AgraFlora Organics to Acquire Curated Portfolio of Elite Live-Plant Cannabis Genetics - Seite 3

The Company has been working with the PSC team, key consultants and experienced industry advisors to develop an efficient post-harvest processing facility and associated workflow, with the objective of allowing PSC to cultivate, dry, trim and package cannabis in a way that will preserve potency and bud quality while maintaining a strong focus on cost control.  Genetics determine key economic elements such as yield, harvests per year, and cannabinoid potency.  In the current market environment, management believes delivering consistently high cannabinoid potencies at a reasonable cost to the customer will be disruptive to the flower segment nation-wide.  Genetics further define the consumer qualities such as aroma, flavour and bud structure.  Management believes that the Canadian cannabis cultivation industry is ripe for disruption by PSC through its focus on producing high-potency cannabis that possesses certain key consumer elements such as pleasing aromas and smooth flavour.

“Our goal with PSC is to position the company and the brand to focus on an underserved market: customers seeking enjoyable cannabis flower that combines high potency with low pricing,” said John Fowler, Principal of Blaise Ventures, a full service consulting firm engaged by the Company to support the execution of its strategic priorities to license, operationalize and solidify a path to profitability.  John is the former CEO and President of the Supreme Cannabis Company, Inc. from 2014 to 2019.  “I have been continually impressed by the quality of the PSC’s agricultural and operational team, and I believe over time Delta, British Colombia will emerge as Canada’s low-cost cannabis cultivation cluster.  With our focus on higher potency achieved through the elite Live-Plant Genetics, I believe PSC will be positioned for strong financial performance focused on contribution per gram and return on assets.”

To facilitate the transaction, PSC will utilize certain provisions of the Cannabis Act and Cannabis Regulations which allow a newly licensed company to acquire and possess live-plant cannabis starting materials from existing legally registered personal producers of medical cannabis.  By pursuing the transaction of elite Live-Plant Genetics as compared to acquiring seeds, PSC will avoid the requirement to pursue a seed selection program, which can take many months and has no guarantee of producing commercially viable genetics due to the variability present in cannabis seeds.