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TCAN CEO Talks
While it sounds like this interview with TCAN CEO Jim Pakulis took place before the LDS deal came and went, in it Pakulis explains TCAN's overall plan for growth.
In this interview, TransCanna CEO Jim Pakulis explains the company's five-phase strategy and the progress made to date:
1) Acquire physical assets and be poised to scale;
2) Find and retain top-tier management;
3) Identify quality brands for purchase;
4) Create internal distribution system;
5) Create and implement proprietary software platform;
TransCanna Interview
I've seen the Modesto facility with my own eyes, and I DO believe in TransCanna.
Purchased from Chad Swan in early 2019, the Modesto facility was built by Swan. Mr. Swan has specialized in building USDA food grade facilities throughout the United States for the past several years.
No "Option"
According to ValueSpectrum, "In Q2 the Company acquired the Modesto facility for US$15 million- a 196,000 sq ft. former food processing facility that had recently undergone a US$8M conversion to a vertically integrated cannabis operation." And according to VS, "the Modesto facility is ready to scale and is designed for a nursery, cultivation, manufacturing, kitchen, bottling, and transportation division."
See video
SoCal facility
As for TCAN's SoCal facility, the company has never stated that it was anything other than a sublease, despite any implication to the contrary. "TransCanna Completes Sub-Lease Of 10,000 Square Foot Facility In Adelanto, CA"
Shape of LDS
You also noted that when Jim Pakulis stepped down as CEO of Lifestyle Delivery Systems Inc. in 2018, he "left it in terrible shape." But is seems striking that despite the fact that LDS has only one product (CannaStrips), Pakulis managed to help create a company that has a current market cap of $28.4 million.
While I can only guess that Jim knows Brad, I seriously doubt either would do anything that might intentionally jeopardize their company's respective stock value.
Stealing Shares?
In a now dead deal, TransCanna Holdings Inc. announced on July 1, 2019, that it planed to acquire Lifestyle Delivery Systems Inc. (CSE:LDS) in an all-stock deal valued at $51.7M, or $0.43 per share, based on an exchange ratio of one TransCanna share for 10 Lifestyle Delivery Systems shares.
According to SmallCap Power, "the all-stock transaction" would have represented "a 16.6% premium over LDS’s closing price of $0.37 on Friday, June 28, 2019."
IMO, as is true with any stock in the cannabis sector, investors need to have a long-term plan. While the sales of marijuana products are expected to soar in the next few years, there will be setbacks along the way.
Good luck with LDS...
TCAN Terminates Transaction with LDS Inc.
TransCanna Terminates Transaction with Lifestyle Delivery Systems Inc.
Vancouver, BC, July 13, 2019 - (ACN Newswire) - TransCanna Holdings Inc. (CSE: TCAN) (FSE: TH8) ("TransCanna" or the "Company") and Lifestyle Delivery Systems Inc. (CSE: LDS) (FSE: LD6) (WKN: A14XHT) (OTCQX: LDSYF) ("LDS") have mutually agreed to terminate a letter of intent ("LOI") dated June 28, 2019 whereby TransCanna was to acquire LDS. After careful review of the transaction and current market conditions, TransCanna has determined the acquisition of LDS by TransCanna under the terms of the LOI would not be in the best interests of shareholders, and as a result, the LOI has been terminated by both parties.
More about TransCanna Holdings Inc.
Due Diligence will prove TCAN Strong!
Here are the five main takeaways from the company's conference call on July 3, 2019.
1) Acquire physical assets and be poised to scale;
2) Find and retain top-tier management;
3) Identify quality brands for purchase;
4) Create internal distribution system;
5) Create and implement proprietary software platform;
Physical Assets:
- In Q2 the Company acquired the Modesto facility for US$15 million - a 196,000 sq ft. former food processing facility that had recently undergone a US$8M conversion to a vertically integrated cannabis operation. The Modesto facility is ready to scale and is designed for a nursery, cultivation, manufacturing, kitchen, bottling, and transportation division. Licensing at the facility remains pending.
Top-Tier Management:
- Chad Swan, an advisor to the Company and the vendor of the facility, has been a significant contributor to the ongoing success of TransCanna and continues to oversee the buildout of the Company's cannabis facilities. In addition, his relationships with the city and county officials have been invaluable as we continue to move forward with our licensing processes.
- Alan Applonie joined the Company this past month as general manager. Alan brings with him over 30 years' experience growing national brands and managing all aspects of supply chain and operations for CPG products. Alan's most recent position was for a multi-billion-dollar enterprise in which his division oversaw 1,500 employees and regularly produced greater than $300 million in annual revenues. Alan currently oversees all activities at the Modesto facility.
Management Team Through Proposed Acquisitions:
- Each of the principals at Soldaze, Lyfted and Goodfellas have significant industry experience and will bring that experience to TransCanna subject to the closing of each transaction.
