City View Green (CSE: CVGR) continues to execute and make good news. IBR is a big believer in the CBD-infused beverage category. ☕
I personally will be in Cape Town, South Africa by the end of the month to get our first products launched and on the shelves, one being our line of CBD-infused coffee Medspresso™. (IBR and Wuhan share common management, I’m the Head of Product for Wuhan)
Rob Fia, City View Green President is a great friend of the IBR team and an excellent operator that consistently over delivers.
Look for an official City View Green Hits the IBR Radar very soon. The stock is trading well and formed a new strong base from which to pop north. A 100% gain by year end 2019 is in the cards.📈
The story below was created by Content Works, Postmedia’s commercial content division, on behalf of City View Green. (original article is here)
Rob Fia, President of City View Green (CVG) (CSE: CVGR), never once regretted holding back during the earliest Canadian “cannabis rush,” when licensed producers fought for market share based on planted acreage.
“Large-scale cannabis is being commoditized, but we’re still focused on our intention to produce and process boutique craft-grown cannabis,” he said. “Some early entrants struggled with upscaling production to show profitability and now their stocks are being punished for it. We were laser-focused on a plan for true vertical integration from the beginning.”
CVG’s plan includes distribution through retail partners, an important success factor that many cannabis start-ups missed. Its newest expansion plan is a letter of intent to purchase the Blue Heaven Coffee Company, which offers CVG the potential — when certified as legal by Health Canada regulations — to offer CBD-infused coffees and baked edibles.
The heart of the business is CVG’s 40,000-square-foot growing and processing facility in Brantford, Ont.
“We’re moving very quickly in Brantford,” said Fia. “Right now, our contractor is on schedule for a mid-October completion.”
Photo: Getty Images, from The Growth Op
According to Health Canada regulations, CVG must provide digital video captures of its key features, including grow rooms and extraction facilities, to complete its application for both a producer’s license and a processor license under the Cannabis Act.
Health Canada requires newly licensed producers to plant and harvest two test crops before a sales licence is issued, allowing the company to sell either to regulatory bodies across Canada or direct to approved retail outlets. Fia reckons it will require about 10 to 12 weeks to take two crops to term. But the company would begin cutting its teeth on extraction almost immediately, potentially using cannabis feedstock supplied by another licensed producer on a temporary basis.
“Having our own extraction facilities is critical, not only for Canadian markets, but for eventual export of products overseas,” said Fia. “It gives us ultimate quality control. Once fully licensed, our intention is to produce high-quality edible products, distillates and water-soluble products for the beverage market.”
He’s more than pleased with CVG’s 19.9 per cent stake in Budd Hutt Inc., a retail-focused cannabis company with access to licences in Alberta and other retail opportunities across Canada.
“Things have moved drastically in our favour with Budd Hutt, which has locked down seven stores in Alberta for us through an investor who put up $2.2 million,” said Fia.
Photo: Getty Images, from The Growth Op
“They’re all in great locations in population centres of between 30,000 and 50,000 people where there’s little or no retail cannabis competition. That’s in addition to our flagship store in downtown Edmonton, which is also exciting. We expect that Budd Hutt will play an important role in securing shelf space and distribution opportunities for City View’s products.”
The Blue Heaven Coffee Company acquisition was perfectly timed to coincide with the rapid expansion plans for that business. Blue Heaven sells only Jamaica Blue Mountain coffee, considered by connoisseurs to be among the finest coffees in the world.
Also vertically integrated, the company has established supply lines from high-altitude family plantations in Jamaica. Along with a prominent Canadian coast-to-coast partner, Blue Heaven has already established two cafés in locations offering high foot traffic and the potential for high volume sales. Another 21 are set to open through 2020 with a potential to open a total of 54 outlets in the near term.
“Our CEO, Ian MacDonald, has already been leveraging his 30 years of experience with consumer goods and branding to develop those first locations from ideas to proof-of-concept,” said Fia. “In terms of potential for future integration with the City View brand, we’re leaving nothing to chance.”
Depending on regulations eventually set by Health Canada for edibles, City View said it hopes to offer CBD-infused products at Blue Heaven cafés, and — if regulations allow — cannabis-infused products at standalone, specialized Blue Heaven outlets or pop-up stores.
“However, we wouldn’t have purchased Blue Heaven if it didn’t already produce a great cup of coffee,” said Fia. “Even if we have to wait for Health Canada to set regulations on CBD-infused edibles, Blue Heaven already has a solid future.”
While Fia waits for all of the elements of CVG’s vertically-integrated empire to assemble like a well-oiled machine, he can’t help but echo the signature line of the A-Team’s Colonel John “Hannibal” Smith.
“I love it when a plan comes together,” he said. “I’m as excited about the business now as when we founded it.”