Investor Update 7/14/2020
Division and Facilities Progress
As mentioned in our last update, our Redwood City delivery service was deemed ‘essential’ under the California Governor’s stay-at-home executive order. Since commencing operations, Juva Delivery has seen double-digit growth week-over-week and will be expanding to service eleven additional cities on the Peninsula during Q3 2020. In late June, Juva was the first cannabis business to present to the members of the San Mateo County/Silicon Valley Convention and Visitors Bureau as well as regional elected officials. It marked the Visitors Bureau’s first foray into ‘Cannabis + Tourism’ and was well-received.
Juva Life’s state-of-the-art facility in Stockton, CA is in its final stages of construction. The offices are near completion and upon being issued a certificate of occupancy by the City, Juva Delivery will commence services within the Stockton area. The Company has been granted the necessary delivery licenses by the city of Stockton and the State of California. We anticipate commencing operations in September 2020.
The Stockton facility has also been designed to house seven cultivation rooms which will come online in phases. The first two rooms are expected to complete construction and receive their final inspections in late Q3 2020. Juva is expecting to commence cultivation during Q4 of 2020 and realize its initial harvests in Q1 of 2021. The initial two rooms alone have the capacity to produce 200 pounds of cannabis approximately every 32 days. Juva is also currently in discussions with major customers to contract the sale of our initial harvests.
Public Listing
Our preliminary prospectus has been filed with the British Columbia Securities Commission (“BCSC”). We are currently in the comments phase and hope to have formal approval in the coming weeks to commence trading on the Canadian Securities Exchange (“CSE”). Juva has also concurrently filed for a direct listing for the US markets. Once complete, this direct listing will allow Juva to trade directly on the OTC market in the US as well.
While our internal team has remained focused on completing the necessary steps towards our public listing, our initial timeline was delayed as COVID-19 slowed the response from regulatory agencies.
During the COVID-19 shutdown, our Transfer Agent was unable to send out any DRS statements. However, that service has recently been reinstated and the last of the statements are currently being delivered. These statements detail your investment in Juva Life and will allow your broker to electronically trade your Juva Life stock once our listing is approved.
Silicon Valley Magazine’s You can read the full story here.
We are extremely excited to see our efforts yielding results. We continue to build the business and strive to deliver long-term growth and shareholder value. We appreciate your patience and continued support of our vision.
CEO Candid
Juva Life’s CEO, Doug Chloupek, sat down with Jim Gordon for CEO Candid and explained Juva Life’s vertical integration and dedication to the scientific study of cannabis as a therapeutic.
Investor Updates: 3/24/2020
We wanted to share an update with our shareholders as we understand that, next to health and safety, your investments are top-of-mind as the equity markets have been affected by the current global status of COVID-19.
Our internal team remains focused on completing the necessary steps towards our public listing. We anticipate that our preliminary prospectus will be filed with the British Columbia Securities Commission (“BCSC”) within the coming weeks and, subject to the necessary approvals, we intend to file our listing applications on the Canadian Securities Exchange (“CSE”) and the US OTC Exchange.
The BCSC and CSE have both confirmed that, as of now, they will remain operating in order to service and support issuers and prospective issuers during the current global crisis. We do expect some delays during this process but remain focused to complete the necessary filings in a timely manner.
We also wanted to share news about Juva’s first active license, Juva Delivery in Redwood City, CA. California’s ‘shelter-in-place’ ordinance had been implemented at a county-level before it became a state-directed mandate. Juva Delivery was granted the necessary regulatory approvals to operate as cannabis was deemed medically necessary. In an interview by industry news leader, MJ Biz Daily, Juva’s CEO Doug Chloupek commented “Demand has increased exponentially… I have not had to furlough or lay off any employees. For that matter, we’ve been able to expedite the hiring of two new employees as of today.”
Juva Delivery has also commenced a strategic advertising campaign that launched earlier this week which consists of print ads debuting in regionally-targeted campaigns. As a result, Juva is the first cannabis company permitted to advertise in Modern Luxury’s exclusive Silicon Valley Magazine.
Another first for a cannabis business, Juva Delivery is now a member of the San Mateo County Convention and Visitors Bureau.
On Friday, Doug was featured in an interview with Forbes. We encourage you to read the article and learn a little bit more about Doug’s history and vision.
Interestingly, it was Forbes that led to the hire of the newest member of Juva’s executive team. After reading an interview with marketing professional Heidi Minx, Doug knew he had found the ideal person to lead Juva’s initiatives. In early January, Minx was appointed as the Vice President of Marketing.
Doug noted, “We’re fortunate to have been able to add Heidi to our team. She is well respected in the cannabis space and has strong connections with both legacy operators as well as those that are newer to the industry. Heidi’s work has given her incredible insight into the regulations that have evolved over the past few years and the nuanced compliance this industry requires. It’s rare to find such a seasoned marketing professional that understands the respective audiences a cannabis business today must communicate with.”
