Dallas, Texas – November 26, 2019 — – North American Cannabis Holdings, Inc. (USOTC: USMJ) (“USMJ”) today published a financial update that follows the recent filing of its quarterly financial report for the period ending September 30, 2019. The update highlights important financial performance, offers insight into projected 2020 growth anticipated from company’s eCommerce business introduced earlier this year, and introduced a timely acquisition initiative intended to seize consolidation opportunities presented by the prevailing cannabis market.
The most recent periodic financial report published by USMJ for the period ending September 30, 2019 reflects stability from its underlying cannabis logistics operations originally constructed around the company’s pilot cannabis retail concession operations. The financials similarly reflect growth that management attributes primarily to its new cannabis market eCommerce business introduced earlier this year (www.USMJ.com). USMJ reported twenty-eight percent (28%) revenue growth in the fiscal quarter ending September 30, 2019 compared to the same period in the previous year. The company’s current annualized revenue run rate is over a million dollars reporting $287,440 for the fiscal quarter ending September 30, 2019. The company reported a net profit of twenty-two (22%) at $62,087.
The eCommerce site has been designed to build a branded global online retail outlet to serve a future universally legal recreational cannabis marketplace. USMJ introduced its eCommerce business earlier this year first selling products primarily from companies it has historically partnered with closely. In response to hands-on experience, the company has refined its eCommerce technology as well as its back-office logistics and fulfillment operations, and begun to expand its inventory of products beyond those from just close partners. USMJ is now aggressively expanding its inventory of products and correspondingly anticipates rapid sales growth in 2020 built on the experience garnered in 2019.
USMJ also continues to invest in building the USMJ brand name. While the bulk of its currently available eCommerce inventory centers around CBD from hemp which is federally legal, the company is preparing for the inevitable federal legalization of recreational marijuana. With the company’s ongoing investment in the USMJ brand name, once recreational marijuana is made federally legal, the company anticipates even more rapid growth from the introduction of recreational marijuana products.
With USMJ’s current eCommerce sales centered on CBD from hemp products, management believes $10 million in revenue is possible within the 2020 calendar year. Management is taking a conservatively optimistic approach to setting a revenue target for the 2020 calendar year and plans to first review the financial performance of the first calendar quarter of 2020 before setting a firm target for the balance of 2020.
Cannabis business valuations have struggled for much of 2019. USMJ management believes the prevailing valuations are not unusual for the current stage of development of a relatively new industry. The future of the cannabis sector remains unclear. While universal recreational legalization is highly likely, the timing and the course from here to there is still speculative. The market is likely waiting for the next major regulatory step toward universal legalization before experiencing another rally. In the meantime, the lackluster valuations present a consolidation opportunity and USMJ management is putting together a game plan to seize this consolidation opportunity. The first potential acquisition targets will likely be companies with which longtime USMJ shareholders will be familiar. Look for more news on USMJ’s acquisition initiative coming soon.
This news release contains forward-looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the Company’s current views with respect to future events that involve risks and uncertainties. Among others, these risks include the expectation that any of the companies mentioned herein will achieve significant sales, the failure to meet schedule or performance requirements of the companies’ contracts, the companies’ liquidity position, the companies’ ability to obtain new contracts, the emergence of competitors with greater financial resources and the impact of competitive pricing. In the light of these uncertainties, the forward-looking events referred to in this release might not occur. These statements have not been evaluated by the Food and Drug Administration. These products are not intended to diagnose, treat, cure, or prevent any disease.
CEO North American Cannabis Holdings, Inc.