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Alberta’s UpRyze Cannabis

Written by Staff on . Posted in Alberta, Cultivators, Processors, Profiles.

UpRyze Cannabis is a micro cultivator and micro processor located just outside Edmonton, Alberta, licensed in October 2020.

Housed inside a 10,000sq ft facility in Acheson, UpRyze has spent the last several months growing out crops, dialing in their flowering rooms, and building partnerships to get their products to market. 

These partnerships are important, but are only for the short term, explains Ron Gauthier, the company’s founder and CEO. He and his team are also in the process of getting their sales licence to allow them to sell dried flower and other products more directly, something they hope to have in hand later this year. 

Gauthier says he and his partners began looking at the micro licence category in mid-2019 and found a property just down the street from another licenced cannabis producer. They began building in early February of 2020, and applied for their licence in September 2020. 

Because the building they selected is a large warehouse space, Gauthier says their plans are to potentially expand over time with additional micro locations in the same building or close to their current location. The process of scaling out will take some time, he explained. 

“We first looked at becoming a standard LP, but that project facility size, financial obligation, and duration for construction would be too strenuous. The micro cultivation facility size was a comfortable zone for us to construct, and we knew we could build it out in a timely fashion. Also, another upside to micros is since we can expand with each new facility, growing with the demand, it brings an opportunity to stay strain current in the market, over time by being able to bring in more genetics with each new facility, which is very appealing.” 

“The beauty about micros compared to (larger) LPs is the LPs basically have to sell into their demand,” he continues. “We are reverse-engineering that approach, where we’re going to build micros when our demand calls for it. So we’ll see how this goes over the next six months based on the feedback we get and opportunities available before we make those expansion decisions.”

With one facility licenced, Gauthier says he and his team have learned a lot and hopes anyone else looking into becoming a cannabis producer is aware of all the challenges that come with it. Although UpRyze has had to partner with another Licensed producer to get their products in the market, the next hurdle to overcome is to be able to have direct supply chain access, meaning obtaining the sales licence for the sale of dried cannabis, then expanding further licenses to include extracts and topicals. 

“When you get your licence, and feel you’re at the finish line, you’re not. You’re maybe halfway. You have so much more in front of you at that stage, and then you’re dealing with a lot of regulatory reporting as a licence holder.”

Ron Gauthier, Upryze cannabis

“When you get your licence, and feel you’re at the finish line, you’re not. You’re maybe halfway. You have so much more in front of you at that stage, and then you’re dealing with a lot of regulatory reporting as a licence holder. So there are definitely some challenges, and a lot of hidden surprises along the way. But it’s very rewarding once you overcome each one, to that eventual finish line.”

In addition to their micro cultivation and processing licences, Upryze also has its own medical sales licence and has plans to sell directly to those authorized to use the medical program.

One advantage Gauthier says UpRyze had was able to access Health Canada’s Cannabis Navigator program. The program is available to any applicant who identifies as Indigenous and Gauthier says being able to access the Navigator gave them a more direct line of communication, especially when it came to dealing with Requests for More Information (RMIs), specifically the duration of construction, and licensing. 

“Health Canada is bombarded with thousands of requests, so getting a response back on answering RMIs (Request for More Information) can take a lot longer than expected.” 

UpRyze currently has a Punch Breath for sale in Alberta, and expects to have several others valuable later this year, including Apple Fritter, Crumbled Lime, Ice Cream Cake, Runtz, Sunset Sherbet, etc. 

Although he sees a lot of opportunity in the micro category, Gauthier says anyone looking to enter into the space will need to temper their expectations. He figures it will take two to three years from the start date of construction before they are seeing a profit, while still incurring plenty of expenses. 

“Anybody who wants to get into this, if you give yourself a budget, you better double it or even triple it before you actually see any real revenue.”

“And getting licensed isn’t the end, it’s the beginning. Initially we thought you build the facility, get your licence, and you’re good to go. It’s a very long game, and you better have the money if you’re going to do this. If you don’t, you’re not going to make it.” 

