SAN DIEGO, April 30, 2019 - PRESS RELEASE - PRESS RELEASE - Driven Deliveries, Inc. (DRVD), the a publicly traded cannabis delivery company, has announced that the company has entered into a non-binding Letter of Intent to acquire Ganjarunner, Inc.
Ganjarunner has shown continuous revenue growth since its inception. Since May of 2018 Ganjarunner has fulfilled over 17,000 deliveries to more than 6,000 customers and has experienced revenue growth of 54 percent to $2.6 million. Ganjarunner is rapidly expanding its existing customer base of over 10,800 customers and by adding over 1,300 new customers in Q1 CY2019 alone. Ganjarunner adds a solid revenue foundation to Driven as over 82 percent of Ganjarunner’s current business is from derived from repeat customers. In addition to adding accreditive revenue growth and an existing customer base, the transaction will significantly expand Driven's next day delivery network and service area along with Ganjarunner's California cannabis delivery license.
“Management is confident that this paradigm-shifting acquisition with Ganjarunner, a trusted brand within the legal cannabis delivery market, will significantly enhance our commercial standing throughout the rapidly emerging California space,” said Brian Hayek, president of Driven Deliveries, Inc. “This acquisition will provide us with a stable revenue base from which we can continue to grow our revolutionary cannabis delivery platform. Driven will continue to target similar acquisition candidates which we believe to be accretive to our business and provide our partners and us with strategic advantages in this industry.”
California is officially the first and only state to legalize home delivery service across all municipalities, according to the Times-Standard. With nearly 40 million residents and more than a million medical marijuana patients, California's market represents about a third of the North American cannabis market. The state’s cannabis market is expected to exceed $5.1 billion market value in the next year after legalizing its recreational use on Jan. 1, 2018.
"Unifying our resources allows Ganjarunner to rapidly expand within California and enter into new markets while continuing to deliver service excellence to all of our existing and future customers," said Carla Baumgartner, founder of Ganjarunner. "The synergy among both management teams, our combined experience, shared technologies and combined licenses puts us in a strong position to be the preferred choice within the cannabis delivery market."