I’m writing to update you on GCAC’s recent progress, accomplishments, and initiatives. Despite some significant volatility in equity markets overall, we remain steadfastly committed to rapidly scaling Citizen Green Efixii, GCAC’s modern end-to-end software-as-a-service (SaaS) platform for medical cannabis measurement. For the trailing 12 months (ending May 11,2021) GCAC’s share price has soared more than 1,000%. With this stock price appreciation, we have, as expected, seen some of the usual profit-takings by short-term speculators and traders.
In my opinion, micro-cap stocks are historically known to exhibit greater price volatility than large-cap stocks. For the 12 months ended April 30, 2021, the Russell MicroCap Index, a renowned benchmark that tracks the performance of more than 1,200 micro-cap stocks, traded in a range of +105% (from low to high). In short, GCAC is not the only public micro-cap company experiencing volatility in its share price. As we quickly build business momentum in 2021, we are excited to have you as a long-term shareholder and you benefiting from all of our hard work and success.
As a refresher on our business mission, GCAC’s Citizen Green Effixi platform leverages the power of the interlocking technologies of an Ethereum blockchain, QR codes, RegTech, and SaaS licensing to solve for the biggest pain points experienced across the medical marijuana industry – the certification, compliance, and tracking of medical cannabis to ensure quality, consistency, and most importantly, efficacy. Our first-of-its-kind platform provides the critical data that cultivators require to produce trusted goods, that regulators mandate to enact meaningful regulations, that physicians demand to write prescriptions, and that patients need for safe product use.
As I communicated previously, GCAC secured critical patents and technology partnerships during 2020. These efforts established a strong foundation for GCAC to execute its go-to-market (GTM) strategy in 2021, which has already born fruit. In April 2021, we announced a three-year software licensing agreement with Herb Industries, an established European medical cannabis cultivator. This single licensing agreement is forecast to generate a minimum of $8 million (CDN) in revenue for GCAC in 2022 and $13 million (CDN) in 2023, based on Herb’s cultivation estimates. This important win places GCAC on a fast track towards profitability – and emboldens our sales efforts to other large cultivators across Europe.
As GCAC has announced, I am excited to be a featured upcoming speaker and panelist on the morning of May 18 at Prohibition Partners LIVE, a popular international cannabis conference. Global conferences and events are an important GTM channel for GCAC and provides us direct access to create meaningful sales pipelines with leading participants across the cannabis supply chain.
We encourage you to register — and we’re offering a 20% discount on tickets for the three-day virtual conference with the discount code GCAC20. I will also be participating at Prohibition’s “Bespoke 30-Minute Master Class LIVE” and will be featured on Prohibition’s “Sponsored Blog CEO Interview.”
Another key marketing audience for GCAC in 2021 is the cryptocurrency, blockchain, and decentralized finance (DeFi) communities, which have collaborated with the cannabis industry for more than a decade. To cement our position in the space, GCAC has committed to a marketing spend of a minimum of 1% of our quarterly revenues to purchase a token launched by Abbey Technologies every three months. The token, called the GCAC token, will drive brand awareness of GCAC’s products, such as our Effixi QR codes, and provide another avenue for consumers and crypto investors to participate in the growth of GCAC.
To get a good understanding of the impact of what this initiative has already done and will do for GCAC, I encourage you to watch our first ever YouTube interview entitled “The Best Blockchain Stock for May 2021” hosted on May 15 by Alpha Status Stocks, a popular YouTube channel with ~38,000 subscribers. In addition, our Uniswap token was recently added to the Pancakeswap trading platform via the Binance Smart Chain. Binance recently reported more than five million global users of its crypto platform in 2020. The ability to anchor our growing revenues to a strong, healthy balance sheet is an important part of our value statement to the industry and to shareholders alike.
As we make our way into the second half of calendar 2021, I promise to keep you posted on significant developments at GCAC, including our latest marketing efforts and GCAC’s new SaaS licensing agreements. I appreciate your continued faith in our senior management team as we continue our laser-like focus on reaching profitability by 2022 — and disrupting the medical cannabis industry to produce better patient outcomes.