Its that time again boys and Rad10. In light of the news today I figured id give us a little rundown. In this article you'll find news on Scuffraifs class action suit, the greenhouse, and the international markets. Lets dive in.
So the greenhouse just received its EU-GACP compliance did it, but what does that mean? European Union Good Agricultural and Collection Practices is a designation required to grow, produce, package, and sell API's, medicinal plants / herbal substances. Here's a few points on what that means;
BUILDING AND FACILITIES
-Buildings used in the processing of harvested medicinal plants/herbal substances must be clean, as well as thoroughly aerated and must never be used for housing livestock.
-Buildings must provide adequate protection for the harvested medicinal plants/herbal substances against birds, insects, rodents and domestic animals. In all storage and processing areas suitable pest control measures such as baits and electric insect killing machines must be operated and maintained by professionally qualified staff or contractors.
-It is recommended that the packaged medicinal plant/herbal substance be stored: - in buildings with concrete or similar easy to clean floors, - on pallets, - with a sufficient distance from the wall, - well separated from other herbal substances to avoid cross-contamination. Organic products must be stored separately.
-Buildings where plant processing is carried out must have changing facilities as well as toilets including hand-washing facilities, according to regional and/or national regulations.
Okay... So we know there arent any rodents in the building. Sorry Rad. But this is just the tip of the iceberg. I wont bore you with the plethora of other stringent rules and regulations regarding equipment, cultivation, processing, packaging, storage, ect. but only to say that the certification is basically a playbook on advanced quality control.
As most of us know, the EU is primed to grow its medicinal cannabis markets in a big way in the coming years. Heck, the UN's stance change on the topic will open many a door worldwide in my opinion. These countries will need supply, and I dont see VC's funding the startups like they did in the Canadian market again. Why deploy billions in capital to grow domestically when you have more than enough quality supply coming out of the Canadian market?
Aside from the more prominant players such as Germany, Aleafia eludes to the fact that this opens the door to Israel. The promise land if you will. EU-GCAP allows us to begin shipments to them, followed by the EU once we secure EU-GMP status for drying and processing. Israels demand for cannabis isnt something to be brushed off, players like Aurora, Aphria, Cronos, and Organigram already have deals with that market, and they are one of the few countries that allowed cannabis research (to a degree) through the prohibition years. A quick google search will show you headlines like, $300 million dollar deal, $76 million dollar deal, 4,000kg supply agreement, ect. Now the country only boasts a population of 8,655,535, but 10% of that are people 65+, with the median population being 30 years old. The population is growing 2% year over year, so its safe to say that it is comparable to Quebec in terms of size, or 2x the size of Alberta.
Thats a nice feather in the ol' international markets cap, and another venue we can offload product while the rest of the world catches up. In my view, this is part of securing more sales for our greenhouse product, while the indoor is earmarked for domestic medicinal patients, and the outdoor as flower / bulk feed for our adult use brands, along with 2.0 products on both sides of the market.
I like the way things are shaping up, and we're finally to the point where we can see the growth come to fruition.
In other news, Granny10's counter suit to Scuffy's original claim is starting to build momentum. Currently, there are several investors with at least $10.00 or more taking part in the claim. Jimmy is representing both parties, and talks are underway.
Stay tuned