Kaya heading to The Gap

Cannabis company Kaya will open a wellness centre in October in the Blue Mountains, which will become its fifth retail complex, according to the first financial filings since its reverse acquisition by NUGL Inc.

The centre, called The Gap, will open in three phases, starting in October, said NUGL’s new CEO, Bali Vaswani, who is also the founder of Kaya.

Phase one will see the opening of a food and beverage division, which includes the café and pizzeria, slated for completion on Heroes Weekend in October. Phase two includes the opening of three rooms and cottages for a bed-and-breakfast or B-and-B service, slated for January 2023, while the third phase will see the launch of the wellness division, which will focus on CBD treatment.

The size of the investment was not disclosed.

The Gap Café is located between Newcastle and Hollywell in the Blue Mountains. Kaya plans to partner with current owner of the café, Dr Gloria Palomino, who had suspended operation of the popular rest stop several years ago.

“I have partnered with Mr Vaswani and his Kaya Group to restore The Gap to its original condition,” Palomino confirmed to the Financial Gleaner, adding that she expects the revamped operation to maintain the boutique charm of the café, while enhancing the offerings to include a Jamaica Blue Mountain coffee cupping room.

“Guests will be able to partake in some of the estate coffee from the surrounding farms that include Clifton Mount Estate and Marley Coffee that can be enjoyed by siphon, pour-over or traditional French press, but with the same quaint and luxurious setting that we have always offered,” Palomino said.

These methods are generally regarded as sophisticated brewing techniques but require time and a bit of a ceremony or showmanship. The Gap café, in offering these slower brewing methods, will appeal to the curious and the serious coffee drinker.

The siphon method, which resembles a chemistry set of glass tubes, is the least utilised locally yet makes a unique cup. Contrastingly, most cafés across Jamaica offer quick-serve coffee with the espresso machine at the centre of the service. The largest chains, Café Blue and Starbucks, have said on separate occasions that they no longer offer slower brewing methods, such as pour-overs or French presses. They extend the time taken to serve customers and reduce customer throughput.

Vaswani said The Gap Café was built in the 1930s. In December 2000, it added B-and-B services. Today, there are around eight established cafés in the Blue Mountains, excluding those within coffee plantations, namely: Gap, Café Blue, Eits, Strawberry Hill, Blue Mountain Bicycle Tours, Blue Ridge Restaurant, Blue Brews Bistro and the newly opened Café Middleton.

Kaya launched its retail service in 2018 as Jamaica’s first medical marijuana dispensary. Alongside its chain of herb houses located in St Ann, Trelawny, Kingston, and Uruguay, the company also cultivates and supplies cannabis for its own operation, through Kaya Farms, which offers over 75 different weed genetics.

In the short to medium term, Kaya plans to open 10 locations as ‘in-shop’ experiences in California, through partner Lil Easy E, by the fourth quarter.

NUGL, which is based in the United States, reported in its new filings that “Kaya has combined sales of over US$2.2 million a year”, 75 per cent of which comes from its cannabis products, 10 per cent from the sale of merchandise, and 15 per cent from food and drink.

NUGL Inc, which operates a marketing platform, acquired Kaya Inc in April in an all-stock transaction. The company is listed on the over-the-counter, or OTC, market in the United States under the ticker symbol NUGL. The company plans to eventually cross list in Canada.

Vaswani was appointed NUGL CEO after the acquisition. He now holds 200 million ordinary shares in NUGL, the largest block of the company’s 851 million issued shares.

“Although legally NUGL is regarded as the parent or continuing company, Kaya, whose shareholders now hold more than 50 per cent of the voting shares of the company, is treated as the acquirer under generally accepted accounting principles,” NUGL noted in its financial report.

The reverse acquisition hives NUGL access to Kaya’s operations, and Kaya gets access to NUGL’s marketing platform and the US capital markets via the listing.

“The cost of customer acquisition has been greatly reduced by creating a destination and venue for customers that enjoy all product types and services,” the company stated.

NUGL hold media assets such as NUGL Magazine and NUGL TV.

NUGL App highlights profiles for businesses in all sectors of the cannabis industry, including retail stores, brands, services, events, and more.

“Our platform allows businesses to build and structure detailed items within our global menu, aiding connections between business and consumer communities through targeted networking, and enabling a variety of advertising opportunities to expand reach,” stated the filings.

NUGL has experienced recurring net losses and negative cash flows from operations since inception, and as at June 2022 its accumulated deficits were estimated at US$6.68 million.

steven.jackson@gleanerjm.com