- IONIC Brands’ move to secure DTC eligibility is expected to promote convenience and liquidity for investors while also boosting the company’s ability to attract new investors
- The announcement follows the presentation of the company’s stellar financial results for Q2; over the reporting period IONIC Brands registered a 377 percent year-over-year increase in revenue
- The company has plans to expand into several U.S. states throughout the balance of 2019 and beyond
On September 18, 2019, IONIC Brands Corp. (CSE: IONC) (OTC: IONKF) (FRA: IB3) announced that it has secured eligibility from the Depository Trust Company (DTC) for its shares on the U.S. OTC Markets (http://cnw.fm/Hc2HJ).
The DTC uses an electronic method of clearing securities, which speeds up the receipt of stocks and cash, accelerates the settlement process for investors and reduces transactional costs. DTC eligibility enables the stock to be traded over a wider selection of brokerage firms, because DTC eligibility is required by many as a measure of compliance.
DTC eligibility enables IONIC Brands to begin trading shares on its domestic market, where brand recognition is high, CEO and Director John Gorst said in a news release. “The ability for investors to electronically transfer between brokerages in the U.S. is significantly more convenient and provides to existing investors the benefit from greater liquidity and execution speeds, while attracting new investors to gain access that may have been previously restricted from investing in IONIC Brands,” Gorst concluded.
The announcement comes during a period of growth for IONIC Brands, a West Coast-based company whose primary focus has been the manufacture of vape products for recreational cannabis users. At the end of August 2019, the company announced a record revenue increase over the second quarter of the year. The revenues for Q2 were higher by 377 percent than those reported in Q2 2018, reaching $3.86 million (http://cnw.fm/g9cpH).
The massive sales growth was attributed mainly to an increase in services, packaging and ancillary products to customers, as well as downstream sales. An increase in licensing and equipment rental revenues was also registered.
During the second quarter, the company also completed multiple acquisitions, most notably that of Washington-based Natural Extractions Inc., which is doing business as Zoots Premium Cannabis Infused Edibles. Zoots develops a wide range of premium cannabis edibles that includes hard candies, drops and energy shots, which are available at licensed retailers in Colorado, Illinois, Massachusetts and Washington. The company also acquired a number of cannabis-infused coffee patents and Nevada-based vape pen manufacturer Vegas Valley Growers North.
The acquisitions have enabled IONIC to expand its sphere of operations into other areas of the recreational cannabis consumption market. Over the coming months of 2019, the company plans to further expand operations and make its products available in various U.S. states that have legalized the recreational use of marijuana. To accomplish the expansion, the company will be in contact with existing license holders at various locations of interest.
Established in 2015, IONIC Brands is a national cannabis holding company that focuses on award-winning premium and luxury cannabis brands. Current operations span across Washington, Nevada, Oregon and California. To ensure optimal quality of all products and to meet state pesticide mandate requirements, IONIC has implemented a Certified Clean verification program, as well as a strict individual batch testing program that ensures full transparency of the manufacturing process.
For more information, visit the company’s website at www.IONIC.social
NOTE TO INVESTORS: The latest news and updates relating to IONKF are available in the company’s newsroom at http://cnw.fm/IONKF
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