- Pac Roots has differentiated its hemp product, resulting in sale of all 105,000 pounds of industrial hemp from its first harvest in December
- Pac Roots has made series of business development moves lately, expanding its footprint in Canada, into U.S.
- Positive developments supported private placement in February that raised gross proceeds of $1.34 million, capital that will be used to keep growing the company
After what could be described at best as a lull from 2019 through mid-2020, the legal cannabis industry has found its legs again on optimism that the current U.S. administration will shepherd in increasingly liberal standards towards the plant and its derivatives. The market still faces challenges, though, as consumer uptake has been slower than initially expected and a copious number of licensed producers have overfilled supply chains and squeezed margins as “me too” companies employ race-to-the-bottom pricing. For a company like Pac Roots Cannabis (CSE: PACR) (OTCQB: PACRF), the key to profitability resides in differentiation, which underpinned a highly successful first harvest for the Canadian company in December.
Using a genetics-focused harvest approach, Pac Roots Cannabis and its JV partner Rock Creek Farms completed a pilot run on 100 acres of land in British Columbia (B.C.) that produced 105,000 pounds of higher-than-expected quality hemp biomass, of which every ounce was bought by the Speakeasy Cannabis Club.
In February, Pac Roots Cannabis completed a private placement that raised aggregate gross proceeds of $1.34 million, funds that are earmarked for a number of expansion initiatives. This includes deploying capital for installment payments and development activities on its Fraser Valley property, final commissioning of the Lake Country project, brand development and U.S. business development with Lords of Grasstown and for general working capital.
The Fraser Valley is famous for its pristine farming conditions. Only 2.4% of the total land farmed in B.C. is located in Fraser Valley, yet it accounts for 38% of the provincial gross annual farm receipts—the land is that type of fertile. Pac Roots Cannabis intends to develop what it describes as a 250-acre “cannabis island,” including both greenhouse and outdoor growing capacities (https://cnw.fm/ELrIV).
The company is also about 90 percent complete with its 20,000 square foot cultivation facility in Lake Country, B.C. Pac Roots Cannabis, through Go Green B.C. Medicinal Marijuana Ltd., is pursuing a Health Canada cultivation license for the facility, which will include about 7,600 square feet of premium flower cultivation space. The license is expected by Q4 2021. The main focus of the facility will be to capitalize on a partnership with Phenome One where the company can cycle through an elite line of more than 350 unique, high-grade cultivars to continue to meet demand for artisanal, high-end strains.
Pac Root Cannabis also made a significant move to penetrate the large California CBD market, completing the cash-and-stock acquisition of Lords of Grasstown Holdings Ltd., a cannabis lifestyle brand founded by Tyler Hazelwood. The Lords of Grasstown originated from the vision of Hazelwood following the success of his Lords of Gastown, a wildly popularly motorcycle supply company and lifestyle brand.
With the acquisition, Hazelwood and Tom Pedricks, lead designer for both brands, joined the Pac Roots Cannabis team as consultants. Branding and package design concepts for new products are already in the works, providing another new revenue stream for the company.
For more information, visit the company’s website at www.PacRoots.ca.
NOTE TO INVESTORS: The latest news and updates relating to PACR are available in the company’s newsroom at http://cnw.fm/PACR
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