KELOWNA, BRITISH COLUMBIA – December 5, 2019 – Citation Growth Corp. (CSE: CGRO) (OTCQX: CGOTF) (“Citation” or the “Company”), a licensed cannabis cultivator and producer, is pleased to provide a corporate update.
Branded Product Production Ramp Up
Over the four weeks, Citation has fundamentally changed its revenue generation model through the startup of its production license. Over the last two months, the Company has begun to shift from a pure-play cultivation company to that of company focused on the high growth branded concentrates market through the introduction of its branded lines of waxes, shatters, infused pre-rolls and triple certified organic vapes.
Since this branded production ramp up, Citation has produced approximately USD$1.0 million worth of wholesale branded products. The Company is awaiting final state approval before sales of these products will commence. The company is expecting this approval at the beginning of next week.
Citation expects to further increase its sales and margins through the roll out of its Diamante and Superior branded concentrate lines that will complement the existing Fiore, Garden of Weeden and Blunt Box brands.
California Dispensary Optimization and Margin Growth
In Desert Hot Springs California, the Company’s 100% owned and operated retail dispensary, Green Leaf Wellness continues to see increased revenue and profit margins since its strategic assets rationalization program began in September.
In October, the dispensary had revenues of approximately USD$130,000 with a gross profit margin of 55%, compared to revenues of approximately USD$100,000 per month with profit margins of approximately 26% prior to the amalgamation of Citation and ACC Group of Companies.
As previously stated, through operational optimization and execution which should be finished by the end of 2019, the Company is expecting annualized revenue of greater than USD$2mm per year with gross profit margins of greater than 65%.
About Citation Growth Corp.
Citation Growth Corp. is a publicly traded company that has been investing in the medical and recreational cannabis space since 2014. Citation has rapidly expanded its operating portfolio to include cultivation, production, and dispensary locations in key North American state-legal jurisdictions and is seeking expansion opportunities worldwide.
For Further Information:
Rahim Mohamed, President
1-877-438-5448 Extension 718
Paul Searle, Corporate Communications
1-877-438-5448 Extension 714
Citation trades in Canada, under the ticker symbol “CGRO” on the CSE, and in the U.S., under the ticker symbol “CGOTF” on the OTCQX Best Market (the “OTCQX”). The Company also trades on other recognized platforms in Europe including Frankfurt, Stuttgart, Tradegate, L & S, Quotnx, Dusseldorf, Munich, and Berlin.
Neither the CSE nor its Regulation Services Provider, nor the OTCQX has approved nor disapproved the contents of this press release. Neither the CSE, nor the OTCQX accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements that relate to our current expectations and views of future events. These statements relate to future events or future performance. Statements which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, outlook, expectations or intentions regarding the future including words or phrases such as “anticipate”, “become”, “objective”, “may”, “will”, “might”, “should”, “could”, “can”, “intend”, “expect”, “believe”, “estimate”, “predict”, “potential”, “plan”, “is designed to”, “project”, “continue”, or similar expressions suggest future outcomes or the negative thereof or similar variations. Forward-looking statements may also include, among other things, statements about the Company’s: future business strategy; operations and growth strategies; expectations of obtaining licenses and permits; expectations regarding expenses, sales and operations; future customer concentration; anticipated cash needs and estimates regarding capital requirements and the need for additional financing; ability to raise future financing; completion of all proposed site phases; the ability to expand into other states; expectations of operational efficiencies; total processing capacity; the ability to anticipate the future needs of customers; plans for future products and enhancements of existing products; future growth strategy and growth rate; future intellectual property; regulatory approvals and other matters; and anticipated trends and challenges in the markets in which the Company may operate.
Such forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: business, economic and capital market conditions; the ability to manage the Company’s operating expenses, which may adversely affect the Company’s financial condition; the Company’s ability to remain competitive; regulatory uncertainties;
market conditions and the demand and pricing for our products; exchange rate fluctuations; security threats; the Company’s relationships with its customers, distributors and business partners; the Company’s ability to attract, retain and motivate qualified personnel; industry competition; the impact of technology changes on the Company’s products and industry; the Company’s ability to successfully maintain and enforce its intellectual property rights and defend third-party claims of infringement of their intellectual property rights; the impact of litigation that could materially and adversely affect our business; the Company’s ability to manage its working capital; and the Company’s dependence on key personnel. The Company is not a positive cash flow company and it may not actually achieve its plans, projections, or expectations (the Company has a history of losses).
Except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future event or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. Neither the Company nor any of its representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this news release.