Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF) has major upside, with Canaccord Analysts raising their price target from $5.50 to $6.50
Analysts are bullish on Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF). Jim Cramer has been high on them since before they went public, saying “I cannot wait until you come public!” Now they’re public and analysts are proving him right. Since going public, their stock has surged almost 30% and that’s just the beginning.
A recent analysis by Canaccord Genuity Capital Markets is offering positive recommendations for Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF). The report suggests that they’re undervalued at their current share price, and gives them a “speculative buy” rating as well as increases their price target from $5.50 CAD up to $6.50 CAD. This follows the strong initial rollout of Green Growth Brands’ hemp-infused product strategy. Analysts also noted that the company has a healthy balance sheet and experienced management team that will support the company’s hemp market initiatives.
Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF) continues to push forward with expanding its retail presence across the US and acquiring award-winning brands to add to its already impressive portfolio. In July 2019, the company acquired MXY Holdings (Moxie), a multi-state cannabis extracts company that has developed award-winning brands and a loyal customer base covering the California, Nevada, Arizona, Pennsylvania and New Jersey markets.
The combination of the two company’s brings together two best-in-class cannabis operators and creates a superior 360-degree coast-to-coast cannabis player. Moxie has won nearly 100 industry awards for its products, including Brand of the Year in 2018, and provides GGB with a retail distribution network of over 250 dispensaries. Moxie also has a current cash balance of $39 million, which will fund the company’s business plan.
Moxie offers live resin vape cartridges, CBD vape cartridges, liquid Moxie vape cartridges, concentrates and pre-rolled joints, a perfect addition to GGB’s brand family.
Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF) portfolio of brands offers something for everyone with the outdoorsy/active-living CAMP brand that focuses on being one with nature, the fun and carefree Meri + Jayne surf culture brand, a feminine-targeted Green Lily botanical wellness brand, and the self-care botanical brand Seventh Sense.
Expanding its Brand Presence Across the US
Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF) also inked a deal in December with one of the largest mall operators in the US, Simon Property Group Inc., for its Seventh Sense Botanical Therapy brand. They’ve now opened their first kiosks, with 6 kiosks open to date. The partnership will place them in 108 prime locations across the country by the end of 2019. Peter Horvath, CEO says he’s not worried about the struggles of malls, saying “There are only 1,000 malls and we’re talking about going into the 200 or 300 best.”
Right now, staff can open four to six kiosks per week, and about 100 locations should be open by the end of June as that capacity increases. Openings have started in Kentucky, Indiana and Tennessee and will expand to 34 states.
“There are only 1,000 good malls, and we’re talking about going into the 200 or 300 best”
Generating further excitement is Green Growth Brands Inc.‘s (CSE:GGB) (OTC:GGBXF) announcement that they will be rolling out their Seventh Sense brand in all of shoe-retailer DSW’s locations. This comes on the heels of a successful 10 location trial run which sold out 75% of their products in their first 10 weeks.
Recently, the company announced it is partnering with Abercrombie & Fitch Co. to sell its hemp-infused bath bombs and other body-care products across more than 160 stores – which takes them one step further to their 400 location goal for 2019. More importantly, it gives Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF) major brand recognition with a retail giant that’s worth US$1.2 billion.
The decision to expand to more than 160 stores came after Green Growth Brands completed a successful test run in 10 Abercombie and Fitch Co. stores in Massachusetts, California, Colorado, and Nevada, mimicking their trial run with DSW.
Further stoking analysts expectations is the fact that Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF) recently announced a buyback of 27,300,000 common shares held by GA Opportunities Corp. This follows their attempted hostile takeover Aphria. The shares will be repurchased for an aggregate consideration of C$89 million. Peter Horvath, CEO agreed on a ‘friendly resolution’ as he backed off the Aphria bid.
“We are pleased to be buying back 27,300,000 shares owned by GA Opportunities significantly below the market price and the expected sale of our toehold position of 3 million shares of Aphria, all of which will benefit our shareholders”
BREAKING NEWS: Horizons ETFs Management (Canada) Inc. to launch Horizons US MJ Index ETF. Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF) makes the list as one of its potential investments comprising of 3.85% of their portfolio.
Since going public in November 2018, Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF) has acquired a highly profitable dispensary in Las Vegas called The+Source, and profitably sells its products in both its own and third-party stores across multiple states.
On December 5, 2018, the company was awarded seven new licenses to operate dispensaries in Nevada. In total, the company now has eight dispensary licenses in the state and has announced plans to acquire the sister location of The+Source Las Vegas, located in Henderson, Nevada.
Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF) retail dispensaries are not limited to Nevada. After completing a December deal to purchase Desert Rose, the operator of a Phoenix dispensary, the company is now operating dispensaries in Nevada, Arizona and Massachusetts, with plans to have a total of 9 dispensaries operational by the end of 2019.
