CBD of Denver Announces Q3 Revenue and Updates on Spinoff and German Market

Rhea-AI Summary

CBD of Denver (CBDD) reported Q3 2024 revenue of $763,450, up from $677,893 in Q3 2023. The company provided updates on the German cannabis market, noting significant challenges nine months after the Cannabis Act implementation. Only 29 license applications have been approved nationwide, with cannabis clubs facing bureaucratic hurdles and unclear legal frameworks. The company's Grow Hub business model awaits approval, as no federal state has approved such infrastructure models. Due to German market uncertainties, the planned Luxora Inc. spin-off timeline has been extended. Despite thin margins, CBDD continues operations in the CBD wholesale market while exploring growth opportunities.

Positive

• Q3 2024 revenue increased 12.6% year-over-year to $763,450

Negative

• German cannabis market facing significant regulatory challenges and bureaucratic hurdles
• Grow Hub business model still pending approval with no clear timeline
• Luxora Inc. spin-off delayed due to market uncertainties
• Operating with thin profit margins in CBD wholesale market

Q3 Financial Performance

Denver, Colorado--(Newsfile Corp. - November 10, 2024) - CBD of Denver (OTC Pink: CBDD) is pleased to report estimated third quarter 2024 revenue of $763,450.00 compared to an estimated $677,893.00 for the same period in 2023.

German Market Update

More than nine months have passed since the Cannabis Act (CannG) came into effect in Germany on April 1, 2024. The law aimed to curb the cannabis black market and provide adults with widespread access to unadulterated, high-quality cannabis. However, the situation in the German market remains unclear and has fallen far short of expectations. As of October 10, 2024, only 29 license applications have been approved nationwide, with the number of cannabis club applications being lower than anticipated due to bureaucratic uncertainties and economic challenges in the market.

Cannabis clubs continue to face significant bureaucratic hurdles and often unclear legal frameworks, complicating their establishment and operation. Additionally, the company is still awaiting approval for its Grow Hub business model in one of the German federal states. Approval decisions lie with the federal states and relevant district and state authorities-and to date, no federal state has approved such infrastructure models.

Spin-Off Update

Due to a lack of clarity in the German market, the timeline for a potential spin-off of Luxora Inc. has been extended. This decision allows CBD of Denver to reassess the business climate and strategic opportunities, ensuring that any future actions align with shareholder value and long-term growth objectives.

General Outlook

As CBD of Denver progresses into new sectors, the focus remains on delivering value to shareholders through a broad, adaptable strategy. The company is actively exploring growth opportunities and reinforcing its commitment to steady expansion. While margins remain thin, CBD of Denver continues its efforts in the CBD wholesale market, demonstrating its commitment to maintaining and growing this core business area. Shareholders can expect continued updates as CBD of Denver advances its multi-sector approach.

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/229439

FAQ

What was CBD of Denver's (CBDD) Q3 2024 revenue?

CBD of Denver (CBDD) reported Q3 2024 revenue of $763,450, compared to $677,893 in Q3 2023.

How many cannabis license applications have been approved in Germany as of October 2024?

As of October 10, 2024, only 29 license applications have been approved nationwide in Germany.

Why did CBD of Denver (CBDD) delay the Luxora Inc. spin-off?

The Luxora Inc. spin-off timeline was extended due to lack of clarity in the German market, allowing CBD of Denver to reassess the business climate and strategic opportunities.