CANNAINVESTOR Magazine U.S. Publicly Traded January 2019 | Page 148

Ok … let’s get right at the “Elephant” in the room. There are many who believe that the dry flower will become a commodity as it has in some other jurisdictions. We at CCIM believe that is certainly a possibility but ongoing supply shortages defer that scenario for at least a year and possibly longer … plus the licensing system does, to a degree, impose some supply management to the industry.

There are those who believe that the dry flower will become the domain of the niche, micro, and craft growers whereas oils and mass production of some dry strains will become the market for what we think of as “Licensed Producers”. What are your thoughts on this …?

Some producers will be known for specializing strains which will be unique to that producer that wants to develop their niche in the industry, very common in craft growing. While FSD pharma’s end goal is large scale dry flower production as it’s the main ingredient required to make dozens of cannabis derivate consumer products recreation or medical. The list of end products is HUGE! CBD body creams, edibles of several different types of food (gummies, cookies, brownies etc..), vaporizer cartridges, liquid forms of consumption, tinctures, medical pharmaceutical applications, tablets, capsules and more. Regardless of what derivative product you make, they all first begin with dried flower. Our facility being all indoor cultivation will have an advantage compared to Greenhouse grown as it can’t guarantee consistency every harvest. Consistency Is a must when producing medical cannabis applications. Every time someone purchases Tylenol anywhere in the world it’s the same consistent pill, same will go for medical cannabis.

market potential in that province alone. FSD Pharma has positioned itself well for the upcoming years of demand in Canada and globally by aiming to be the largest indoor hydroponic facility in the world.

Interesting and appreciated … this is why it is best to talk with industry leaders such as yourself and why we tell investors why this is critical and to not make decisions based on some opinion piece appearing from a less than reliable sources such as hobbyists using subreddit.

In an article written this summer, Louis Kyron put forth a theory that the legalization of the recreational market would in fact cause an increase in medical patients … people who were reluctant to have that conversation with their medical team previously would now feel comfortable doing so once legalized and similarly medical professionals may feel less apprehensive about recommending medical cannabis once it was “officially” legal. As we know, he was pretty much alone there with most predicting the medical stream would erode. Recent news on this along with discussing directly with LPs suggests in fact Louis was right with LPs reporting substantial patient growth.

From FSD’s perspective first and then from an Investor’s perspective, why is that significant – a strong healthy growing medical stream side by side with a strong growing healthy recreational stream?

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