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Canabis company Kaya Inc sold a record US$3 million ($470 million) worth of products last year, growing sales by 28 per cent.
Marijuana sales accounted for three-quarters of the revenue, with food and merchandise, such as vapes and shirts, accounting for the balance. The company did not make a profit, however, due to rising costs.
Kaya expects growth in 2025 aided by the opening of a fourth herb house at Main Street, Ocho Rios, slated for April 20, said Bali Vaswani, founder of Kaya. It will hold a concert and promotions to raise awareness among its largely targeted youth market.
Currently, Kaya, which has been in business for seven years, operates herb houses at Drax Hall in St Ann, Lady Musgrave Road in Kingston, and Trelawny Street, Falmouth.
Despite legitimate competition and challenges from the illicit market, Vaswani affirmed the company’s “commitment to profitable growth”. In recent months, Kaya has partnered with Carma Hold Company, owned by retired American boxer Mike Tyson, to sell its cannabis products. Kaya Farms will grow and process marijuana for Tyson’s brand, called Tyson 2.0.
“We hope to see this line carried across other herb houses on the island,” said Vaswani.
Kaya has also collaborated with dancehall artiste Skillibeng on the Kaya X Skillibeng-branded products.
During 2024, the operations at Kaya were hurt by the tripling of its cost of goods from US$400,000 to US$1.3 million. Salaries, utilities and administrative expenses also increased by 28 per cent, hurting the company’s bottom line.
Kaya posted a net loss of US$212,000 last year. Although still in the red, it marked an improvement from the US$828,600 loss recorded in 2023.
There are 166 licensed operators in Jamaica’s marijuana market, according to the latest data from the Cannabis Licensing Authority. Kaya holds licences that allows it to cultivate marijuana and retail cannabis products, and was the first to open a herb house in Jamaica in March 2018.
Before it got to that point, Kaya conducted research on strains and growing conditions at the University of Technology. It built its reputation from winning multiple Cannabis Cup competitions, but profit has been elusive.
Its losses have now accumulated to US$8.8 million.
In April 2022, Kaya merged with the ganja marketing website NUGL. The site promotes cannabis products and lifestyle events that would be flagged, barred or restricted on social media platforms. NUGL trades on the over-the-counter market, which fosters start-ups that need capital without the heavy regulation of traditional exchanges.
Another merger remains on the horizon. In August 2023, Silo Wellness Inc announced plans to acquire NUGL in a deal valued at CDN$40 million. Silo Wellness is a psychedelic wellness company known for its mushroom retreats in Jamaica and the United States.
Kaya recently delivered on a key regulatory requirement for the deal.
‘We have submitted our two-year audited statements in accordance with the Canadian Securities Exchange requirements to Silo, and are now awaiting their listing documents, along with proof that they have secured the necessary funds to finalise the transaction,” Vaswani told the Financial Gleaner.
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