CANNAINVESTOR Magazine U.S. Publicly Traded April / May 2019 | Page 198

rest of the team can be found on Westleaf’s website and other public domain presentations – I think you may be pleasantly surprised as you familiarize yourself with the team. Its team has hundreds of years of combined relevant experience including professional accreditation and represents a diverse field of expertise, experience, and communities.

Let’s unpack and summarize the wealth of information included not only in this case study but throughout this month’s content:

Westleaf is a vertically-integrated cannabis company with a presence across the value chain. The company states that the benefit of this approach is maximizing its margin potential, controlling the customer experience, and gathering valuable insights from retail that can be applied upstream to create cutting-edge products and experiences.

As mentioned, Canada’s cannabis industry is forecast to experience significant supply shortages for perhaps 18 months to two years – thus highlighting the importance of reliable quality in-house production. The CannaInvestor team predict increased demand pressures may fuel additional supply shortages when edibles and beverages become legal and available.

Owning cultivation and production of a high-quality supply necessary to avoid the bottlenecks and price premiums associated with guaranteed supply contracts from other LPs.

Westleaf has a large-scale indoor cultivation facility under construction in Saskatchewan (~ >14,600kg dry flower per year).

From our past content, you know that oils command higher margins then dry flower.Furthermore, edibles and beverages are also expected to command high margins and price stability – think of the price your favourite beer, pop, or chocolate bar and then think of the cost of its ingredients! Reliable state of the art industry leading extraction will be a key to success:

Westleaf has a 60,650 sq. ft. processing, extraction, and manufacturing facility currently under construction that was designed by a team of experts.

At the onset, Westleaf has stated it intends to focus on oils, tinctures and gel caps. Its’ product line will expand as new products become legal.

Supply shortages cannot persist forever and when that shifts to equilibrium or perhaps even a short term situation of oversupply, branding and customer loyalty will be essential to maintain and grow revenues and market share. Whether through premium quality products or the Prairie Records experience, it appears Westleaf is on track on this metric.

Perhaps one of the more impressive boards, management, and leadership teams I have seen with clearly defined roles and missions filled by a proven team.

Be assured there will be a follow up this case study once we have a few relevant quarters of financial information.

Is Westleaf ideal for consideration by the prepared investor? You decide.

Case studies are provided for discussion and educational purposes only as to raise awareness of key metrics that some investors may look at. Case studies are not financial, investment, or health advice of any kind. You and you alone are solely responsible to ensure the accuracy of all information, and for any decision you make.

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