## CBD of Denver Extends German Expansion Plans Amidst Market Uncertainty
CBD of Denver, a leading cannabis company, has announced a delay in its German expansion plans due to ongoing market uncertainty. The company’s subsidiary, Luxora Inc., had previously signed four letters of intent to build production facilities in Germany, aiming to support Cannabis Clubs through its ‘Production Facility Rental Model.’ However, the timeline for a potential spin-off of Luxora has been extended due to a lack of clarity in the German market.
Despite the challenges, CBD of Denver remains optimistic about the long-term potential of the German cannabis market. The company has received positive engagement in Berlin for its Near-Infrared (NIR) device used for cannabis testing, following its success at the Mary Jane Berlin trade fair where it offered cannabis samples. The decision to extend Luxora’s plans allows CBD of Denver to reassess the business climate and explore strategic opportunities that align with shareholder value and long-term growth.
A Slow Start for German Cannabis Legalization
More than nine months have passed since the Cannabis Act (CannG) came into effect in Germany on April 1, 2024. The law aimed to curb the illicit market and provide adults with widespread access to high-quality cannabis. However, progress has been slow. As of October 10, 2024, only 29 license applications have been approved nationwide, with the number of cannabis club applications significantly lower than anticipated due to bureaucratic uncertainties and economic challenges in the market.
CBD of Denver is still awaiting approval for its Grow Hub business model in one of the German federal states. These approvals are ultimately decided by the federal states and relevant district and state authorities, and to date, no federal state has approved such infrastructure models.
Looking Ahead: A Focus on Shareholder Value
As CBD of Denver navigates the evolving cannabis landscape, its focus remains on delivering value to shareholders through a broad, adaptable strategy. The company is actively exploring growth opportunities, including in the CBD wholesale market, which remains a key area for growth. While margins remain thin, CBD of Denver is committed to maintaining and expanding this core business area.
Financial Update
CBD of Denver reported estimated third-quarter 2024 revenue of $763,450, representing an increase compared to an estimated $677,893 for the same period in 2023. The company closed the Friday market session flat at 0.0003 per share.