Acquiring and Creating Brands:
- Having reviewed over 100 branded products in California, TransCanna has been extremely selective in its proposed acquisition vetting process. The Company's three mandatory acquisition criteria include SKU velocity, strong management, and products that differentiate themselves in the marketplace. TransCanna will also build its own brands over time, but is focused on the integration of its proposed acquisitions.
Closing Transactions:
- The audit of Goodfellas Group was just recently completed, allowing for the completion of definitive agreements. The Company anticipates this transaction will close in the next ten days. The Company anticipates closing the proposed acquisitions of SolDaze and Biovelle (a CBD based cream) and Lyfted Farms within the next sixty days.
Licensing:
- Adelanto - TransCanna received permanent manufacturing and permanent transportation licenses from the city of Adelanto and anticipates receipt of its state licenses later this month. The build out of the facility is approximately 60% complete and hoping to be operational by month's end.
- Modesto - Although the Company's primary property is located in Modesto, it is legislated by the county. The license application process is pending.
Guest speaker Brad Eckenweiler, CEO of Lifestyle Delivery Systems, spoke to the synergies between TransCanna and LDS with regards to manufacturing, transportation, distribution, nursery and genetics coupled with LDS's delivery and dispensary business. The positive alignment of these two organizations should be evident within the next sixty days giving shareholders ample time to make an informed decision about the upcoming proposed acquisition.
"Everything we had hoped to accomplish within the first year of taking TransCanna public, we've fortunately been able to accomplish almost all of it within the first six months," said Jim Pakulis, CEO of TransCanna. "The team has been going at an accelerated pace to complete the first three phases of our strategy: finding physical assets, finding top-tier management and finding the right enterprises to acquire. Now it's closing those acquisitions and getting us to the revenue stage."
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TransCanna (TCAN.C) lays out growth strategy
TCAN cultivates a five-phase growth strategy, which was presented to TransCanna investors during the company's July 3 conference call.
1.) Acquiring physical assets and increasing scalability
2.) Hiring and retaining the best management staff
3.) Identifying high-quality acquisition targets
4.) Building an internal distribution system
5.) Developing and implementing a proprietary software solution
On the physical-asset front, TransCanna is putting its money where its mouth is.
The company recently acquired a facility in Modesto, California for US$15 million. The 196,000 square-foot processing plant is being transformed into a vertically-integrated cannabis operation.
Modesto gives TransCanna two massive multi-purpose facilities in California. Last year, the company completed a sub-lease of a 10,000 square-foot facility in Adelanto.
Goodfellas’ Simple Farms and Daily Cannabis Goods brands will be developed at either of the two facilities once California approves the transportation and distribution licenses.
Read more
Audio File of TransCanna Corporate Conference Call July 3, 2019
For those that missed the TransCanna Conference Call, I recorded it and uploaded the file to my Sound Cloud account. If you start the file at the 9 minute mark, you'll miss the boiler plate disclosures and a few technical issues.
TransCanna Corporate Conference Call Will Update $TCAN Shareholders
TransCanna Holdings Inc. (CSE:TCAN) (OTC PINK:TCNAF) (FSE:TH8) (“TransCanna” or the “Company”) will be providing a corporate update to its shareholders and investors on Wednesday, July 3rd at 1:15pm PST.
The call in numbers are (US) 888-585-9008, (Canada) (888) 299-2873 and (Germany) 0 800 723 5123. The Conference room pin is 477 995 281.
TransCanna management will discuss the progress of the proposed acquisitions involving GoodFellas, Soldaze, Lyfted Farms and Biovelle, as well as a general update on the licensing process for the 196,000 sq ft facility in Modesto, CA and the 10,000 sq ft facility in Adelanto, CA.
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IMO, TCAN is set for real growth!
TransCanna's brands -- including the potential acquisition of LDS / CannaStrips - will operate from $TCAN's 196,000 sq. ft. Modesto facility. As such, the company will enjoy increased exposure and decreased expenses in the most populated legal state in the country.
For those that have not viewed the video tour of TransCanna's Modesto facility, here is a chance to see what all the buzz is about.
TCAN Hires GM for Its 196,000 Sq Ft Facility
Vancouver, BC, June 18, 2019 - TransCanna Holdings Inc. (CSE: TCAN, XETR: TH8) (“TransCanna” or the “Company”) has hired Alan R. Applonie as General Manager. Alan will be responsible for all activities in the manufacturing operations of the Company’s recently acquired 196,000 sq. ft. vertically integrated cannabis-focused facility, as well as other facilities and operations the Company may acquire in Stanislaus County.
For the past 18 years Alan was instrumental in growing a privately held consumer packaged goods company from start-up to greater than two billion dollars in annual revenues. His vast skill set includes an emphasis on supply chain and operations, primarily with CPG agricultural based products. Alan also has infrastructure systems experience with Amazon, Starbucks, 7-11, Walmart and Krogers.
