CBD of Denver Announces Q2 Revenue and Provides Update on German Market
Rhea-AI Summary
CBD of Denver (OTC Pink: CBDD) reported estimated Q2 2024 revenue of $1,030,000, up from $720,000 in Q2 2023. The German cannabis market is evolving, with states progressing on Cannabis Club licensing. Luxora is exploring opportunities but awaits official approval. Lower Saxony has approved 7 out of 20 applications for cannabis cultivation clubs.
The company is reassessing its wholesale business due to lower-than-expected profit margins. Luxora has received positive engagement in Berlin for a Near-Infrared (NIR) cannabis testing device, with over 50 interested parties in Germany. This initiative could provide higher-margin sales and recurring revenue through a SaaS model. Luxora continues to explore various opportunities in the cannabis sector, focusing on technology, medical applications, and innovative growth areas.
Positive
- Q2 2024 revenue increased to $1,030,000 from $720,000 in Q2 2023
- Positive engagement for Near-Infrared (NIR) cannabis testing device in Berlin
- Potential for higher-margin sales and recurring revenue from NIR device and SaaS model
- Over 50 interested parties in Germany for the NIR device
Negative
- Wholesale business unit not meeting anticipated profit margins
- Luxora still awaiting official approval for its business model in Germany
- High hurdles for cannabis clubs in Germany due to strict application frameworks and recent law amendments
News Market Reaction – CBDD
On the day this news was published, CBDD declined NaN%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Denver, Colorado--(Newsfile Corp. - August 5, 2024) - CBD of Denver, Inc. (OTC Pink: CBDD) today announced that revenue for Q2 2024 is estimated to be approximately
The German market is evolving as all federal states are progressing with their individual application and licensing programs for Cannabis Clubs. Luxora is in ongoing discussions to explore opportunities for its grow infrastructure solutions but has not yet received official confirmation from any federal state to approve its business model. Lower Saxony is the first and only state in Germany to have decided on applications for the approval of cannabis cultivation clubs, with seven applications approved and five rejected. A total of 20 applications have been submitted, making it the third highest in the country after North Rhine-Westphalia with 37 and Baden-Württemberg with 35. The pace of applications illustrates the high hurdles that clubs must overcome based on the individual federal states' application frameworks and the recent amendments to the cannabis law, which make it much more difficult to start a club. The company continues to explore the opportunity in the German market and is actively engaged with the responsible authorities to achieve legislative clarity.
Following a thorough assessment of its wholesale business unit, the company found that it was not meeting its anticipated profit margins. However, the company continues to operate in the wholesale business and is still experiencing growth. The Company continues to review new opportunities with the goal of identifying businesses with higher margins to build recurring revenue.
In a significant development, Luxora has received positive engagement in Berlin regarding a Near-Infrared (NIR) device used for cannabis testing. The company is following up on leads from over 50 interested parties in Germany. In the coming weeks, Luxora will be making sales presentations to these potential clients. If proven sustainable, this initiative has the potential to provide higher-margin sales based on a markup on the device as well as recurring revenues based on the SaaS (Software as a Service) model, which is sold alongside the hardware device. The company is testing the viability of the business model before deciding on a specific direction.
Luxora remains committed to exploring a wide array of opportunities within the cannabis sector, including advancements in technology, medical applications, and other innovative areas with strong growth potential. The company's proactive approach aims to leverage its expertise and market presence to drive growth and value for its shareholders.
About CBD of Denver, Inc.
CBD of Denver, Inc. is focused on acquiring profitable assets at attractive valuations to create value for shareholders. The company's team is dedicated to sourcing high-margin, innovative products that align with its values.
About LUXORA Inc.
LUXORA Inc. is a trailblazing entity in the European cannabis industry, with offices spanning the USA and Europe. Our core expertise revolves around unlocking the potential of the legalized cannabis market, offering infrastructure solutions and consulting tailored to the dynamic needs of this rapidly expanding sector. With a profound understanding of the opportunities and challenges brought forth by legalization, our experienced team is dedicated to pioneering the future of the legal cannabis market in Europe. Our offerings range from consulting and market research to product development and distribution solutions, aimed at simplifying the path to legalization for our esteemed clients.
For inquiries, please contact Investor Relations: investors@luxora-holding.com
For more information, please visit: www.luxora-holding.com
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/218811
FAQ
What was CBD of Denver's (CBDD) estimated revenue for Q2 2024?
How many cannabis cultivation club applications were approved in Lower Saxony, Germany?
What new opportunity is Luxora exploring in the German cannabis market?
How many interested parties has Luxora received for its NIR cannabis testing device in Germany?