Minx will oversee the strategic launches and ongoing marketing efforts for Juva Cultivation, Juva Research, Juva Manufacturing, Juva Distribution, Juva Retail, and Juva Delivery. We encourage you to read more about her in the Forbes interview that inspired Doug!
From all of us at Juva, we wish you all the best with health, family and loved ones during these difficult times.
Cannabis, terroir & technology
California has the quality cues and disrupter mindset to lead the industry, and Juva is positioned perfectly.
The one constant in California is rapid change. With its anything-can-happen sense of limitless possibilities, California is consistently at the forefront of a wide range of commercial and cultural innovations, from world-class wines to technologies that directly impact our everyday lives, California is always several steps ahead.
The cannabis industry is no exception. Few places in the country have a history with cannabis like the Golden State. More than 60 years ago, California’s Beats, Bohemians and new age thought leaders began the process of mainstreaming cannabis. As the first adopter of medical marijuana, and with an established reputation for high-quality growing regions, California finds itself, once again, in a leadership position for another bourgeoning industry.
And yet, none of this guarantees success for cannabis companies that choose to do business here. There are still plenty of complexities and barriers in all facets of the industry. Navigating them requires deep local expertise and highly regarded connections – two key strengths of the leadership team at Juva.
An Experienced Guide for The Journey
Here in California, success depends on what you know, who you know, and most importantly, a whole lot of real world, practical, hands-on experience at all levels of the California cannabis industry. Few organizations have more of that boots-on-the-ground knowledge and expertise than Juva, starting with Founder and CEO Doug Chloupek. Having established and managed companies in cultivation, manufacturing, research and retail, Doug has the supply chain covered. He has created substantial value for consumers and investors during his 10+ years in the cannabis industry. As a pioneer in helping to bring research-based product information to consumers, Doug was granted the first license in California for medical cannabis manufacturing and research from the city of Berkeley in 2016.
The rest of the Juva team reads like a who’s who of California cannabis industry experts and highly-acclaimed medical researchers and clinicians. There are accomplished professionals at the head of each channel in the vertically integrated model – a model for early and long-term success in California and beyond.
Filling In The Gaps
As a fairly mature market, growth in California is dependent on finding niches. Juva has been very strategic in this regard, finding opportunity to fill the gaps in several areas, starting with geography. In the San Francisco Bay Area, Juva will offer comprehensive coverage for retail and delivery of consistent, quality products. With four distribution licenses and five delivery licenses, Juva is poised to become this important region’s name brand for cannabis.
Beyond location, Juva has the ability to develop and introduce products that fill very specific market needs, particularly on the medical side. Using ongoing research based on patient-reported outcomes Juva’s advanced facilities will be able to create highly precise, effect-based formulations to treat an array of ailments. The data-driven approach also means Juva offers people and physicians the comfort of having a deeper knowledge about the effects of cannabis. Juva knows cannabis customers care about this. Call it a desire for proof of concept.
Creating Opportunity For All
Another key advantage to having the experience and facilities needed to find success in California is Juva’s ability to assist brands searching for quality manufacturing and distribution. Both local and brands based in other legal states. With a comprehensive set of product development skills and facilities, Juva can help brands solidify their foothold in California with a trusted partner. Juva offers white label manufacturing and help with all other phases of bringing products to the marketplace.
Here among the connoisseurs and digerati of NorCal, our spirit of innovation is opening doors of boundless opportunities for those with the skills and experience to succeed.
Prescription For The Industry
The future belongs to precision formulations that treat personal and societal health issues.
If you’re curious about where the cannabis industry is headed, it might be time to see a doctor. A good place to start would be the distinguished group of California Board Certified Physicians on Juva’s Medical Advisory Board. At Juva, we’ve assembled a panel of leading clinicians and researchers to help change the entire dynamic around cannabis.
Here’s our diagnosis.
The medical profession needs to be more informed in recommending cannabis to patients who could benefit from it. Clinicians need the knowledge to know what works for what kind of ailments. They need research-driven, effect-based formulations that have been effective through patient reported outcomes, so they can trust their recommendations to patients. Only then can they begin to close the knowledge gap between physicians and patients – which today resembles a “don’t ask, don’t tell”situation where even talking about how cannabis can help is still, in too many instances, considered taboo.
The team of cannabis pioneers and acclaimed medical professionals at Juva are committed to giving physicians what they need to help their patients take advantage of the many benefits of cannabis. We serve the recreational market well, and will continue to do so. At the same time, Juva is laying the groundwork through investments in developing a portfolio of precision cannabis products specifically formulated to treat some of medicine’s most pressing health and wellness challenges.
