Leveraging the Economics of Genetics
This PacRoots Cannabis profile is part of a paid investor education campaign.*
Pac Roots Cannabis Corp. (CSE:PACR) (OTCQB:PACRF) (FSE:4XM) is a proudly Canadian Cannabis Act licensed applicant dedicated to producing premium-quality cannabis products based on high-end selectively bred genetics. The Company is committed to maximizing shareholder value by focusing on elite genetics and the development of a production scenario that will position the Company as a low-cost producer, while maintaining the integrity of the finished product.
Through the process of artificial selection, farmers and cultivators have been adapting their plants to develop particular phenotypic traits for thousands of years. Previously, this breeding has been restricted to underground cannabis producers creating their own strains in private. The legalization of the cannabis industry, however, has allowed producers to work in the open with access to thousands of cultivars from all over the world to truly get the most out of cannabis genetics. By carefully selecting cannabis genetics, growers can control the size, color, smell, density and texture of their cannabis buds, creating a unique premium cannabis experience. Plants can be bred specifically to thrive within their unique growing environments, producing large yields of high-quality resilient cannabis. Medical cannabis strains can also be tailored for specific medical purposes.
Pac Roots has a strategic partnership with Phenome One which gives the company access to one of Canada’s largest cannabis genetic libraries. The company is using these genetics to develop unique strains with various beneficial characteristics. The company’s 350 licensed cultivars are the result of a meticulous gene selection process, in which as many as 600 individual plants may be grown to produce a single strain. To develop a unique strain, plants with the desired traits are grown and the ones that don’t exhibit the traits well enough are discarded. The remaining plants are bred repeatedly, resulting in a customized cannabis strain after several generations of optimization.
The economics of genetics
Using optimally selected genetics comes with benefits that go beyond simply producing a high-end product. In addition to potency and bud quality, cannabis plants are bred for yield and resilience. By selecting genetics that result in larger and more numerous buds on each plant, Pac Roots is able to grow more cannabis per grow light. Breeding plants to be more resilient lowers the cost and labor intensity of the grow. Genetics can be selected to grow plants that will thrive within the conditions of their specific growing climate. These factors, combined with the premium price point that comes with top-quality cannabis, have the potential to improve overall profit margin.
PacRoots’ Company Highlights
- Genetics-focused approach to cannabis cultivation.
- Access to over 350 unique cultivars through a genetics licensing partnership with Phenome One.
- 20,000 square foot cultivation facility in Lake Country, British Columbia.
- Cultivation license expected in the third quarter of 2021.
- Second season of 100-acre JV outdoor hemp program in Rock Creek, BC. to start soon.
- Lord of Grasstown, Motorcycle and legal Cannabis lifestyle brand.
- 250 acres of land in Fraser Valley.
PacRoots’ Lake Country cultivation facility
Pac Roots has secured its cultivars through a strategic licensing agreement with Phenome One. The agreement gives Pac Roots unlimited access to Phenome’s live genetic library, including any of Phenome’s cultivars as well as it’s growing, breeding and cloning IP. Phenome One is an agricultural technology company focused on providing software solutions to seed companies. Phenome One’s platform gives its partners access to a massive database of detailed information on 350 unique cannabis cultivars to support each stage of the breeding process. Each cultivar has been laboratory analyzed and rigorously field-tested with data going back more than 30 years.
Using Phenome’s data, Pac Roots plans to grow a range of cannabis plants optimized for a variety of traits, including plants with an abundance of cannaflavin, a rare terpene with high anti-inflammatory properties. Phenome’s library could enable Pac Roots to produce plants that are optimized to thrive in a range of different growing climates, including plants suited to grow in cold weather and plants that are resilient to region-specific fungi.
Pac Roots’ Outdoor JV Hemp Program
- 100-acres Hemp CBD Pilot Project 2020
- Located in Rock Creek; an established agricultural mecca in B.C.
- The initial 2020harvest was successful. Quality far higher than expected.
- The entire biomass yield over 105,000 pounds will be processed and sold to Speakeasy Cannabis Club (CSE: EASY).
- Pac Roots JV with Rock Creek Farms foresees a strong 2021 planting season and plan to build upon the lessons learned over the prior season.
The Company is eager to get an early start, weather permitting, on propagation, field prep and planting.
Pac Roots’ Lake Country cultivation facility
Pac Roots is nearing completion of its 20,000 square foot cultivation facility in Lake Country, British Columbia and is currently in the process of acquiring its cultivation license. The facility will feature approximately 7,600 square feet of cultivation space set up for the company to cycle through an elite line of high-grade cultivars. Pac Roots also plans to submit a video evidence package of its facility build under Health Canada’s Cannabis Tracking and Licensing System and the company expects to acquire its license by the end of the third quarter of 2021.
Lake Country is a municipality located just outside of Kelowna in the Okanagan region of British Columbia. For decades, the region’s favorable growing climate has made it a hub for cannabis cultivation and iswell situated to support propagation efforts and downstream processing at its satellite and partnering sites in Rock Creek, BC located 135 km to the south.
As the Canadian legal cannabis industry ramps up, the Okanagan is attracting investment from dozens of cannabis companies, including some of the industry’s biggest names. The region’s strong agricultural history means there is no shortage of experienced agricultural workers and an abundance of ALR land.
Pac Roots Brands – Lords of Grasstown; a Motorcycle and Legal Cannabis Lifestyle Brand
Pac Roots recently acquired the iconic Lords of Grasstown lifestyle brand that blends the legal cannabis and motorcycle cultures.
Lords of Grasstown was born from the vision of Tyler Hazelwood, founder and director. Grasstown is an established freedom-focused brand rooted in the Pacific Northwest’s motorcycle culture.
