Thoughtful Brands Inc. (PEMTF)

[vortmaximum]

"The positive changes in the market during Q1 2021 within the cannabis and CBD sectors were key factors in the decision by management to not move ahead with the FCC acquisition. Over the past two quarters, the Company has focused on increasing profitability through improved customer retention rates, contributing to higher net margins as customer acquisition costs were front end loaded and initial margins were typically lowered. Economies of scale are a key lever when it comes to customer acquisition, end-to-end product supply chain management, and timely delivery.

The Company has commenced integration of the production of distillate and isolate produced by its subsidiary, American CBD Extraction. New superior quality CBD products have been formulated and are planned to be introduced to the market in Q2 of 2021. In addition to the new product lines, the Company plans to establish a supply chain for its wholesale hemp biomass throughout the United States and Europe, which will increase topline revenues and contribute to overall net margins.

The Company has also initiated sales in Europe, implementing its proprietary test-marketing program that is currently identifying demand for specific natural health products with the highest net margins. The joint venture with FCC will continue and allow the Company to tailor products to European consumer demands. With a focus on the United Kingdom and Germany, FCC will assist with local licensing, regulatory and supply chain."

https://ceo.ca/@accesswire/thoughtful-brands-bolsters-sales-channels-in-north