Rock Creek, British Columbia--(Newsfile Corp. - March 3, 2021) - SpeakEasy Cannabis Club Ltd. (CSE: EASY) (FSE: 39H) (the "Company" or "SpeakEasy") a holder of a federal licence to cultivate, process and sell cannabis under the Cannabis Act, has provided a review of the Company's achievements for 2020 and outlook for 2021.
All flower produced at SpeakEasy's indoor grow facility from the fall of 2020 to date has been sold and has been well received by the market. In addition, all material currently growing has been spoken for in the foreseeable future.
Founder, Marc Geen states, "produce a product people want, make it the best product possible, offer it at fair prices and customers will be lining up to buy it. We have been saying that for years and we have finally put those words to the test and have achieved great results. Our flower has been selling in British Columbia and Alberta and has created quite a stir, reorders and commitments to everything we can produce being the result. Receiving glowing reviews back from customers is an incredibly satisfying experience, it's acknowledgement that everything we've worked so hard for has come together resulting in satisfied customers."
SpeakEasy sells out of its indoor craft flower
SpeakEasy has received purchase orders and shipped over 310,000 grams of product as of today's date, representing a significant portion of the flower produced in our indoor facility. In addition, as a result of the quality of the flower that SpeakEasy has produced, all of the flower SpeakEasy can produce for the foreseeable future has been spoken for. Currently being distributed and sold in British Columbia and Alberta, with the expectation of entering into the Ontario market in the near future, SpeakEasy's flower has been well received. Sales of flower to this point have been wholesale, business to business, however, with the amendment to our licence, sales may be made directly to the provinces at a higher price.
Experience and strategy demonstrate high quality, price point and demand
Demand for high quality flower in the Canadian market has never been stronger and with more cannabis retail stores opening across the country increasing availability, Management believes that demand will continue to grow. Supply of flower in the market is high, however, it is filled predominantly with mid to low quality product grown in commercial greenhouses. Consumers in Canada, as we have seen in every other legal market in North America, expect and demand high quality products. Experience, genetics and purpose-built indoor grow facilities are the only way to produce the highest quality that consumers demand.
We believe that SpeakEasy grows some of the best flower in the industry today because it has stuck to its fundamentals from the beginning. The Company is working to complete its over 60,000 square feet of purpose-built indoor grow facilities that will be capable of producing over 2,000 pounds per month. Compared to greenhouses that can grow mid-level quality product at best, SpeakEasy has focused on the highest quality flower production that can only be accomplished in a controlled environment of an indoor facility.
Founder, Marc Geen further states, "high THC, high terpenes, high quality…do all that with genetics that people want or don't even bother, there is no room in this industry for average."
Scaling indoor craft cultivation for demand
SpeakEasy expects to be registered in Saskatchewan within the next couple weeks and will then be able to begin sales directly to the recreational market in that Province. In addition, applications to BC, Alberta and Quebec control boards have been initiated, which will allow the Company to commence moving product directly into the retail space in those Provinces. Purchase orders are standing by for pre-rolls and flower and upon receipt of the appropriate licence, for concentrates from our outdoor harvest.
Branding, packaging and pricing have all been established for our current products and it is anticipated SpeakEasy will enter each Province with the most competitive pricing in each market. Price-point has proven to be a key determining factor on consumer decision making in the cannabis market and with SpeakEasy's aggressive pricing and availability of the large consistent supply of flower, it is expected to have an impact in every market it enters. Given SpeakEasy's low-cost of production and the fact that processing and packaging are all done on site, further reducing costs, the Company is in a unique position to be able to maintain a low-cost point to consumers while maintaining a healthy profit margin.
Geen says, "we are in the enviable position of having a large supply of beautiful, high quality product that is expected to cost less to produce than anyone in the market. We are also incredibly fortunate to have the genetics, facility and growers to produce amazing indoor flower that is finally out in the market and being received as well as we knew it would be. Our formula has always been a simple one, give the consumer what they want at a price they can afford, being in high demand is proof that philosophy is sound. We are a couple months away from ramping up our production of indoor flower to over 720 kilograms per month and I am very confident based on the response we've seen so far we will continue to be sold out."
About SpeakEasy Cannabis Club Ltd.
SpeakEasy Cannabis Club Ltd. holds a cultivation, processing and sales licence issued by Health Canada under the Cannabis Act. SpeakEasy owns 290 acres of land in Rock Creek, British Columbia, and leverages five generations of farming experience in B.C. as well as its favorable location to grow and process high-quality cannabis products at low cost. SpeakEasy cultivates small batch, high quality craft cannabis at scale in a portion of its 63,200 square foot indoor cannabis complex and has completed its harvest of its 60-acre outdoor field. Total yearly production of cannabis flower and biomass is projected to be in excess of 70,000 kilograms per year once in full production.
On behalf of the Board of the Directors
For more information please contact:
Malcolm Davidson
CEO
investor@speakeasygrowers.com
1-604-218-9797
Forward Looking Statement
This news release contains statements that constitute "forward-looking statements." Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause SpeakEasy's actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur.
Forward-looking statements in this document include statements concerning SpeakEasy's expectations concerning its expectations regarding sales of its products, including expectations that it will sell out of all of its production in the future, its expectations regarding entering into the Ontario market, its expectations with respect to demand for cannabis and cannabis derived products, its expectations regarding receipt of registration in Saskatchewan, its intention to enter into other provinces upon receipt of requisite approvals, and its intent to produce and sell high quality craft cannabis, and all other statements that are not statements of historical fact.
Although SpeakEasy believes the forward-looking information contained in this news release is reasonable based on information available on the date hereof, by their nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements.
Examples of such assumptions, risks and uncertainties include, without limitation, assumptions, risks and uncertainties associated with general economic conditions; COVID-19, adverse industry events; future legislative and regulatory developments involving cannabis; the Company's ability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favorable terms; the cannabis and hemp industries and markets in Canada and generally; the demand for CBD distillate, cannabis and cannabis related products, the ability of SpeakEasy to implement its business strategies; competition; the ability of SpeakEasy to obtain and retain all applicable licences or registrations under the Cannabis Act and other applicable legislation and other assumptions, risks and uncertainties.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.
The Canadian Securities Exchange has not approved nor disapproved the contents of this news release.
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