Pure Global Cannabis

Providing Pharmaceutical-Grade Cannabis to the World

This profile is part of a paid investor education campaign.*

Overview

Pure Global Cannabis Inc. (TSXV:PURE; OTC: PRCNF; FRA:1QS) is a vertically-integrated and growth-oriented cannabis company that is focused on producing high-quality pharmaceutical-grade cannabis for the global medical and recreational cannabis markets. Looking to address the global cannabis market, Pure Global has facilities in Canada and Colombia and also has its sights on the EU and Latin American markets. The company is primarily focused on creating a cannabis product that enhances the well-being of consumers and they have deployed a four point strategy to ensure that they are addressing consumer needs.

According to a report released by Grand View Research, the global cannabis market is expected to reach $146.4 billion by 2025. The industry’s growth is primarily driven by the advancements being made in the medical cannabis market. Doctors are less likely to prescribe smoking to their patients and the focus of the market is turning to cannabis concentrates.

Pure Global has two cultivation facilities: one in Canada and another in Colombia. The Canadian facility is strategically located in Brampton, Ontario and provides the company with easy access to Toronto’s downtown core and international airport. The facility is currently undergoing Phase 2 of construction, which is focused on developing the company’s vertical multi-ponic cultivation facility, the first of its kind in Canada. Once Phase 2 construction is complete, it will be able to produce approximately 4,000 kilograms of cannabis per year.

Pure Global has earned a 60 percent interest in Avicanna’s Colombian facility situated in the Santa Marta foothills, which is world-renowned for its prime agricultural conditions and low operating costs. The Colombian facilities include a 100,000-square-foot greenhouse that meets good agricultural practices (GAP) and a 20,000-square-foot indoor facility that meets good manufacturing practices (GMP) indoor facility. Pure Global has also set aside an additional 1 million square feet to design a state-of-the-art greenhouse space.

Pure Global’s management team is led by experienced pharma, horticultural, consumer packaged goods and supply chain industry specialists. The company’s management team notably owns 21 percent of the company’s shares.

Company Highlights

  • Focused on producing cannabis products for the global medical, wellness, health and beauty, natural health and recreational cannabis markets.
  • Developing the first vertical multi-ponic cultivation system in Canada for consistent, high-quality cannabis.
  • Patent-pending multi-ponic cultivation system can produce three times the yield that similar sized operations can.
  • Brampton facility will be able to produce approximately 4,000 kilograms of cannabis per year once operational.
  • Colombian facility is situated in world-renowned agricultural area.
  • One million square feet have been set aside for additional state-of-the-art greenhouse space at Colombian facility.
  • Management notably hold 21 percent of the company’s shares.

The Pure Global Cannabis Business Model

As a vertically-integrated cannabis company, Pure Global is involved in all aspects of cannabis production. However, overlying all of this, Pure Global is focused on customer well-being and has developed a four-part strategy that ensures that their products meet the needs of their customers.

The first part of their strategy focuses on delivering a consistent and high-quality product. They do this by using world-class commercial horticulture techniques including a patent-pending multi-ponic growing technique. The second part of their strategy revolves around providing exceptional service experiences for their customers. Pure Global is consistently asking for feedback from their customers to form a deeper understanding of their needs and to ensure customer satisfaction.

The third strategy is based on forming clinic partnerships. These types of partnerships are a proven technique for acquiring a loyal customer base and for educating physicians about the numerous benefits cannabis can offer. Their final strategy is to be innovative in all aspects of their branding as it creates an immediate demand for their products and opens new customer acquisition touch-points across the verticals.

Focused on concentrates

A significant portion of pharmaceutical-grade medical cannabis and adult-use cannabis products are moving towards concentrates. To tackle this market effectively, Pure Global is equipping all of their Phase 1 facilities with GMP standard clean rooms to produce and package extraction formulations for the recreational and medical cannabis markets.

The company is developing a variety of cannabis concentrate products including cannabis oils, softgels and capsules, vape-pen cartridges, topicals, sublingual strips and sprays, transdermal patches, edibles and beverages and a variety of wellness products. These offerings will supplement their sales of dried flower and cannabis seedlings and clones.

