ZA Group Inc. Reports Increased Demand and Rapid Expansion with their Canadian Cannabis Grow Subsidiary

Rhea-AI Summary

Econic Crop Solutions Inc, a subsidiary of ZA Group (OTC: ZAAG), is experiencing a surge in demand from First Nations communities in Western Canada for cannabis products. Due to a significant increase in pre-orders, the company plans to expand operations and open new dispensaries. With a backlog of approximately 330 grow pods and projected revenue of $132 million annually, Econic's CEO highlighted the unique market opportunity. The global legal marijuana market is anticipated to reach $84 billion by 2028, indicating a lucrative landscape for the company.

Positive

• Strong demand from First Nations communities for cannabis products.
• Backlog of approximately 330 grow pods, each projected to generate $100,000 per cycle.
• Estimated annual revenue of $132 million upon fulfilling pre-orders.
• Positioned to capitalize on a growing market projected to reach $84 billion by 2028.

Negative

• None.

NAPLES, Fla., April 8, 2021 /PRNewswire/ -- Econic Crop Solutions Inc, a Division of ZA Group Inc. (OTC: ZAAG) is pleased to report a quickly growing demand amongst several First Nations communities across Western Canada for our flagship product. An explosion in pre-orders have required us to carefully ramp up operations to meet distribution needs throughout the entire community's dispensaries. Additionally, correspondence is pouring in requesting that the company launch and manage several new dispensaries throughout the province. In the process of fulfilling recent demand, the company also proudly reports steady progress across the board, including its manufacturing facility, where new grow pods are continually being completed and deployed.

Econic currently has a back log of approximately 330 pods.  Projected revenues for each pod per grow cycle is nearly $100,000, with the ability of up to four grow cycles per year.  Upon the fulfillment of pre-orders, estimated revenues are approximately $132,000,000 per year. According to Grandview Research, "The global legal marijuana market size is expected to reach USD 84.0 billion by 2028.......North America accounted for the largest revenue share of 91.1% in 2020."

When asked to comment on the increased product demand, Wade Eno, CEO of Econic stated, "We were well aware  at the conception of this venture what a unique and immensely lucrative opportunity we were presented with.   To put some perspective on the potential, there are more than 630 First Nations communities across Canada and many embrace these products as their traditional healing medicines. What sets our company apart is our ability to transport, and this unprecedented strategy will change the face of Cannabis Worldwide." 

John Morgan, President of ZA Group, stated, "As we see an exponential growing regulatory trend both in Canada and the United States, with increasing support and need for Cannabis and Hemp products, Econic is perfectly positioned to become a recognized leader and major disruptor. The company specializes in all aspects of the industry, from grow technology, development, and manufacturing, to production and extraction, and of course, dispensaries and operation. We feel strongly this subsidiary will add substantial  shareholder value. Thank you to all our loyal shareholders, we are excited to embark on this adventure with you."

Please contact us at 

ZA GROUP INC
10823 Tamiami Trail N

Naples, FL 34108

www.zagroupusa.com
6789996242 
IR@zagroupusa.com

Forward Looking Statements:

This press release contains forward-looking statements. The words "believe," "may," "estimate," "continue," "anticipate," "intend," "should," "plan," "could," "target," "potential," "is likely," "will," "expect" and similar expressions, as they relate to us, are intended to identify forward-looking statements. The Company has based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Some or all of the results anticipated by these forward-looking statements may not be achieved. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

*https://www.grandviewresearch.com/press-release/global-legal-marijuana-market

View original content:http://www.prnewswire.com/news-releases/za-group-inc-reports-increased-demand-and-rapid-expansion-with-their-canadian-cannabis-grow-subsidiary-301265161.html

SOURCE ZA Group Inc.

FAQ

What is the significance of the demand for ZAAG's products in Canada?

Econic Crop Solutions is experiencing increased demand from First Nations communities, indicating strong market interest for cannabis products.

How much revenue is expected from Econic's grow pods?

Each grow pod is projected to generate nearly $100,000 per grow cycle, with an annual revenue potential of approximately $132 million based on current pre-orders.

What market growth is projected for the cannabis industry?

The global legal marijuana market is expected to reach $84 billion by 2028, with North America having the largest revenue share.

How many grow pods does Econic currently have in backlog?

Econic has a backlog of approximately 330 grow pods.

What statements were made by the executives regarding future prospects?

Executives expressed confidence in the growing market demand and their strategic positioning to become leaders in the cannabis industry.