“I’ve spent over six months interviewing for top-tier talent to oversee our operations and I firmly believe Alan is that person. Alan’s most recent position was for a multi-billion-dollar enterprise in which his division regularly produced greater than $300 million in annual revenues. He has decades of experience growing national brands and managing all aspects of supply chain and operations for CPG products. He has a deep and extensive understanding of manufacturing and processes, and is extremely results driven. We have no doubt he will add significant value to the TransCanna family of brands,” said Jim Pakulis, CEO of TransCanna.
“I’m delighted to join the TransCanna team and to contribute in an integral way to their growth story. The foundation the TransCanna team has built is the perfect platform for someone with my senior level experience in CPG products, manufacturing and operations,” said Alan Applonie, General Manager, TransCanna.
Alan holds an undergraduate degree from Weber State University and an MBA from the Owen Graduate School of Business at Vanderbilt University in Nashville, TN.
TCAN Closes CDN$10 Million Brokered Private Placement
TransCanna Holdings Inc. (CSE: TCAN) (XETR: TH8) (OTC PINK: TCNAF) ("TransCanna" or the "Company") is pleased to announce that it has closed its previously announced brokered private placement of units, generating aggregate gross proceeds of CDN$10,001,750.
According to Yahoo finance,"the Company intends to use the net proceeds of the Offering to fund further equipment purchases for its vertically integrated cannabis facility in Modesto, California, additional acquisitions, including the previously announced proposed acquisitions of Biovelle, Soldaze and Lyfted Farms and for working capital and general corporate purposes."
TCAN Enhances Its Position In California via Acquisitions
On June 4, 2019, Technical420.com published this update on TransCanna Holdings Inc. ( $TCAN ).
2019 has already proven to be a banner year for TransCanna and we are not even halfway through the year. Over the next year, we expect the California cannabis company to record massive growth and this is an opportunity to be watching. Through a series of acquisitions, TransCanna is well positioned to capitalize on the California market and this is an opportunity that we are excited about. California is the world’s largest cannabis market and TransCanna is well positioned to be a leader in this market.
When looking at TransCanna, we see a company that has massive potential catalysts for growth, and we will monitor how the team continues to execute. Today, we have issued an update on the company and if you want to learn more, please email support@technical420.com.
Enhancing Its Position in California via Acquisitions
Last week, TransCanna Holdings executed a non-binding letter of intent (LOI) to acquire the business and assets of California-based Lyfted Farms, a licensed producer of premium cannabis that owns permanent state licenses for cultivation (nursery), cultivation (grow), and distribution.
Lyfted Farms is a well-known California cannabis brand that has been generating significant revenues and we are bullish on the growth prospects associated with this transaction. With access to more than 50 unique cannabis strains, the company is an ideal acquisition candidate for TransCanna as it offers access to a portfolio of premium branded products and we will monitor how the team is able to advance this business.
One of the biggest issues that Lyfted has faced is related to the amount of space that it has to produce cannabis. The acquisition by TransCanna would solve this need and would provide the space that is required to scale the brand. Currently, Lyfted is the top selling brand in the largest dispensaries in the area and this bodes well for future growth. TransCanna has been focused on acquiring leading cannabis brands and we are monitoring how the team is able to execute on this one.
Less than a week before announcing a LOI to acquire Lyfted, Transcanna Holdings executed a non-binding LOI to acquire the branding asset package of California-based Tres Ojos Naturals, d/b/a SolDaze. This agreement will enhance the company’s leverage to the California cannabis-infused product market as SolDaze produces cannabis-infused fruit snacks.
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TransCanna Receives Adelanto Adult Use Permits For Manufacturing and Distribution
"Transcanna Holdings Inc. (CSE:TCAN: XETR: TH8) (“TransCanna” or the “Company”) is pleased to announce the Company’s wholly owned subsidiary, TCM Distribution, Inc., has received an Adult Use Cannabis Manufacturing permit and an Adult Use cannabis distribution permit from the City of Adelanto, California," according to online reports.
"As previously reported on April 18, 2019, TCM Distribution sub-leased 10,000 square feet of warehouse space in Adelanto. Thereafter, TCM Distribution applied for the above two referenced permits with the City of Adelanto which were received on May 28, 2019. TCM Distribution has applied for its state of California Adult Use permanent manufacturing license and distribution licenses, which are pending."
“The purpose of the Adelanto facility is two-fold; first, it’ll be used as one of our southern California satellite facilities for goods being transported from our 196,000 square foot vertically integrated, cannabis focused facility in Modesto. Second, with the non-volatility manufacturing license we’ll be able to accommodate the production and packaging of pre-rolled cannabis products and other products of similar nature, then distribute them accordingly,” stated Jim Pakulis, CEO of TransCanna.
