Next Green Wave Holdings has been executing on its strategy of building brands in the California market, and this is something we are excited about. The launch of the product lines is the initial part of the company’s strategic plan to secure distribution and introduce its branded products to the California market.
We want to quickly highlight SDC because we consider this to be a key aspect of the Next Green Wave story. Earlier this year, the company acquired SDC which is a premium cannabis consumer products goods company that is a manufacturing and extraction leader with 8 leading cannabis brands and 45 cannabis products (CBD and THC). We believe that this acquisition is quickly proving to be a strategic and accretive decision and want to discuss some of the recent developments that are worth noting.
Last month NGW also rolled out two other product lines from its roster of brands including brazen California apparel brand Lurking Class by Sketchy Tank and King Louie. Through an exclusive partnership with SD Cannabis, King Louie will be launching premium flower THC products and concentrates and will be making appearances at certain Southern California dispensaries. We are favorable on this relationship due to the brand awareness that King Louie has and believe that the company has been highly focused on acquiring or working with businesses that have a cult like consumer following.
In regard to SDC, the company’s 45 products have a combined global social influencer reach of 25+ million people and 100+ million YouTube views. This is an attractive aspect of the story and we are favorable on the growth prospects associated with this opportunity. SDC is comprised of a team of brand building, cannabis consumer packaged goods, manufacturing and extraction professionals, that have decades of experience in the California cannabis market. SDC also has an expanding network of retail and online sales channels (including 700 Zumiez stores) which compliments Next Green Wave’s current distribution opportunities.
When it comes to the relationship with Junkyard, we believe that this relationship falls in line with the company’s strategy to work with businesses that have a significant niche market reach. Junkyard meets this criterion and is a well-known street artist with an established social and digital reach throughout California and the US. The first product that the companies plan to launch will be an oil extraction with limited release collectable packaging designed by the Junkyard. We expect this relationship to announce several major releases in the back half of the year and will monitor how the first release goes.
Diversifying Through Established Brands
Earlier this month, Next Green Wave launched another exclusive line of products with California-based artist Sketchy Tank and his distinctive apparel and accessory brand Lurking Class. This relationship falls in-line with Next Green Wave’s strategy to work with brands that have a significant following. This partnership will help the company’s products to reach a different consumer base that would otherwise be harder to penetrate, and we find this to be significant.
Sketchy Tank’s artwork and clothing are currently sold at over 700 stores across the US, including the leading specialty retailer Zumiez. His new artwork will be featured on limited collectable packaging on selected cannabis oil products that will be launching in partnership with NGW later this month.
Next Green Wave is focused on reaching a variety of consumer segments and this relationship shows continued execution in regard to this strategy. Over the next few months, we expect this relationship to create additional awareness for the Next Green Wave brand and will monitor how the products are able to penetrate new market segments.
An Opportunity with Massive Visible Growth Prospects
Last month, Next Green Wave significantly strengthened its balance sheet and closed a non-brokered $2.75 million private placement with the Cannabis Growth Opportunity Corporation (CGOC). The proceeds will be used to advance the company’s strategic partner alliances in California and provide working capital to accelerate its operations. We are favorable on the strong balance sheets and expect to see the company use the capital to further capitalize on the California cannabis opportunity.
One of the most attractive aspects of the Next Green Wave story pertains to the amount of distribution that it already has in place. Going forward, the company plans to sell its products throughout California and contract high quality licensed producers and processors that do not have a distribution license to package, market, transport and sell their respective products through its wholesale and retail network.
Although we are favorable on the California cannabis market, we must highlight the recent developments as it relates to the emerging Latin American opportunity. When looking at Next Green Wave’s growth prospects, we are favorable on what the team has accomplished as it relates to this aspect of the business.
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