CBD Of Denver Reports Revenue Growth, Delays Germany Spin-Off

Cannabis company CBD of Denver CBDD reported estimated third-quarter 2024 revenue of $763,450 compared to an estimated $677,893 for the same period in 2023, and provided an update on its operations in Germany.

Due to a lack of clarity in the German market, the timeline for a potential spin-off of Luxora Inc. has been extended, the company said. Last year, the company's wholly owned subsidiary signed 4 letters of intent to build production facilities to support Cannabis Clubs with its "Production Facility Rental Model" in Germany. This year, Luxora received positive engagement in Berlin regarding a Near-Infrared (NIR) device used for cannabis testing after having success at Mary Jane Berlin trade fair, where it offered cannabis samples.

The decision to extend Luxora's plans enables CBD of Denver to reassess the business climate and strategic opportunities, ensuring that any future actions align with shareholder value and long-term growth plans.

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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, as of Oct. 10, 2024, only 29 license applications have been approved nationwide, with the number of cannabis club applications being lower than anticipated due to bureaucratic uncertainties and economic challenges in the market.

Additionally, the company is still awaiting approval for its Grow Hub business model in one of the German federal states. Approval decisions lie with the federal states and relevant district and state authorities-and to date, no federal state has approved such infrastructure models.

Outlook

As CBD of Denver progresses into new sectors, the focus remains on delivering value to shareholders through a broad, adaptable strategy. The company is actively exploring growth opportunities and reinforcing its commitment to steady expansion. While margins remain thin, CBD of Denver continues its efforts in the CBD wholesale market, demonstrating its commitment to maintaining and growing this core business area.

Price Action

CBD of Denver closed Friday market session flat at 0.0003 per share.

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