Canada’s ONLY Prohibition-Era Craft Cannabis Brand House

By now, practically all investors and the general public know that one of the biggest problems with legal cannabis in Canada is the supply. There’s nowhere near enough of it.

As part of the Cannabis Act, legal supply is distributed by each of the ten provinces and territories in Canada. From bureaucratic bungling and red tape, poor distribution preparation, cultivation mismanagement from the big cannabis producers, and the dozens of other ill-timed missteps… it’s all led to the shortages consumers face today.

Due in part to this massive supply imbalance, approximately 90% of the cannabis Canadians are consuming is still coming from the illicit market. Health Canada’s solution to this problem is the new licence category and program for small producers designed to bring former illicit growers and smaller players into the new, legal cannabis market. As of late 2018, small “craft” cultivation facilities will now be eligible for a unique type of licence called a ‘Micro-Cultivation Licence’.

This is the game-changer retailers and consumers have been waiting for, and it’s a clear alternative to Big Cannabis.

One such company that has read the tea leaves is Pasha Brands Ltd. (C.CRFT, Forum) – Canada’s only prohibition-era cannabis brand house. This vertically-integrated, CSE-listed company boasts a strong, established cultivation network, brand, and retail footprint across British Columbia and beyond. In just the last six months, Pasha has already raised approximately $20 million in private equity.

Pasha’s objectives to become the number-one global craft cannabis brand are clear, simple, and bold. The business model centres around its scalable plan to build awareness of Pasha and its brands, to build excitement in Pasha as an investment opportunity, and to increase sales of Pasha products.

One of the major components of the Company’s business model is how it efficiently and effectively works as a facilitator to BC’s established collective of thousands of craft producers.

However, this in no boutique operation. The potential numbers in revenue, when dealing with such a large collective of craft cultivators, are projected to meet or exceed those of the major market cannabis players. And the math required to achieve these high revenue projections is simple – for every 100 micro-suppliers in its supply chain, the Company could generate approximately 50,000 kilograms of craft cannabis. At a retail price of approximately $7.50 per gram, Pasha could generate revenue of $375,000,000 per 100 micro suppliers.


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Pasha brands itself as a “prohibition-era brand house”, historically entrenched in BC’s craft cannabis industry and forging a strong relationship with many of the legendary brands and growers that have given the region its international reputation for world-class cannabis. And here’s what truly makes them different – Pasha is Canada’s only authentic brand house offering innovative brand identities with several internationally-recognized brands and a proven history in all aspects of the cannabis industry.

Market research and the recent news cycle have illustrated that corporate cannabis is underwhelming in a variety of ways – taste, quality, effect, and supply – and as a result, longstanding cannabis consumers are refusing to buy into corporate cannabis. Along with this, further research has clearly indicated that this very large consumer base is still sticking with the growers and dealers who got them high prior to legalization.


‘Go Big, Stay Small’ with BC Craft Supply

Pasha will own a Health Canada-approved licensed production and processing facility on Vancouver Island, where it will assist in licensing select craft growers and make high-quality, world-famous BC cannabis available to consumers on a global scale.

As part of the Pasha Brands family, BC Craft Supply Co. has partnered with BC’s best craft cannabis growers, manufacturers, and retailers to help small businesses stay competitive in the new legal market. This Pasha cornerstone company says they’re “passionate about supporting craft growers, assisting their transition into the market, and getting quality cannabis to consumers at the best possible price.”

Pasha forecasts that the average craft cannabis producer will generate approximately 500 kilograms of flower per year with expected prices ranges from $3,000 to $6,000 per kilogram, resulting in approximately $2,500,000 in annual revenue.

By creating a network of like-minded craft growers, these revenue estimates compare favourably to those of the high-cap, low-quality mega producers.


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The Brands

BC’s growers have a well-earned reputation for being passionate about their craft, drawing on decades of cultivation experience and an almost-fanatical devotion to “producing world-class bud.”

Always one to seize an opportunity, Pasha Brands has organized and facilitated a vast network of renowned prohibition-era cannabis cultivators, producers, and retailers to soon offer both medical patients and retail consumers the best quality BC cannabis available anywhere.


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Since the legal cannabis industry in Canada is still in its infancy, investors are looking to companies with an established foothold in all aspects of the market – in this case, established BC grassroots craft growers who understand how to cultivate the finest bud in the world.

Patrick Brauckmann, Pasha Brands’ Executive Chairman, is a veteran of capital markets financing having previously co-founded Healthworks — Canada’s first multi-disciplinary medical facilities. Brauckmann is also the co-creator of Chopra Yoga Studios and the founder of Corazon Gold Corp. Most recently, he has advised and financed Canadian cannabis producers, Abcann Medicinals and Doja Cannabis, while also sitting as a Founding Board Member of Doja. With that said, to say that Brauckmann brings a lot to the table when it comes to the cannabis industry would be a vast understatement.

