One of California's Leading Vertically Integrated Cannabis Companies
Gold Flora is a leading vertically integrated cannabis company in California. With more than 39 million residents, California is the most populated state. If it were a sovereign nation, it would be the world’s fifth-largest economy. California is also a dominant force in cannabis. With $5.1 billion in legal sales in 2023, it represents about 17% of the $30 billion US legal industry. It’s not only the leader in size, but also in quality and culture. Gold Flora is vertically integrated, with high-quality assets downstream and across the supply chain. Vertical integration enhances margins and is a necessary ingredient for competing in open-license environments like California. Of equal importance, it eliminates reliance on third parties and helps derisk the consolidated enterprise. Gold Flora has six cultivation licenses split between Desert Hot Springs and San Jose. These total 107,000 square feet of all-indoor canopy, with the ability to expand as demand increases in California and/or if interstate commerce becomes available. Black Lion Labs is its state-of-the-art manufacturing facility. This 18,000-square-foot facility is where Gold Flora does extractions, post-processing, and formulations. The company currently makes vapes, tinctures, edibles, infused pre-rolls, cured resins, cured rosin, water hash, and live rosin. Stately Distribution is Gold Flora’s distribution business. It is located in Desert Hot Springs and Costa Mesa and the footprint spans more than 15,000 square feet. Having in-house distribution gives the company greater control of its supply chain, enhances margins, and adds important touchpoints to third-party retailers, enhancing brand building. Gold Flora holds 17 retail licenses in California and operates 16 active dispensaries. While the number of stores is an important metric, it is the quality of these doors that differentiates Gold Flora. Gold Flora has built a portfolio of in-house brands that cover all the major categories and hit different price points. By diversifying across the value-to-premium spectrum, the company can capture a wider breadth of consumers and shelf space. Gold Flora recently launched Gramlin, a disruptive new brand aimed at high-volume consumers to increase market share. The new management team is best-in-class and is aligned with shareholders. Led by CEO Laurie Holcomb, the team is focused on capital-conscious, long-term growth and maximizing the vertical model to create sustainable scale and efficiency across the enterprise. We will be hosting An Introduction to Gold Flora interview with CEO Laurie Holcomb on May 2, 2024, at 3:00 pm ET. Link is accessible in our full report.