“GoodFellas, one of the entities the Company is preparing to acquire, will be transferring all revenue generating distribution and manufacturing processes to Adelanto once the facility receives its Certificate of Occupancy from the city, and state distribution and manufacturing permits. We anticipate this being completed by the end of June.”
In addition, the TCM Distribution recently purchased and upgraded its state mandated transportation vehicle. The vehicle was purchased in March and received the state required alterations in order to assure state compliance.
In other news, the Company is pleased that the Adelanto city counsel in May approved reducing the tax on transportation, distribution, manufacturing and cannabis testing lab services from 5% down to 1%. The counsel also voted to reduce the cultivation tax from $5 per month per square foot to 42 cents per month per square foot. The dispensaries tax was also reduced from 5% down to 3%.
TransCanna Branding Division Headed By President and Co-Founder of Soldaze, Inc.
TransCanna is pleased to announce the hiring of Shawn Shevlin (“Shawn”) the president and co-founder SolDaze, Inc., (“SolDaze”) an organic CBD, THC infused mango line of snacks and treats. Shawn will oversee the newly formed branding division for TransCanna at the Modesto facility, which will be responsible for statewide sales. He has over 25 years of experience in branding agricultural related products as well as a background in sales and operations.
TransCanna and SolDaze recently executed a non-binding Letter of Intent in which TransCanna will acquire the business and assets of SolDaze. SolDaze has received numerous awards including first place for packaging design and second place for Infused Edibles at the 2018 Emerald Cup. Together, both companies are working toward the closing of the acquisition.
“The TransCanna transition team has been extremely effective in orchestrating and managing all the moving parts as we continue with the due diligence and audit work which is necessary for the acquisition to close. To say that we’re extremely excited to be working with such a professional and knowledgeable company is an understatement,” stated Shawn.
Prior to co-founding SolDaze, Shawn held executive positions at top organic produce companies including EarthBound Farms, Dole, and Organic Girl. He also co-created a supply chain of organic mangoes from Mexico for leading natural food brands and club stores. Shawn co-founded Handshake Farms and helped lead social responsibility efforts to support their rural communities and champion organic farming. This includes training for farmers and supporting schools and sports programs.
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TransCanna Executes LOI To Acquire Lyfted Farms
“The Proposed Acquisition includes an exceptional brand, with a range of high-end flower, growing revenues, fifty exotic and unique genetic strains and a team that’s been a staple in the Modesto valley with over two decades of cultivating experience. In short, this is another example of an ideal acquisition candidate for TransCanna that offers SKU velocity, growing revenues and branded products that differentiate from others in the marketplace,” stated Jim Pakulis, CEO of TransCanna.
TransCanna Provides Video Tour of 196,000 Sq. Ft. Vertically Integrated Facility
TransCanna is pleased to provide its shareholders and investors with an eight-minute video presented by its CEO, Jim Pakulis, as he describes the features and benefits of the acquisition of the 196,000-square-foot vertically integrated cannabis-focused facility.
In the 8 min video, Jeremy Szafron is in Modesto, California speaking with CEO Jim Pakulis of TransCanna.
"Our goal was to provide a glimpse of the size and scope of the facility through this video, which we believe will allow us to scale as we create and acquire 15 premium brands in California. Our objective is to grow TransCanna as expeditiously as possible, and we believe this facility is a huge step forward in achieving that goal,” stated Jim Pakulis.
Take an exclusive behind the scenes look at the new facility here.
TCAN Applies For Licenses For Adelanto Facility: Manufacturing, Distribution & Transportation
“Our immediate focus is to be able to have our city and state licenses in place in Adelanto as soon as possible. Subsequent to the GoodFellas acquisition we will be able to prepare and package the Daily Cannabis Brand pre-rolls at the facility and then deliver the products to the dispensaries without the need to bring in a third party,” stated Jim Pakulis, CEO of TransCanna.
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TransCanna Stock Jumps 675% This year
According to SmallCap Exclusive, "Shares of Transcanna Holdings Inc (TCAN:CNX) (TCNAF:OTC) are one of the biggest cannabis stock gainers this year on the Canadian Exchange. The stock is up a huge 675% since the start of this year. Transcanna‘s stock is up another 2% to $7.59 CAD in today session after hitting a new high 52-week high of $7.70."
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TCAN Acquires Massive Vertically Integrated Cannabis Facility in California
The company’s long-term plan is to have the 196,000 sq. ft. facility serve as its primary base of operations with five smaller satellite facilities located throughout the state.
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TCAN To Acquire Daily Cannabis Goods Brand with GoodFellas Acquisition
"The Daily brand is a perfect fit for TransCanna," Stated Jim Pakulis, CEO of TransCanna. "The start-up costs were nominal, it has SKU velocity now that it's selling in over thirty dispensaries, and it's constantly beating the competition due to consumer demand."
