We do believe there is big upside on the medicinal side. Its both the past and the future, which is to say we got to legalization in Canada because of the acceptance of cannabis as a medicinal product, and looking forward, as more research is done on the product we see a substantial upside both from a purely medicinal point of view, but also through nutraceutical products, such as infused creams and topicals for joint pain or infused sport drinks for recovery. We are preparing ourselves to be part of that growth market.
That is fair – cheers. So the obvious question … expansion plans eastward or are you concentrating on the Prairies?
Westleaf is pursuing retail distribution across Canada, with a disciplined strategy to only focus on premium real estate in densely populated, high traffic and resort areas. We are targeting 30 – 50 prospective locations to launch in 2019 and 2020 across Canada (subject to receipt of regulatory approvals). The Ontario market is a priority for us and we are fully committed to having a presence there. Currently, we have signed letter of intent with Ace Valley, a premium Ontario based cannabis brand.
Scott, what do you see as the greatest challenge in the short run facing the recreational market and since on the subject how are the current supply issues affecting you and your staff at the front line?
2019 is the year the Canadian cannabis industry operationalizes at scale and executes on its very ambitious growth plans. Not surprisingly, the industry has encountered a number of operational challenges that has resulted in significant delays in bringing production and distribution on line. It’s our expectation that through 2019, we will start to see the supply issues resolve and the quality and availability of product increase as companies complete large scale infrastructure projects and refine their execution. Westleaf has strong relationships in the sector, including partnerships with Tilray and VIVO, which provide access to a diverse portfolio of leading adult use cannabis brands and products for Prairie Records. Currently, we have one store open in Warman, Saskatchewan and have been able to satiate consumer demand through our supply agreements and industry relationships. We have plans to open two more locations in Saskatoon over the next two months, in addition to, our ecommerce platform which will serve the entire province of Saskatchewan.
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