“Our main focus now is getting our sales licence so we can operate more directly with the provincial entities.”

Black Kettle Farms in Langley, BC

Written by David Brown on . Posted in British Columbia, Cultivators, Profiles.

Larry Cantor runs Black Kettle Farms, an indoor micro cultivator in Langley, BC, with his father, his master grower Mike Holub, and his best friend since grade school, Tim Carter.

Licensed in December 2020, Black Kettle has already sold out of their first batch of flower, Rainbow Driver, in Alberta. They also have their cannabis on shelves in British Columbia, and will be in Manitoba and Ontario soon through BC processor Joint Ventures Craft Cannabis. 

Their next strain will be a Triangle Kush, just one of hundreds of genetics their master grower brought in with him that they hope to release to the market in the coming years. 

Path to Market

The path to get to market has been a long one, Cantor emphasizes, taking considerable startup investment of more than one million dollars, plus months of building their facility, waiting on local and federal governments to issue licensing, growing out their first crops, and then several more months of work before getting their product ready to be accepted into provincial markets. 

And although they are now selling products into the market and hope to be drawing a salary for him and his crew, he says he expects it will be several years before the business has fully recouped their startup costs.

“Consumers may ask why [an eighth] is $45 plus tax, but they might not understand the grower is getting a fraction of that,” says Cantor. 

He says he hopes part of that streamlining will be BC’s expected farmgate and direct sales program for 2022. Farmgate will allow cannabis companies with the appropriate licensing to operate a retail store on-site, while direct sales will potentially allow some producers to ship small batches of products directly to retailers, rather than going through the BC LDB’s distribution warehouse. 

In addition to the normal buildout time for his federal licence, plus about five months from submitting their licence to receiving it, Cantor says he had to also wait six to seven months for a licence from his local municipality before he could even build. Such delays are relatively common in BC.

Cannabis Community Support

Cantor, a builder by trade who says he has “dabbled” in cannabis growing over the years, credits getting through these long waits and navigating the licensing process to the help they received from others in the BC cannabis community. 

Brian Schindel, a local consultant, helped them understand Health Canada’s process, while he says local micro cultivator Logan Dunn and Dunn Cannabis helped answer numerous questions about their facility, as well as an understanding of navigating the provincial market. 

“I’d like to acknowledge how helpful Logan Dunn has been,” says Cantor, who says he called Dunn late last year after reading about him online. “He came out to our facility, pointed out what we could fix and the challenges to come. He’s just been a really solid guy who didn’t even know me but will answer my calls and help me with anything.”

Getting this kind of assistance, he says, has been crucial.

“There’s a lot you need to know. I don’t care if you’ve been growing your whole life, if you’re a lawyer, any of it, this is all uncharted. You essentially need to tell [Health Canada] how you do things, but you need to do it in a framework that they deem as acceptable. With your SOPs and GPPs, everything has to be acceptable with Health Canada. So it’s nice to have somebody who knows what they’re looking for.” 

“I think if micros are going to make it, we really all need to work together as much as we can.”

Larry Cantor, Black Ketle Farms

Self-funding their own facility since banks in Canada are still reluctant, Cantor says he and his father renovated an existing barn on farmland near central Langley, with room to expand into a processing centre and potentially a larger growing facility. 

He’s in no rush to expand though and says he wants to ensure Black Kettle Farms can maintain a focus on a high-quality craft cannabis product. Currently they have four 450ft2 flowering rooms, plus a veg room and small nursery, keeping all their genetics in-house.

“I do intend to be a much larger farm, but I want to stay with the small room, craft growing at all times,” Cantor says, “as opposed to a warehouse and a large, automated system. But I do want to expand on what we’re doing now.” 

One more immediate part of that expansion, he says, will also be a space to process their own cannabis in-house, something they currently rely on an outside processor for. 

Cantor says he’s happy to work with outside processors, especially for markets outside of BC, but his intention long-term is to get his own processing and sales licence so that he can take part in farmgate sales in BC, once allowed.