On April 23, TransCanna Holdings Inc. announced "that the acquisition of GoodFellas will result in acquiring an additional existing brand called Daily Cannabis Goods ("Daily"). The Daily brand consists of three quality half gram pre-rolls which are attractively packaged and priced.
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TransCanna Completes Sub-Lease Of 10K Sq Ft Facility In Adelanto, CA
"TransCanna Holdings Inc. (CSE: TCAN) (XETR: TH8) (“TransCanna” or the “Company”) announces that it has executed a sub-lease agreement for 10,000 square feet of a multipurpose facility located in Adelanto, CA. The terms of the sub-lease agreement is four years at US$2.00 per square foot per month. The facility is of superior quality and has existing armed security personnel at all times at the complex."
Read more here
TransCanna Completes Acquisition Of 196,000 Sq. Ft. CA Cannabis Facility
The total purchase price for the Property was US$15 million. The Company’s CEO paid the seller a US$250,000 non-refundable deposit to secure the property, which has since been reimbursed by the Company, and the Company will pay an US$8 million down payment from the proceeds of the Company’s over-subscribed brokered private placement once closed (see news releases dated February 20, 2019 and March 14, 2019). In consideration of the issuance of 500,000 common shares of the Company, the seller of the building agreed to a carry back note of US$6.750 million at 7% p.a. interest only for up to thirteen months, with an initial maturity date of October 15, 2019, subject to a six-month extension.
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TransCanna's Vertical Integration Redefines California Cannabis Market
"TransCanna Holdings has had its finger on the pulse of the cannabis market and has been focused on creating a platform to solve the need for integrative services in California," according to Technical420.
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TCAN Is Scaled for Growth
"TransCanna Holdings Inc. is strictly focused on maintaining complete control of their ecosystem," according to The Cannabis Investor.
"This means that through the acquisition of their 196,000 sq ft vertically integrated grow facility that recently received a US$8 million renovation, they anticipate being able to control their nursery, grow, extraction, manufacturing, remediation, transportation and distribution. To accomplish this and reach their desired margins, the company over the next thirty-six months anticipates acquiring or developing up to fifteen premium brands for the California marketplace."
And provided the company is successful at establishing a unified and integrated operation, Transcanna will "control a large portion of the seed-to-sale supply chain" in California, according to CI.
Read more here
TransCanna Stock Up 586.25 Percent As Of April 2, 2019
"A $10,000 investment in TCAN could have turned into $68,625 in only 3 months.", according to The Cannabis Investor.
TransCanna has zero debt to equity ratio
"In looking at some Debt ratios, TransCanna Holdings Inc. (CNSX:TCAN) has a debt to equity ratio of 0.00000 and a Free Cash Flow to Debt ratio."
According to Winslow Record, "TransCanna Holdings Inc. (CNSX:TCAN) shares currently have a 125/250 day adjusted slope average. The Adjusted Slope 125/250d indicator is equal to the average annualized exponential regression slope, over the past 125 and 250 trading days, multiplied by the coefficient of determination (R2). This indicator is useful in helping find shares that have been on a consistent upward direction over the past six months to a year. Generally speaking, the higher the 125/250 value the better as this would indicate a consistent increase closely correlates to the actual stock price."
TransCanna's New CA Facility Valued At $50 to $75M
The Company paid $15 million for the 196,000 sq ft vertically integrated facility in northern California and the property has 5.567 acres of land with institutional grade packaging and extraction equipment already onsite.
Note: TransCanna Holdings Inc. is a Canadian based company providing branding, transportation and distribution services, through its wholly-owned California subsidiaries, to a range of industries including the cannabis marketplace.
TransCanna Gains Value As Market Slips
After hitting a daily high of $3.51 per unit on Friday, TCAN closed out the week of March 22, 2019, at $3.40 per unit. Traded on the Canadian Securities Exchange (CSE), the company was originally listed on Tuesday, January 8, 2019, at $.50 per unit. While TCAN’s value is up for the month of March, the company’s stock price has increased a respectable 580 percent since the Initial Public Offering.
TransCanna Closes CA Real Estate Deal, Stock Price Hits $3.52 Per Unit
According to Equity Guru, TransCanna Holdings (TCAN.C) closed a deal for a land, building and asset package in Northern California for USD$15 million today.
“Acquiring arguably the largest vertically integrated cannabis centric three-storey multipurpose facility in California reinforces our strategy to be fully self-contained in our ecosystem. We also have an additional five acres in the green zone adjacent to the facility to build up to 600,000-square-foot three-storey grow facility to supply our own biomass for the brands we acquire or create,” said Jim Pakulis, chief executive officer of TransCanna.
