Subscribe
Be the first with the news that moves the market- SLANG Worldwide (SLNG) has received regulatory approval to expand its supply chain capabilities in the US state of Colorado
- The suitability approval was issued by the Colorado Department of Revenue’s Marijuana Enforcement Division and allows for the ownership of manufacturing and distribution facilities
- The company’s planned fully-integrated model will allow for a traditional wholesale operation, with anticipated increases in revenue and profit
- Prior to the enactment of the House Bill 19-1090 in November 2019, only companies with 15 or fewer owners were able to receive the approval
- SLANG Worldwide (SLNG) is currently steady and is trading at C$0.14 per share
SLANG Worldwide (SLNG) has received regulatory approval to expand its supply chain capabilities in the US state of Colorado.
The “suitability approval” was issued by the Colorado Department of Revenue’s Marijuana Enforcement Division and allows for the ownership of “plant-touching” operations in the state, such as manufacturing and distribution facilities.
Prior to the enactment of the House Bill 19-1090 in November 2019, ownership of these facilities was restricted to private companies with 15 or fewer owners.
However, with the new legislation in place, publicly traded companies are able to own cannabis businesses, provided they satisfy the Marijuana Enforcement Division’s suitability application process and comply with other necessary requirements.
The legislation was initiated in an attempt to bring a greater level of investment to Colorado’s cannabis sector.
Chris Driessen, CEO of SLANG Worldwide, said the approval is key to executing the company’s consolidation strategy in the state.
“A fully integrated model will allow us to run a traditional wholesale operation and realise more favourable unit economics, including higher revenue and gross profit,” he added.
Currently, SLANG Worldwide is focused on managing intellectual property and employs third parties to manufacture and distribute their cannabis products in Colorado, such as Allied Concessions Group, Peoria Partners and Pleasant Valley Ranch.
With suitability approval now in place, the company anticipates that a more consolidated supply chain would offer greater control over production and distribution planning, with improved efficiency and a strengthened leadership position within the state.
SLANG Worldwide (SLNG) is currently steady and is trading at C$0.14 per share at 2:10pm EDT.
