California’s leading cannabis extractor, LEEF Brands Inc. (CSE: LEEF) (OTCQB: LEEEF), has made several recent moves to increase revenues, improve margins, and boost value. Here we look at a recent article by Penny Queen, an investor who is long on LEEF, breaking down those moves and the timeline for the stock’s potential catalysts.
Excerpt…
The story at LEEF is about margin expansion, asset leverage, and execution in a sector that is beginning to rebound. This is the part of the year where that thesis moves from talk to numbers.
Harvest One, Harvest Two, and the Rest of the Ranch
LEEF is finishing the first harvest of 2025 with 700,000 plants grown on only 65 acres of its Salisbury Canyon Ranch. A second harvest from that same 65 acres will take place later this year.
Salisbury Canyon Ranch is 1900 acres in total. Only about 4 percent is currently in production. The rest provides optionality to expand cultivation without acquiring or leasing additional land.
Why It Matters for Margins
Until now, LEEF has been paying roughly $25 per pound for input biomass. With its own harvests, that cost drops to $6–$12 per pound. This structural change has the potential to more than double gross margins once the operation is fully ramped.
LEEF also holds a leading position in California’s concentrate market, focusing on a segment with better economics than the oversupplied flower market.
