Sunniva Estimates up to $60 Million in Revenue for 2019

The company has also secured an additional USD $4 million in purchase orders.

VANCOUVER, British Columbia, Feb. 14, 2019 (GLOBE NEWSWIRE) — PRESS RELEASE — Sunniva Inc., a North American provider of cannabis products and services, has announced that it has secured an additional USD $4 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 percent 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

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

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Hugo Gray
Hugo Gray

Hugo Gray is a Melbourne-based journalist with a body of work that covers a diverse range of topics, including immigration law, sex technology, and now the rapidly expanding cannabis industry.

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