In conversation with Stockhouse Editorial, Brauckmann explained how his prior experiences in the prohibition-era cannabis sector helped him and his team develop this one-of-a-kind business model and what really differentiates Pasha and BC Craft Supply Co. from the big cannabis giants:

“While others in the industry are prohibitionist minded – they’re very competitive once they get their licence, but they don’t want anyone else to get a licence – we are pro-cannabis. We are pro-industry, pro-people, and pro-planet. From my perspective as a West Coast guy – I smoked my first joint in Grade Seven when I was on the soccer field – I’ve never had any bad associations with cannabis. I’m a high-functioning guy, father of four, and it doesn’t affect my life in a negative way. West Coast people understand cannabis in a different way than the rest of the country.”

Brauckmann went further to tell the story of the significance behind the Pasha name and how it completely ties in with their disruptive, yet holistic, corporate philosophy: “More than a network. We’re a family”:

“Pasha was the title given to one of the leaders of history’s first non-violent movements that started in Egypt and actually brought the British Empire to their knees and got them out of Egypt in the early 1900’s without firing a single shot. And that, for me, represents what the cannabis movement is all about. It was a non-violent movement to bring about change. And the reason the Cannabis Act is in place today is because of those people. It isn’t because of Bill Blair and Justin Trudeau; they’re simply responding to Canadians’ constant pressure over the last few decades to change an oppressive set of laws that marginalized people and suppressed the truth.”

From first movement to first-movers, Pasha’s namesake echoes the same force of positive disruption. With that, Pasha is uniquely positioned in the new legal market to capitalize on their first-mover status with their growing network of craft cannabis suppliers. From production facilities on Vancouver Island, BC Craft Supply Co. will facilitate craft growers in obtaining security clearance and licensing to grow as micro-cultivators, specializing in education and compliance to bring growers into the regulated cannabis supply market. If everything hasn’t been impressive enough, Pasha also has a proven history in cannabis cultivation, genetic research and development, product processing, and retail, which again reiterates what a force Pasha is in the craft cannabis industry.

The Pasha business model and brands portfolio really comes down to this – a massive facilitator of high-quality, Canadian craft cannabis. The Company itself operates as an umbrella group that is taking niche cannabis companies out of the grey market, shielding them from the troublesome hassles of regulation, and, in turn, giving these brands the freedom to do what they do best which is producing low-overhead, high-quality cannabis products.

What we’re talking about here is basically the craft beer model – cottage level producers cooperatively competing on quality – not volume – selling handcrafted experiences instead of cookie-cutter commodities. The margins on craft products are much better than industry standard, as consumers are willing to pay premium prices for premium products. Pasha provides the scale and the experienced growers can maintain their craft quality and the status that follows.

Also, in partnership with BC Craft Supply is Molecular Science Corp. and their very sophisticated, state-of-the-art MSC Mobile Lab.

This 18-wheel lab provides enterprise and craft-level licensed producers and licensed oil processors the tools and service they require to succeed through Health Canada’s quality compliance, all with the convenience of onsite service. The Mobile Lab platform, which has been connecting with craft growers across British Columbia, offers the technology, tools, and know-how for all cultivators’ testing requirements.


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Turning the Grey Market into a Blue-Sky Opportunity

According to an April 10, 2019 article in the Vancouver Sun, “BC’s robust illicit market, especially ‘grey-market’ dispensaries, and a strong homegrown culture helps explain why we think British Columbia may not index exactly (in line with its share of Canada’s population),” This statement comes from Tom Adams, Managing Director & Principal Analyst with Colorado-based BDS Analytics, which conducted the research in conjunction with California-based cannabis investment and market research company, Arcview.

His sentiments are completely on point with Pasha’s philosophy of transitioning the formerly labelled ‘illicit market’ into a highly respectable, robust, and high-return retail business model throughout the entire province of British Columbia.


Meet the Team

As Pasha Brands launches its multi-tiered, highly scalable business vehicle, the Company boasts an experienced, forward-thinking management team with an established track record in the legal cannabis space and especially with Brauckmann at the helm.


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For Investors

Pasha Brands Ltd. is a Canadian company established in British Columbia’s longstanding craft cannabis industry and all of the related brands, with interests in the licensed production and distribution of cannabis and cannabis-related products. In addition to its own portfolio of brands, Pasha has significant associations within the grassroots cannabis industry in BC, including leading craft brands and producers. Post-legalization, Pasha Brands anticipates that Canadian cannabis patients and enthusiasts will expect access to many of the same brands they currently enjoy in the unregulated market.


In Closing

For savvy investors looking for a compelling small cap investment opportunity with a vertically integrated, well-financed cannabis presence, this grassroots BC company looks like a very enlightened play.


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FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.