Speakeasy’s completion of its successful 2020 first outdoor harvest highlights how important the combination of the Geen family’s farming experience, combined with genetics and the perfect climate are, in the making of a successful cannabis crop. British Columbia’s spring was not a typical one and less than perfect, with wet and cold weather. The fall ended early in spectacular fashion with freezing temperatures and snow, but the summer was exactly what we would expect for this area, blue skies, sun, heat and over 65 days without rain. The unusual fall weather showcased how critical it was to choose an outdoor genetic that finished early, otherwise, one was certain to have challenges harvesting their crop in time. SpeakEasy experienced no harm from weather this year for a variety of reasons. Using three different genetics and three different planting methods allowed us to spread our harvest period over 35 days, of which we took full advantage of each and every day.
Founder Marc Geen says, “What I had imagined for years finally came true and was more spectacular and amazing than I had pictured. It is difficult, if not impossible to describe what standing in the middle of 60 acres of blooming, fragrant cannabis plants is actually like. Everywhere you look, big healthy crystal covered buds, the fruity pungent aroma hanging thick in the air, the satisfaction of seeing the results of so much work, I wish you all could have walked through. Our record breaking plantation didn’t go unnoticed this summer as we were featured in Forbes twice, among many other TV, radio and print articles, with one television interview broadcast in over 3.5 million homes.”
QUALITY AND HARVESTING STRATEGY OPENS UP DYNAMIC SALES OPPORTUNITIES TO INCREASE MARGIN
The harvest yielded quality much higher than our expectations. SpeakEasy now holds over 72,000 kilograms of dried, fresh frozen and biomass in its inventory. With its low cost to harvest, as opposed to greenhouse costs that currently dominate the industry, the Company has an opportunity to disrupt categories within the industry. Pre-rolls and a wide range of extract products will be the main end products for the majority of the outdoor crop. We believe that the largest advantage the Company has over its competition is its low cost production, giving us the ability to be extremely price competitive on the market while continuing to maintain healthy profit margins. More and more, price point is becoming a key factor in product selection in the Canadian market and SpeakEasy expects to bring high quality products at extremely competitive pricing.
- Consumer Facing Brands – Over the last 3 years, our team has been developing multiple brands that take advantage of the robust products we expect to produce upon receipt of all applicable Health Canada licences and we’re excited to showcase them in the coming months.
- White Label – This offers us the second highest margin opportunity where SpeakEasy will both manufacturer and package the product onsite.
- B-to-B – Our focus with wholesale products is to manufacture raw material to a finished product like that of shatter or live resin to increase margin of the input material.
Geen further states, “We have spent months in discussions with multiple Province’s distribution companies and partners who are responsible for distribution for recreational and medical sales along with specialty groups like veterans affairs. Discussions have been very positive and the groups we have begun working with are like minded and enthusiastic about working together.”
HARVEST YIELD BREAKDOWN OF 72,000 KILOGRAMS
- Dried Flower yielded 11,400 kg and will be used for a multitude of products including flower as a finished product, pre-rolls, shatter, distillate and a range of value added products.
- Fresh Frozen flower yielded 13,861 kg and was harvested and immediately frozen to minus 30 degrees allowing preservation of volatile terpenes. This method of harvest allows for the creation of certain types of high value extracts only possible when made from fresh frozen material. SpeakEasy believes it has the largest single supply of fresh frozen flower in Canada.
- Biomass yielded 47,250 kg and will be used for bulk extraction, the cannabinoids gleaned from that process will be the input material for many value add products.
Founder, Marc Geen further states, “2020 has thrown many things at us, the latest was snow and freezing weather that broke all records in the area dating back to 1886 when they began keeping records here. Thankfully, we completed the harvest with 24 hours to spare. Every time I give updates, I can’t help but mention how important our incredible crew is to the success of our Company. With weather bearing down on us, everyone pulled together and got the crop off just in time, sparing us the troubles many others in the industry faced. A huge thank you to everyone. Throughout the harvest, smiles amongst the crew were always easy to find and it was obvious everyone felt proud of their contributions to this wildly successful season. SpeakEasy’s future is so bright, and everything is coming together at just the right time. I would like to take this opportunity to thank all of our shareholders, supporters and staff. We have all been through so much this year, here’s to 2021 being a break-out year for us all.”
About SpeakEasy Cannabis Club Ltd.
SpeakEasy Cannabis Club Ltd. holds a cultivation, processing and sales licence issued by Health Canada under the Cannabis Act. SpeakEasy owns 290 acres of land in Rock Creek, British Columbia, and leverages five generations of farming experience in B.C. as well as its favourable location to grow and process high-quality cannabis products at low cost. SpeakEasy cultivates small batch, high quality craft cannabis at scale in its 63,200 square foot indoor cannabis complex and has completed its harvest of its 60-acre outdoor field. Total yearly production of cannabis flower and biomass is projected to be in excess of 70,000 kilograms per year once in full production.
Forward Looking Statement
This news release contains statements that constitute “forward-looking statements.” Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause SpeakEasy’s actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur.
Forward-looking statements in this document include statements concerning SpeakEasy’s expectations concerning its first sales and the timing thereof; its expectations that concerning achieving full production and the timing thereof; and its intent to produce and sell high quality craft cannabis, and all other statements that are not statements of historical fact.
Although SpeakEasy believes the forward-looking information contained in this news release is reasonable based on information available on the date hereof, by their nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements.
Examples of such assumptions, risks and uncertainties include, without limitation, assumptions, risks and uncertainties associated with general economic conditions; COVID-19, adverse industry events; future legislative and regulatory developments involving cannabis; the Company’s ability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favorable terms; the cannabis and hemp industries and markets in Canada and generally; the demand for CBD distillate, cannabis and cannabis related products, the ability of SpeakEasy to implement its business strategies; competition; the ability of SpeakEasy to obtain and retain all applicable licences under the Cannabis Act and other assumptions, risks and uncertainties.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.
The Canadian Securities Exchange has not approved nor disapproved the contents of this news release.
SOURCE Speakeasy Cannabis Club Ltd.
For further information: please contact: Malcolm Davidson, CEO, [email protected], 1-604-218-9797