Global Consortium, Inc. (OTC:GCGX) announced yesterday (01/24/19) it has solidified a deal to supply it’s entire line of products to MJ Delivery with a minimum order of $50,000 per week. This is a great opportunity for GCGX, as MJ Delivery will service over 30 million people annually and are the only licensed delivery company in an area with no recreational dispensaries, Lake Tahoe.
But here’s the kicker: OTC:GCGX has a backlog of $38.4 million in orders they have in hand which were secured before their license was granted. That is $160,000 per day for the next 12 months. They simply need to fulfill them, making 2019 an extremely exciting year for GCGX.
Incredible Market Share Through Strategic Acquisitions
Through their strategic acquisitions of Infused Edibles and Indulge Oils, GCGX is targeting first to revenue opportunities, and actively positioning themselves to capture incredible market share before what seems to be inevitable: legalization.
Infused Edibles had revenue of $2 million for 2018 on CBD products only. They offer over 140 food items infused with US grown CBD Isolate, believed to be the largest amount of products produced by a single infused producer and have won over 17 first place awards with their products. Infused Edibles operates out of a 6,000 square foot building, servicing 400 stores with 9 sales reps and 8 distributors in 15 states. GCGX will also use the 400 accounts from Infused Edibles to distribute their THC products.
Indulge Oils is a premium oil and highly sought after brand as it is known for its purity and high quality. Their premium oil is in such high demand in the cannabis oil market it has been sought out by some of the largest names in the cannabis industry for private labeling.
Global Consortium and the Cannabis Market in California
The $2.5B California Cannabis Market holds virtually unlimited opportunity for GCGX, with only 400 licensed companies in the state. With California’s recreational marijuana market that opened for business earlier this year. experts are predicting the market will grow to $7.7B in just 3 years. The California marijuana industry’s total output, which measures the total economic impact rather than direct spending only, could be nearly $15 billion in the next four years.
By targeting dispensaries in the State of California and manufacturers looking for THC and CBD Distillate, their primary revenues are derived from selling our THC and CBD Edibles as well as bulk THC Distillate. These are sold with an average margin of 40%. Their growth in the marketplace will then happen organically and through the introduction of new white label deals they already have pending.
Legalization and The Future
Marijuana may be completely illegal at the federal level, but 29 out of 50 states have legalized marijuana for medical use and 9 out of 50 for recreational, with legalization of both medical and recreational use marching forward with or without the federal government’s consent. 58% of US states now allow some form of marijuana use!
With majority voting support for medical marijuana in the House and Senate, it’s inevitable that a bill will be approved to first decriminalize and then legalize marijuana federally.
The companies that are entrenched in the industry now are positioned to control the narrative when legalization does come. With two established brands and the largest manufacturing space for THC and CBD Edibles and Oil Distillate, GCGX’s ability to service larger orders in a shorter period of time affords it a major competitive advantage to others in the marketplace.
As an investor it just might be the time to get involved right before the fireworks, much like Global Consortium is doing.
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