September 13th, 2018
In the exploding legal cannabis market, there are a select number of companies emerging as clear leaders in the space. Colorado-based Medicine Man Technologies (OTCQB:MDCL) is one of these lucky few, offering a full suite of cannabis consulting services and turn-key solutions. Their cutting-edge cultivation technology, including the proprietary Three-a-Light and Success Nutrients line, as well as their operations expertise set them apart vastly from the rest, leading to immense growth since their inception in 2014.
CFN Media spoke with Medicine Man CEO, Brett Roper, and COO, Josh Haupt, at the recent MJBizConINT’L in Toronto in order to learn more about the company’s rapid success and how they have been able to keep up with an ever-growing landscape of cultivators searching for success.
CFN: Tell us about your recent partnership with Canada House Wellness (CSE:CHB) and your focus on the mico-cultivators?
Brett Roper: We are very excited to be working Canada House Wellness; over the next three months, they will become the Canadian face of Medicine Man Technologies. As part of the agreement, we obtained a large amount of the company in stock, which we are thrilled about, because we think their company will be worth a lot more as we work together and the growth potential is massive.
Our belief is that over the next several years, the evolution of the micro-cultivator will become more valuable to the industry. Here in Canada, you’ve got a lot of great folks talking about their half million square foot greenhouses but they don’t have the efficiencies we believe that a good, well-organized, smaller grower can achieve. While we think they’re obviously great companies, and we certainly salute and take our hats off to their performance, it’s hard to believe that these huge companies will ever be able to see effectively $1 to $1.50 a gram growing cost, all fully loaded.
We think the micro-cultivator will become a very strong part of the fabric of Canada. Maybe not half of it, but we could see the micro-cultivator getting maybe a 15-20 percent market share. Colorado started with micro-cultivators – people with 4 or 5,000 square feet of canopy that grew and they got a little money saved. The Williams family is a good example, who started off with 20,000 square feet gross, and over a period of years, have grown to be a very robust company there.
CFN: Your revenues are exploding year over year. How do you achieve such amazing numbers?
Josh Haupt: Growth is out of control and we couldn’t be happier. We went from $600,000 in 2016 to $3.4 million in 2017, after the acquisition of Three-a-Light, Success Nutrients, and other companies. Our 3rd quarter revenues this year alone will be larger than our entire 2017 revenues. In 2018, we are striving to achieve around $9 million for top-line revenue. There’s another acquisition that’s currently on the table and when complete, we will be the only fully vertically-integrated consulting platform available, which I think will skyrocket us in 2019.
It’s truly going to be the efficiency in the business that allows us to hit these numbers, and then dialing in our environment to where it’s perfect. But overall, our profits are only as good as the leadership, as well as the human capital within. We focus heavily on culture development in order for our folks to be truly qualified to be in the position that they are. That way we can define success for that position, and everybody can achieve success on down the line. We’ve defined success for every single position within cultivation abilities, from organizational charts to all of our standard operating procedures.
In an industry that is consistently inconsistent, we are consistently consistent, which is what sets up apart more than anything. We harvest the same amount of cannabis every month. I’m not going to have a month where all of the sudden my top line and my numbers are way off. It’s with a true emphasis on quality, because quality over quantity in every single situation in life will always get you a better outcome. Especially with cannabis. Quantity helps, so we’ve been able to hit big yields that people honestly don’t believe; we’ve gone way beyond four pounds per light and no one can match that.
CFN: Which international markets are you looking at besides Canada?
BR: We currently have a client in Germany, we have a client in South Africa and we have a couple of clients in Australia. We’ve mainly focused in the United States and Canada because they’re close at hand and for us logistically to service people. But we’re in several countries in order to act as a great support element for somebody that wants to grow high quality cannabis at a really good price.
CFN: For potential investors, what makes your company so attractive?
JH: People who are interested in investing in the cannabis space need to ask themselves: Who in this space is going to be unique and different? Who has a very clear vision? And then who actually has the ability to go execute that vision? I think those are the real things that are going to separate individuals in this industry. We are extremely clear in our vision and ability to execute.
We’re about to become full-scale operators. We’re going to step up and truly manage and be a data-aggregated center, to where we have a software platform that packs in more data than any other. You can take the actual hard facts and apply them to your business model, so that way you can be successful right out of the gate if you’re someone trying to get into the industry. We also have the fortunate ability to get licenses in many different states. We have a very exciting road ahead and look forward to enjoying all the wins along the way.
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About Rachelle Gordon
Rachelle Gordon is a Minneapolis-based writer. Find her online at www.rachellegordon.net.
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