Dear Friends of Gladbrook Investments,
As 2021 is quickly coming to an end, we wanted to reach out to keep you informed on the recent updates here at the Gladbrook team.
As stated in previous updates we decided to downsize our team and refocus on the fundamentals of our cannabis business. We believe these changes will allow us an unyielding focus on creating a wellness sector in this next evolution of the industry.
We hired a new operator, Nichole West, who has experience in running $100M plus vertically integrated cannabis companies throughout the US. Nichole has had success at these companies raising capital, developing multi-state license portfolios and creating operations training at companies that have sold in excess of $150M.
We are preparing for a real estate and license sale of our 1665 Cota Avenue location in Long Beach as a part of our restructuring. We feel efficiency over size is going to be the foundation of our next push in 2022. The asking price is $2.99M for this location and it is currently listed on CannaMLS and California Regional MLS.
We have begun the remodeling of our building at Santa Fe to facilitate the floorspace needs of our growing distribution unit. In Montebello at 8129 Slauson we are nearing the end of the first phase of our build out. The Montebello location is where we will be dispatching our Direct-to-Consumer (DTC) model slated for a December 2021 roll out.
We have begun a team development program at our main hub teaching servant leadership and practicing coaching, mentoring and classroom setting training to all staff as we rebuild.
We downsized our staff 70% but have actually increased our efficiency enough that we haven't fallen behind on any of our deadlines. Sales volume is increasing and collection time on outstanding accounts receivables is decreasing.
We are very excited to announce that we have begun working with Weed For Warriors & Fruit Slabs as their trusted distribution partners.
Fruit Slabs is California’s first and only Certified Kosher edible brand. They are also gluten free, vegan, made with 5 ingredients or less and no added sugar. Fruit Slabs is a trusted California legacy brand that has created a strong place in the health food sector and we believe a great addition to the product line and our focus on wellness.
Weed for Warriors is a social justice lifestyle brand that is supporting holistic rehabilitation for veterans with cannabis, education and compassion. We are currently running their SB 34 compassion program where we help get free medicine to thousands of veterans every month around the State of California. We are also helping them start their own for profit business that will hire and employ veterans throughout California to grow, process and distribute these products. There is some additional information about SB 34 available on our website LBatlantis.com/outreach.
Our next phase focus will be
Full Function : Getting the processing facility at Santa Fe in full operation and complete efficient use of the space. At this facility we plan daily production of 5,000 prerolls and packaging of over 200 pounds.
Expand Current Operation : Expand the kitchen and begin commissary kitchen use with a Type S (shared space) license as well as triple storage and warehouse space for the distribution.
Gain Traction: We finished the last quarter at 420k in sales and are projecting a 10% month over month growth over the next two quarters due to new efficiencies with an increased profit.
New Customers: We have recently added new retail customers, have a new marketing focus and aim to be in half of the retailers in the State of California by the end of Q1 2022.
Team: We are now 10 members strong. We are excited to have Nichole West join as Director of Operations to help us restructure and expand. We aim to have at least 25 people by the end of Q1 2022 to operate the new departments and equipment.
Direct to Consumer marketplace: The DTC market remains the biggest priority. We are actively working towards a direct to consumer roll out slated for December 1st 2021 from our Montebello facility.
New partnerships for brand distribution Brand partners are also something we are keen to experiment with this year. For our house brands as well as those we are distributing, we are building with a focus on health, wellness and quality. We aim to be the “Vitamin Cottage” distributor of cannabis both in the wholesale and DTC markets. The cannabis ecosystem is ripe for this – any suggestions here would be welcome.
Warm intros to any such community you know of would be helpful. We are always looking for tactical advice on growth and partnership recommendations. We aim to have an in-person dinner during the holidays with all of our current partners and investors as a way to know the product, companies and people better and create a family that grows together here with Gladbrook Investments at LB Atlantis!