threefiftynine wrote:
On March 6th at 12:30pm I was given a personal invitation from Zeeshan Saeed to check out the FSD Pharma Facility. Zeeshan Saeed is one of the directors of FSD Pharma and also one of the original founders of the company. I couldnt previously attend other tours so was happy to have been invited by him for a private tour to showcase us the 220,000 sq. ft. expansion. The main purpose for me was too to update the FSD Pharma investors like myself on the facebook group that I created. I also invited Jake Macken, Dave Coms, and Austin Curtis to partake in this tour as well. This review is written by all 4 of us since 4 brains and ears and eyes are better at remembering things then one person. FSD had many staff members on site with multiple security guards and the grow teams working there in full swing. The staff had a motivated and proud look to them and when you talked to them they seemed excited to be there they had a sense of pride in building and being part of a world class company with HUGE vision. FSD Pharma without a doubt is building an everything cannabis incubator. This world class facility, once a well-oiled machine has sat dormant for the last decade so I can understand the harsh scrutiny from the general public about structural insufficiencies however they have resolved and fixed all the important parts and FSD is ready to reignite life and create a new world class cannabis facility since the former Kraft Plant days. New construction partners were present throughout the day going over plans; this project seems to be under constant assessment. When we arrived the team was just finishing a board meeting and we were asked to wait patiently as there was a number of what looked to be investors and dealmakers waiting to speak with Raza Bokhari and Zeeshan Saeed. The 25,000 sq. ft. build out has 10 rooms currently built. We saw 7 rooms currently being populated and growing in various stages including being cleaned after harvest. FSD had 2 harvests that were just completed and stored in the vault. 2 grow rooms have flowering plants, 2 grow rooms have vegetative plants, 1 grow room has infancy plants, 2 grow rooms have been harvested and cleaned to be reused for growing and repopulation, Canntab is in grow room 6 for the pills manufacturing, 1 room is used for waste/disposal, 1 room is used for drying/curing cannabis and there is also a vault but we didnt have access to that area and didnt see it. We were allowed to enter into grow room #5 unfortunately due to Non-Disclosure Agreements that people have to sign before entering the rooms we cant talk about strain names and other technical details; we were NOT allowed to take close-up live plant pictures in the actual grow facility portion while we were in the grow room due to Health Canada regulations as well as protecting the companies procedural rules. However, the rooms looked amazing and most importantly smelled great. We had to wear special clothing and protective layers including hand sanitation to make sure our body did not contaminate any part of the growing operation. There was the 3 of us in the grow room, we had to take turns entering and exiting one at a time with 3 second window between opening and closing the grow room. Along with special ID passes and full body protective clothing. This was part of the security protocols Health Canada gives to licensed producers we were honoured to have been given the chance to see it in person. It felt as if we entered a bank vault with the security measures in place. We had to wear protective shoe barriers as well so our shoes were protected against outputting any contamination head wear and gloves and full body suit. I remember seeing on Instagram a picture of marc emery at the Beleave facility before too so thought it was definitely a rare chance to be given the privilege to experience something similar along with David coms, Austin & Jake. Urban Remo / Remo Nutrients had visited the WeedMD facility before as well based on YouTube video so Im proud to have been given a privilege to see FSD grow rooms in person and will forever be a memorable moment and we can say we have been part of history seeing the facility before its fully built out. We can confirm there are 5 strains growing in the facility now. Also 4-5 harvests per year per room. Each harvested and cured cycle is placed into the vault after its properly cured. The last step is processing again, which is placed into health Canada approved storage containers until they are ready to be placed into the commercial child proof bottles. We got to meet some staff at FSD, they showed us the demo child proof blank containers where the end product would be sold commercially as the last step in the branding process. We included a picture of those blank containers so you can see how plain it looked before its labelled and branded. FSD is now processing and branding the strains into their designated containers which will have excise stamps on. We didn't actually see the finished branded product just the empty bottle sample containers in which the finished product would be expected to be placed into. These blank bottles will be packaged professionally ready for commercial distribution to show health Canada that they can handle the manufacturing and processing aspect which is required for pre-sales license inspection to demonstrate their processing method. We asked management about the expansion process in regards to the prior Auxly funded portion. FSD is currently in discussions with many construction companies but the prior progress can be seen in the pictures attached to this review. They won't comment anything regarding auxly due to past NDA agreements which they are honoring, I tried my best to get answers but they were honorable and didnt talk about anything related to Auxly besides showing the 220,000 expansion. The only comment they could make is to show us the previous work that was started as reflected in the pictures and video that we shared. The buildout space will now be utilized by FSD Pharma and is no longer shared with Auxly. Going forward we would like to wish Auxly & Auxly