Business
Cannabis Strategic Turns Up the Lights on the California Market While Others are Retrenching, NUGS is Expanding
Cannabis Strategic Turns Up the Lights on the California Market While Others are Retrenching, NUGS is Expanding.
About this update from Cannabis Strategic Ventures
[{"type":"text","content":"\n LOS ANGELES, March 19, 2020 (GLOBE NEWSWIRE) -- via NetworkWire – Cannabis Strategic Ventures (OTCQB:NUGS) (“NUGS” or the “Company”), an emerging leader in the U.S. and California cannabis marketplace, is pleased to announce another milestone at NUGS Farm North, the Company’s licensed Northern California cultivation operation. The Company continues to expand operations and has now installed 768 high-powered grow lights, which will allow for an increase in the number of plants cultivated per year and an increase in yield relative to previously allocated cultivation capacity. “We are extremely excited to reach this milestone for NUGS Farm. It takes a lot of dedication, planning, and adjustments to get to this point.  Compliance and permitting is a very complex subject in the cannabis industry,” commented Mr. Simon Yu, CEO. “The addition of lights allows us to have more harvests per year and to increase the yields of those harvests. This, of course, means we will have more and higher quality products to sell into the marketplace. It is also important to point out that we continue to expand our operations, while so many other operators are curtailing. Revenues for our last reported quarter ending in December showed a sequential increase of 91 percent, while our gross margins grew and our operating expense fell.  We continue to hold strong confidence in our business and in the strength of the California marketplace, in which we continue to gain market share.” The installation of a lighting system represents only part of the rapid infrastructure upgrades that have occurred at the Company’s cultivation site.  Over the past 18 months, the ramp-up in production was slowed as the Company navigated the complex web of state, county and local cannabis regulations. This process is largely behind the Company allowing it to now concentrate on finalizing infrastructure improvements and boosting cultivation yields. The result has been rapid growth for the Company. For example, for the nine-month period ending December 31, Cannabis Strategic was able to increase revenues by more than $2 million, while meaningfully improving the dynamics of its balance sheet. The Company expects to add more lights and upgrades later this year and strong revenue growth to continue fo...