Fellow shareholders,
I am pleased to announce that in recent weeks we have experienced dramatic sales growth, developed new partnerships with point-of-sale providers, and rolled out industry-leading technologies. This recent progress combined with the recurring revenue from current clients brings us closer to becoming cash flow positive.
Our teams have demonstrated success working remotely, and we have created ambitious growth plans for the rest of 2020. The new Communication Center tool, also known as the enhanced loyalty wallet, is an especially exciting development that we will translate into increased sales and greater market share in the texting and loyalty space.
We remain committed to developing our industry-leading technology, securing ongoing clients in all legal markets, and establishing advantageous industry relationships. I will strive to keep you informed of our progress. On behalf of the Leafbuyer team, thank you for your support.
Kurt Rossner, Chairman and CEO
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Notable Advances
• Leafbuyer is projected to become cash flow positive on an operational basis within this quarter.
• As medical marijuana sales are skyrocketing in Oklahoma, Leafbuyer is also growing in the Sooner State. Booked sales in Oklahoma have seen a 43% increase for the quarter ending June 30 compared to the previous quarter.
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The Leafbuyer Communication Center
In mid-July Leafbuyer announced enhancements to the loyalty wallet web app for dispensaries. To capture the technological leap in functionality, the team has dubbed the wallet the
Leafbuyer “Communication Center.” Since that time, the new technology has been rolled out to numerous clients and achieved rave reviews.
The redesigned web app features three sections. A Digital Wallet gives cannabis consumers access to their purchase history and earned loyalty rewards at that dispensary. The new Message Center will help ensure that dispensaries' marketing messages of any length are delivered, and customers can scroll through the entire message history. Dispensary customers can also update their preferences via a Consumer
Preference Center. The most appealing aspect to a potential client is that the entire wallet is customized to fit their brand, essentially giving that dispensary a branded app.
Recent prospecting efforts have demonstrated that the Communication Center is especially appealing to multi-state operators and dispensary chains with at least 5 locations. These businesses are seeking ways to distinguish their brand and retain customers without spending hundreds of thousands of dollars to build their own app. The Leafbuyer sales and marketing teams are collaborating to creatively advertise
the new tool in all major markets and capitalize on the industry-leading development.
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As indicated in the last newsletter, the cannabis industry has largely been spared from the COVID-19 crisis, and for Leafbuyer, the past few months have been a period of continued growth. Dispensary clients need Leafbuyer technological tools now more than ever. Meanwhile, the development team has continued to innovate. Now, looking ahead to the rest of 2020, the sales team is eager to use the
advancements to secure new contracts.
In the long run, the coronavirus crisis is likely to advance cannabis legalization. Legal states are incentivized to keep dispensaries open as the tax revenue from cannabis sales helps soften the economic impact to state budgets. States
that have not legalized medical or recreational cannabis could be looking to legalize much more quickly to help cover the impact of COVID-19 on state revenue shortfalls.
In the immediate future, Leafbuyer aims for positive cash flow. In order to build value for its shareholders, the team members strive to grow revenue through long-term customer relationships and new clients in all legal markets.
Leafbuyer will issue timely communications as important information becomes available.
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