The global cannabis industry has projected to be worth $73.6 billion by 2027, according to Grand View Research, which represents a blistering 18.1% compound annual growth rate. While cannabis has historically been grown indoors, outdoor cultivation has become increasingly popular over the past couple of years.

Let’s take a look at the benefits of outdoor cultivation and why the soon-to-go-public Christina Lake Cannabis Corp. (CSE: CLC), which recently began trading on the Canadian Securities Exchange,  is well-positioned to capitalize on these benefits.

Indoor vs. Outdoor Cultivation

Christina Lake Cannabis’ 2020 Outdoor Grow

The debate between indoor and outdoor cultivation has been going on for years.

Indoor cultivation enables companies to fine-tune the environment and grow year-round, but it requires a significant capital investment and has higher ongoing costs. In terms of environmental costs, a single gram of indoor cannabis requires 10 pounds of carbon dioxide due to the significant energy requirements for lights and heat generation.

Outdoor cultivation involves significant lower capital investment—since there’s no building required—and sharply lower ongoing operating costs. These economics enable companies to rapidly scale up to meet demand. While outdoor cultivation uses slightly more water, these environmental costs pale in comparison to the high cost of indoor cultivation.

There are also quality differences between indoor and outdoor cannabis. While indoor cultivation is more tightly controlled, there’s evidence that full-spectrum sunlight improves overall quality compared to artificial lights that have a limited spectrum. The product is closer to nature than indoor products that are more finely tuned to meet certain demands.

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Investing in the Outdoor Advantage

Canada legalized outdoor cultivation in mid-2018 and several licensed producers began expanding outdoor—but few were built for it from the start.

Christina Lake Cannabis Corp. (CSE: CLC) was built on the idea that outdoor cultivation represents the future of the cannabis industry. With proprietary strains customized for its local outdoor climate, the company planted over 22,500 clones and seedlings in individual pots across 18 acres over the 2020 spring growing season.

Using remote-controlled drones, the company conducts aerial surveillance for quality assurance several times per day. These drones capture real-time video and use sophisticated heat sensors to gauge the health and hydration of each plant. The data is wirelessly transmitted to headquarters where the team can immediately act upon any concerns.

The company has already harvested more than 33,000 pounds or 15,000 kilograms and anticipates a total initial harvest of at least 33,000 pounds or 22,500 kilograms. During the 2021/2022 season, management expects to significantly increase that footprint by 20 to 25 percent by growing on a 99-acre plot that’s directly adjacent to its current facility.

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A maturing plant at CLC’s outdoor operation

Ideal for Low-Cost Extracts

Outdoor cultivation is uniquely suited for cannabis extracts given the full-spectrum nature of the products and the lack of precise environmental controls.

Christina Lake Cannabis intends to process its ultra-low-cost outdoor cannabis into high-value full-spectrum extracts to maximize revenue and profitability. Using the Vitalis R200 extractor, the company is able to turn cannabis crop into winterized THC oil, as well as isolate terpenes (an increasingly sought-after compound) to create compelling products.

The Vitalis extraction technology also enables the company to expand into supplementary hemp production in the form of toll processing while creating products that are well-positioned to achieve GMP certification, enabling it to sell into European end markets.

After raising C$17 million in funding, the company has ample capital to complete its initial harvest and begin its extraction efforts. The reserves also enable the company to time sales of processed plants based on favorable opportunities in seasonal or industry pricing rather than having to sell products at prevailing market prices.

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Looking Ahead

Outdoor cultivation has several important advantages over indoor cultivation, including lower cost, efficient expansion and full-spectrum quality. Christina Lake Cannabis (CSE: CLC) intends to capitalize on these characteristics to realize these benefits and become a low-cost producer of both dried cannabis and extracts.

The company recently went public on the Canadian Securities Exchange (CSE) under the ticker symbol “CLC”, creating an opportunity for investors to participate in its growth story. Those interested in exposure to low-cost outdoor cannabis cultivation in Canada may want to take a closer look at the stock as a way to diversify cannabis exposure in their portfolios.

“It was two years ago that our team set out to create a large-scale operation for outdoor cannabis cultivation and extraction,” said CEO Joel Dumaresq. “With our first harvest underway, we look forward to sharing our initial operating results, and building upon that momentum as we seek to establish our reputation as a leader in the Canadian cannabis industry.”

For more information, visit the company’s website or download its investor presentation.

Disclaimer

The above article is sponsored content. CannabisFN.com and CFN Media, have been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.

Warrant Extension

On September 28, 2018, the Company issued an aggregate of 3,863,804 units (the “2018 Units”).  Each 2018 Unit was comprised of one common share in the capital of the Company (a “Common Share”) and one-half of one Common Share purchase warrant (each whole warrant, a “Warrant”).  Each Warrant entitles the holder to acquire an additional Common Share at a price of $1.00 per share until September 28, 2020.   In accordance with the policies of the Canadian Securities Exchange (the “CSE”), the Company has extended the expiry date of the Warrants for an additional 12 month period, such that the new expiry date of the Warrants will be September 28, 2021.  The CSE granted the Company an exemption from the requirement set forth in Section 7.4.1(d) of CSE Policy 6 that 10 trading days remain prior to the original expiry date when applying to amend the terms of the Warrants.

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 currently in its 10,000 square foot indoor facility and  has initiated the harvest of its 60-acre outdoor field.  The Company’s intention, upon receipt of an amendment to its current licence, is to include 53,000 square feet of additional indoor cultivation and process area. Total yearly production of cannabis flower and biomass is projected to be in excess of 80,000 kilograms per year.

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 expected harvest date, its expectation of producing a bumper crop, its expectations concerning first sales of flower and concentrates, approval and licensing of new buildings and commencement of additional indoor grow facilities, its expectations concerning production volumes, its expectation that it will commence extraction and creation of concentrates and value added products, expectations regarding the sales of those products, expectations concerning obtaining an amended sales license and the timing thereof, 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 under the Cannabis Act 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.

SOURCE Speakeasy Cannabis Club Ltd.

For further information: Malcolm Davidson, CEO, [email protected], 1-604-218-9797