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Canada's New Outdoor Grow Regulations Create New Risks, Opportunities -- CFN Media


Posted on: 03 Aug 18

SEATTLE, Aug. 03, 2018 (GLOBE NEWSWIRE) -- CFN Media Group (“CFN Media”), the leading agency and financial media network dedicated to the North American cannabis industry, today announced publication of an article covering  SpeakEasy Cannabis Club Ltd. (CSE:EASY) (EASY.CN) (CNSX:EASY) (FFT:39H). The company has shifted their focus to include outdoor cultivation. Investors may want to consider diversifying their portfolio across both types of cultivators to realize the benefits of each option.

Canada’s cannabis industry is projected to reach C$22.6 billion over the coming years, according to Deloitte, driven by the legalization of adult-use cannabis nationwide later this year. Last month, the government surprised many industry analysts and participants by legalizing the outdoor cultivation of cannabis in an attempt to lower prices, increase global competitiveness, and better compete with black market products.

Canada’s Controversial Outdoor Grow Decision

Canada, like most jurisdictions where cannabis has been legalized, has historically required cultivators to grow their crops in tightly regulated indoor facilities. Licensed producers invested billions of dollars in brand new indoor cultivation facilities in compliance with the country’s original cannabis cultivation regulations. The high cost of these facilities has translated to relatively high costs for products that ultimately hit consumers.

The Canadian government surprised many licensed producers and industry analysts by legalizing outdoor growing in the final cannabis legalization rules. The move was designed to help lower cannabis prices to better compete with black market products, while ultimately positioning the country as a leading supplier to the global market. Unfortunately, that leaves many licensed producers that spent billion on indoor facilities in a bind.

“Our decision to allow outdoor grow under strict rules is the result of extensive consultations and will contribute to creating a diverse and competitive legal cannabis industry with the ultimately goal of displacing the illegal market,” said Thierry Belair, spokesperson for Ginette Petitpas Taylor, the Canadian Health Minister, according to The Globe and Mail.

Despite the industry’s concerns, there could be room for both types of growing in the modern cannabis industry. Outdoor cultivation could become critical for the supply of extract products, such as cannabidiol (CBD) and tetrahydrocannabinol (THC) oils, which are used in vape and edible products. Meanwhile, indoor greenhouse operations could remain ideal for creating highly specific medical or high-potency cannabis strains.

Investing in LPs Focused on Outdoor Cannabis

Most licensed producers are focused on indoor cannabis cultivation since that has been the status quo since the MMPR regulations were introduced years ago. With outdoor cultivation legalized last month, there are only a handful of companies that are actively pursuing or adjusting their plans to grow cannabis outdoors. Investors may want to consider these companies as a way to diversify their portfolio across indoor and outdoor opportunities.

SpeakEasy Cannabis Club Ltd. (CSE: EASY), a late-stage ACMPR applicant, became one of the most high-profile companies to shift its focus to outdoor production. On August 1, the company announced plans to begin work on its first 60 acre outdoor plantation and processing facility in Rock Creek, British Columbia. The 2.6 million square foot outdoor production area would make it one of the largest licensed producers in Canada.

“The recent release of regulations allowing outdoor production is a dream come true for us,” said SpeakEasy CEO Marc Geen. “It has always been our plan to grow outdoors on a large scale, but we did not expect regulations to allow it to happen this soon. The climate here in Rock Creek is absolutely perfect for growing cannabis outdoors and we are thrilled at the opportunity to begin as soon as possible.

The company anticipates that development costs will be less than $10.00 per square foot. By comparison, indoor facilities can cost 20 to 30 times as much to build. Its production costs are also expected to be about one-quarter of the cost of indoor facilities, which range from $1.00 to $1.75 per gram for greenhouse production and $2.00 or more per gram for indoor facilities that are more tightly controlled than greenhouses.

Looking Ahead

SpeakEasy Cannabis Club Ltd. (CSE: EASY) is a late-stage ACMPR applicant that could become one of the largest cannabis producers in the country with 290 acres of land and plans to build a 60 acre outdoor cultivation footprint starting next Spring. Investors may want to consider the stock as a way to diversify their holdings from indoor cultivators to include outdoor cultivators that could benefit from lower development and production costs.

For more information, visit the company’s website at https://speakeasygrowers.com/.

Please follow the link to read the full article: http://www.cannabisfn.com/canadas-new-outdoor-grow-regulations-create-new-risks-opportunities/

About CFN Media

CFN Media (CannabisFN) is the leading agency and financial media network dedicated to the global cannabis industry, helps companies operating in the space attract investors, capital, and publicity. Since 2013, private and public cannabis companies in the US and Canada have relied on CFN Media to grow and succeed.

Learn how to become a CFN Media client company, brand or entrepreneur: http://www.cannabisfn.com/featuredcompany

Download the CFN Media iOS mobile app to access the world of cannabis from the palm of your hand: https://itunes.apple.com/us/app/cannabisfn/id988009247?ls=1&mt=8

Or visit our homepage and enter your mobile number under the Apple App Store logo to receive a download link text on your iPhone: http://www.cannabisfn.com

Disclaimer

CannabisFN.com is not an independent financial investment advisor or broker-dealer. You should always consult with your own independent legal, tax, and/or investment professionals before making any investment decisions. The information provided on http://www.cannabisfn.com (the ‘Site’) is either original financial news or paid advertisements drafted by our in-house team or provided by an affiliate. CannabisFN.com, a financial news media and marketing firm enters into media buys or service agreements with the companies that are the subject of the articles posted on the Site or other editorials for advertising such companies.  We are not an independent news media provider. We make no warranty or representation about the information including its completeness, accuracy, truthfulness or reliability and we disclaim, expressly and implicitly, all warranties of any kind, including whether the Information is complete, accurate, truthful, or reliable. As such, your use of the information is at your own risk. Nor do we undertake any obligation to update the items posted. CannabisFN.com received compensation for producing and presenting high quality and sophisticated content on CannabisFN.com along with financial and corporate news.  

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

Frank Lane
206-369-7050
Flane@cannabisfn.com

GlobeNewswire
globenewswire.com

Last updated on: 06/08/2018

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