Canadian CANNAINVESTOR Magazine January 2018 | Page 144

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Spiro Sertsis: CCIM

Andreas G.: HVST

TSXV: HVST

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CCIM: We see you recently announced an Outdoor Growing Strategy with the purchase of 398 acres. Can you explain the thinking behind this?

HVST: Well essentially it is a strategic bet on regulatory changes in regard to outdoor cultivation in Canada. In November, the Federal Government announced potential changes to allow outdoor Cultivation and as a result we have implemented plans to ensure we are well positioned. This is something as a company we have been planning for, for several years now identifying the appropriate flowering strains as well as locating the ideal property for this project.

Canada only has a couple of locations that could potentially sustain outdoor growing and this BC property is located in a unique micro climate with similar characteristics to that of Northern California.

We have now set plans in motion to be ready for the 2019 growing season. There are some significant logistical factors to be considered with an operation of this scale but everything is very achievable. There is definitely risk involved but we feel it is a calculated one.

We intend to initially cultivate approximately 140 acres which has a production capacity of approximately 50,000kg p/a. with the lowest cost per gram in Canada.

If regulations change and we are successful, we believe this will be a complete game changer for the Canadian industry.

CCIM: With more Licenses being approved by Health Canada and a predicted supply shortage looming once the legal adult recreational markets comes into being, what is Harvest One’s key differentiating factor? And from an investor’s perspective – Why choose Harvest One?

HVST: Well, firstly in comparison to our peers we are relatively undervalued. Although we have seen significant movement in our Share Price recently we are still trading at a discount to similar sized LP’s.

However, following our recent announcements and the closing of our financing we now have a significant fully