32
CEO Don Robinson brings unique experience and track record to GLH in the consumer and branded food industry. Mr. Robinson spent more than 20 years with Mars Incorporated as a CEO since 1990 in various global postings before his roles as President and CEO of Cara Operations, a leading food service and restaurant operator in Canada.
Board member Michael Cohl was the former Chairman of Live Nation, one of the world’s leading events production companies, has produced worldwide music tours including The Rolling Stones, Pink Floyd, U2, and Barbra Streisand, and has spent decades on and off Broadway with shows including Spiderman: Turn Off the Dark (for which Mr. Cohl was voted Producer of the Year 2011), Rock of Ages, The Lion King, and Spamalot (Tony Award).
Strategic Partnership with BMF Washington (BMF)
GLH has leveraged its industry-leading management team and board of directors to accelerate growth opportunities and capture additional market share in the state of Washington. In January 2016, the Company executed a strategic partnership with BMF Washington, a leading producer, processor, and distributor of branded cannabis oil and flower products in Washington State. This partnership focuses on the integration of best practices, brands, and growth initiatives to drive market share and profits in both the Washington and Oregon marketplaces. The experience of the GLH team has proven invaluable in supporting BMF’s successful growth in the Washington cannabis market. The Washington legislature will be reviewing out of state ownership and investment regulations in the next legislative session starting in January 2017. GLH would acquire BMF and become a consolidated company if the out of state ownership legislation passes.
GLH will take advantage of the experience gained in the evolving Oregon and more mature Washington markets as the Company looks to develop future strategies to export its business model to other states and regions. Furthermore, the cannabis industry is ripe for consolidation due to current fragmentation and market growth opportunities. GLH is well positioned with its management team and business model to leverage consolidation to maintain leadership, capture market share, and gain scale advantage in the cannabis marketplace.
Golden Leaf Responds to Recent Changes in Oregon Cannabis Market
Oregon's recreational market surpassed $160 million in sales from the beginning of January through the end of September 2016, and Marijuana Business Daily, in its Marijuana Business Factbook 2016, forecasts Oregon's market to reach $180 to $200 million by year end. The Oregon cannabis market is evolving as the recreational market begins to formally launch and oversight of the adult-use market is now transitioning to the Oregon Liquor Control Commission (OLCC). This change will result in a decrease in the state sales tax from 25% to 17% and an increase in customer purchase limits, factors which should support increased sales. Other changes implemented in the Oregon market have had a downward impact on cannabis sales on the near-term, but should result in positive changes for the long-term health and growth of the Oregon cannabis market, including:
• More Stringent Packaging/Labeling Requirements: Dispensaries closely managed their inventories and purchased less product than normal in both late September and early October to mitigate potential losses from non-compliant packaging.