FinancialBuzz.com’s latest Buzz on the Street Show: Featuring Our Corporate News Recap on “Pasha Brands Signs Over 100 Micro-Cultivator Supply Contracts.”
Pasha Brands Ltd. (CSE: CRFT) (OTC: CRFTF) (FSE: ZZD), North America’s largest craft cannabis brand house, is delighted to announce that its wholly owned subsidiary, BC Craft Supply Co. Ltd, has signed over 100 micro-cultivator applicants across Canada to date.
Based in Vancouver, British Columbia, Pasha Brands is a vertically integrated organization that is firmly rooted in BC’s craft cannabis industry, which boasts an international reputation. With proven capabilities in cannabis cultivation, genetic research and development, product, processing, and retail, Pasha is uniquely positioned in the new legal cannabis market through its network of hundreds of craft cannabis suppliers under the Pasha umbrella.
Pasha’s subsidiary, BC Craft Supply Co. Ltd., is developing a craft cannabis campus, which is dedicated to bringing craft quality into the newly legal cannabis market in Canada. BC Craft Supply Co. Ltd. is driven to assist craft growers in obtaining security clearance and licensing to grow as micro-cultivators, specializing in education and compliance to bring growers into the regulated cannabis supply market.
As the cannabis industry continues to advance, competition among operators is becoming more and more fierce. In particular, the competition between growers has become much more prevalent when compared to retailers, according to Deepak Anand, a cannabis industry expert based in Vancouver. As of March 2019, statistics released by Health Canada indicated that the agency only received 150 applications for micro-cultivation or processing licenses. Generally, macro-cultivators tend to dominate the cultivation segment of the overall cannabis industry, as they are able to produce tons of cannabis each harvest. By mass-producing cannabis, macro-cultivators can wholesale their supply to distributors and retailers at a cheaper price. However, Anand noted that micro-cultivators have to wait for at least 18-months before getting approved for a license, which usually deters entrepreneurs from applying. As a result, many micro-cultivators find themselves working in gray markets while waiting for approvals. Nonetheless, numerous service providers within the industry have secured partnerships and contracts with companies awaiting such license approvals. For instance, companies have hired consultants to guide them throughout the process of receiving an approval. Moreover, some producers have inked agreements with companies to supply them with their own products in an effort to accelerate their approval time. Furthermore, according to data compiled by GlobalInfoResearch, the global legal marijuana market was valued at USD 7.97 Billion in 2019. And by 2024, it is expected to reach USD 35 Billion while registering a CAGR of 28% over the next five years.
In 2017, Health Canada announced its intent to issue more licenses for micro-cultivators in hopes to “enable a diverse, competitive legal industry comprised of both large and small players in regions across the country.” However, in January 2019, there were only 145 authorized cultivators in Canada. Moreover, there were approximately 840 site applications in process at the end of December 2018, Health Canada told Marijuana Business Daily. Nonetheless, approved micro-cultivators are already moving towards redefining the cannabis industry. Typically, micro-cultivators are limited to only 200 square meters of space, which can sustain anywhere from one to eight plants per square meter. The yield per plant can heavily vary depending on environmental factors such as the lighting, airflow, humidity, and spacing between the plants. Most importantly, the yield can be substantially increased by hand-trimming plants instead of using machinery. Notably, micro-cultivators, specifically “craft cannabis cultivators,” boast about their high quality and organic growing process that produces premium cannabis. Specifically, craft cultivators strive to provide their consumers with all natural and potent products that stand out against competitors. Normally, craft producers avoid using artificial products such as pesticides to appeal to health conscious consumers. However, as a result of avoiding the use of pesticides, craft producers are required to manually tend to each and every individual plant to ensure a healthy growing process. While it may seem tedious to tend to each plant, it allows cultivators to create premium cannabis strains by carefully monitoring each growing phase. And then when it’s time to harvest, craft producers hand-trim every plant in order to preserve and maintain the cannabinoid integrity throughout the harvest. “Nearly every marijuana cultivator wants to call its cannabis craft. Whether the plant is grown indoors or outside, with a hydroponic irrigation system or a watering can, under the sun or high-tech LED lights, few growers want their flower to be considered corporate cannabis,” said Bart Schaneman, Cultivation and Extraction Reporter at Marijuana Business Daily. “As a general philosophy, a cannabis grower looking to brand its flower as craft needs to show the consumer that the flower was grown with mindfulness and close attention paid to each plant.”
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