INDVR Brands Inc (CSE:IDVR) (OTCMKTS:CAAOF) (FRA:3YX) is expanding its market share in the US cannabis edibles and infused products space as it exceeded internal estimates in both Washington State and Oregon.
Since August 2020, through new corporate objectives set out by the new board and management team, INDVR said it has become hyper-focused on growing its infused product brands and using those brands to expand its distribution reach to over 1,000 dispensaries across Washington, Oregon and Colorado.
"We are very encouraged by the growth we are seeing in the edibles segment," said Joshua Mann, INDVR Brand's CEO, in a statement Tuesday. "The continuing sales growth of our award-winning Honu brand reaffirms our decision to focus on exceptional tailor-made products, growing our market share with our most profitable SKUs, and expanding our network into maturing markets in the US and Canada."
READ: INDVR Brands says acquisition target Cannabis Corp sees record revenue levels during 3Q
Through its third-party manufacturing partner in Washington, INDVR said it sold over 206,000 individual edible units in December, a 12% month-over-month increase from the 184,000 units sold during the previous month.
The company also recorded an 8% sales increase in its infused topical segment, bringing units sold to over 2,700 in December 2020. The Honu brand is currently sold in over 350 dispensaries in Washington State.
In Oregon, INDVR said it remains focused on growing the Honu brand's distribution platform to facilitate additional sales growth in 2021. INDVR is currently in discussions with partners to bring Honu products to Colorado, Arizona, Nevada, and California, and potential partners to manufacture and distribute in Canada. Honu is sold in over 360 retail locations across Oregon.
The award-winning Honu brand encompasses edibles, including peanut butter cups, turtles, salted caramels, milk chocolate medallions, and other products. Honu also has a topical product line that includes bath bombs and skincare items.
In Colorado, INDVR holds the head lease on two cannabis cultivation facilities, and one cannabis retail location. In addition to the leases, the company owns all the tenant improvements and cultivation and other equipment in these facilities including -- but not limited to -- the watering systems, grow lights, HVAC units, racks and trays. The cultivation operations and a retail store are currently operated through third-party sublease and equipment lease agreements.
Meanwhile, the company said it allowed a previously announced definitive merger agreement with Cannabis Corp to expire so it could focus on growing its most profitable brands.
INDVT also began the process of gaining its own state approval to operate cannabis assets in Colorado. Similarly, the previously announced asset purchase agreements with the Nevada-based Evergreen Organix have also expired on their terms. The company is already in the process of developing another relationship with a licensed producer in Nevada to distribute its products in that state.
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