Leef Brands with CEO Micah Anderson

The Market Online speaks with Leef Brands CEO Micah Anderson, as TOP GAINER OF THE WEEK - Leef Brands

Transcript

00:00Welcome back to The Watchlist. I'm Lindsay Melchak. Glasshouse Brands, one of the fastest

00:10growing vertically integrated cannabis companies in the United States, and Leaf Brands, one of

00:15California's premier vertical extraction companies, recently announced an MSA for the Leaf El Paseo

00:20dispensary and offtake agreement. Now joining us to break that open further is Micah Anderson,

00:26CEO of Leaf Brands. Micah, I mean, thank you for joining us. This is exciting news.

00:31Yeah, thanks for having me. I appreciate it. So let's actually start off with a bit of a different

00:36angle on this. With Glasshouse Brands' aggressive expansion into California's cannabis market,

00:42I mean, how does Leaf Brands plan to maintain its market share and differentiate its offerings in

00:47the face of such formidable competition? Yeah, no, good question. Yeah, I don't

00:54actually think Glasshouse is a competitor of ours, per se. Obviously, both in the same industry in

00:59the same state. Glasshouse has done a great job of becoming kind of the largest flower producer,

01:06low-cost, high-quality flower producer in the state of California. And Leaf Brands, our business,

01:11is kind of the opposite of that. We're the other side of the coin of what is predominantly sold in

01:16the market. So we focus on concentrates. We don't do any flower sales at all. So we've spent the last

01:23four years building out a very large farm in Santa Barbara, really almost kind of mimicking Glasshouse's

01:28model where they were able to secure a large cultivation footprint, which is what kind of

01:33catapulted them into the position that they're in. And we spent the last four years going through the

01:38permitting process and successfully finished getting the license over the finish line and then also

01:45getting plants in the ground. So we planted 70 acres this spring, which we'll be harvesting in June.

01:50And if you look at what's sold in the California marketplace, typically it's 50-50. It's flower

01:56sales and then there's concentrate sales. And so our business focuses on the concentrate side

02:01of that equation, whereas Glasshouse focuses on the other side.

02:04And well, let's dive into that just a little bit more. So given that recent partnership between

02:10Glasshouse and yourself, I mean, what are the projected financial synergies and really how will this

02:15collaboration impact your revenue streams and profitability in the upcoming fiscal year?

02:20Yeah. You know, this deal was, I think that this deal was great for both of us. They were looking

02:27to expand their retail footprint. They're wisely doing it in a way to where they're trying not

02:31necessarily having to acquire stores. So we did a deal where we did an MSA, so management service

02:36agreement, where they're going to take over the store from a management perspective.

02:39And what's good for us, I guess I'll start there, is that we're getting to, it's hard to run a single

02:46one-door retail store in California. You need to be a part of a larger portfolio to be successful,

02:53in my opinion. I think Glasshouse has recognized that. So we were able to attach ourselves to that.

02:58So we now participate in their collective buying power, getting our cost of goods down, margin pickups,

03:04and so on. They've got a great retail team, HR team, all the kind of like corporate structure

03:12that we'll be able to leverage as well. Well, it sounds like the perfect collaboration

03:17together. So congratulations on all of that. And we look forward to having you back for more

03:21updates soon. Yeah. Thank you very much.

03:24Again, that was Micah Anderson, CEO of Leaf Brands. To learn more about them,

03:28flip over to their website at leafbrands.com with two E's. I'm Lindsay Melchick with Stockhouse

03:33Publishing. Thank you for watching.