraction companies, wholesalers, distributors and individuals with significant industry contacts. We intend to expand the number of referral and reseller partners. These agreements typically provide a commission or referral fee to the source upon a completed sale.
Market and Competition
The automated cartridge filling and packaging industry in the cannabis, hemp and CBD marketplace is relatively nascent. We believe that we are the largest manufacturer of cannabis focused filling machines, with an approximately 50% market share by units sold. Most cartridge filling operations are still done by hand at present, with a throughput rate of approximately 75 per hour. Hand-filling remains our largest competitor.
The competition in the cannabis specific filling machine market consists of a few players that are focused on regional markets and small growers. Our most direct competitors include Thompson-Duke, Transpring, and Cooljarz. Thompson-Duke is based in Oregon. Its system will fill approximately 16-20 cartridges per minute. Transpring is based in China. Its system will fill approximately 30 cartridges per minute. Cooljarz is based in California. Its system will fill approximately 12 cartridges per minute.
Additionally, there are a few manufacturers that manufacture and distribute directly from China, none of which appear to have gained significant market share.
Our most substantial competitive threat would be from the large tobacco e-cigarette manufacturers and the large medical equipment manufacturers, should either decide to enter the automated cartridge filling and packaging industry for cannabis, hemp and CBD. Many of these companies possess substantially greater manufacturing, sales, marketing, research and development, and financial resources. To date, however, none have entered the market. Nor are we aware of any with immediate plans to do so. We believe that failure is due to the fact that federal and state laws are in the process of changing significantly. Were any large tobacco e-cigarette manufacturer or medical equipment manufacturer to enter the market, our business and prospects would be adversely affected.
Revenue
Total revenue during the twelve months ended December 31, 2018 were $6,628,919 (comprised of $3,759,917 of machine sales and $2,869,002 of cartridges and other consumables. Compared to the year-ended December 31, 2017 which had $1,569,456 (comprised of $1,130,008 (72%) of machine sales and $439,448 (28%) of cartridges and other consumables). The sales of growth of $5,059.463 or 332% was primarily driven by increasing the sales staff year over year and the development of proprietary 710 Cove and Riptide cartridges.
While our sales have increased substantially, we have had ongoing challenges working with our Chinese contract manufacturers. We made the decision to end a relationship with a cartridge supplier because of poor quality and we are continuously evaluating the performance of other contract manufacturers.
We made the decision to produce our 710 Captain capping machine, in the U.S., which was released in June of 2018. We are developing a U.S. made oil filling machine, which we expect to be available for sale in the second quarter of 2019.
In 2018, returns and faulty products reduced revenues by approximately $148,000 (2%) for cartridges and other consumables and approximately $103,000 (2%) for machines. In 2017, returns and faulty products reduced revenues by approximately $82,000 (5%) for cartridges and approximately $137,000 (9%) for machines.
In addition, the quality issues, particularly with the cartridges, have caused some customers to not re-order. The amount of lost business from a lack of re-orders is not quantifiable, but we believe that it is significant.
Hope it's the start of a nice run. 8k bid is the highest I've seen so far for JKSM
And now a $1.80 hit. Hmmm...
Instagram: Having a great time in Boston at NECANN!
Check out the latest technology in #cannabis that is increasing efficiency and decreasing production costs! #cannabistech
https://www.instagram.com/p/BvZNgjYhVQY/
Booth 704 is the place to be at #necann today! We are working hard to offer complete workflow automation for the cannabis industry.
https://www.instagram.com/p/BvUeictBnPI/
Kinda but not really. It’s something but it’s pretty much a trade show full of companies looking to get their name, products, or drugs out. Can’t hurt but probably won’t do much for the stock.
We need some daily volume followed by real earnings with growth futures
That's huge. Boom shocka locka haha
SinglePoint Investment Jacksam/Convectium to Present at 31st Annual ROTH Show
https://www.globenewswire.com/news-release/2019/03/15/1755259/0/en/SinglePoint-Investment-Jacksam-Convectium-to-Present-at-31st-Annual-ROTH-Show.html
Yeah, was long time ago it traded at 2.50
Nice price action today. Imagine if volume picks up...
