TORONTO, Oct. 24, 2019
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• Platform positions SpeedWeed for accelerated revenue growth
• D2C model to significantly improve operating margins
• Recently increased ownership in SpeedWeed with option to increase further to 40%
TORONTO, Oct. 24, 2019 /CNW/ – Mojave Jane (CSE: JANE) (OTC: HHPHF) (FSE: 0HCN), a differentiated cannabis company operating in California, today announced that SpeedWeed, California’s leading legal delivery and fulfilment services in which the Company holds an ownership interest, has launched its Direct to Consumer platform: SpeedWeed D2C. The platform enables consumers to order the products they know and love direct from the brands themselves, with SpeedWeed’s award winning fulfilment service taking care of delivery.
Benefits for brands
Signing on with SpeedWeed D2C will enable brands to fully control the supply chain, including pricing. This enables brands to price their products more competitively compared with the illicit market, while being able to increase margins. Costs can be reduced and margins improved further, as brands do not have to rely solely on securing shelf space with dispensaries.
While SpeedWeed powers the eCommerce capabilities and handles fulfilment of the orders, customers always remain within the brand’s eco-system. This reduces competitive pressure, while at the same time enabling the brand to interact directly with consumers. This will strengthen the brand/consumer relationship, anticipated to result in greater stickiness and increased recurring revenue per customer.
Being SpeedWeed D2C enabled also provides real time market and order data, enabling the brand to more accurately manage its supply chain and production planning.
Benefits for consumers
California has a mature and well-informed cannabis culture, with consumers knowing which products and brands they enjoy the most. The new platform enables customers to order their preferred products straight from the source: the brands themselves. Orders are processed and delivered by SpeedWeed, California’s largest and most highly regarded legal cannabis delivery service. Consumers no longer have to spend time searching for where their preferred products are in stock, while benefiting from secure supply and enjoying the convenience of SpeedWeed’s high-quality delivery service, while in the knowledge that the products they just bought are legal, authentic and tested, an increasingly important issue in today’s cannabis market.
Benefits for dispensaries
While customers order products from the brands direct, regulations require fulfilment from a dispensary. These, in turn, will be compensated on a per order basis. It is anticipated that the majority of these orders will come from people who are not regular customers of the dispensary, thereby generating additional sales at zero customer acquisition costs. Furthermore, SpeedWeed’s D2C model does not require dispensaries to invest in inventory, significantly reducing demands on scarce working capital. In short, dispensaries stand to benefit from increased revenues and improved margins.
Mojave Jane’s CEO Gary Latham comments:
“AJ and his team continue to lead the Californian market with disruptive innovation. SpeedWeed D2C will benefit all stakeholders in California, while positioning SpeedWeed to rapidly accelerate revenues, expand margins and enter into new geographies. Furthermore, increased Integration of SpeedWeed with Mojave’s operations, in line with our increased ownership, will enable us to D2C enable our CaliGold brand once production capacity is scaled up.”
AJ Gentile, CEO of SpeedWeed, commented,
“SpeedWeed’s D2C platform is an innovation that delivers a win-win-win scenario for consumers, brands and dispensaries alike. Consumers benefit from secure, safe and legal product supply, as well as increased convenience, Brands and dispensaries will be able to increase their reach, grow revenues and improve margins without additional capital outlays. With the recent investment from Mojave, we are now able to launch our D2C platform in Southern California, as well as expand our reach into new counties. We are in multiple discussions and are close to announcing the first of a roster of curated premium brands on our platform shortly.”
Market leading innovation
With the launch of its D2C platform, SpeedWeed continues to lead the Californian market in innovation. Customers enter their zip code on the brand’s website to find out if services are available in their area. Once this has been confirmed, they can order products. Browsing and checkout are all contained within the brand’s website, ensuring the customer never leaves the brand’s eco-system.
The platform leverages SpeedWeed’s existing technology, which has a proven track record in delivering a superior customer experience. SpeedWeed’s platform was developed under leadership from the Company’s CEO, AJ Gentile, who prior to starting SpeedWeed built software for government agencies and elected officials. At the time, his was one of only three software companies authorized to develop secure constituent management applications for the US Congress. This pedigree is very apparent in the SpeedWeed platform, which provides industry-leading secure fulfilment capabilities. Consequently SpeedWeed is considered California’s leading legal delivery service by many.
SpeedWeed, together with its parent company 2083 group, provides additional services to brands and dispensaries in the fields of marketing, sales and operations, and has become key in helping deliver revenue growth and margin expansion to its partners. As a result, the SpeedWeed has a large and growing waiting list of dispensaries looking to sign up with SpeedWeed. The recent investment by Mojave Jane enables SpeedWeed to expand the number of partners it works with, as well as expand its services into new geographic areas.
About Mojave Jane Brands
Mojave Jane Brands Inc. is a Canadian-based cannabis company emerging as a true vertical integrator in California’s legal cannabis space, serving both the recreational and wellness markets. The Company’s U.S. holdings are focused on processing and manufacturing, branding, marketing and distribution. Through ownership of high-end brands such as Caligold, partnerships with innovators such as HAI Beverages, and investments in leading distributor SpeedWeed, the Company is well positioned to capitalize on the rapidly growing legal opportunity in the world’s largest cannabis market.
Mojave Jane trades in Canada, ticker symbol JANE on the CSE, and in Europe, ticker symbol OHCN on the FSE. Neither the CSE, nor the FSE has approved nor disapproved the contents of this press release. Neither the CSE, nor the FSE accepts responsibility for the adequacy or accuracy of this release.
Marijuana Industry Involvement
Canadian listings (CSE) will remain in good standing as long as they provide the disclosure that is rightly required by regulators and complying with applicable licensing requirements and the regulatory framework enacted by the applicable state in which they operate. Marijuana is legal in certain states however marijuana remains illegal under US federal law and the approach to enforcement of US federal law against marijuana is subject to change. Shareholders and investors need to be aware that adverse enforcement actions could affect their investments and that Mojave Jane’s ability to access private and public capital could be affected and or could not be available to support continuing operations.
On behalf of the Board of Directors
Mojave Jane Brands Inc.
Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company’s current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this release contains forward-looking information relating to the intention of the parties to complete the Acquisition and certain ancillary transactions contemplated thereby. These transactions are subject to a number of material risks, and there is no assurance that they will be completed on the terms or within the timeframes currently contemplated, or at all. The forward-looking information contained in this press release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.
All monetary references herein refer to Canadian dollars unless otherwise specified.
SOURCE Mojave Jane Brands Inc.
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For more information about Mojave Jane, please contact: 8 Wellington St. E. Mezzanine Level | Toronto, On | M5E 1C5 | www.MojaveJane.com; Gary Latham, Chief Executive Officer & Director, Email: [email protected], Phone: (760) 552-7122Copyright CNW Group 2019