(Image via RavenQuest BioMed)
The cannabis companies that are making it in the
resurging industry are playing it smart. It’s not about rushing to supply a market that’s still dealing with supply issues or creating products with unproven demand.
Instead, it’s about recognizing where the market is currently, where it’s going, and doing what you do well. If you have a healthy niche, capitalize on it. For companies like
RavenQuest BioMed Inc. (
CSE:RQB, OTC:RVVQF, Forum), that means leaning into its status as “Canada’s most technologically advanced LP.”
In a corporate update
released late yesterday, RavenQuest detailed the Company’s key business plans for the upcoming year. The short story: RavenQuest will continue to focus on revolutionary cannabis growing technology and a healthy consulting and tech sales division.
The long story, however, makes it clear that the Company understands what current cannabis market demands. While the Canadian industry comes to term with oversupply and the retail market starts to roll out, investors aren’t looking for LPs that are overdeveloping, they’re looking for a focus on cost reduction and profitability.
RavenQuest’s plan takes a profit-minded focus into account. By continuing to grow cannabis on a contract production basis but keeping the focus on better technology developments and client partnerships, the Company is working to improve its financials in the most prudent way possible.
The key, again, is replicating what has made RavenQuest stand out. The star of the show has been the Company’s Orbital Garden 2.0 cultivation system, which maximises the productivity of growing space and lighting by growing cannabis flowers in rotating suspension around a central light source. At the end of last year, the Company had 55 gardens operating, with additional capacity awaiting licensing from Health Canada.
(Image via RavenQuest BioMed)
Not only does using the system result in a decreased cost of production per gram, it does so by using less electricity, nutrients, and water than conventional greenhouse methods. Recently, RavenQuest has also been testing more efficient LED lights in the Orbital Garden systems, and the release details that the results so far are “better than forecasted.”
Additionally, the Company works on discovering and implementing new technologies that it can use itself and relay to clients. Its SACT (Semi-Autonomous Cultivation Technology) platform for controlling plant growth is able to control everything from lighting to fertigation and climate control so well, that it reduces staff requirements and the amount of necessary feeding cycles (reducing cost per gram even further).
On Jan. 14, RavenQuest further expanded its tech portfolio after announcing it had
entered into a definitive agreement for the acquisition of
DigiGro Software Inc. The private company’s DigiGro platform provides plant growers with access to cultivation information directly from vendors of supplies, allowing for RavenQuest to generate vendor-to-consumer sales and take a percentage of sale as revenue akin to SkipTheDishes or Airbnb.
And while RavenQuest has been establishing itself as one of the cannabis industry’s key technology players, it has also been establishing itself as a cannabis consulting success. The division has quietly developed over a seven-year history into a team that has helped many LP clients reach cultivation or licensing, with end-to-end consulting and sales on growing and drying technologies, patient and genetic management systems, and security.
If you’re doubtful, look no further than Oct. 23, 2019, when RavenQuest’s client
Bonify became the first ever company to have a Health Canada cannabis
license suspension lifted and sales license fully reinstated. Restoring confidence with Health Canada is no easy feat, and it solidified RavenQuest’s position as an industry leader in consulting cannabis companies. Again, the Company recognized this in its recent corporate update, stating that it has been ramping up its cannabis consulting business in 2020 to drive additional revenue.
As above, it also goes without saying that the Company will use its status as a top-tier LP to grow its cannabis sales where the market allows. RavenQuest is not only licensed to sell cannabis in Canada and work towards existing supply partnerships in the market, it also has access to the international stage through a permit export to Australia, and on Nov. 12 announced its
first completed shipment to the country.
Almost a month into the new year, cannabis experts have painted a clear picture for the Canadian industry of continued growth and likely consolidation. New products and stores being rolled out are boosting sales, but the industry needs to focus on what’s working. By focusing on their significant advantages and tracking towards profitability, RavenQuest BioMed is doing exactly that.
(Video via RavenQuest BioMed)
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.