Cannex secures licensing and infrastructure to support major strategic California expansion
Vancouver, BC, July 2, 2019 – Cannex Capital Holdings Inc. (CSE: CNNX; OTCQX: CNXXF) (“Cannex” or the “Company”) is pleased to announce that it has made significant progress on its plans to expand into California and apply its market-leading production capabilities and portfolio of brands to the largest cannabis market in the country.
- Cannex has secured a 190,000 square foot facility in the City of Commerce, adjacent to Los Angeles, as well as the necessary local use permits and provisional state licenses for the manufacture and distribution of cannabis products
- The Company believes California represents a prime opportunity to leverage its efficient production capabilities and brands into the large and fragmented California market
- With significant existing cultivation supply and ongoing meaningful investment by peers, Cannex plans to focus on its demonstrated extraction, manufacturing, packaging and distribution capabilities
- The initial plan will involve the Company applying its co-packing and logistics capabilities with sales anticipated in the first quarter of 2020, followed by the introduction of its branded products into California later in 2020, including bringing Pure Ratios’ THC-enhanced production in-house
Cannex’s operations team has honed its skills in Washington state where it has developed one of the largest volume manufactured cannabis products facilities in the world. Its strategic operating tenant, Northwest Cannabis Solutions, is one of the top producers in Washington and sells several of Washington’s top-selling flower, edibles, and oil products under Cannex’s brands.
“California is a competitive but fragmented market and we’re confident Cannex’s production expertise and portfolio of successful brands give us a competitive edge that should allow us to quickly gain traction. We have been planning our entry into California for some time and, while we’re not naïve to the competitive challenges that exist, we are focused on entering with the right strategy,” said Leo Gontmakher, Cannex’s Chief Operating Officer. “Now that we’re here with initial construction underway, we’re excited to be operational as soon as we can. We have an excellent centralized location,” continued Gontmakher, “and are working diligently to develop the necessary relationships to succeed in this market, focusing particular attention on developing talent and the supply chain.”
Cannex is approaching the close, anticipated July 31, 2019, of its previously announced business combination with 4Front Holdings LLC (“4Front”). In anticipation of operating as a combined entity, Cannex’s team has also been planning and preparing for the integration and expansions of 4Front’s cultivation and production facilities in Massachusetts and Illinois.