GGB Beats Apple and Tiffany on One Key Metric
The success of, The +Source, demonstrates Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF)’s strong retail acumen. The productivity of the dispensary based on forward-looking annualized revenue is approximately $20,185 per square foot—compared to an industry average of less than $2,358 per square foot. The Nevada dispensary generated $3.1 million in the last quarter of 2018. From strictly a revenue-per-square-foot statistic, Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF) is in a league of its own.
As the pot and hemp-derived product sectors grow through retail markets and product innovations, it’s worth looking at some comparable metrics in the retail space—in particular, their revenue-per-square-feet of retail space. Keeping this factor in mind, here are some companies that could be seen as comparable to Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF).
* Planet 13, Apple and Tiffany figures have been converted to CAD using an exchange rate of 1.33
Across the entire legal pot industry, the average revenue per square foot is currently $2,358. With Apple leading the way at $7,376, the entire retail sector lags behind averaging only $432 per square foot. Green Growth Brands’ CEO, Peter Horvath, and his team of retail experts and exceptional management team have applied their retail expertise to become the retail industry leaders for this key metric.
Exceptional Management Team with History of Retail Dominance
“The team we’ve put together is arguably one of the top retail teams in any market, let alone pot.”- Peter Horvath, CEO of Green Growth Brands
Stacked with so much retail talent, the Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF) team is built to be a powerful sales force in any industry, let alone the newly emerging pot industry. At the top, the company’s leaders have each been executives at top level retail brands such as Victoria’ Secret, American Eagle, DSW, and Bath & Body Works, just to name a few.
Here’s a quick look at Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF) world class brand-building management team:
Peter Horvath, CEO:A master of strategy and execution, Peter has held leadership roles for brands such as Victoria’s Secret, American Eagle Outfitters, DSW, and Limited Brands. Under his leadership, shoe retailer DSW went public on the NYSE with a $1.5 billion IPO. Peter was also responsible for raising CAD$85 million in a private placement to fund Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF), far exceeding the original target of CAD$55 million. What makes Peter Horvath a truly unique leader is his passion for working directly with employees of all levels. This is not an “ornamental CEO” focused solely on raising capital.
Randy Whitaker, COO: Veteran retail executive Randy Whitaker was brought in to oversee Real Estate, Stores, Shops, and eCommerce for Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF). He worked with Peter Horvath for many years at Victoria’s Secret, bringing an impressive track record as a world-class operator for both Victoria’s Secret and most recently for Belk, Inc. During his five years as EVP, Store Operations at Victoria’s Secret, Randy Whitaker was responsible for 1,100 stores that delivered US$6 billion in annual revenue while maintaining at US$2 billion operating expense budget.
Ed Kistner, CAO: With 33 years of multi-faceted experience leading retail business, Ed Kistner works with Peter as the right and left hands of the company. Ed has played pivotal leadership roles at DSW and Victoria’s Secret. This level of experience is something very few pot competitors can claim.
Kellie Wurtzmann, CSO: Kellie has managed operations across multiple retail sectors for top retail brands such as Luxottica, Victoria’s Secret, and Virgin Entertainment. Kellie’s big brand experience is a key asset in identifying and supporting business development opportunities for the company.
of Differentiation for Green Growth Brands (CSE:GGB) (OTC:GGBXF)
Strong Profitability Per Selling Square Feet
With an Annualized Net Revenue of approximately C$20,185 per square foot, Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF) has the strongest reported figure in the pot and retail sectors. While the brands and locations of their stores’ growing footprints will all be different, each store will be customer-centric, and well-designed for high-productivity and an intuitive merchandise assortment.
Rapid Retail Mall Expansion
Through deep connections made through management’s time with other major retail names, Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF) has a plan to open up to 400 hemp-derived product shops by the end of the calendar year 2019. This will be powered by a major partnership deal signed with the Simon Property Group, to open hemp-derived product shops in 108 shopping centers.
Lucrative Retail/Branding Partnerships
Leveraging a previous relationship, Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF) signed a major deal with DSW to sell hemp-infused personal care products under the Seventh Sense Botanical Therapy brand at 98 select DSW stores throughout the US. The deal taps into DSW’s reach that spans 515 warehouses in 44 states.
Leading the Way in Hemp-derived products and Branding
The Seventh Sense brand line from Green Growth Brands is the first to launch, with a rollout through the Simon Property Group hemp-derived product shop deal offering a huge variety of hemp-infused topical beauty products. The company is targeting several different markets through its suite of brands.
Exceptional Retail-Driven Management Team
The Green Growth Brands Inc. (CSE:GGB) (OTC:GGBXF) is built around a superior pedigree of retail experience. Led by CEO Peter Horvath, whose experience includes successes with Victoria’s Secret, American Eagle Outfitters, DSW, and Bath & Body Works, company management is experienced and ready to revolutionize the pot retail space and hemp-derived consumer goods.