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Speakeasy Cannabis Club Ltd
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Close 2021-03-02 C$ 0.54
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Speakeasy sells out of indoor cannabis flower

2021-03-03 06:23 ET - News Release

Mr. Marc Geen reports


Speakeasy Cannabis Club Ltd. 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 stated: "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 acknowledgment 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 the company's 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 the company's 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 the company has 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.

The company believes 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 with 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.

Mr. Geen further stated, "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 British Columbia, 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 prerolls and flower and upon receipt of the appropriate licence, for concentrates from the company's outdoor harvest.

Branding, packaging and pricing have all been established for the company's 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.

Mr. Geen said: "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 holds a cultivation, processing and sales licence issued by Health Canada under the Cannabis Act. Speakeasy owns 290 acres of land in Rock Creek, B.C., and leverages five generations of farming experience in B.C., as well as its favourable location to grow and process high-quality cannabis products at low cost. Speakeasy cultivates small-batch, high-quality, craft cannabis at scale in 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.

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