Sunniva Estimates Over USD $55 Million Revenue in 2019 From Sunniva Branded Products in California and Secures Additional USD $4.0 Million in Purchase Orders
VANCOUVER, British Columbia, Feb. 14, 2019 (GLOBE NEWSWIRE) — Sunniva Inc. (“Sunniva”, the “Company”, “we”, “our” or “us”) (CSE:SNN) (OTCQB:SNNVF), a North American provider of cannabis products and services, is pleased to announce that they have secured an additional USD $4.0 million in purchase orders from select retail dispensaries in southern California for Sunniva branded cannabis products. This increases the total sales orders received to date to USD $11.5 million of products to be sold in the first four months of 2019. Sunniva anticipates continued growth in sales volumes in the second quarter, increasing monthly throughout the year, secured by similar types of retail purchase contracts.
In 2019, Sunniva estimates revenue of USD $55-$60 million from sales of Sunniva branded products in California manufactured in their licensed extraction facility and from purchasing compliant third-party flower from strategic relationships that is packaged, branded, distributed and sold. Sunniva estimates combined gross margin of 40% – 50% from these product lines during the ramp up stage of operations in California. These revenues do not include Full Scale Distributors, LLC, and the large-scale high technology greenhouse in California or Natural Health Services Ltd.’s clinics in Canada.
Sunniva commenced sales of flower products in January 2019 and will be unveiling three new Sunniva brands this quarter that will include numerous product categories including flower, pre-rolls, ultra-pure distillates, vape cartridges and premium concentrates. Sunniva will continue to purchase the necessary biomass inputs (flower and trim) for its brands from strategic relationships in California, leveraging their operational extraction facility and in-house distribution.
Sunniva branded product lines within its house of brands will include:
- Ultra-pure distillate products: 1.0 ml, 0.5 ml and 0.33 ml filled vape cartridges, live resin vape cartridges and disposable pens
- Premium concentrates: live resin extracts, shatters and waxes
- Premium Flower: various size packaging and pre-rolls
About Sunniva Inc.
Sunniva, through its subsidiaries, is a vertically integrated cannabis company operating in the world’s two largest cannabis markets – California and Canada. Our ability to leverage our large-scale, purpose-built cGMP designed greenhouses, offering better quality assurance with cannabis products free from pesticides, uniquely positions Sunniva as a leading supplier of safe, high quality products at scale. Through our strategically positioned cultivation and extraction facilities in California, we are launching Sunniva branded products in various product categories including flower, pre-rolls, vape cartridges and premium concentrates. Our compliant distribution in California will ensure the placement of Sunniva branded products at licenced dispensaries throughout the state. We continue to pursue other upstream vertical opportunities. Sunniva’s management and board of directors have a proven track record for creating significant shareholder value both in the healthcare and biotech industries.