The New Frontier of Evidence-Based Formulations
Learn and improve. That’s how cannabis will ultimately become an integral part of traditional health care systems. By focusing on patient-reported outcomes and using research to drive better product formulations. At Juva, that process is built into our Vertical Integration approach. It’s a closed loop, where every step of the process, from cultivation to retail, is owned and operated and meticulously monitored by the same team. As a loop, however, and unlike most cannabis companies, it doesn’t end at the sale. Through patient monitoring and tracking, Juva will be making constant adjustments to the compounds in their formulations to keep prescription-grade products at the leading edge of effectiveness.
Changing The Medical and Cannabis Industry,
One Patient At A Time
“It’s very intentional to focus on effects through research and to continually adjust product development,” says Juva Clinical Research Adviser Peter Beitsch, MD. “We have a highly credentialed team of leading clinicians and experienced researchers,” according to Dr. Beitsch. “Our goal is to drive physician adoption by giving them the confidence to recommend cannabis based on solid, real-world research.”
Juva Founder, CEO and Chairman Doug Chloupek takes it a step further. “We’re looking beyond adult use,” he says. “By offering an alternative to single compound pharmaceutical products, we target specific ailments to really make a difference in how people feel.” This is where Juva sees the greatest opportunity in the cannabis marketplace. “Our research shows that by identifying five target ailments and treating just 1% of the newly diagnosed in a year – that’s a $300 million annual market in California alone. The demand is there, and nobody else has the kind of expertise we’ve put together to make it work.”
Dr. Rakesh Patel, Medical Advisor agrees. “Our goal is to use effect-based data collection to create research-grade formulations that are reproduceable with predictable outcomes. If we can do that, we could change the entire dynamic in the cannabis industry and in healthcare.” But he’s quick to point out that the real benefits are more personal. “Ideally,” he says, “we are able to improve an individual’s quality of life and, in turn, help a lot more people feel better. If we can impact some of the more pressing medical challenges, particularly around pain management and opioid abuse, we should be able to make a positive societal impact as well.”
Rethinking Vertical Integration?
There’s more to the concept of Vertical Integration than having control over each step of the process.
These days, there’s no shortage of buzz in the cannabis industry around the concept of vertical integration. For all the right reasons, the ability to control quality at every step of the process, from seed to sale, is now widely recognized as a key to success. And yet, it’s important to consider that not all vertical integration is created equal.
At Juva, our leadership team built, or is currently building, every link in the supply chain ourselves, from the ground up, over the course of more than a decade’s worth of experience in all facets of the cannabis industry. Unlike most companies touting vertical integration, Juva hasn’t relied on mergers and acquisitions to make it work. We are building out every channel ourselves. In cultivation, extraction, research and development and retail we’ve created, managed and sold several entities. We’ve learned what works in each area, and we’re applying that knowledge at each step.
By rethinking, and expanding the very definition of Vertical Integration, we’re taking the benefits – quality, consistency and proven medical efficacy – several steps further.
The Imperative: Consistent Quality
The Juva approach to Vertical Integration goes beyond simply overseeing all aspects of the process. Because we’ve created cultivation, extraction, distribution, delivery and retail facilities, we can apply that depth of knowledge at each phase of the company’s growth.
Just as importantly, by not purchasing or farming out parts of the process, we’re not taking on other organization’s missteps and challenges. We’ve already prepared for the multitude of issues that can arise along the way. The result is not only higher product quality, but the highest operational efficiency as well. This ensures the best ROI and liquidity for our investors.
The Ultimate Goal: Medical Efficacy
While Juva’s Vertical Integration model, along with an unprecedented depth of experience, has the company well-positioned for immediate growth in the adult-use cannabis marketplace, there remains a loftier goal. Juva was created to do something few, if any, cannabis companies have done before. We will create research grade formulations of precision cannabis products based on real world evidence. To accomplish this, we treat Vertical Integration as a feedback loop, instead of an end-to-end process. Unlike other cannabis companies, our process doesn’t end at the sale. Our ultimate goal is to collect patient reported outcomes to continue to improve our products.
Our team of California Board Certified Physicians came to Juva out of a desire to help the medical field be more informed in recommending cannabis treatment plans. They’ve determined that the best way to get the right effect for the right people at the right time is to focus our research on consistent patient outcomes. Working closely with Juva’s leaders in the business operation of the California cannabis marketplace, we’re focusing on medical efficacy by creating products with predictable and reproducible outcomes.
A Model For The Industry
At Juva, while we’ll continue to form key strategic alliances as we grow and expand our footprint, our mission is to stay true to our Vertical Integration model. It’s the best way we know to achieve our most important objective – developing proven, effective, research-grade formulations that help more people benefit from the positive effects of cannabis. It’s also the best way possible to ensure we have a solid path for success today and well into the future.
