In the 20 months that CBE has published, we’ve recognized O.penVAPE as the number 2 ranked company on both the 2015 CBE 100 Producer, Processors, and Retailers and one of the 10 Most Important Companies in the Cannabis Industry and lists. The CEO of the company made it to the inaugural 100 Most Important People in the Cannabis Industry list, even though it should have been co-founder and current CEO of the company, Ralph Morgan.
Along with his fellow co-founders and senior management team—COO Jeremy Heidl, CTO Chris McElvany, and newly promoted President Chris Driessen—O.penVAPE has moved more quickly than any other processing entity in the industry, establishing an international brand with a domestic footprint.
O.penVAPE licenses its Intellectual Property to partners in nine states: Arizona, California, Colorado, Connecticut, Maine, Massachusetts, Nevada, New Mexico, Oregon, and Jamaica. O.penVAPE’s products are in more than 1,100 dispensaries nationwide and Jamaica. O.penVAPE’s licensees employ O.penVAPE’s OrganaLABS technology and proprietary processes to manufacture cannabis oil through supercritical CO2 extraction.
The company plans to expand its footprint through partnerships with individuals who hold legal state licenses. This typically includes cultivation, processing, and retail. As cannabis legalization continues, O.penVAPE expects to form relationships in states like Illinois, Florida, New York, Vermont, New Hampshire, Michigan, and Washington. . Hawaii, Alaska and Maryland also have potential as soon as prohibition is repealed. Internationally, O.penVAPE has its sight set on Canada, Europe, South America, and more Caribbean countries.
CBE caught up with Morgan last Friday to learn more about what has made the company so successful, and learned that it boils down to three simple things:
- Align and partner with great talent.
- Use the best technology and processes to create a quality base product with purity and consistency that will drive all cannabis oil production and ultimately validate brand value on the operational front.
- Create, follow, and instill core values throughout the organization and its licensee partners to assure purity and consistency, which is equally important.
The Software and The Hardware That Make O.penVAPE
The O.penVAPE brand is actually the combination of two entities that Morgan describes as the Software (OrganaLABS Oil based manufacturer of infused products) and the Hardware (National Concessions Group/O.penVAPE Pens/brand/and Intellectual Property).
The Software and its affiliates produce several cannabis brands based on the CO2 extraction method used by OrganaLABS, which Morgan describes as the underlying passion behind the company. Customers review their products as reliable, safe, and consistent, which is the foundation of OrganaBRANDS.
They put together a team of PhDs and talent that could stack up against any company in the industry and come out on top. Currently, the Software or Organa Brands’ wholly owned subsidiaries mix includes:
- O.penVAPE: The manufacturer and distributor of personal vaporizing hardware and marketer and licensor of Organa Labs’ cannabis oils (One O.penVAPE cartridge is sold every 8-10 seconds and more products are launching soon)
- Bakked: Concentrates, shatter, waxes, oil cartridges
- The Magic Buzz: Infused Beverages/Drinks
Coming Soon
- Edibles: They are also currently negotiating with a well-known edible producer to round out their processed goods line.
- Wellness Line: The company will launch a medical/wellness line in December beginning with a sublingual Cannatab product. Once again based on consistency of the oil and dosing.
O.penVAPE Capital Strategy
Aggressive Growth plans to take on new legally regulated markets will require outside investment especially to meet the hardware needs for the vape products. O.penVAPE has primarily been, primarily, self-financed since its launch, but has considered raising capital raises in the past that included smaller investor pools. They are now focused on a large raise and are seeking a strategic partner that can adds more than capital to the mix, but is also cconsistent with past best practices and lessons learned.
Currently, there are no plans for taking the company public.
What keeps you up at night?
As the industry matures, CBE wondered what keeps Morgan and his team up at night. Their number one concern is the legacy prohibitionists that have found their way into regulatory roles and positions, and seem to find a variety of ways to hinder industry growth. He cited that the continual creation of compliance nightmares based on arbitrary decisions instead of thoughtful stakeholder collaboration and the recent ballot initiative push to set dosing maximums on the industry in Colorado were examples of this concern.
Another moment of concern is the approaching presidential election and uncertainty that comes with any outcome. There is a lot of unsettled business that could result in unpredictable impacts on the industry and O.penVAPE’s near term plans when you add the potential for Federal rescheduling.
All told, unless something drastic happens, the O.penVAPE juggernaut promises to continue to advance the industry’s cause and its own, and they will surely be one of CBE’s Most Important Companies in the Cannabis Industry. With tier one “Software” and “Hardware” at work, we look forward to following their journey.
Background
Company Name: O.penVAPE
Year Founded: In 2012, five dispensary owners came together to form O.penVAPE.
Ownership structure/operating entities: National Concessions Group (NCG) is the company behind O.penVAPE. NCG enjoys dominating in the fastest growing market segment, which according to Green Wave Advisers, is cannabis oil products. NCG also owns OrganaBRANDS, the market leader in cannabis oil products. OrganaBRANDS and its affiliates produce several leading cannabis brands including Bakked, The Magic Buzz, and O.penVAPE.
Owner/CEO E-mail address/Contact Information and Management Team: O.penVAPE’s leadership team is comprised of: Ralph Morgan, co-founder and chief executive officer; Jeremy Heidl, co-founder and chief operating officer; Chris McElvany, co-founder and chief technology officer; and Chris Driessen, president .
Headquarters: Denver, Colorado
Website: www.openvape.com
Industry Segment/Category: Cannabis oil products
Current Markets/States Served: O.penVAPE licenses its IP to partners in nine states: Arizona, California, Colorado, Connecticut, Maine, Massachusetts, Nevada, New Mexico, Oregon and Jamaica. O.penVAPE’s products are in more than 1,100 dispensaries nationwide and Jamaica.
Current Number of Employees:
O.penVAPE: 80
Including licensees (USA + Jamaica): 200-300
Market Strategy/Goal: O.penVAPE aims to increase safe, legal, and responsible access to cannabis.
2016 Projected Revenues: O.penVAPE is a privately owned company and does not release revenue information at this time.
Product/Revenue Mix: O.penVAPE has evolved from a successful product to an industry leading brand under the OrganaBRANDS umbrella, along with The Magic Buzz and Bakked.
Expansion Plans: The market for cannabis oil in particular is projected to grow faster than the overall cannabis market since cannabis oil is consistent, pure and safe. O.penVAPE expands its footprint through partnerships with individuals who hold legal state licenses. This typically includes cultivation, processing and retail. As cannabis legalization continues, O.penVAPE expects its next national markets to include Illinois, Florida, New York, Vermont, New Hampshire, Michigan, and Washington. Hawaii, Alaska and Maryland also have potential as soon as prohibition is repealed. Internationally, O.penVAPE has its sights set on Canada, Europe, South America and more Caribbean countries. The brand also sees great potential in wellness through cannabis in promoting better, alternative medicine.
Financing strategy: We’re heading out on our first roadshow next week. Our goal is to raise enough money to meet the demand of our products.
