A Leader In Washington, GreenStar Eyes Expansion
September 10th, 2019
App, Exclusive, News, Top Story
Washington State has long been a pioneer in the cannabis industry. Medical marijuana has been legal since 1998 and the state was the first in the U.S. to approve recreational marijuana, doing so on December 6, 2012. The market continues to grow, including retail sales reaching $972 million in 2018 from $851 million in 2017.
Using a unique business model, GreenStar Biosciences Corp. (CSE: GSTR) is capturing its share of the Washington market. Through a subsidiary, GreenStar’s assets include the property leases, brands and intellectual property of Cowlitz County Cannabis Cultivation Inc. (“Cowlitz”). Located about 140 miles south of Seattle, Cowlitz, a Tier 2 licensed cannabis producer and processor, has turned a small, family-run business into three popular brands, Dab Dudes, Hi Guys and Cowlitz Gold, and millions of dollars in annual sales, resulting in it being one of the top cannabis processors in the state.
Get to Know GreenStar
From its headquarters in Vancouver,BC, GreenStar is a technology and services company that provides real estate, financial, management, IP and branding support to licensed U.S. cannabis businesses. That’s the official definition. More succinctly, GreenStar is a team of experts in capital markets, finance, technology and cannabis, who will leverage decades of experience to execute on partnerships and acquisitions in the explosive cannabis markets, starting in Washington. This is demonstrated through not only the Cowlitz assets, but also with exclusive licensing and JV arrangements for proprietary technologies that support product development and operational efficiencies.
Public for only a few months, GreenStar remains a blue sky opportunity with a market capitalization of only C$9.7 million (US$7.28 million).
Since going public in June 2019, the company has refined the leadership team, including appointing Rahim Rajwani as CEO and director. Mr. Rajwani has an impressive C.V. as a seasoned capital markets veteran, including serving as an executive member of Peninsula Merchant Banking Syndications group where he provided advisory services, amongst other things, to Ventana Gold that led to Ventana being acquired by Brazil’s EBX Group for $1.43 billion.
Other leadership changes included adding Leighton Bocking to the board of directors which is rounded out with Faizaan Lalani, CPA, CA as the third board member
Cowlitz: A Washington State leader
While it works on other parts of the business, Cowlitz is the flagship revenue generator for GreenStar. A cornerstone of Cowlitz’s reputation is selling high-quality cannabis products at affordable prices to a growing consumer base that finds Cowlitz’s products at about 20 percent (>150 stores) of Washington’s cannabis retailers.
Cowlitz’s products are primarily focused on patients using cannabis for its medical and health-related purposes. The company is a true Washington heavyweight as one of the five largest cannabis processors in the state and largest independent buyer of dried flower and producer of more than 200,000 pre-rolls every month.
Cowlitz’s Dab Dudes is a brand known for its BHO (butane hash oil) waxes, vaporizer cartridges and crystallines. Through its proprietary gas mix, Cowlitz leaves terpenes in its final products, which is known to improve flavor profiles that cannabis connoisseurs crave.
The Hi Guys brand includes flower, joints and BHO that dovetails perfectly with Cowlitz’s mantra of selling quality products at reasonable prices.
As the name implies, Cowlitz Gold is the premium product of the company. Elegant, yet still affordable, Cowlitz Gold products include pre-rolls, flower, BHO and vape cartridges.
Cowlitz doesn’t grow all its cannabis plants; it has supply agreements to make sure it keeps up with demand. Measuring by a deal struck in June, 2019, demand is expected to remain robust. Cowlitz inked a long-term supply agreement with Pat Dullanty, the owner and operator of an 18-acre, Tier 3 grow facility in Cheney, Washington.
Per the deal, Dullanty will supply Cowlitz up to 25,000 pounds of dry weight, high-quality cannabis flower per annum.
Cowlitz topped $14 million in revenue during 2018 and is on pace to handily beat that in 2019. According to seed-to-sale information reported to the Washington State Liquor and Cannabis Board, revenue from Cowlitz was approximately $10.3 million during the first six months of 2019.
The value of Cowlitz to GreenStar in Washington is plain to recognize, but there is more to consider. Cowlitz has proven operational and branding expertise across critical components of the cannabis value chain. The processing and distribution models are the blueprint for replication in other states in addition to potential synergistic opportunities with other GreenStar partners.
GreenStar has a JV with Fisher, Indiana-based Progressive Herbs, Inc. which provides an exclusive worldwide right and sub-license to use and commercialize Progressive’s proprietary Micro-Grow Pod cultivation technology. A small-scale proof-of-concept pilot operation with Cowlitz validated the potential of the technology with scale-up operations now being evaluated. This technology is being trumpeted for being able to reduce operating and capital costs for manufacturing cannabis compared to current greenhouse technologies, in addition to producing a high total cannabinoid content product produced without pesticides with no detected heavy metal content.
GreenStar also signed a Joint Venture agreement with PharmaStrip Corp., where the two will work together to produce cannabis-infused mouth strips called “Cannabis Oral Thin Film Strips” exclusively for sale in Washington state. A relatively new method of drug delivery, fast-dissolving oral films have been growing in popularity versus other oral methods, such as pills or tablets. The cannabis strips will deliver exact dosage of cannabinoids in a manner that is more reliable and faster-acting than traditional forms of ingestion, like edibles or inhalation.
GreenStar is further pursuing opportunities in other states where medical cannabis is legal, including Michigan, West Virginia, California, Oregon and Nevada. While planning to have operations going in two or three of these states by the end of the year, the company looks intent on Michigan first, a state with a vibrant market expected to rival the size of Colorado’s.
CannabisFN.com is not an independent financial investment advisor or broker-dealer. You should always consult with your own independent legal, tax, and/or investment professionals before making any investment decisions. The information provided on https://www.cannabisfn.com (the ‘Site’) is either original financial news or paid advertisements drafted by our in-house team or provided by an affiliate. CannabisFN.com, a financial news media and marketing firm enters into media buys or service agreements with the companies that are the subject of the articles posted on the Site or other editorials for advertising such companies. We are not an independent news media provider. We make no warranty or representation about the information including its completeness, accuracy, truthfulness or reliability and we disclaim, expressly and implicitly, all warranties of any kind, including whether the Information is complete, accurate, truthful, or reliable. As such, your use of the information is at your own risk. Nor do we undertake any obligation to update the items posted. CannabisFN.com received compensation for producing and presenting high quality and sophisticated content on CannabisFN.com along with financial and corporate news.
Follow Us on Social Media
About CFN Media
CFN Media (CannabisFN) is the leading creative agency and media network dedicated to legal cannabis. We help marijuana businesses attract investors, customers (B2B, B2C), capital, and media visibility. Private and public marijuana companies and brands in the US and Canada rely on CFN Media to grow and succeed.
CFN launched in June of 2013 to initially serve the growing universe of publicly traded marijuana companies across North America. Today, CFN Media is also the digital media choice for the emerging brands in the space.
Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.