TransCanna Signs Definitive Acquisition Documents for 196,000 Sq Ft, Fully Enclosed Cannabis Facility
Transcanna Holdings Inc. CSE:TCAN: XETR: TH8) (“TransCanna” or the “Company”) is pleased to announce that the Company has signed definitive closing documents to acquire the land, building and asset package (the “Property”) which includes an existing 196,000 square foot facility on 5.5 acres of land as well as cannabis packaging and processing equipment. As referenced in the Company’s February 4th, 2019 press release, the facility has undergone major renovations over the past twenty-four months which has created specific divisions for nursery, cultivation, manufacturing, extracting, bottling, remediation, and transportation & distribution. The total cost for the renovations was US$8 million.
TCAN's CEO Jim Pakulis noted, “acquiring arguably the largest vertically integrated cannabis centric three-storey multi-purpose facility in California reinforces our strategy to be fully self-contained in our ecosystem.
TransCanna (TCAN) Rolls Out Private Placement to Fund Growth
Last week, TransCanna announced a $10 million brokered private placement, whereby Haywood Securities will act as lead agent on behalf of a syndicate of agents to sell up to 5,000,000 units at $2.00 each.
According to Technical 420, "each unit will be comprised of one common share and one half of one common share purchase warrant. Each warrant will entitle the holder to acquire an additional common share at a price of $3.00 for a period of 36 months from the date of closing of the offering."
Tech 420 notes that TransCanna intends on using "the net proceeds to partially fund the previously announced acquisition of a 196,000 sq. ft. cannabis facility and for working capital and general corporate purposes. The company still expects to look for a commercial lending facility to secure the full purchase price for the facility and the completion of the offering is conditional upon the company being able to complete the acquisition."
Under the agreement, TCAN will acquire 6.5 acres of land, an asset package that includes an existing 196,000 sq. ft. facility, and cannabis packaging and processing equipment for $15 million in cash.
Join TransCanna At Gravitas Growth Conference
Vancouver’s 2nd Annual Gravitas Growth Conference is coming to North America on February 28th, 2019.
And this year, several noteworthy cannabis companies are scheduled to present.
Gravitas Growth Conference is a leading small-cap investment conference, which is expected to bring together leading institutional, retail, family office, and high net worth investors with more than 20 of the fastest growing companies in North America.
The conference will be held on Thursday, February 28th, 2019 at the Fairmont Pacific Rim, 1038 Canada Place, Vancouver, Canada. The Conference hours will be from 8:00 AM – 5:00 PM PST.
Presenting companies:
Bay Talent Group
Canivate Growing Systems
Gabriella's Kitchen
TransCanna Holdings
International CannaBrands
Halo Labs
TILT Holdings
WELL Health Technologies
Care Group of Pharmacies
Mimi's Rock
Assure Holdings
INDOCHINO
Thunderbird Entertainment
AcuityAds Inc.
EMERGE Commerce
Peekaboo Beans
VSBLTY
Diversified Royalty Corp.
Xtraction Services
Progressa Inc.
“This represents a great opportunity to present our vision and opportunity to investors as we have recently announced our first financing since coming to trade in January 2019. The TransCanna story is merely beginning to unfold and the management team is eager to go to work and execute on a very specific and targeted business plan,” stated Jim Pakulis Company CEO.
Mr. Pakulis will discuss the Company's recently signed LOI to acquire Goodfellas Group LLC, and its acceptance of an assignment of a real estate option agreement which includes an existing 196,000 square foot facility on 6.5 acres of land in Northern California, as well as cannabis packaging and processing equipment. Mr. Pakulis will present an overview of Transcanna's business, M&A strategy, and its overarching objective to build a portfolio of 15 premium brands while creating a self contained ecosystem that ensures reliability, consistency, quality, and scale.
TransCanna is scheduled to present on February 28th, 2019 at 9:45 AM PST and Mr. Pakulis will also be a member of the “Innovations in Cannabis” panel at 10:50 AM PST.
Mr. Pakulis will be available for one on one meetings throughout the conference. Investors that would like to view the presentation can view it from the following link:
https://zoom.us/webinar/register/WN_jkW7azbBT92c_9nRJlZ8TA
TransCanna Up 446 percent Since Jan 8th IPO
TransCanna, A.K.A. TransCanna Holdings Inc. or $TCAN, closed Friday on the Canadian Stock Exchange (CSE) at $2.73 per unit (share). The company IPO'd on Jan 8, 2019 at $0.50 per unit and its stock value has increased roughly 446 percent since being listed on the CSE.
Meanwhile, North America’s legal marijuana market looks vigorous as we approach 4.20, 2019. In three independent reports on the worldwide cannabis market, Arcview / BDS, Cowen, Inc., and Grand View Research, Inc. were extremely bullish on the cannabis sector.