About Jacksam/Convectium
Jacksam/Convectium designs and markets proprietary automated vape cartridge filling/capping equipment for the cannabis industry. Our automated equipment line is designed and built in the US and carries full UL certification. Using Convectium's automated equipment, our customers are able to increase their output by up to 60 times over hand filling. Convectium is focused on helping our customers automate their workflow and get custom branded products onto dispensary shelves and into the hands of customers more quickly. Over 100 companies, including many dominant brands in the space, rely on Convectium for automation of their filling operations. Convectium has operations in seven US cities, utilizes two factories in the US and three dedicated factories in Shenzhen, China, and has over 25 employees.
Details of the presentation are as follows:
Date: Tuesday, March 19, 2019
Time: 11:00 AM PDT
Nice, PR's are coming now
Jacksam/Convectium Corp to Present at 31st Annual ROTH Investor Conference
https://www.prnewswire.com/news-releases/jacksamconvectium-corp-to-present-at-31st-annual-roth-investor-conference-300812125.html
Article quotes Danny Davis: FDA Commissioner’s Resignation Prompts Uncertainty About Forthcoming CBD Policy
https://www.cannabisdispensarymag.com/article/fda-commissioner-resignation-uncertainty-cbd-policy/
Danny Davis, founder and chairman of Convectium, an automation equipment provider, was also encouraged by Gottlieb’s comments.
“Although a bit murky, it was certainly encouraging to see progress on the Farm Bill in regards to CBD,” he said. “It is still unclear if all that effort will continue to gain momentum by another changing of the guard or if some of these conversations and ideas will be left in the dust. There is clearly public support for this to continue, but we are keeping our fingers crossed, as we never know how the tides may turn with the current chaotic environment we are in.”
I added some too. I am hoping they will keep shareholders better updated going forward.
Nice. A little upward momo out of the PR. Keep it coming.
That's a problem most definitely. They better bring their A-game with these new rollout equipment.
1. Great Software (Top of the line)
2. Laser precision cut equipment for durability and longevity
3. Great delivery
They fail on that this time around, they can kiss their business goodbye. They have the chance to be the leader, do it right. Even if it means not jettisoning profits immediately.
That's why. All I know is they've made a lot of commitments and failed on delivery Everytime. They always have a nice website, but can't deliver
I added a few
Is the Market Cap for JKSM correct? That seems a little high.
They also PR'd the news here:
https://www.prnewswire.com/news-releases/jacksam-otcmkts-jksm-ceo-provides-company-update-300809068.html
That, along with the 8-K
Beautiful website. Equipment is beautiful. Hopefully they are using precision laser cut equipment for their dispensary machines. That is the difference between a product that works for a couple years and one that works for decades. High quality!
https://www.convectium.com/
Without a good product, the company is useless. Not to sound like a dick, but if they made the key changes to the equipment so that its top notch and the best in the business, it should sell itself. If they havent, people will know and all they worked for in going public will be for not.
Like you stated Adijas, nothing special, but it looks like they are hitting all the nails.
I will be reading this a little later. Talk about fast
I like it. Nothing special, but it shows they are improving and want to become a key player in the industry.
Obviously they wanted the S1 into effect before starting to communicate. So it wouldn´t surprise me if we´ll see some PR´s in the near future.
Wow, how about that! Sounds like they are addressing some of the issues with the Shark product in their latest model.
Equipment Line Update
The workhouse in Convectium’s fleet - our Shark automated filling machine is on its eighth engineering version and has proven to be an extremely reliable product. Many of the changes to our equipment have been the result of direct customer feedback and we believe we now have the most user-friendly equipment in the industry. We are also developing a new US manufactured line with advanced electronics and full UL certification.
Well, that´s fast. Here is the first public message from CEO
Fellow Shareholders:
As the CEO of Jacksam/Convectium I would like to take this opportunity to provide you with an update on the Company as well as a brief overview of our overall growth strategy. Since taking the helm of Jacksam/Convectium, our industry has experienced some extraordinary growth as cannabis providers came to realize that consumer demand had shifted dramatically away from leaf based products in favor of oil based solutions. This fundamental shift has resulted in an extremely robust market environment for our products. Another important development in our industry was the recent passing of the Farm Bill, which rescheduled the legal status of CBD causing sales of those products to skyrocket. Jacksam/Convectium has responded to this shifting landscape by making some key changes to maximize our success during this explosive growth phase which I have outlined below.
Staffing/Personnel
We made key additions to our management team in 2018 including the hiring of Mike Sakala as CFO and Brett Macker as VP Operations. Mike has extensive financial management experience including CFO of Copper Rock LLC and time at E&Y. Brett brings extensive experience in the procurement/logistics industry including managing his own firm, Integrated Logistics. As a service company we know that customer service is paramount so we have been adding selectively to our customer service/sales teams.
