A couple of weeks ago, CBE published Seed-to-Sale Scorecard: METRC’s Big Year. But at the time, we had yet to put our hands on the contract, that in our eyes, has put Franwell so far ahead of the pack in terms of revenue and working capital, that catching-up will be extremely difficult for the only other state seed-to-sale contract awardees.

It’s looking more and more like MJ Freeway, BioTrackTHC and Kind Financial will have to duke it out for market-share with all of the other competitors in the Point-of-Sale space.

And oh what a contract it is.

According to the terms of the recently awarded Cannabis Activity Tracking (CAT) Solution Solicitation #17-0210 for the California Department of Food and Agriculture issued on June 30, 2017, METRC was awarded the contract over competitive bids from BioTrackTHC, MJ Freeway, Quintel and SICPA . The contract calls for an initial two-year term, with compensation potentially generating $58 million dollars for the CAT solution and for the tags which the state will purchase.

Projected METRC Revenue Totals California Department of Food and Agriculture Cannabis Activity Tracking Contract #17-0080

LABOR RATES – STATE MANDATORY KEY STAFF ROLES:                                                          $3,437,575

LABOR RATES – CONTRACTOR ADDITIONAL STAFF ROLES:                                                    $1,933,540

SAAS LICENSING:                                                                                                                         $1,976,000

Help Desk Support Services:                                                                                                         $3,673,216

Unanticipated Tasks (10% of Base Contract):                                                                               $1,102,033

Subtotal CAT Solution:                                                                                                                $12,122,364

Proprietary Consumables (Plant and Package Tags) (Not to Exceed Amount)/1:  $47,600,000*

Total Base Contract Potential Value:                                                                                          $59,722,364

Average Annual Potential Contract Revenue Contribution:                                                     $29,861,182

** Represents an extremely conservative estimate of 30% of the annual contract value (not including CA)

MJ Freeway nimbly continues to adapt and create new revenue streams in addition to their POS and STS contracts. Their website promotes a slew of consulting services to leverage the footprint and data they have generated as a first mover in the Cannabis Industry.

According to their website, MJ Freeway Consulting Services include:

• Application & Licensing Support
• Business Launch Services
• Business Growth Services
• Business Plan Development
• Compliance & Security
• Operations Consulting
• Industry Data
• Employee Staffing & Management

Keep an eye on additional state contracts like Arkansas and Florida coming in the not to distant future and CBE will update the scorecard and projected STS revenues as additional awards are granted.