Bliss Co Cannabis Corp (CNSX:BLIS) (OTCMKTS:HSTRF) (FRA:GQ4B) CEO Damian Kettlewell discusses the company’s future plans after achieving their ACMPR licence in late March, 2018. Strategic investors in the organization, Supreme Cannabis Company Inc (CVE:FIRE) (OTCMKTS:SPRWF) (FRA:53S1), have initiated top-quality dried flower supply agreements for the next two years, allowing Bliss Co to expand on their consumer-facing packaged goods. Bliss Co are looking to extract cannabis oil in the next stage of their development and will start to target a very specific niche inside the cannabis space.
James West: Hey, welcome back to Midas Letter Live. My guest this segment is Damian Kettlewell. He’s the CEO of BlissCo Cannabis Corp, trading on the Canadian Stock Exchange under the symbol BLIS. Damian, thanks for joining me today.
Damian Kettlewell: Thanks for having me on, James.
James West: Damian, let’s start with an overview: tell me exactly what BlissCo does. I mean, it’s kind of self-explanatory in the name, but what exactly are you doing in the cannabis universe?
Damian Kettlewell: Absolutely. BlissCo is an ACMPR-licensed company. We have a license to cultivate; we were licensed in late March, and we are a distribution, extraction and packaging-focused company, and we are focused on three streams of revenue: on the medical side, domestic, and international, and then all the adult use when that comes online in three or four months.
I have a background in liquor retail and liquor distribution in British Columbia, so we’re definitely optimistic about the company’s revenue potential and income potential moving forward.
James West: Sure, well, that’s great. So you’re an AMCPR licensed producer, then?
Damian Kettlewell: We are an ACMPR-licensed producer. We are on target to earn our sales license in September.
James West: Okay.
Damian Kettlewell: So we have a small R&D cultivation space, and we’re focused on supply agreements. So we have one supply agreement right now, and we’re in the process of getting additional supply agreements.
James West: How much cannabis do you grow?
Damian Kettlewell: We grow 180 kilos, and then we have supply agreements for 3,000 kilos over two years with Supreme Pharmaceuticals, and they’re a strategic investor in our company.
James West: Okay.
Damian Kettlewell: And so yeah, we’re going to be launching a very progressive e-commerce portal, and we’ll be attracting and obtaining ACMPR patients. And as you’re aware, James, we’ll ship directly to their house…
James West: Sure. So you’re focused on consumer-facing packaged goods derived from not just your own production, but from the supply of Supreme, for example?
Damian Kettlewell: Absolutely.
James West: And currently on the ACMPR medical side, but you’re going to be supplying, I’m assuming you’re getting ready for the big recreational side?
Damian Kettlewell: Yeah, the recreation is going to be interesting. It looks like it’s going to be late August, early September, and every province, as you know, is a little different. So, having the background in liquor distribution and in retail, 12 years in a family business that I’m not involved in the day-to-day operations of anymore, but I have a good feel for the liquor industry and how that works, and there’s going to be a lot of parallels with cannabis and cannabis distribution.
So we’ve done two investment rounds and our merchant bank out of Vancouver has been excellent, Varshney Capital. We’ve attracted the capital due to the progression of the company, and getting licensed and to the background in liquor retail.
James West: Okay. I’m going to cut straight to the tough questions, now: how are you going to differentiate yourself in the crowded landscape of consumer packaged goods in the cannabis space on the medical side, initially, and then ultimately on the recreational side?
Damian Kettlewell: Yeah. We’re focusing on a unique core customer that is not a primary focus for our competitors, and so we’re going to be announcing that in June; we’re starting to work with a leading, award-winning packaging design company. And so we’re not going to be going for the broad stroke of the market, we’re going for a very niche market, and so that’s something we’re going to be announcing in June.
James West: I see.
Damian Kettlewell: And there’s going to be…yeah, so we’re quite excited about that. We’re not going to be broad-based, we’ll be focused on a niche market.
James West: I see.
Damian Kettlewell: And we’re not going to be leaving the medical market behind; we’re very much medical-focused as well.
James West: Okay. Is it safe to assume by your association with Supreme that the focus is going to be on top-quality dried flower?
Damian Kettlewell: Absolutely, we have a focus on top-quality dried flower through Supreme, and be expanding on that as their production expands to over 50,000 kilos a year. And yeah, and as well, we’ve just ordered our extraction machine, and we’re applying for our license to be able to extract cannabis oil. So that is going to be a key part of the business; as you know, the margins are quite strong in that side of the business.
James West: Sure, yeah.
Damian Kettlewell: Yeah, we’re really excited to expand upon that.
James West: Yeah. Do you have a strategy for an international export program at this point?
Damian Kettlewell: We do, we do. We’ve had some pretty extensive discussions thus far, and I’m out in Toronto this week for the Lift Cannabis conference, and there’s going to be, there’s a lot of opportunity in Europe and in Germany, and things are evolving fast in Israel as well. So we’re quite excited about the potential there.
James West: Sure, you bet. Okay, so tell me about how the company came together. I mean, I’ve known Varshney Capital for years; couldn’t be a better bunch of guys to deal with, but how did you come up with the idea, how did you end up going for a license?
Damian Kettlewell: Absolutely. Well the company, I have a background in licensing and liquor, so I saw the opportunity to get a commercial license for medical cannabis production, and so we applied for a license in July 2014 and we moved through the licensing process and got to Stage 6 of the 7-stage licensing process in February 2017, and that enabled us to attract the capital and attract the investment partners. We recently started trading on March 2nd, so that’s been the history and the process of the company.
James West: Great. So you’re not over-valued yet?
Damian Kettlewell: No, we’re not over-valued yet. We’re progressing along. We’re really focused on revenue and building that – I know I come from the background not of the speculative market, I come from revenue and income focused, so we’re really focused on that revenue and the income.
James West: That’s not common in this space. Okay, well that’s great, Damian. Let’s leave it there for now. We’ll come back to you in a quarter’s time and we’ll see how you’re progressing. Thanks so much for coming in today.
Damian Kettlewell: Thanks a lot, James. Have a nice day.