Equipment Line Update
The workhouse in Convectium’s fleet - our Shark automated filling machine is on its eighth engineering version and has proven to be an extremely reliable product. Many of the changes to our equipment have been the result of direct customer feedback and we believe we now have the most user-friendly equipment in the industry. We are also developing a new US manufactured line with advanced electronics and full UL certification.
Quality Control
Our industry, and particularly the business of our customers is heavily regulated therefore we have made key steps to insure the quality/compliance of our products such by implementing a stringent quality control process at our suppliers and diversifying our vendor base. These changes have paid great dividends as evidenced by recent 3rd party testing of our cartridges, which passed key heavy metal contamination standards.
Public Company Transaction Completed
I am pleased to report that via the completion of an RTO merger in the fourth quarter of 2018, Jacksam/Convectium is now a publicly traded company.
At Jacksam/Convectium, we like to think that we are much more than just a cannabis oil cartridge filling/capping equipment provider - but serve a much more important role in this growing industry by providing comprehensive filling solutions to our customers.
When you get a minute, please take a look at the corporate video on our home page (www.convectium.com) which captures the essence of this business mantra while telling the story of where we look to take Convectium over the next few years.
I would like to thank you personally for your investment in Jacksam/Convectium. Your investment has been a key contribution for helping us grow the Company and positioning us for future success. If you are planning to visit the Southern California area in the future please let us know and we can make some arrangements for you to visit our headquarters, meet our team and get a firsthand look at our phenomenal products.
In closing, I want to let you know that we are committed to growing our business as quickly and as efficiently as possible. This industry is evolving rapidly and we are now very well positioned to provide our customers with the cutting edge cartridge filling/packaging solutions they need to grow their businesses, which will in turn maximize our success.
Regards,
Mark Adams
https://www.otcmarkets.com/filing/html?id=13285836&guid=jq6tUptbLBlVGth#CGND_EX991_HTM
Me neither. Trying to decide when it might be a good time to add...
I'm not selling. The company has a verified profiled on OTCM since 2/2019, so that means the given 70k float is still correct. And as we all know, with such a float a few sells or buys can cause big moves. I think the next Q (or 10K) should be filed quite soon. When they show the same progress as they did in last Q's, I think we'll go up again. And of course they didn't PR yet. The IR page says news coming soon https://www.convectium.com/pages/investor-relations
Correct. I have been holding ECDP for 5 - 6 months as it went current. I could be holding a long time. But Toronto Real Estate is nice and this guy knows his stuff. If he forges relationships and builds it to $50 mill company. We are talking dimes. I will hold my 350K shares on that.
Yes, and actually this type if action is not unusual for a thinly traded stock. Could bounce back just as quickly...
No clue. Lot of plays out there and this is now a new company so there really isnt a reason for people to be bailing on this. Could be some people want to make some short term profits elsewhere and come back.
For instance, we will hear settlement if CMGO April 1, so people have been buying and flipping that.
Maybe. It's been a long time since any news or filings. There is still hope IMO, but short term it does not look too good.
I’d say. I know I am. Thought there was hope here but I’m starting to think it was a pipe dream.
PPS going down again today. Maybe folks getting tired of waiting and bailing out?
Definitely sucks but I highly doubt it is a result of anything to do with JKSM
Well that’s not good. Finally some volume but dumping volume.
I was surprised too. I thought their products would be awesome given how expensive their machines and cartridges were. They had to replace our first filling machine, then they had to replace the motherboard. The needle adjustments were a hassle. I would have thought that their cartridges would have been a perfect fit. Instead they were leaky, a lot of issues with cotton absorbing my oils, and not filling correctly but
Ispoke with people at a few trade shows and I found a lot of people were very dissatisfied with the lack of quality of their products, the terrible response times, and the lack of dedication to resolve issues.
I think they've been in business for 5 years, so they aren't too new?
I haven't found many reviews for Jacksam's products. Perhaps not unusual for a fairly new company. I did find this, which seems mixed...
https://future4200.com/t/anyone-have-experience-with-a-710-shark-filling-machine/678
I'm just trying to understand why someone would just create an account and come on to ihub to talk about this stock?
Well that’s frightening. I thought this company was on a fast track to international growth
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