CANNAINVESTOR Magazine U.S. Publicly Traded August 2018 | Page 81

Focusing on Cost

It’s no secret that the increased production and availability of a product generally creates competition in pricing. Anyone who has ever paid for staples or pens with only a little pocket change is familiar with notion that hyper-availability can affect a product’s price. And while recreational cannabis in Canada will likely never be produced with the same kind of intensity as something like a BIC pen, production and availability of cannabis will very likely reach levels that will begin to affect price. Both Washington State and Denver experienced cannabis price reductions when they legalized marijuana and the reductions were so significant in Washington that it’s a wonder that anyone there has been able to stay in business. When marijuana was first legalized in Washington State in 2014, cannabis cost approximately $20/gram. As of last year, the price was around $5.00/gram. Licensed growers need a way to keep their costs down to stay competitive and propagation is how they’re going to be able to do it.

When PUF starts to provide growers with flower ready plants, those growers can eliminate the space required for seedlings and cloning, increase the space they use for growing, cut down on the number of specialized personnel they employ to nurture the plants, and even reduce or entirely eliminate plant failure rates. Propagated plants are, for the most part, a known quantity, and caring for them is a more straightforward and risk free proposition.

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