Providing Clean Green Certified Cannabis in the US
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Grown Rogue (CSE:GRIN) is a vertically integrated, seed-to-experience cannabis company based in Medford, Oregon. The company is currently licensed for cannabis production and wholesale distribution in Oregon’s recreational market, and has both indoor and outdoor growing facilities in the state.
GR intends to expand operations across multiple states, including California by late-Summer 2018, in partnership with other licensed operators. The company has also entered into a letter of intent (LOI) for three cannabis operating permits in Nevada. Moving forward, Grown Rogue plans to enter other strategic states that fit Grown Rogue’s expansion plans.
Typically, licensed producers (LPs) remain disconnected from their consumers, interacting primarily with other businesses in a B2B model. As a seed-to-experience producer, Grown Rogue is committed to providing premium, Clean Green Certified cannabis to consumers, and remains actively engaged with them following the sale. The company is using consumer feedback to develop a unique view of how cannabis strains, dosage amounts, product type and individual attributes might affect consumers’ experience.
Understanding the variety of consumer needs and experiences, Grown Rogue has developed five product classifications, each with different characteristics. These are designed to relax, optimize, groove, uplift and energize (ROGUE). The classification of products are sold in a variety of formats including flower, pre-rolls, cartridges, concentrates, and soon to be launched edible line.
Grown Rogue has achieved a 25 percent month-over-month revenue growth in 2018 despite the price of cannabis products dropping due to the transition from medical regulation to recreational regulation. This positions the company to enter into other markets that might face similar price-pressures in the near future.
Part of Grown Rogue’s success comes from excellent leadership, including that of its President and CEO Obie Strickler, who brings over 15 years of experience in the cannabis space. The management team is also supported by strategic investors from Canyon Creek Capital.
- Fully integrated seed-to-experience cannabis company.
- Located in the world renowned micro-climates of southern Oregon.
- 25 percent month-over-month revenue growth in 2018, despite lower prices.
- Entering the California market in fall of 2018.
- Secured three licenses to begin operations in Nevada.
- Distribution network of 160 dispensaries, which will reach 300 by year-end.
- Clean Green Certified on all cannabis products.
- Customer experience survey to ensure quality and a positive experience.
- President and CEO has over 15 years experience in the cannabis industry.
- Growing team brings over 75 years of combined experience.
Vertically Integrated, Multi-State Operations
As a vertically integrated organization, Grown Rogue has developed operations across different facets of the cannabis supply chain, including cultivation, extraction distribution, and retail.
Grown Rogue is located in southern Oregon, which is at the northern tip of the famous Emerald Triangle. The company operates both indoor and outdoor growing facilities, with over 40 acres (~1.7M SQ FT) including approximately 100,000 square feet licensed and constructed, with an annual production capacity of 3,000 kilograms. These facilities provide optimal growing conditions for each strain being developed.
The indoor facilities control light intensity, temperature, humidity, air movement and nutrient mixes. Grown Rogue’s outdoor facilities are located in Oregon’s micro-climates, 25 kilometers from California’s border, which allows the company to achieve favorable growing conditions, at a much lower cost than licensed producers in California.
As part of their cultivation strategy, Grown Rogue strives to achieve a consistent standard. This also allows the company to collect and monitor scientific data regarding the terpene, cannabinoid (CBD) and tetrahydrocannabinol (THC) levels in particular strains. As such, the company’s product is consistent and effective. Grown Rogue is also meticulous in maintaining Clean Green standards, and uses an integrated pest management regime to protect the plants.
To date, the company works through a distribution network of 160 dispensaries that offer its products. This number will grow to over 300 through organic growth and acquisitions.
Due to the company’s strategic location near Nevada and California’s border, the company is strategically poised to take advantage of inter-state sales once they become legalized, particularly as the cost for production is lower in Oregon than in California.
Grown Rogue intends to expand its presence beyond Oregon. The company will be entering the dynamic California market within in the fall of 2018, and will have products on shelves through partnerships with other licensed operators. The company plans to establish its brand and customer relationships over the next 6 to 12 months while looking for strategic partnerships or acquisitions across the supply chain to complete its vertical integration strategy in one of the largest cannabis markets in the world.
The company has also entered into an LOI to acquire three licenses in Nevada. As Nevada has a fixed number of cannabis licenses, this will also position Grown Rogue strategically as the company continues to grow.
The company continues to look for strategic opportunities to expand its footprint into other states that fit their expansion plans.