PureSinse Brand

Pure Global’s medical cannabis and cannabis-based wellness products will be branded under its subsidiary’s name, PureSinse. The brand will focus foremost on establishing an exceptional client experience that will be driven by trust. The brand will deliver products with an unparalleled quality and consistency by leveraging GMP and ISO standards. The brand’s reputation will be further solidified by Pure Global’s upcoming partnerships with clinics, healthcare professionals and patient advocacy groups and the work they put into R&D initiatives to ensure that the products they are marketing are pharma-standard.

Brampton Campus

In March 2018, Pure Global acquired the Brampton campus as part of their acquisition of PureSinse Inc. as a subsidiary. At the time of the acquisition, PureSinse was listed only as a licensed producer under the Access to Cannabis for Medical Purposes Regulations (ACMPR). As of August 2018, the company was granted its oil license, which allows the company to source bulk psychoactive and non-psychoactive cannabis oils and resins from national and international licensed producers.

The Brampton campus is a 18,000-square-foot state-of-the-art cultivation facility located in Ontario. The property sits within the industrial district in Brampton and is located 10 minutes away from the Toronto International Airport and 35 minutes away from downtown Toronto.

The facility can accommodate processing, production, R&D and distribution functions and it utilizes commercial horticulture and hydroponic techniques. In its current configuration, the facility is expected to produce approximately 4,000 kilograms of dried cannabis per year.

Expansion plans

Pure Global has finished Phase 1 construction on their Brampton property. Phase 1 construction included installing their extraction, quality assurance and microbiology labs, their order processing and packaging department, shipping and receiving as well as their security, IT and administrative offices.

Phase 2 construction is underway and is focused on implementing their automated controlled growth environments, multiple-tiers of vertical farming cultivation equipment, tissue culture, cloning and mother rooms, drying trimming and processing facilities and their extraction, processing and packaging facilities. Once this phase is complete, the 18,000-square-foot cultivation facility will be able to produce approximately 4,000 kilograms of cannabis per year.

The final phase of construction will be focused on further expanding the cultivation facilities by adding a scaled extraction and distillation lab, an advanced analytical R&D lab and additional cultivation capabilities. Once complete, the facility’s capacity will b increased to 41,000 square feet and will be able to produce approximately 8,000 kilograms if cannabis per year.

The first multi-ponic vertical cannabis farm

Pure Global is dedicated to only growing top-quality cannabis flower under the watchful eye of their master grower Dr. Nader Gheshlaghi, a world-renowned commercial horticulture expert that specializes in plant biology. As a result, Dr. Gheshlaghi has designed a vertical multi-ponic cannabis farm that features the first multi-ponic system in Canada that hosts a soil-less and pesticide free growing environment.

The patent-pending system enables better nutrient distribution and absorption. This is achieved through a closed-loop system, which allows the grower to tailor the biochemistry and nutrients needed at each stage of the plant’s development. The system also features targeted spectrum LED lighting systems which help the plant expend its energy into creating pure, high-grade cannabis flower.

Between the multi-ponic approach and the tiered growing platform, Pure Global is able to produce three times as much pesticide- and herbicide-free cannabis as similarly sized operations.

Sativa Nativa S.A.S

In August 2018, Pure Global entered into a binding LOI with Avicanna Inc. to acquire a 60 percent interest in Avicanna’s Colombian subsidiary, Sativa Nativa S.AS. Avicanna has also granted the option to acquire an additional 15 percent interest in Sativa Nativa.

The acquisition of Sativa Nativa allows Pure Global to expand into the emerging Latin American cannabis market. Sativa Nativa has secured its cultivation and cannabis derivative manufacturing licenses from the Colombian Ministry of Justice and the Ministry of Health.

Pure Global’s partnership with Avicanna provides Pure Global with the opportunity to access a comprehensive plant genetics bank which has over 80 registered and characterized genetics on file, making it one of the largest genetics banks in Latin America. Avicanna also has established joint venture partnerships with Grupo Daabon, one of the largest agricultural companies in the world and Johnson & Johnson, which will give Pure Global access into the company’s JLABS in Toronto, Ontario.

Sativa Nativa’s facilities sit on 28 hectares of agricultural land with existing irrigation and infrastructure in place In Santa Marta, Colombia. Santa Marta is nestled in the foothills in the Sierra Nevada mountain range and offers an ideal growing climate and low input costs. The facilities include a 100,000-square-foot GAP greenhouse and a 20,000-square-foot GMP indoor facility. An additional 1 million square feet have been set aside to design a state-of-the-art greenhouse space that will use advanced growing technologies for greater yields.

