In this market news, Up Cannabis, the subsidiary of one of the Canadian marijuana stocks Newstrike Brands Ltd (TSXV:HIP), said the initial response to its products has been overwhelming
SmallCapPower | October 29, 2018: Newstrike Brands Ltd.’s (TSXV:HIP), one of the Canadian cannabis stocks, said recently that its wholly-owned subsidiary Up Cannabis Inc. has provided an update on the initial sales response from Ontario, post the recreational legalization of cannabis that began in Canada on October 17.
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Ontario adult-use consumers placed ~100,000 orders in the first 24 hours of operations, with 12,000 of those orders landing in the first hour after legalization became official, as per the Ontario Cannabis Store (OCS). Up Cannabis has also been selling products in British Columbia, Alberta and Nova Scotia, and is receiving an overwhelming response from all these locations. Recently, Up Cannabis was cleared as a supplier of cannabis to registered retail and wholesale permit holders of Saskatchewan.
Jay Wilgar, CEO of Newstrike Brands and Up Cannabis said, “Many of our shareholders, customers and the general public have asked us how sales have performed since Day 1 of legalization. While it is extremely early in the reporting process, we are very pleased to say that all indications tell us Up Cannabis sales are tracking robustly in all markets where our products are currently sold. It is encouraging to see adult-use consumers choosing our products, and the response to our brand and product at the Ontario Cannabis Store (OCS), both officially and anecdotally, has been overwhelming. We are pleased with how well the OCS has managed to handle such a high level of consumer demand immediately out of the gate.”
Newstrike Brands is a Toronto-based cannabis company licensed to cultivate and sell cannabis in all acceptable formats. Newstrike Brands through its wholly-owned subsidiary, Up Cannabis, produces dried & fresh marijuana, marijuana plants & seeds, cannabis resin and cannabis oil. It is responsible for the development of artsy recreational cannabis strains inspired by The Tragically Hip’s song titles.
Further, Jay Wilgar commented, “We continue to work in lockstep with the OCS and all our other distribution partners to replenish inventory for sold-out products as required. Ontarians are clearly reacting positively to the arrival of legal sales channels, quickly making the OCS a trusted source for adult-use cannabis sales.”
Newstrike Brands trades at a market capitalization of C$294.9 million with a price-to-book multiple of 1.86x.
Disclosure: Neither the author nor his family own shares in the company mentioned above.
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