GrowPros offers ‘cannacash’ and business solutions for cannabis growers
Grow Pros is banking on its experience at growing medical marihuana under the former Canadian Medical Marihuana Access Regulations (MMAR) to support the massive amount of pains among the licensed producers under the new Canadian Marihuana for Medical Purposes Regulations (MMPR) system.
With the Company’s 27 combined years of experience at growing the finicky plant and servicing growers in Canada and the United States comes the ability to steer new growers away from pitfalls.
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Grow Pros clips three levels of growing pains among licensed producers: the heady financial pains of getting money in the bank to support start up operations, the grower’s pains that comes with keeping costs downs while learning to produce good quality buds that are compliant with the quality assurance rules of the MMPR, and finally the pain-in-the-bud that licensed producers have finding good quality products to meet demand to support the need of their clients.
Financed and formerly known listed as Mazorro Resources Inc. (“Mazorro”, CSE: MZO) — Grow Pros looks to invest in licensed growers looking to ramp up or expand, addressing the need for cannacash, which seems to be harder to secure than previously thought by corporate cannabis stakeholders. There is a growing realization that every one knows about cannabis but few people know cannabis itself. How much more appropriate than cannabis experts to become the conduit for those investment and guaranty a certain level of due diligence rigor and guidance at start up?
And then there is the need to provide the current licensed producers with the skills to grow products reliably and cost-effectively. Grow Pros’ service offering appeals to the sobering realization across corporate cannabis that the old producers under MMAR might have been growing products that were systematically tainted by bacteria, molds and yeast. In a recent transaction at the completion of the MMAR in March 2014, laboratory tests on Grow Pros’ products meet the requirements of the MMPR for quality for microbial safety, which allegedly is a significant challenge for many of the old MMAR producers.
Speaking of products, the Company has developed its own genetics from European source stocks, providing strains with high THC content, high CBD content and variations thereof. This feeds into the company’s business plan to sell wholesale products to licensed producers with the need to meet their demands.
Itself an MMPR applicant, Grow Pros plans to use simple, tried and proven cultural practices in the Province of Quebec where it plans to take advantage of a plethora of low cost measures. For example, the power rates for agricultural producers are as low as 2.5 cents per kilowatt hour, which is a quarter of the cost of Ontario’s power rate. The target wattage per square meter is 50 watts. Therefore the cost of lighting a 1000 square meter flowering room in Quebec is 50 W x 1 h x 2.5 cents x 1000= $1.25 per hour whereas the same veg room in Ontario costs $5.00 per hour. Over 10 weeks the same batch uses $1050 of power in Quebec and $4200 in Ontario. With the ideal 1 gram per watt productivity, this translates into a difference of roughly 8 cents per gram. Grow Pros plans to use a plethora of other arbitrage solutions (rural community with low taxes, highly efficient grow systems…) to keep production costs low. This will generate products that can be sold wholesale to other MMPR licensed producers who at times struggle to meet the needs of their patients. The latter point seems counterintuitive but it derives from the little known fact that the MMPR rules tie medical marihuana patients to their licensed producers. Once a patient is registered with a producer it is cumbersome to switch to another user. In practice, if a producer runs out of stock it is difficult for patients to secure their medicines in a hurry. Therefore there is room in the industry for wholesale producers like Grow Pros.
Dr. Luc C. Duchesne is a Speaker and Author with a PhD in Biochemistry. With three decades of scientific and business experience, he has published ... <Read more about Dr. Luc Duchesne>