*Arcview / BDS noted in their published report, The State of Legal Marijuana Markets, spending on legal cannabis is anticipated to reach roughly $57 billion worldwide by 2027.
* Cowen, Inc., a financial services and research firm covering the cannabis industry, is much more bullish on sales in this space and has revised its forecast for gross cannabis sales in the U.S. alone from $50 billion by 2026 to around $75 billion in gross sales by 2030.
*Grand View Research Inc. forecasts the global legal marijuana market will generate $146.4 billion in sales by the end of 2025.
Conversely –the legal sale of recreational marijuana in the United States topped out at just over $8 billion dollars in 2018, according to a report by GreenWave Advisers.
In other words, there’s still a lot of opportunity for growth within the marijuana sector. Particularly for those companies that focus on streamlining transportation and distribution in California’s marijuana marketplace.
TransCanna Signs LOI To Lease Adelanto Facility
Transcanna Holdings Inc. is pleased to announce the execution of an LOI to lease a new 15,000 square foot facility currently under construction with a completion date of April 30th in Adelanto, CA.
This multi-faceted facility is intended to be one of four strategically located satellite facilities located throughout California. The Adelanto facility will serve the densely populated southern California marketplace with industrial scale production, distribution and transportation capabilities.
In compliance with to the non-binding letter of intent, the lease on the Adelanto facility will have a five year term at a monthly leasing rate of $225.00 per sq. ft., beginning in May, 2019.
Per the CEO of TransCanna, Jim Pakulis “Our mandate is to build and operate a high margin enterprise by owning our own branded products, and control all aspects in the ecosystem. Being in escrow for one of the largest vertically integrated, cannabis focused facilities in the US, which will serve as our hub, and now with an LOI on a satellite facility puts us squarely in the center to deliver on our mandate.”
Marijuana and Due Diligence
Over the past twelve months the company’s third party mergers and acquisitions firm has contacted over six hundred licensed California cannabis entities on behalf of the Company. Consequently, the Company has performed due diligence on sixty licensed, branded entities. Due to its strict acquisition metrics, it is currently pursuing advanced due diligence on only four of those entities.
TransCanna on Facebook
After missing out on the Feb. 15th conference call with the company, I reached out to TransCanna via Facebook with a message to see what I missed.
Here is what I learned: The CEO provided a brief summary of the company's activities and acquisitions since $TCAN was first traded earlier this year.
TransCanna Udate
1. TransCanna IPOs on the CSE on Jan. 8 2019 at $0.50 per unit (share)
2. Transcanna receives state of California temporary distributor license.
3. TransCanna Receives Approval To Begin Trading On The Frankfurt Stock Exchange
4. TransCanna Retains Purple Crown Communications For Investor Relations Services
5. TransCanna Signs LOI To Acquire Goodfellas Group, LLC
6. TransCanna Enters Into Option To Acquire 196,000 Square Foot, Fully Enclosed Cannabis Facility
7. GoodFellas Acquisition Tol Include Proprietary Brand called Simple
8. TransCanna Announces The Completion of 420 Global
9. TransCanna Announces $10.0 M Brokered Private Placement
10. TransCanna Signs LOI To Lease Manufacturing & Logistics Facility in Southern California
Note: TransCanna is traded under the ticker symbol of TCAN on the CSE and TH8 on XETR
TransCanna Holdings Inc. (TCAN.CN) Offers $10.0 M Brokered Private Placement
According to MarketWatch, TransCanna "has appointed Haywood Securities Inc. ("Haywood") to act as lead agent on behalf of a syndicate of agents to be formed, including Gravitas Securities Inc. (collectively, the "Agents") to sell, by way of a private placement on a best efforts basis, up to 5,000,000 units of the Company (each a "Unit") at a price of $2.00 per Unit (the "Issue Price") for gross proceeds of up to $10,000,000 (the "Offering"), subject to receipt of all applicable regulatory approvals."
Transcanna Holdings Inc. (CSE:TCAN: XETR: TH8) "intends to use the net proceeds of the Offering to partially fund the acquisition of the 196,000 sq ft cannabis facility as announced on February 4, 2019 and for working capital and general corporate purposes. The Company still anticipates it will seek a commercial lending facility to secure the full purchase price for the facility and once it has executed definitive documentation for such a facility, it will provide a further update on the progress of the acquisition. The completion of the Offering will be conditional upon the Company being in a position to complete the facility acquisition," per the press release.
"The Offering may be completed in multiple closings, with the final closing expected to occur on or before March 28, 2019, subject to the receipt of all necessary regulatory approvals. All securities issued pursuant to the Offering will be subject to a four month hold period in accordance with applicable Canadian securities laws. "
TransCanna Holdings Inc. ($TCAN) Up 374% After IPO.
North American cannabis stocks, like TransCanna Holdings Inc. ($TCAN), caught the attention of savvy investors early this year when the company successfully completed its initial public offering (IPO).
