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Revolutionizing Health and Well-Being


HQ: Toronto, Ontario, Canada
Incorporated: 2011 as Longacre, 2014 as Golden Leaf
Facilities: Ontario, Canada, Nevada, OR, CA
Symbol: GLDFF (OTC)
Exchanges: CSE, OTC
Licenses: Cultivation, production, sales
CEO: William Simpson

Focus: Strong
Golden Leaf Holdings is a Canadian company operating in Oregon, Nevada and Canada, with cultivation, production and retail operations built around recognized brands. It produces flower, oils and edibles and distributes through its Chalice Farms retail dispensaries, as well as through third party dispensaries.

Market Cap (US$): $120 mil
Enterprise Value: $117 million
# of employees: 170

Markets: Strong
Primary: Oregon, Nevada, Canada
Secondary: California, other states that become legal

Current production: We estimate 6,500 kgs per year (In Canada, 217 kgs per year. In Nevada, 217 kgs per year. Tahoe, which it recently bought, produces roughly 6,000 kgs per year. It also currently buys wholesale to fulfill orders.)
Future production: It is building a facility in Portland OR.

Distribution: Strong
Direct sales:
-It has 7 retail dispensaries in OR, 6 under Chalice Farms name. Has agreed to buy a dispensary in Northern CA.
-signed an LOI with BlackShire Capital, a Canadian private equity firm, to launch the Chalice Farms franchise model.
Store networks:
Its branded products are sold in over half of the dispensaries in Oregon, as well as several dispensaries in Nevada. It is also preparing to sell selected products in Canada ahead of legalization in Oct 2018.

Financials: Neutral
Revenue rank among cultivators: About 10

Management: Strong
CEO: William Simpson
CFO: Craig S. Eastwood
COO: Mike Genovese
CMO: Jeff Yapp

Branding: Strong
Based on a review of their product packaging and website, we think Golden Leaf has excellent branding capabilities. They also just hired a Chief Marketing officer with 30 years of creative e branding experience..

Valuation: Strong
Current share price: $US 0.21
EV to Sales: 7.9 (Tobacco industry = 5)
EV / revenue: 7.9

Cannabis is becoming a commodity in some places. Many companies continue to enter the market creating oversupply and downward price pressure. The company’s only supplier of distillates in Oregon also supplies for many other brands, representing a concentration of risk. This risk may decrease when Golden Leaf’s production license in Portland is approved.

Recommendation: Neutral