Colombian advantages

Colombia has at least four advantages to offer cannabis companies. The first is their comprehensive legal framework. The country has already established regulations for exporting cannabis throughout Europe and other South American countries. Colombia has also secured a cannabis export quota of 40.5 tons which represents 44 percent of the global cannabis demand in 2018.

Colombia also offers a world-leading agricultural region to cannabis companies in Santa Marta. The region receives 12 hours of sunlight each day, all year and allows for four cultivation cycles per year. Additionally, the Sierra Nevada mountain range fosters ideal humidity conditions in the foothills.

Cannabis companies have access to a strong and relatively low-wage workforce and the infrastructure needed for their operations, including access to private water wells, attractive energy costs and international ports. Cultivating in Colombia is generally cheaper than cultivating in Canada especially when cannabis companies are looking to export their products.

Partnerships and Agreements

Supreme Cannabis

In July 2018, Pure Global signed a definitive supply agreement with The Supreme Cannabis Company Inc. (TSXV:FIRE) and two other ACMPR licensed producers to purchase various amounts of premium quality medical cannabis that meet the high-quality requirements of Pure Global. The marking of this deal allows the company to obtain a sales license from Health Canada as they have the product required.

The following month, Pure Global purchased an additional 210 kilograms of medical cannabis from Supreme. The additional purchase of cannabis helps position Pure Global as a dominant player in the cannabis pharma, health and wellness and consumer goods sectors. The company will soon be selling dried flower and cannabis oils, followed by capsules, sublingual sprays, edibles, vape pens and other products for the medical and recreational markets.

“We are very pleased to secure a significant volume of additional product that meets our standards of quality from our great partner, Supreme,” said Pure Global President and CEO Malay Panchal. “With this order, our company will have ample cannabis inventory to go to market within the next few months, in addition to enabling us to launch several clinical studies in specific therapeutic areas.”

Isodiol International

In August 2018, Pure Global signed a LOI with Isodiol International Inc. (CSE:ISOL) for the ongoing supply of pharmaceutical and nutraceutical grade cannabidiol (CBD) isolates and other potential products. Upon the successful importation and testing of the initial trial order of raw CBD isolate, Pure Global and Isodiol intend to enter into a definitive supply agreement and to further explore additional collaboration avenues.

“We’re excited to secure this pharmaceutical grade source of U.K. manufactured CBD from Isodiol at a time when new local British and regional European opportunities are presenting themselves by the day,” said Panchal. “Notwithstanding the growing demand for CBD in Canada and our plans for pharma and nutraceutical grade imports, we call ourselves ‘Global’ for a reason. This is the first of a number of strategic initiatives which will help propel our international vision forward.”

BuyWell.com

In September 2018, Pure Global entered into a MOU with Evergreen Pacific Insurance Corp. to become a merchant partner for the launch of BuyWell.com, which aims to be a the preeminent Canadian marketplace for health and wellness products and services. BuyWell.com will be include over 10,000 curated health and wellness products and services. Pure Global will provide the site with medical cannabis products and broad line of paramedical extracts focused on patient-centric outcomes.

“This is a great partnership for both PURE and Evergreen Pacific,” said Panchal. “As a patient focused company also in pursuit of improving health and wellness of Canadians, we believe providing insurance coverage to cannabis patients in Canada is critical and for patients to have choice and accessibility to our quality products. We therefore are proud to align ourselves with BuyWell.com on launching their offerings which are very important and long overdue for medical cannabis patients.”

Appletree Medical Group

In September 2018, Pure Global’s subsidiary, PureSinse, entered into a multi-year agreement with Appletree Medical Group, one of the largest multidisciplinary community medical groups in Canada. Appletree serves more than 700,000 patients across 35 medical centers in Ottawa and the Greater Toronto Area.

In partnership with Appletree and a major clinical research organization, PureSinse will launch a large-scale, peer-reviewed study focusing on the efficacy of medical cannabis for treating certain medical conditions including neuropathic pain, insomnia and anxiety disorders. The study will also explore the role of medical cannabis in reducing dependence on opioid medications for patients experiencing chronic pain disorders.

