SpeakEasy Cannabis Club Ltd., a holder of a federal licence to cultivate, process and sell cannabis under the Cannabis Act, is delighted to announce a production and processing update on its initial 2020 harvest of 72,000 KG. Last year was all about producing one of Canada’s largest outdoor harvests and finalizing a cultivation strategy to position itself for wholesale and retail sales. Our vision has always been to compete in a mature market by having on-site infrastructure to achieve some of the industry’s lowest cost of production.
As 2.0 products have proven to represent some of the largest growth categories, SpeakEasy’s low-cost of input material, combined with its on-site extraction lab and in-depth experience, is proving to be a winning formula for the Company.
2020 Harvest Update on Process and Sales
- With the addition of infrastructure improvements and equipment testing completed, we started processing the 2020 harvest on a production level in March 2021 at a limited capacity.
- B-to-B sales increased above our internal estimated capacity. The products were priced at a premium in their respective categories with associated wholesale production costs of approximately $30 million, or an average gross margin of 70%.
- 75% of last year’s outdoor harvest continues to be processed into high-quality extract products and sold under sales contracts that are currently in place.
- SpeakEasy continues to process its remaining inventory from the initial 2020 outdoor harvest that will produce an estimated 2,225 kg of premium extracts. Our concentrates will be incorporated into consumer-packaged products under SpeakEasy’s brands and distributed into the Canadian retail market. These products currently have a retail values of approximately $115,000,000 when sold in retail stores across Canada.
“While many cannabis companies have raised significant amounts of capital to build luxurious infrastructures, SpeakEasy’s goal has always been focused on becoming cash flow positive through our lean farming principles,” says founder Marc Geen, “These principles protect our investors from dilutions while allowing us to control our own destiny. Our processes and achievements are allowing the Company’s dreams to come true. We have relied on tremendous experience and built a strong company culture to compete on the global stage very soon.”
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 in a portion of 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 140,000 kilograms this year.
