C21 looks to cross pollinate its success in Oregon and Nevada to California
C21 Investment Inc.’s (CSE: CXXI, OTC: CXXIF) mission is to unlock the environmental, social, and economic utility of cannabis by developing, producing, and delivering premium quality and high performing cannabis brands and products internationally.
Hannah Bernard: Hi, I’m Hannah Bernard. You’re watching Market One Minute. Today we have Robert Cheney, CEO, President & Director of C21 Investments. Thanks so much being with us Rob.
Robert Cheney: Thanks for having me, Hannah.
Hannah Bernard: We know that you are a cannabis company solely focused on operations in the US, and you have had a ton of success in Nevada. Why don’t we start there? Give us a little bit of an update on what’s happening.
Robert Cheney: We’ve published the numbers for Nevada, and our 2018 numbers were pretty outstanding, $24.5 million US dollars, top line revenue and EBITDA run rate of about 45 per cent. Compared to other industry participants, that’s really outstanding. In 2019, those numbers will grow. We’ve opened a second dispensary in Fernley, and we’re in the process of expanding our dispensary platform as well as driving into the whole sale B2B market, which will drive further top line growth. There’s lots of opportunity to build a substantial business in the State of Nevada.
Hannah Bernard: How do you build on a model like you’ve created in Nevada in order to create further shareholder value?
Robert Cheney: What we’re doing in the state of Nevada is expand our dispensary platform, and we’re driving into the wholesale B2B market with our brands and our products. We’ve opened our second dispensary in Fernley, so the revenue numbers are certainly climbing, and the numbers for 2019 will be even much higher than 2018.
Hannah Bernard: You mentioned that focus on B2B, and I know that you have recently launched a new business called C21 Supply Co. Tell us a little bit about the goal there.
Robert Cheney: C21 supply is an evolution of our business. It’s how we’re going to create a relationship with our business partners and drive our brands into the wholesale market. It’s much more than maybe some people in the current world would see as just a website. We have sales reps. We do brand support. We do pop-ups. It’s really an integrated platform to drive our brands and drive our business into the B2B space. It’s going to be the platform moving forward as we expand into other states.
Hannah Bernard: Great. That’s very exciting. It seems like you guys are covering all facets of the industry. Another market that you are operating in is Oregon. How does the Oregon model compare to or relate to the business happening in Nevada?
Robert Cheney: Each state is quite unique. The legislation and the market in each state is unique. In Oregon, we had the freest market in the United States, very competitive market. The businesses and brands there have been very, very successful. What we want to do is take the disciplined, successful, wholesale platform that we have in Oregon and expand that into Nevada, and ultimately into other states as we go forward. We have great brands, great products, exceptional extraction expertise and CPG expertise. What we have in Oregon is a complement to the retail discipline business that we have in Nevada.
Hannah Bernard: Great. You mentioned other states. Everyone seems to be focusing on California, and that is the plan for C21. Tell us what the plan is there.
Robert Cheney: C21, our team has been in evolution. We’ve got tremendous experience in our team. We’ve been looking at California for some time. It’s obviously at the top of our list, along with a few other states and markets. We will be moving our business and our brands into California in the very near term. We’re looking for the right people, the right partner, and the right opportunity, but it will be coming soon.
Hannah Bernard: We look forward to keeping up with C21 Investments. Thanks for being with us, Rob.
Robert Cheney: Thanks, Hannah.