FinancialBuzz.com’s latest Buzz on the Street Show: Featuring Our Corporate News Recap on “Pasha Brands Starts Trading Under Exchange Symbol CRFT.”
Pasha Brands Ltd. (CSE: CRFT), Canada’s largest craft cannabis organization, announced that trading of its common shares has commenced under exchange symbol “CRFT” on the Canadian Stock Exchange (“CSE”). This follows the completion of the reverse takeover of Broome Capital Inc. (TSX-V: BCP).
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 take off, cultivators and producers are beginning to focus more on quality over quantity. Despite the shortage issues occurring across several regions such as Canada, cultivators are aiming to provide their consumers with exceptionally high-quality cannabis. During the prohibition era of cannabis, consumers generally had little to no knowledge of where their cannabis came from because many purchases were through the black market or other nonlegal channels. However, with the recent widespread legalization movements, companies now endeavor to provide a transparent process from when seed to sale. In legal recreational markets, consumers are beginning to witness a new take on cannabis emerge, “craft cannabis.” Craft cannabis is similar to craft beer or craft coffee in terms of how they are produced. For instance, craft coffee producers focus on the art of slow roasting coffee beans in order to obtain the best flavor. Similarly, craft cannabis producers pay close attention to the growing process of the plant to ensure the best quality possible. Craft cannabis is generally considered to be natural, handcrafted, and traditionally produced by independent growers, according to Lieze Boshoff, Founder of LBC3 Marketing. These independent producers are passionate about growing, meaning, they don’t use artificial lights, industrial equipment or pesticides. Instead, each individual plant is personally and carefully monitored by a grower using organic methods and natural sunlight. Compared to larger cultivators, smaller craft companies can produce higher quality cannabis due to the lower number of plants grown. Overall, the consumer landscape is rapidly changing within the cannabis marketplace as the demand for higher quality products continues to grow. According to data compiled by Mordor Intelligence, the global cannabis industry was valued at USD 14.5 Billion in 2018. By 2024, the market is expected to reach USD 89.1 Billion while registering a CAGR of 37% during the forecast period from 2019 to 2024.
Large-scale licensed producers typically spend approximately USD 1.00 to USD 2.00 per gram of dried cannabis, according to James Walsh, a consultant at Maple Ridge. On the other hand, Walsh estimates that production costs for a smaller licensed grower can grow up to USD 1.50 per gram. Moreover, distributors and retailers usually markup their prices and tax the products before they even reach consumers. For instance, Statistics Canada reported that on average, Canadian cannabis consumers paid approximately USD 6.83 per gram. Furthermore, some provinces have even recorded prices of upwards to USD 10 per gram. On the other hand, Walsh highlighted that some users spend as much as USD 15 per gram for premium quality cannabis on the black market. Similar to organically grown foods, consumers are more inclined to pay more for naturally processed products as opposed to products containing heaping amounts of artificial chemicals and preservatives. “There is a coolness factor to artisan and craft style products and this trend is also picking up amongst cannabis consumers. For some, the uniqueness and exclusivity of craft cannabis are attractive. For others, the ethics and identity of a craft grower are compatible with their own and they want to be a part of that story. Yet, for others, simply supporting a local business, in the same way, they support their local farmer, is important,” said Boshoff. “But, in the end, we like to have choices. We like variety. We like to feel connected to whatever product it is that we consume. And this, in the end, is why craft growers will continue to thrive alongside their bigger brothers.”
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