VANCOUVER, BC / ACCESS CABLE / Jul 27, 2022 / Lotus Ventures Inc. (CSE:J) (OTC:LTTSF) (“Lotus” or the “Company“), a licensed cannabis grower and wholesaler of premium cannabis flowers in Canada, provides an update for its shareholders regarding its sales and marketing strategy for the fall months of 2022.
Lotus in its first two years of production achieved high sales volumes and profitability in the B2B market for cannabis flowers. In the past six months, Lotus has experienced a slowdown in its wholesale business due to various factors, including but not limited to, wholesale partners leaving the B2B space to focus on the adult-use recreational market, wholesale partners being acquired by other companies, or producers leaving the cannabis space altogether. Lotus is well along in implementing its original game plan of adding the retail channel to its sales focus. This new channel provides both higher margins and a diversification of sales. The Company also recognizes the current state of the Canadian cannabis industry and has adjusted its strategy to further diversify sales channels beyond B2B sales only. The Company is confident that it will be able to meet current market demand with its multi-pronged, diversified sales approach.
Until now, Lotus has made great strides in producing the bestshelf cannabis along with the sourcing and development of exclusive first-to-market strains (The Kalifornia and Tranquil Elephantizer), both of which have been sold at BC Cannabis Store and Ontario Cannabis Store, as well as at participating retailers. Lotus recently harvested its largest single batch of Tranquil Elephantizer yielding more than 50% more than original expectations and we continually strive to push quality and performance to new highs.
As Lotus obtained its standard sales/processing license on September 8, 2021, the company is working towards obtaining provincial sales SKUs. Lotus is currently looking at parallel direct-to-consumer packaging routes that include in-house and outsourced options for these first steps. Outsourcing mid-flow packaging and distribution responsibilities provides an accelerated and initially cheaper start-up capital expenditure. Direct-to-market creates additional sales channels and increases potential margin without the need for a large influx of capital. This, in turn, also reduces the volatility that the industry has experienced in the B2B market.
Lotus has some traction with the Tranquil Elephantizer currently being sold in BC and Ontario, but is preparing for the future with more unique cultivars already put into production. The company is taking the reins to build a recognized brand that reflects Lotus’ quality and pride in BC-grown produce.
Lotus steps in the future:
Lotus has started two very promising new cultivars with expected average THC levels of 25% and hopes the first harvests will reflect this. The company is looking at consistent THC levels and further increasing the maximum THC% limit of these new cultivars. Next harvests can be expected in late August with the potential to be ready to ship in bulk in mid to late October if packed without unforeseen delays.
The Company is currently working to meet all supply chain requirements to achieve direct-to-consumer sales in the shortest possible time. (Records, Requests, relationships with suppliers, compliance).
With a long-term focus on the British Columbia, Alberta and Ontario markets, Lotus has continued to develop its sales strategy into a multi-pronged approach that should effectively increase sales across all channels while improving Lotus’ internal control. Initially, the Company expects SKUs to be ordered in BC, with Alberta and Ontario soon to follow.
ON BEHALF OF THE BOARD:
Lotus Ventures Inc.
Dale McClanaghan, President and CEO
About Lotus Ventures Inc.
Lotus Ventures Inc. (CSE: J.) is a licensed producer and wholesaler of premium cannabis based in British Columbia. Lotus owns and operates the consumer brand Lotus Cannabis Co.™, whose flower has been sold by wholesale partners in nine Canadian provinces to date, not including Quebec. Lotus is an experienced grower in the North Okanagan and Lotus flower is currently sold in BC and Ontario by the Kolab Project.
To invest in the Company, Lotus Ventures Inc. is listed on the Canadian Stock Exchange under the symbol J and on the OTC Markets under the symbol LTTSF.
For more information:
President and CEO
Learn more by visiting our website at lotuscannabis.ca and following our brand on social networks.
The information contained in this press release has been prepared by Lotus Ventures Inc. This document includes certain statements that are not descriptions of historical facts but are forward-looking statements. Such statements include, but are not limited to, those regarding our expected financial performance and strategic and operating plans, our future operating results, our expectations regarding the market for medicinal and recreational cannabis products, our expectations regarding the continued growth of the cannabis market medicinal and recreational, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. Users are cautioned that such forward-looking statements are not guarantees of future performance and that various risks and uncertainties could cause our actual results to differ materially from those anticipated, expressed or implied by the forward-looking statements. These risks and uncertainties have not been documented or mentioned in this document or in other communications made by the company. The words “believe”, “expect”, “anticipate”, “project”, “targets”, “optimistic”, “intend”, “target”, “will” or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be considered forward-looking statements. The Company assumes no obligation and does not intend to update any forward-looking statement, except as required by law.
The Canadian Stock Exchange accepts no responsibility for the adequacy or accuracy of this release.
FONT: Lotus Ventures, Inc.
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