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Icanic Brands prospers amid the pandemic

Cannabis
TSX:ICNAF
16 April 2020 16:05 (EDT)

Source: LEEF Brands (formerly Icanic Brands)

Cannabis company, Icanic Brands (CSE:ICAN) has released a positive business update on its operations, despite the COVID-19 health crisis.

While the pandemic is an unprecedented challenge for the global community, the cannabis industry is doing very well right now.

Icanic Brands, which operates in California and Nevada, has qualified as an essential business in California. As such, it can continue operating during government-mandated shelter-in-place orders. The company’s products are available in over 350 licensed dispensaries in the state of California alone.

In addition, Icanic Brands has reported that its supply chain remains fully intact, despite COVID-19 disruptions elsewhere. This includes its cultivation facility in Sacramento, all the way to its distribution locations. Retail and dispensary customers of the cannabis company will be able to continue buying products without interference.

As if this goods news wasn’t enough, Icanic Brands has also reported promising revenue increases since the pandemic started. In February, the company’s revenue as a whole was approximately C$823,980. In March, it had increased by 12 per cent, to approximately $921,152.

Icanic Brands’ subsidiary, Ganja Gold, has also experienced a recent spike in revenue. Ganja Gold saw month-over-month revenue growth of nearly 44 per cent. 

Its month-over-month order volume also grew, by nearly 20 per cent. Specifically, Ganja Gold’s order volume went from 132 orders in February to 158 orders in March. Many other cannabis companies have reported similar increases, as COVID-19 keeps people stuck at home with more recreational time. 

Icanic Brands CEO, Brandon Kau, said that the company is working to improve gross margins by finding operations efficiencies.

“We are looking to incorporate additional technology over the coming two quarters. Additionally, we are proactively looking to expand our footprint in the US market, and are in talks with potential regional licensing partners,” he explained.

In the meantime, Icanic Brands is working on new products for the Ganja Gold brand. It is also preparing to launch a sister brand, called Taylor’s. Taylor’s brand products will primarily address the lower end of the pre-roll market. 

The company hopes to have Taylor’s products on the shelves within the next 30 days. 

Icanic Brands’ share price is up 9.09 per cent, and trading for 12 cents per share, as of 2:06pm EST.

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