Speakeasy Cannabis Club Ltd (OTCMKTS: SPBBF) is a holder of a federal license to cultivate, process, and sell cannabis under the Cannabis Act. As a result, the company is happy to announce a production and processing status on its initial 2020 harvest of 72,000 Kilograms (KG).
To complete in the mature market with its low cost of production
The company stated that the last year was mainly about producing Canada’s highest outdoor harvest and finalizing a cultivation strategy, to position the company for wholesale and retail sales. The company always focused on being competitive in the mature cannabis market. In addition, driven by its on-site infrastructure, the company claims to be the lowest-cost producer in the industry. As per the industry, SpeakEasy’s low-cost raw material and its on-site extraction laboratory, and knowledge with an experienced staff make the company stands apart.
Globally, cannabis companies have raised significant funds to make superior infrastructures. However, SpeakEasy’s goal was to focus on becoming cash-flow positive through its farming principles. Moreover, the company principles protect the investors’ interest from the risk of dilution. The company’s success depends on its strong workforce and culture to compete on the global stage.
The company commenced production with a limited capacity
Given the recent improvement in the infrastructure and equipment testing, the company, since March 2021, started the production level by processing the 2020 harvest. The production level is commenced with a limited capacity. The company indicated that B-2-B sales have increased above their estimates, even after premium product prices. The company enjoys a gross margin of ~70%. The management indicated that 75% of last year’s harvest continues to be processed and be sold under the contracts, which are currently in place. From the initial 2020 harvest, the company is likely to extract around 2,225 kg. It will be later packed under SpeakEasy’s brand and distributed in the retail market in Canada. As per the company, the product’s retail value is estimated to be around $115 million, which it will get sold in retail stores across Canada.