He notes that supply will be critical to the industry over the short run, probably through 2019.
“We initially saw stocks that were exploding just on an announcement of construction of a cultivation facility,” he says. “We’re now realizing that it isn’t only about crop yield. Over the long term, it’s about lowering production costs and developing efficient extraction and processing methodologies. It’s also about developing consumer products focused on the retail market, because the higher margins and potential will be there, not in flower. We’re particularly strong on beverages and cosmetics derived from cannabis, infused with either CBD or THC.”
CVG is already preparing a 40,000-square-foot growing facility in Brantford, Ont., to produce pharmaceutical-grade cannabis, employing experienced contractors with extensive experience in the pharmaceutical and medical cannabis space. Initially, about half the facility will be outfitted with state-of-the-art LED lighting, HVAC systems and automation technologies to optimize the quality, safety and consistency of cannabis production. About 4,000 square feet will be devoted to an extraction laboratory, which will feature an ultra-efficient CO2 supercritical extraction process.
Building a talented team is paramount. The company has already secured two Master Growers with cannabis-industry experience to manage indoor grow operations. CVG has also retained an extraction expert from the mature Washington state cannabis sector, who has amassed significant expertise in developing and launching new products.