As we enter the September resurrection period, Rich highlights one cannabis stock that’s already showing signs of growth. Founded in 2017, DionyMed Brands (CSE:DYME) (OTCQB:DYMEF) is a Vancouver-based cannabis brands platform that supports cultivators, manufacturers, and award-winning brands in both the medical and recreational cannabis markets.
This morning, DionyMed stock jumped from $0.84 to $1.08 on the Canadian Securities Exchange. Its price was bolstered by recent Q2 financial news that has a lot of investors wearing smiles on their faces.
“This is a cannabis stock going to new levels,” says Rich. “It’s exciting, let’s get into it.”
DionyMed Brands Has Seen a Lot of Growth in 2019
In the first quarter of 2019, DionyMed generated $12.7 million USD in revenue, a figure that grew to $34.4 million by the end of June 30. For the year to date, the company delivered or sold products to 441 retail dispensaries in California, as well as 387 active retail dispensaries in Oregon. This means the company reached more than two-thirds of all dispensaries in the former state and more than half of all dispensaries in the latter.
Also in the first half of 2019, DionyMed expanded its “Chill” Direct-to-Consumer delivery platform in Q2 with 950 percent order growth over Q1. As of June 30, the platform is operating at $10.3 million annualized run-rate delivering to 14 cities in the Bay Area.
“This is enormous, and the thing I keep telling you guys to do is to look at the growth,” says Rich. “Don’t look at the fact that these stocks are going down, look at the growth. I don’t know another sector in the world that has companies growing with this much revenue.”
Even More Good News for DionyMed
Since the end of Q2 2019, the company has posted subsequent growth that gives investors reason to think the next operational update will be just as exciting.
On July 24, DionyMed completed its acquisition of a 1.83 acre Los Angeles cannabis campus. This fulfillment center is capable of supporting up to 600 cannabis delivery drivers who can bring DionyMed product all over southern California.
“This acquisition strategically positions DionyMed as a leader in California’s cannabis market,” said Edward Fields, CEO of DionyMed. “[Now the company] is positioned for long-term growth to serve the largest cannabis market in the country.”
Then, at the end of July, DionyMed announced that it signed a distribution agreement with Long Beach-based manufacturer, Woah Candy Co., to deliver cannabis-infused caramels and chocolate edibles throughout California.
Though the company will only be serving California right now, the nationwide market for cannabis edibles will be worth as much as $11.5 billion by 2025, according to Zion Market Research. If DionyMed decides to expand its cannabis edibles enterprises further, it might be able to capture a portion of that sizable market.
Three New Licences in Los Angeles and San Francisco
As if all this news wasn’t already enough, just this morning, DionyMed announced that it was awarded three provisional licenses in California. Two licenses are for retail stores in LA and San Francisco, and a third is for a distribution site in LA.
The retail license allows the company to sell recreational and medical cannabis at its stores. In addition, DionyMed can deliver cannabis and CBD-focused products to customers around southern California through its “Chill” Concierge Cannabis Delivery service.
The distribution license will enable the company to move forward on its LA campus development.
“There’s been a lot of growth and I see further growth for DionyMed,” says Rich. “I wanted to bring this one to you guys before everyone else knows about them.”
What do you think? Has Rich picked another winner? For more of Rich’s rankings and rundowns in the cannabis space, check out his recent video about Zenabis Global Inc. (TSX:ZENA) (OTCPK:ZBISF) as well as his rundown of the top ten pot stocks for September.
If you know of a cannabis company that you want Rich to profile, tell us about it in the comments below.
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