Cannabis Strategic Ventures (OTCMKTS:NUGS) has achieved another milestone at its Northern California cultivation operation – NUGS Farm North. To increase yields by enhancing the number of plants cultivated in a year, the company has installed 768 high powered Grow Lights.
Chief Executive Officer of Cannabis Strategic, Mr. Simon Yu said the company is pleased to achieve this milestone for its NUGS Farm. It needs adjustments, planning, and dedication to accomplish this milestone. Obtaining permissions and maintaining compliance is difficult in the cannabis industry.
More harvests in a year
Installation of additional lights allows the company to achieve more harvests in a year and attain higher yields. The new initiative helps the company to high-quality products and sells in the market place. It is vital for the company, which is on an expansion spree, at this juncture while other companies in this space are curtailing their operations. Cannabis Strategic has posted a stellar growth of 91% in the previous quarter by posting revenues of $1.35 million. It has strength in the California market and confidence in its business going forward to improve market share.
Mr. Simon said the company is excited to record consistent growth in this highly regulated environment. The company is striving to improve gross margins and revenues by minimizing operational spending. Cannabis Strategic expects to post better revenues in 2020.
Regulatory hurdles take a toll on production
Cannabis Strategic’s production is sluggish for the past 18 months because of regulatory hurdles from the state, federal and local bodies. The company focused on strategies to improve cultivation yields and finalize infrastructure enhancements during this period. As a result, it enjoys rapid growth. The company has improved revenues by over $2 million for the nine months ending December 31, 2019. It plans to add more lights by the end of this year to improve growth and generate more revenues.
Issues a clarification on unauthorized promotional activity
Cannabis Strategic is first aware of when it received a notice from OTC Markets on November 4, 2019, about unauthorized promotional activity involving its common stock. The company has conducted due diligence and issued a clarification that none of its officers, directors or beneficial owner of 10% of its common stock are engaged in any unauthorized promotional activities. It said none of its 10% beneficial owner of the common stock, officers or directors has sold or purchased the company shared in the last three months.