CALGARY, AB, June 1, 2021 /CNW/ – Top Strike Resources Corp. d.b.a. “Vencanna Ventures” (the “Corporation” or “Vencanna”) (CSE: VENI) (OTCQB: TPPRF) announced on March 12, 2021 that it entered into a US$2 million loan agreement with Cannavative Group LLC (“Cannavative”) and that the parties entered into an exclusive non-binding letter of intent pursuant to which Vencanna will acquire Cannavative through the issuance of 360 million common shares of Vencanna (the “Transaction”). The parties are currently finalizing the definitive agreement in respect of the Transaction and are working with regulators and auditors in the anticipation of closing the transaction in the summer of 2021.
Cannavative cultivates and manufactures leading premium cannabis flower and products in the state of Nevada. Their products are currently sold in over 90% of Nevada’s cannabis retail stores. According to the Las Vegas Convention and Visitors Authority (“LVCVA”), Las Vegas had over 42 million visitors in 2019. This gives Cannavative, and their award-winning brands, a natural gateway to international exposure. In spite of the dramatic downturn in tourist visits due to the pandemic, BDS Analytics estimated March 2021’s cannabis sales were $84 million, a record month for Nevada. Capacity restrictions have steadily been lessening since early 2021, and as of today (June 1) all restrictions have been eliminated. LVCVA estimated that Las Vegas had 2.2 million visitors in March, a big increase over February’s 1.5 million visitors. A return to 3.5 million monthly visitors can be expected as travel and indoor operations return to normal.
Cannavative’s first quarter 2021 sales were $3.2 million, an increase of 48% compared to the same period last year and in April they set a new monthly sales record of $1.6 million with a gross margin of 49% and an adjusted EBITDA margin of 31%. This is effectively a 10-fold increase over April