Interview With Chairman of Board Christian Briggs
Question: GSRX recently launched its CBD line pure and natural. Tell us a bit about the products, what sets them apart from others in the markets, and your sale strategy for the line.
Answer: So we recently launched Pure and Natural. Which is our CBD brand. The brand consists of a host of including pain cream salves, tinctures, pet, facial masks, and of course skin care line. The interesting thing about our products is that we have a tremendous, proprietary formulization that we utilize to create pharmaceutical grade CBD. So, not only is pure in full spectrum, it's also naturally certified organic. As far as sales and distribution, we currently have our website, getpureandnatural.com, which we have seen some pretty strong sales, since its initially launched. More importantly, we're already getting wholesale distribution through a various medical centers, doctors, as well as other types of retail locations. So our growth has been phenomenal. One thing to note, about our Pure and Natural brand, is that we've already signed leases for two retail locations that will be under Pure and Natural brand, both in a community called Lakeway, which is a suburb of Austin, as well as here in Nashville, Tennessee. So in Texas and Tennessee, we've already started to grow beyond just our THC or other related cannabis business, which of course are in California, and Puerto Rico.
Question: How many locations do you have currently? And what have the sales been like since opening these locations?
Answer: Okay, great question. So we operate five dispensaries, THC permitted Dispensaries, in the territory of Puerto Rico, and we have of course the one in California. Our first quarter sales last year were around 22,000. Then we grew in second quarter to a little over 350,000. Third quarter last year, was approximately, 707,000. And then of course for fourth quarter, we gave early guidance, and it was a little over two million dollars. And so, for first quarter this year, we're already looking at somewhere between 2.6 and 2.7 million, coming into 2019.
Question: What's the essential value proposition. Why should investors take an interest in GSRX today?
Answer: Okay good question. So, the value proposition, is that we have a very select but yet experience team, of management that are already used to retail operations. So the operations, that we currently focus on is either specific manufacturing and retailing. We're very good at both of them. We also have high customer service. We have a very strong product line, we're conscious about price points within each of our dispensaries, to make sure that, not only is the selection proper, to be able to meet the demands, of our consumers and clients, customers if you will, but also the price points. So that we have products that are affordable, for the masses. Whether it's medical for patients, or if it's adult recreational use.
Question: How big is the overall market opportunity?
Answer: That's a good question, I'm not sure how big it really is, I mean it's a continuation of more states, that legalize this, it just grows by the nth degree. And so I know for us, with less than twelve months in full operation we've gone from 2,000 in first quarter revenues, to projected revenues this first quarter 2019, as somewhere between 2.6, 2.7 million for the quarter. So the market is there, it always was, what people don't realize for cannabis based products, it's been there 30-40 years. What's happening is that the black market is transitioning into legalized markets. So, price points are obviously important, product selection is very important, but customer service is number one. So again, we pride ourselves on having on of the best customer service reviews, if you go to Weedmaps in Puerto Rico, we're very conscious again about making sure we serve the patients, and the clients, and the customers, what have you. In such a way, that it makes people want to go into a legalized place, in which to buy their products. So again, it's an unbelievable opportunity, as we continue to grow across the United States, as we open more stores.
Question: Management is a major factor in the success of small cap companies, tell us about some of the key players on your team.
Answer: Great, okay so management is key. Experienced management starts at the top. So Les Ball, who's our CEO comes from a background working with Macy's in various departments, and or parts of the company. From chairman to president, and CEO in the business of Macy's for almost 30 years. And in doing that he understands retail. He understands how to place products, how to make the aisles, the end caps, the point of sale checkouts. These are the things that people take for granted. When we acquired a California dispensary located in Point Arena, California last April, we increase sales within just a matters of months by almost 200-300% in two, to three, four, five months. Just by changing some of the way the dynamics of the operated and the way the layout was, the product selection, the price points. Just smallest of tweaks made such a huge difference. So same thing in the principles apply within Puerto Rico again it's an American territory, that caters to a host of diverse, and wide range of people. So we've been able to secure really strong sales at each one of the five locations. Because again, we focus on what the customer experience is, and what they expect when they walk into any one of our stores. So the management is important, we have a CFO that again, comes from a very strong background, public accounting. And then we also have operations including Mr. John Grainer who's are Managing Director of Pure and Natural as well as our manufacturing. Which is starting to ramp up in Point Arena, California, which we have a manufacturing permit for that, will be coming into operations, will commence sometime later this spring.
Question: Now Christian, what milestones can investors expect over the next 12-18 months?
Answer: Milestones that we're achieving right now is that we have three more stores licenses, what they call pre-qualifications for Puerto Rico, THC dispensary stores. That we should open up in the next four-six weeks. That would give us around eight locations, within the San Juan, and surrounding communities. So the milestone, really is just about growth. It's about achieving again customer satisfaction, creating an environment in which people want to refer other, customers, friends, family, what have you, to our locations. And number two is, the milestone that we've got a distributer permit in the state of California, we also have a manufacturing permit. And we will be utilizing those permits to both one distribute, through the California marketplace cannabis products, CBD products. And number two manufacture products, that we already know the demand is there. As well as being able to sell our own products, to our own retail locations. That we control through dispensaries, and other things.