Intelligence

Statement From CBD Capital CEO, Hassan Akhtar

Hello from CBD Capital! 

As you may know, CBD Capital has been acquired by US-based cannabinoid provider, GenCanna. While this news has been met with excitement, it has also raised questions in some minds because of the financial difficulties the “Old GenCanna” experienced in early 2020. Allow me to address these issues. 

Old GenCanna refers to a company that no longer exists. Its assets were acquired by an institutional investor. The only thing “New GenCanna” and “Old GenCanna” have in common is the company’s name, for its seminal pioneering role in this industry. This multibillion-dollar investor infused significant new capital into the New GenCanna, a company that does not include any of Old GenCanna’s liabilities, none of its management team, nor any of its shareholders. 

The purpose of this note to you is to highlight some of these fundamental changes and to reassure you that GenCanna is among the best capitalized, most professionally led companies in the cannabinoid business. At CBD Capital, we are proud of this partnership, and we are focused and driven on delivering superior product and extraordinary customer service to merit your business. Our association with GenCanna means a substantial increase in our ability to provide a broad range of product solutions to our customers — in quality, quantities, and delivery speeds we could not have achieved prior to this union. For example, inventory is maintained in our two distribution centers in the UK and the Netherlands, allowing for a less than 24-hour order-to-shipment turnaround. This move is a very good thing, for CBD Capital and our customers. 

  • NEW LEADERSHIP 

On June 1, 2020, Andrew Barnett was appointed GenCanna’s new CEO. Andrew has over 40 years of experience transforming and revitalizing companies that include manufacturers, wholesalers and distributors, as well as retailers in food services, HBA, and other consumer product sectors. Andrew has led organizations whose primary goals are to maximize customer satisfaction and profits, and build enterprise value. He has worked in the US, UK, EU, and Asia, and continues to assemble a GenCanna management team of food science, manufacturing, product development, and brand expertise that our industry has yet to see. We are thrilled to be part of it.

  • NEW CAPITAL & NEW FACILITY 

GenCanna’s investor has not only flushed GenCanna with new human and financial capital, it has also financed the construction of a state-of-the-science processing facility that meets all appropriate food safety requirements. Providing the company with absolute control over an optimized seed-to-product supply chain, this 100,000-square-foot facility opens in 4Q21. This plant has no rival in terms of value-added production processes, resulting in the whitest white, non-detect isolate (in various minor forms, including CBD, CBG, CBN, and CBC) as well as distillate, and does so faster and more efficiently than any facility that serves global markets. 

  • NEW VISION & NEW DIRECTION 

Further evidence of GenCanna’s commitment on a global scale are the acquisitions of not only CBD Capital, but also London-based CBD finished goods provider Taylor Mammon. The reasoning behind these first two acquisitions is GenCanna’s recognition that the UK, EU, and several other markets provide enormous potential with respect to novel foods and health and wellness products in general. From bulk ingredients for CMOs and consumer brand companies to the highest quality, specialized, and unique white and private label services supporting consumer as well as pet brands and retailers, GenCanna product is unassailable in its integrity, innovation, form factor creativity, speed-to-market, and clockwork delivery. CBD Capital and Taylor Mammon are the pillars for what will be a prudently aggressive expansion across markets served by our UK and EU distribution centers.

In short, it’s a new day for a new GenCanna. We welcome the energy, capabilities, and significant opportunities GenCanna’s strategic vision and leadership bring. Anchored by the formidable capital commitment from our shareholder, it all makes for a new and exciting market, revenue and profit reality for us all — for you, for your customers, and for us at GenCanna. 

I welcome your call or email to discuss how we may best serve your needs. And we look forward to expanding our collaboration and partnership with you, helping you deliver excellence to consumers through our outstanding isolate, distillate, and health and wellness products. 

Fine regards, 

Hassan Akhtar CEO

See the full press release below:

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