Jacksam Corporation DBA Convectium Announces Strong First Quarter Results With Sales Of $1.78m, Increasing 171% Y/Y And 40% Q/Q. Restructuring Efforts Taken Over Past Year Also Led To First Ever Quarter Of Operating Profitability

Rhea-AI Summary

Jacksam Corporation, operating as Convectium (OTCQB: JKSM), reported robust 1st quarter sales of $1.78M, marking a 171% increase year-over-year and a 40% rise from Q4 2020. This growth is attributed to the launch of new products, notably the 'Pre Roll-ER', and sustained demand for their core filling and capping equipment. For the first time, the company also achieved operating profitability. CEO Mark Adams noted that the restructuring strategy initiated in 2020 greatly contributed to these results, while Executive Chairman Scott Wessler highlighted the firm’s readiness to leverage market momentum.

Positive

• Sales increased to $1.78M, up 171% year-over-year and 40% quarter-over-quarter.
• Achieved first-ever operating profit.
• Successful launch of new products, including the 'Pre Roll-ER'.
• Adoption of an open-source business model benefitting cannabis and CBD producers.

Negative

• None.

NEWPORT BEACH, Calif., May 13, 2021 /PRNewswire/ -- Jacksam Corporation dba Convectium (OTCQB: JKSM) (the "Company" or Jacksam/Convectium), a workflow automation company focused on developing machinery and equipment solutions for the cannabis and CBD industry, announced today strong 1st quarter sales of $1.78M which increased 171% from Q1 of 2020 and 40% sequentially from Q4 2020. The increase in sales was primarily driven by new products including the "Pre Roll-ER" that the Company began selling in late 2020. Additionally, demand for the Company's "core" filling and capping equipment continued strong growth driven by field partnerships with cartridge providers. Over the past 15 months, the Company has adopted an "open source" business model enabling the majority of cannabis and CBD oil producers to benefit from its filling and capping equipment by working with all leading cartridge and POD providers.

The Company also turned an operating profit for the first time in its history. Commenting on the news, Jacksam/Convectium CEO Mark Adams stated: "Our Q1 results can be directly attributed to the Company's restructuring efforts and execution on our new strategy enacted in 2020. We came through a very tumultuous late 2019 and early 2020 with the EVALI (vape) crisis which led directly into the Covid crisis which we are still dealing with today. We were able to execute on our strategy to diversify our product offerings to include automated flower equipment and continue the development or our industry leading filling and capping equipment. Moreover, we were able to streamline our internal operations and distribution to achieve operating profitability in Q1. I am very proud of our team's efforts to execute during this unprecedented time in history."

Executive Chairman Scott Wessler added: "After dealing with the headwinds encountered in the past 18 months, we have pivoted and are well positioned to take advantage of the momentum we are now experiencing in the market, including additional state legalizations and increased attention on automation solutions as the industry continues tremendous growth. Our new products have allowed us to further penetrate both our existing customer base and new customers with a focus on working with Multi State Operators (MSOs) and the multitude of independent manufacturers who have now reached scaled production. We plan to continue to both develop new solutions and partner with leading providers to become the premier solution provider in the industry."

About Jacksam/Convectium

Jacksam/Convectium designs and markets automated vape, POD and cartridge filling/capping equipment for the cannabis and CBD industry. We also are a distributor of other CBD and Cannabis automation solutions including the "Pre Roll-ER" automated pre roll machine. Our automated equipment is designed and built in the U.S. and carries full UL certification in the U.S. Using Jacksam/Convectium's automated equipment, our customers increase output by up to 60 times over hand filling. Jacksam/Convectium is focused on helping our customers automate their workflow and quickly get custom branded products onto dispensary shelves. Over 250 companies, including many dominant brands and multi state operators (MSO's) in the space, rely on Jacksam/Convectium for automation of their production and back office operations.

 

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SOURCE Convectium

FAQ

What were Jacksam Corporation's Q1 sales figures for 2021?

Jacksam Corporation reported Q1 sales of $1.78M for 2021.

How much did Jacksam Corporation's sales increase compared to Q1 2020?

Sales increased by 171% compared to Q1 2020.

Did Jacksam Corporation report an operating profit in Q1 2021?

Yes, Jacksam Corporation achieved an operating profit for the first time in Q1 2021.

What product launch contributed to Jacksam Corporation's sales growth?

The launch of the 'Pre Roll-ER' automated machine contributed to the sales growth.

What factors led to Jacksam Corporation's successful Q1 2021 results?

The company's restructuring efforts and diverse product offerings led to successful Q1 results.