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GLFI: When we were awarded a Nevada cultivation license me and my senior advisors looked closely at the marijuana industry, both medical and recreational. Three things were quickly apparent. The first was that this is going to be a rapidly growing and very large industry. The second is that extensive governmental control, especially due to regulation and taxation, is going to create a very difficult operating environment and is going to greatly limit profitability. The third is that it is going to be extremely competitive and, like always, the pioneers are going to be the ones ‘with arrows in their backs’. Like every similar industry very few of the early product innovators, especially those selling end products to consumers will survive. The big winners will be the large pharmaceutical, health, beauty, and consumer product companies with established brand names and distribution.
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CIM: So, what does that have to do with Argentina?
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GLFI: Glad you asked. There was a fourth thing we also concluded. That was that the market has such huge potential it will be a very short time until the major players enter the market. And, at that time cannabinoid compounds will become commodity products. That is, the large companies that will be quickly entering the market will require large quantities of high quality, reasonably priced raw materials, much greater than can be grown in relatively small, highly regulated and highly taxed greenhouses. We concluded to use our U.S. cultivation licenses to gain experience and knowledge of the industry but to put our primary focus on the next generation of the cannabis industry… positioning ourselves to be a dominant commodity supplier of high quality, low cost cannabis compounds. That is what led us to Jujuy Province, Argentina.
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