investors good luck with their future business endeavours and mean no ill judgement for their shareholders or business plan. There has been friction between both sides of investors which we hope going forward both sides can be at peace and move on its just business and in life sometimes fate ends up going different directions. We asked management about the funding of the expansion and have been informed that currently they have secured enough funding for 70,000 sq ft with no debt. FSD currently owns assets that can be liquidated at a value of 25 million dollars along with leveraging the value of the FSD property currently valued at 105 million to help finance more expansion if needed. A thought to keep in mind, as the expansions continue to progress the revenue will start to accumulate with completion of more harvests as time passes. This will ultimately contribute to funding of future expansions. Right now we don't know which contractors will continue the build; we have to wait for them to figure that out. Once they have something solid they will let us know. FSD is in talks with 5 different contractors to finish the 220,000 sq. ft. expansion. They can finish the 70,000 sq. ft. immediately after securing the contractor workforce. Once they secure the contractors, they will immediately finish the buildout expansion with 70,000 sq. ft. first then continue the rest of the 150,000 that's left with the long term goal of eventually finishing over 3,000,000 sq. ft. at full capacity. They also have the option to raise funds, work with other partners to finish it, or they have the option of doing it all themselves. Once a solid plan is set in stone, we should receive corporate updates from FSD; until then we have to be patient. Canntab room has been setup in room 6 you can see it in the video feed, we didn't go in all the grow rooms only in grow room #5. Richard Goldstein I believe also stated they are in grow room 6 in the last midas letter show and are basically ready to go. We met the CEO of World Class Extractions Michael McCombie and CFO of WCE Donal Carroll at the facility. We were also greeted by Zeeshan Saeed, Raza Bokhari, and Sandy Huard from FSD as well. There were many FSD staff on site running around and doing their jobs; they all had a passionate look in their eyes and looked proud to be working there. There is no sugar coating in our review, it will take time to secure the contractors to finish the expansion because they have to negotiate with the contractors on all aspects of the expansion buildout. FSD wants to pick a solid winning team of professional contractors to ensure solid progress. There are people there every week meeting and discussing things on all aspects of the business. There are intricate things that are happening behind the scenes along with the eventuality of the sales license being issued within the near future; the details and aspects however are secretive as per Health Canada regulations. We were not given any timelines or details and once they figure out something solid they would let us know officially through news releases. The pre-sales license inspection completion will remain a mystery until they pass it. Health Canada regulations are uptight and secretive; they don't allow advertisements to entice people due to the cannabis act resulting in little to no detail on when they do the pre-sales license inspection. We feel that FSD has Apple and Tesla mindset now and it seems they will only produce news when there is something solid to share. They will not quote us on estimated timelines for construction or license predictions but we will know when it happens. Once the pre-sales license inspection happens we could get a news release saying FSD has passed as an example. In other words, we wont know the schedule of the pre-sales license inspection until its complete and officially announced. People wanted to know when it will happen nobody from FSD quoted us timelines for construction or sales license. The sales license should be around the corner though and FSD should be able to start making profits in the 2nd quarter of 2019 after they get the sales license assuming they pass the presales license inspection. The sales license is imminent however and hopefully we get it soon. The construction will take time but it will be finished sometime in 2019 the whole 220,000 sq. ft. expansion. The 25,000 sq. ft. is utilizing all rooms in various stages of plant growth and are being planted to expand the plant population as seen in the pictures we have posted. Plants are repopulated each time they are harvested with 2 recent harvests we saw two completed rooms with only equipment as they clean and get ready to repopulate the other rooms once harvest is complete. Once FSD secures the contractors and a way forward they will update us through a corporate update. There were a bunch of cars in the parking lot today maybe around 45 cars if we had to guess. After FSD gets the sales license they can start turning over profits and sell the medication to patients commercially. NYSE is still part of the plan and on the radar, a share consolidation is possible if needed and of course only if it will be backed by institutional funding. We believe we can learn more about this once FSD gets the sales license since that could be a major catalyst in driving institutional investors towards FSD Pharma. Health Canada has granted FSD Pharma with both the cultivation and processing license meaning they have met the criteria to obtain and utilize the licenses and process more than 600kg of cannabis as it becomes available from harvest to harvest. Both the cultivation and processing licenses are stepping stones to obtain the final sales license which again expresses the idea that the sales license is coming soon. Canntab along with WCE had equipment within the FSD Facility which is illustrated in the pictures attached to this review and furthermore canntab has begun to set up their equipment in room 6 which is sterilized which we didnt have access too. Another point to note is the structural integrity of the facility the roof had a few areas that needed fixing and