Results from this study will be used to guide the development of targeted pharmaceutical and wellness products while also providing medical communities and public health agencies around the world with relevant and valuable insights. The partnership further develops Pure Global’s commitment to quality data, leading-edge analytics and evidence-based research.

“We are excited about this important real-world study that will further develop our global understanding on the medical use of cannabis. It will ultimately allow physicians to make better decisions for prescribing cannabis from reputable, peer-reviewed clinical data, while providing valuable insights for developing unique cannabinoid-based pharmaceutical products,” said President and CEO of Pure Global, Malay Panchal.

Management

Malay Panchal, RPh, BScPhm — Founder, CEO and Board Member

Malay Panchal is a seasoned serial-entrepreneur with over 20 years of experience in pharma B2B technology, retail and mail order pharmacy, pharma branding and clinical trials.

Nader Gheshlaghi, Ph.D., M.Sc. — VP Production

Nader Gheshlaghi is a world-renowned plant geneticist and pathologist who has managed numerous large-scale grow operation comprised of hundreds of different medical and commercial plant varieties. He has won numerous international industry and international awards. He has also filed multiple patents for his work.

Stephen Pynn — VP Corporate Development

Stephen Pynn brings a significant amount of experience in capital markets and corporate finance with a focus on the cannabis sector to the Pure Global team. Prior to joining Pure Global, he was the cannabis capital markets expert at PI Financial Corp and has participated in raising over $800 million in financing.

Bhupender Gosain, CPA, CA, CPA (IL) — CFO

Bhup Gosain has over 30 years of experience in tax and business advisory service in a variety of sectors, including technology, life sciences, biotechnology, natural resources and pharma. His experience has included working in senior management positions at Deloitte and he was a partner at MNP.

Trupti P. Smit, LLB — Director of Corporate and Legal Affairs

Trupti Smit has 15 years of experience as a cross border transactions, corporate, intellectual property and commercial and international tax lawyer. She has previously worked as a legal counsellor at RBC International Tax and Transfer Pricing.

Vik Chopra, MBA — VP Business Operations and IT

Vik Chopra is a program delivery expert with 20 years of experience at tier one advertising and technology companies. He has a strong understanding of agile project management methodology, business and IT operations, He has held senior level positions at Y&R, Kobo and Postmedia Network.

Michael Lavergne — Head of Supply Chain

Michael Lavergne is a sustainable supply chain and operations professional with over 20 years of multinational experience in fast-moving consumer goods and retail. He is the former VP Global Supply Chain at Shoppers Drug Mart and has held senior level positions at Joe Fresh and Walmart.

Tamer Abuqamar, P.Eng, M.Sc., PMP — Senior Construction Projects Manager

Tamer Abuqamar has 15 years of experience in construction, mechanical services design, site works and project management. He is PMP certified and a LEED Green Associate.

Vishwas Sawant, MBA — General Manager

Vishwas Sawant has 30 years of global experience in heavy engineering manufacturing, agribusiness, retail and IT. He is the former CEO of the Farmers Co-Op in India, which generated $55 million in revenue and employed 1,200 people.

Dr. Chandra Panchal, Ph.D. — Chairman

Dr. Chandra Panchal has served as a director for MaRS Innovation, senior scientist at John Labatt Ltd. and Chairman, President and CEO at Procyon Biopharma Inc. He is currently the CEO of Axelon pharma and is a director of several publicly-listed companies.

Jane Pagel, M.Sc. — Board Member

Jane Pagel is a retired executive with extensive experience. She has previously held positions as the President and CEO of the Ontario Clean Water Agency and was the Director of Research and Technology at the Ministry of the Environment.

Brian O’Neill, B.Sc., LLB — Board Member

Brian O’Neill has nearly a decade of experience at McCarthy Tetrault LLP, which is a leading national law firm that specializes in M&A, corporate reorganizations, corporate finance, intellectual property and commercial transactions. He has a B.Sc. with Honors in Molecular Genetics.

Albert Beraldo, CPA, CA — Board Member

Albert Beraldo has over 30 years of experience in various senior leadership roles within the pharmaceutical and biotechnology industry. He is the founder and CEO of Alveda Pharmaceuticals Inc.


 

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