Active Consumer Engagement
Fueling its seed-to-experience model, Grown Rogue is committed to staying engaged with its customers, consistently gathering feedback. This is done in part through the Rogue Study, a scientifically-based survey designed at the University of Santa Barbara. It analyzes the psychological and physiological status of the consumer, both before consumption and within 30 minutes afterwards, thus measuring the effect of the cannabis product.
Through this survey, Grown Rogue is developing the first cannabis consumer database, that measures how the cannabis plant, dosage and consumer attributes affect consumer experience. The company has also partnered with academic research psychologists and plant scientists to quantify the effects of cannabis. They have created proprietary algorithms based on quantitative data collected from the plant, and from the qualitative data collected from the survey.
This has led to the design of Grown Rogue’s five products, each of which individually promotes Relaxation, Optimization, Groove, Uplift and Energy (ROGUE). This variety provides consumers with the opportunity to select their experience.
Grown Rogue also plans to use the resulting data to help the public better understand the different effects that cannabis has on the consumer’s experience.
Obie Strickler — CEO
Grown Rogue is led by founder and CEO, Obie Strickler, with a B.S. in Geology from Southern Oregon University. He has over 15 years of cannabis experience, and organically scaled his first medical garden in 2006, from a 15 plant single facility to four facilities and ~100,000 SQ FT of indoor and outdoor cultivation.. Strickler founded GR in 2016 to capitalize on the opportunity to seize market share in this burgeoning recreational cannabis space.
In addition to his cannabis expertise, he brings a diverse private sector background. This includes running the Oregon division of a regional environmental consulting company, founding a firm to provide full management services for multi-billion dollar natural resource projects, and co-founding a hyper-velocity impact technology company.
Michael Johnston, CPA, CA — CFO
Michael Johnston is a graduate of Western University, and joined Forbes Andersen LLP, Chartered Professional Accountants in 2004 and became a partner in 2012. Mr. Johnston has over 10 years of experience with both private and public companies in various capacities, including that of Chief Financial Officer.
Jacques Habra — Chief Strategy Officer
Jacques Habra is an award-winning serial entrepreneur recognized by national and regional media for excellence in entrepreneurship, leadership and innovation. He was the lead investor in FirstClick, SelfEcho and TrackR, which recently won $50 million in Series B funding through the Amazon Alexa Fund.
Habra has led early-stage fundraising for Grown Rogue and as Chief Strategy Officer, where he focuses on brand creation and development, management and marketplace strategy. He has graduated with degrees in philosophy and English from the University of Michigan with Honors.
Elizabeth Bobek — Operations Director
Elizabeth Bobek is the Grown Rogue Operations Director and in-house counsel. She is the former CEO of Gilded Rogue, an impact investing company she founded to provide economic stimulus for small rural communities. She is the former CFO and GC for a $450 million annual revenue retail food company in Oregon. She has a JD and MBA from the University of Oregon, and was selected in the Portland Business Journal as a ‘40 under 40’ accomplished executive.
Mike Brady — Business Development Director
Mike Brady brings 15 years of sales and marketing experience to Grown Rogue. He believes cannabis will have a huge impact across our globe in a positive way — with medicinal use, as a renewable energy resource, providing tax revenue, jobs, etc. He is passionate about being on the ground floor with a team comprised of friends and experts from various fields who share that vision.
Sarah Strickler — Director of Community Relations
Sarah Strickler is the co-founder of Grown Rogue with a B.S. in Communications that was started at the University of Hawaii, where she was a NCAA Division I basketball athlete. She is a former Licensed Massage Therapist and Project Manager for a real estate development company.
Sarah’s focus with Grown Rogue is in community outreach and brand management. Her deep roots in the southern Oregon community enabled Grown Rogue to secure its 17,000 square foot warehouse, while fostering many of the relationships with local professionals and community members.
Strickler is also a devoted wife and mother who enjoys running marathons, mountain biking, and anything outdoor-related. She is adventurous and loves to live her life in a passionate and meaningful way.
Dave Aldersebaes — Sales Director
Dave Aldersebaes brings 20 years of sales experience to the Grown Rogue team, along with his love of all things cannabis. Dave acted as the National Sales Manager for Ironclad Performance Wear, as well as the Brand Manager for Olympia Beer, a division of the Pabst Brewing Company before joining Grown Rogue. Dave brings a proven track record of building sales teams and brands across multiple market platforms. He lives in Portland, Oregon, with his wife Emi, and is a competitive cyclist and accomplished bass player.
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