were now fixed upon our visit. There were some small leaks prior to our visit that have been completely resolved. There were rumours that there is mold at the facility that is false. The facility is in the greatest shape it has been and is ready to complete the expansion pending the contractors. One cool feature FSD has are railroad tracks leading into the facility, this could be a major future catalyst in transportation methods for shipping and receiving. No other LP has railroad tracks that connects into the facility from our current research and understanding. Another cool feature is a water pump station just outside of the facility, we will attach pictures along with the power generation station close by. There is enough juice for electricity and water to feed and create the largest indoor hydroponic facility in the world at capacity. Austin got a chance to walk through one of the lanes of the plants in grow room #5 to inspect the plants closely. There was no mold, no bugs, all were extremely healthy and hydrated. Austin Kept saying as soon as we get sales license that we would all be happy and laughing. After inspecting the plants closely it was obvious that FSD staff are highly skilled and are able to grow quality cannabis visually and have strong terpene profile. The plants all looked healthy with correct nutrients and light exposure occurring regularly. Environmental factors are dialed in nicely along with the indoor hydroponic system being operational supplying nutrient uptake and hydration to the plants. Each room is organized and has a drawing board before entering the room with information about the room. When asking management about Solarvest they confirmed their excitement about the opportunity within the technology of algal expression technology in developing pharma grade cannabinoids. No other comments were made in regards to Solarvest, as the initial 30 day deadline has now passed with FSD Pharma having the right to extend the deadline by 60 days; we will have to wait to see the outcome of the LOI although we are optimistic. The focus and vision of FSD Pharma management is clear, to steer the company positively while trying to build shareholder value both short and long term. FSD is here to stay. The Facility is not empty they are utilizing the 25,000 sq ft of grow space. The 220,000 expansion once they figure out the contractors it will be completed as quickly as possible with a lot of building materials on the floor waiting to be used. Overall, FSD will continue to keep harvesting and processing their brand based on the 5 cannabis strains they are growing and will be ready to sell on a commercial level once they get their sales license. We have a feeling they could have some major data assets and patient lists and distribution partners that could be announced in the near future as they pivot towards medical cannabis. Construction will resume as soon as they find capable construction team that can handle a $50 Million dollar expansion with skillful deployment which should not take much longer to organize. FSD has a 5 year hemp deal to buy and process hemp CBD. World Class Extractions is actively engaged in talks with multiple hemp producers as well. Therefore, FSD and Canntab will have access to the raw materials needed to create their products. World class extractions will play a key role in the success of FSDs overall goal of becoming an all things cannabis incubator, especially when it comes to future edibles and beverage manufacturing. David Coms wanted to add inFSD Pharma I see as the spirit of Canadian Cannabis. As we all witnessed the excitement in the markets when de-prohibition and the federal legalization across Canada happened October 17th 2018. However the excitement has since worn off the bullish bubbles of the public markets. FSD PHARMA stands solid with no debt and cash. Exhausted by micro-setbacks with HC and eager to revive investors confidence. It seemed they were in midst of regenerating activity with construction plans, while fine tuning old ones. I find the management to be wise for their bold pursuit without Auxly to accomplish their objectives at any cost. The ability to raise money and forge powerful partnerships should not be underestimated by this group who i feel see this as a personal legacy. Pre-Inspection, Sales License. M&A, NYSE. Please remember we don't work for FSD Pharma this is our own interpretation of what's going on. Always ask your licensed financial advisor for advice since we are not professionals. We hoped to give everyone an honest review on the progress as it's been roughly 1 month since the termination of Auxly. FSD needs additional time to finish the buildout which they are 100% dedicated in doing. So far, besides all the walls that you see and hanging suspension grids throughout the 220,000 space is sitting idle waiting to be worked on. FSD fixed all structural issues including some minor roof holes, piping below facility (6-13ft), all the issues that they could find and upgraded a bunch of things to create a functional facility that is ready for the new construction crew to take over. Now all we need is time and patience and let FSD do their thing thank you for taking the time to read it and hope everyone gets a feeling where FSD is at right now. We hope we understood what we saw and hopefully didnt make mistakes in this report as there's a chance we didn't interpret what was said to us properly but we tried our best to remember all the details to present an honest review. We hope you enjoyed our review tomorrow we will start compiling everyone's questions for Anthony Durkacz next Q&A we don't have a set date yet but will begin compiling everyone's questions once more. P.S. Do I think FSD will be successful? Yes I do 100% but it will take time everyone make their own strategy and decisions going forward we will never tell anyone to buy or sell and are solely giving our opinion based on what we saw, on behalf of David Coms , Jake Macken, Austin Curtis and myself David Rosenberg have a great day
Amazing post thank you for that I am really excited about this company and the hell with the Bashers.