Through Lords of Grasstown’s strategic partnerships and alliances in the motorcycle and legal cannabis communities, the recent launch of Grasstown USA into California has been well accepted and recognized by the brand’s loyal following.
Figure 1 Branding and package design concepts
PacRoots’ Management Team
Chris Farnworth – CEO, Director
Mr. Farnworth is a business management and corporate finance executive with over 30 years of experience in the public and private sectors. His focused experience is in cannabis, health and wellness, stem cell research, ESG businesses. He has extensive worldwide business development, sales and operational experience with large and small multi-national companies. Mr. Farnworth has successfully established joint ventures, distribution channels, acquisition, and sub licensing agreements. A former Vice President of Business Development of Cancana Resources (now Meridian Mining) TSX Venture Exchange Top 50 Mining Company, ranked 9th. He also is a director of Swiss BioTech Group, Zero Carbon Technologies, UNIVEC Inc. advisor to SperoPharm Cannabis, Zurich, and STS Capital Advisors.
Chad Clelland – Director
Mr. Clelland’s experience in the sector dates back to 2009 when he purchased Medicalmarijuana.ca which became an information portal for thousands of patients, doctors and growers. Through this company he and his team have helped thousands of Canadians find legal, safe medication. His team also consulted, designed and submitted dozens of applications to the government under the MMPR, ACMPR and Cannabis Act. In 2011, Mr. Clelland also co-founded Greenleaf Medical Clinic; now recognized as a training facility by the University of British Columbia and offers preceptorships to physicians, nurse practitioners and pharmacists. He also co-founded Folium Life Science in 2013, an approved Canadian Licensed Producer. His roles in these organizations have included Chief Operating Officer, head of security, alternate master grower and alternate responsible person in charge.
Matt McGill – Director
Mr. McGill has a strong background in both commercial and residential real estate and has played a major role in many development projects. Matt and McGill Realty have established a tremendous commercial and residential outfit servicing the Fraser Valley and the lower mainland. Matt is skilled at crafting strategic financing options for corporations, and he has a substantial network of retail and institutional clients. Mr. McGill is also an integral part of restaurant/hospitality ventures with several chains of restaurants in the lower mainland. He also serves as a Director on a number of non-profit associations. Mr. McGill is an entrepreneur and financial strategist who brings a wealth of knowledge and experience to the team at Pac Roots.
Jim Henning -Chief Financial Officer Mr. Henning is a Chartered Accountant and the founder and president of Corpfinance Advisors Inc. since 1984. Mr. Henning has solid expertise and practical experience in valuating businesses in a broad range of industries. He has assisted companies in financing, public offerings and restructuring. Areas of expertise include retail cannabis, manufacturing, telecommunications, software, biomedical, oil and gas services, and renewable energy industries. Mr. Henning has served as a Chief Financial Officer and director for a number of TSX Venture Exchange and Canadian Securities Exchange-listed companies for several years.
Anna Dalaire – VP of Corporate Development and Corporate Secretary
Ms. Dalaire has over 15 years of corporate compliance and investor communications experience. This unique combination of knowledge gives her a solid understanding of all facets of managing a public company and helps ensure the marketing efforts are compliant under relevant regulations. She plays a key role in providing services and advice to the Board and Management, ensuring positive communication and a constructive working relationship exists between both.
She has a background in traditional and digital marketing and has worked extensively with junior public companies, serving as Corporate Secretary, Marketing Manager, Investor Communications and as a member of the Board of Directors.
Patrick Elliott, MSC, MBA- Strategic Advisor
Mr. Elliott is a true leader and entrepreneur. He is the President & CEO of Lexore Capital Corp., a private resource and cannabis investment company as well as Phenome One Corp, a full-service cannabis farming company focused on elite strain selective breeding. Mr. Elliott brings over 10 years of corporate finance, mineral exploration and financial markets experience. He is a graduate of the University of Western Ontario in Geology and holds an MSc. in Mineral Economics and an MBA from Curtin University of Technology in Perth, Australia. Patrick specializes in economic resource evaluation, financial modeling, CAPEX estimation, corporate development and finance. Combined with his technical knowledge, Patrick has a wealth of contacts in the financial sector.
Josh Bromley- Cultivation Strategist Advisor
Josh has grown up in British Columbia’s thriving cannabis industry. As a second-generation farmer, Josh has over 2 decades of experience farming, breeding, cultivating and selecting unique cultivars for the medical community. He is an expert in plant science and possesses a comprehensive knowledge of cultivars and a mastery of medicinal implementation. Previously, he has developed proprietary farming systems, as well as low cost/ high output nutrient systems. Through thoughtful design and engineering, he has been able to consistently show improvements in crop yields, pathogen resiliency and quality. Currently, he is the COO and Director of Phenome One Corp. Josh also continues to select, test and collect unique genetics for Phenome One.
Marc Green – Strategic Operations Advisor
Mr. Geen is the Founder of Speakeasy Cannabis Club focused on building an unprecedented indoor, outdoor and greenhouse program on a 290-acre prime agricultural parcel in Rock Creek, BC. A proud 4th-generation BC farmer, Marc Geen has been active in the legal medical marijuana industry for more than 10 years, consulting, complying with, and participating in the MMAR, MMPR, and ACMPR programs. Prior to co-founding Speakeasy Cannabis Club Ltd, Marc spent 14 years as Head of Operations for Kettle Mountain Ginseng Ltd, one of North Americas largest ginseng producers. The experience gleaned from a long career in large scale commercial farming, Mr. Geen has been able to apply many cost effective, good farming practices to the outdoor, indoor, and greenhouse cultivation of cannabis. Mr. Geen is also the co-creator of a full line of cannabis extract products designed under ACMPR regulations.
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The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with PacRoots Cannabis and seek advice from a qualified investment advisor.