The company rolled out its IPO of 4,400,000 shares (a.k.a. units) on Jan 8, 2019, on the Canadian Stock Exchange (CSE) at $.50 per unit, according to online reports.
... and on Friday, February 15, the company closed at $2.37 per share on the CSE.
Similar to other publicly traded stocks and funds, TCAN's stock value has vacillated since the IPO, but as the CSE closed on Friday, TCAN was up roughly 374 percent since their Initial Public Offering in January.
TransCanna Announces Corporate Update Conference Call
Transcanna Holdings Inc. (CSE:TCAN, XETR:TH8) (“TransCanna” or the “Company”)
The Company intends to host a corporate update conference call, after the close of the market at approximately 1:15pm (pst) on Tuesday February 19th, 2019. The agenda for the call is to provide an update on the corporation's activities since the IPO and articulate the future vision and opportunities the company is pursuing.
To participate in the conference call, please dial one of the following numbers.
Dial-in numbers are:
Canada/USA Toll Free: 1-800-319-4610
International Call-In: +1-604-638-5340
Callers should dial in 5 – 10 min prior to the scheduled start time and simply ask to join your call.
Conference reference No.: 10006275
TransCanna and the OTCQB?
Good morning Journal Jack,
While I don't know for certain that TransCanna will be listed via the over-the-counter stock market in the U.S. anytime soon, I would imagine that's just one of their short term goals
I believe $TCAN already meets International qualifications for companies seeking to be listed on OTCBQ.
Qualifications for Trading on the U.S. OTCBQ:
1.) The company must be listed on a Qualified Foreign Exchange and be12g3-2(b) compliant OR be an SEC Reporting Company
2.) Submit an annual OTCQB Certification, confirming Company Profile is current and providing additional information on officers, directors, and controlling shareholders
3.) Meet minimum $0.01 bid price and may not be in bankruptcy
4.) Have at least 50 Beneficial Shareholders, each owning at least 100 shares
5.) Have a freely traded Public Float of at least 10% of the total issued and outstanding of that security*
7.) Submit a Letter of Introduction from a firm qualified to sponsor OTCQX companies (one-time requirement)
As to whether or not the CEO of TransCanna uses WOFA as the shell CO when they list on OTCBQ, that remains to be seen.
In regards to the TCMD question, here is what I've read:
"TransCanna has already entered into an Intellectual Property Rights and Royalty Agreement for the Track & Trace software platform required by the state of California. TCM Distribution, the operating company managed by TransCanna, has received a transportation and distribution permit from the city of Adelanto and a temporary transportation and distribution permit from the state of California. TransCanna has also executed a land lease to build a 10,000-square-foot transportation and distribution facility in Adelanto."
As part of the “TransCanna Way,” the company intends to manage most aspects of the supply chain from upper end procurement, branding, transportation and distribution, to marketing and sales.
Cultivating TransCanna's roots throughout North America's marijuana ecosystem, the company's CEO and chairman is James Pakulis, who has three decades of experience working with public and private entrepreneurial companies in a variety of emerging and high-growth sectors.
Pakulis is formerly the president and a director of Lifestyle Delivery Systems Inc. (CSE: LDS) (OTCQB: LDSYF), a vertically integrated cannabis-related entity operating in California.
Pakulis was chairman and CEO of General Cannabis Inc. which from 2010 to 2012 owned WeedMaps. Pakulis oversaw the company’s growth from zero to over $16 million in annual revenue in less than 24 months.
TransCanna's CEO talks
Jim Pakulis speaks with The Green Scene Podcast about the company's M+A strategy and their latest partnership with a boutique advertising/cannabis firm, Goodfellas.
"This week on TGSP: We speak with Jim Pakulis of TransCanna Holdings (CSE: TCAN & XETR: TH8)about their successful IPO and the companies plan to enter into an option to acquire a 196,000 square foot, fully enclosed cannabis facility on 6.5 acres of land. Jim also touches on their M+A strategy and their latest partnership with a boutique advertising/cannabis firm, Goodfellas."
TransCanna ends the week on a high note ... trading at $2.37 per share!
Driving the share unit price in a positive direction, on Friday the company announced they’ve entered into a new option on a 196,000 ft.² California cultivation and distribution facility. In 2019 alone, TransCanna has secured a Temporary Distributor License from the State of California via their affiliation with TCM Distribution, Inc., and has signed a non-binding Letter of Intent to acquire Goodfellas Group, LLC, (“Goodfellas”).
TransCanna is traded on the Canadian and German stock exchange under the symbols CSE: TCAN and XETR:TH8.
The company IPO'd on the Canadian Stock Exchange (CSE) @ $0.50 per unit on Jan. 8, 2019 and closed Friday Feb. 1, 2019 at $2.37.