CEO Anthony Dutton says Cannex Capital Holdings Inc. (CSE:CNNX) is a proven operator at scale, generating immediate cash flow
In this interview with SmallCapPower at the recent Lift & Co. Cannabis Expo in Toronto, Cannex Capital Holdings Inc. (CSE:CNNX) CEO Anthony Dutton discusses Cannex’s successful business model. Cannex, through its holding companies and subsidiaries, has current positive cash-flows from the U.S market. Cannex is building a value portfolio consisting of diversified cash-generating cannabis assets. Cannex’s investment strategy places importance on the target’s ability to produce consistent and reliable product, operate at scale, and have an established consumer brand. Importantly, the Company’s subsidiary, BrightLeaf Development LLC, owns the assets of the largest producer/processor in Washington State, Northwest Cannabis Solutions (NWCS). Cannex is also in the process of acquiring Jetty Extracts, one of the Top 10 largest producers/processors in California.
Cannex’s first-acquired U.S. asset, BrightLeaf Developments, through NWCS, has its products established in over 250 licensed retail outlets and generated sales of US$25 million, or approximately CDN$32.5 million, in 2017. In comparison to the Canadian market, the Company produced more dried cannabis in 2017 than the second largest Canadian-focused producer, Aurora Cannabis, based on current production. During 2017, Cannex’s flagship BrightLeaf facility in Tumwater, Washington, the location of NWCS, produced 331 grams/sq. ft. of cannabis in 2017, substantially exceeding the industry indoor average of 110 grams. In 2018, BrightLeaf /NWCS plans to produce from two indoor cultivating facilities with a combined 30,000 sq. ft. and 19,000 kg/year capacity, equating to one of the highest yields in the space at 633 grams/sq.
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