“Right now as a micro I’m going to maximize this square foot per dollar without having to spend that extra money and be under the microscope of a standard, but when I want to build this out, that’s when I might look at that and just do a licence amendment.”

One aspect of this he says he was unprepared for was what it takes to register their products beforehand, and how to deal with provinces, which others in the BC community have helped with.

“We got our licence, we got our first crop down, and even at that point there were things I didn’t know yet,” says Cantor. “Like knowing you need to register to get a product SKU so you can get your product to market, fresh. There’s so much in your way just do that. That’s something people should know upfront.” “Getting to sales is another journey,” he explains. “Getting licensed and growing is one thing, but then you’ve got to get your SKUs, your testing, your barcodes registered, it seems endless. So that’s where it’s been important to build these relationships with Brian, with Logan, with Ben, as well as Jeff Seabrook. I think if micros are going to make it, we really all need to work together as much as we can.”

A&L Canada Laboratories

Written by Staff on . Posted in Lab Profiles, Ontario, Profiles.

Founded 35 years ago as a soil testing and agronomy research laboratory for all kinds of agricultural applications, A&L Canada Laboratories is one of the oldest cannabis analytical testing labs in Canada.

In addition to their testing with various agricultural industries, A&L also provides services across multiple sectors including Food, Environmental and Life Sciences.

For the cannabis industry specifically, A&L provides full analytical services for plant tissue, water, media and finished products. A&L’s services also include disease diagnostics, genetic analysis, production recommendations, and a Plant Monitoring Program. 

When it comes to choosing an analytical testing partner, Nevin McDougall, the President and Chief Commercial Officer for A&L, says one often overlooked issue is not just testing of finished product, but testing of soil and water before even deciding on a location. 

But what really makes A&L unique is our perspective around the production side of cannabis, all the way from our expertise in greenhouse testing and agronomy and outdoor field crop production agronomy.

Nevin McDougall, COO

Using a broad range of analytical services such as soil, media, water, nutrient and plant tissue testing; A&L can help a cannabis producer, be they indoor, outdoor, or greenhouse, to optimize product quality, resulting in a better customer experience and brand loyalty for the licensed producer.

As the interest in outdoor cannabis crops grows, says McDougall, many growers don’t consider such issues, sometimes jumping at the first land they can find and afford. Without considering what was grown or sprayed on that land prior, or the soil type and quality, growers can create numerous headaches for themselves down the road, from crops failing a pesticide or heavy metal analysis, to outright crop failure from poor soil quality and drainage. 

“We provide Health Canada licenced, batch-released testing and a lot of the other standard testing protocols,” explains McDougall. “But what really makes A&L unique is our perspective around the production side of cannabis, all the way from our expertise in greenhouse testing and agronomy and outdoor field crop production agronomy, as well.” 

“For outdoor production, for example, we’ve got decades of experience in soil analysis and accompanying with that is testing for pesticide residue, heavy metal analysis in soils, providing basic fertility recommendations based on past experiences and our in house Research and Development, and that goes right through to in-season production with tissue analysis. Plus final product testing.”

A&L provides hands-on assistance and decades of experience that can help any scale of cannabis grower, from micros to large-scale LPs, and everything in between. Outdoor producers or anyone growing directly in the soil need to look at several factors, such as soil drainage, past crop use, the level of the land, and the structure and type of soil. 

“A basic soil test is step number one,” says McDougall. “What’s the basic fertility level of that field, organic matter, soil texture, all the most critical aspects around understanding nutrient analysis and what the fertility program will require. 

He says he’s seen more than one outdoor production site lose some or even all of their crop simply because the operator didn’t take an issue like drainage into consideration beforehand. 

“Unlike other providers who provide their service from a purely analytical perspective, A&L Canada Laboratories provides a holistic production perspective,” he says. “What this means is that we provide the services that encompass the entire production cycle of the crop, not simply final batch release testing.  We believe this type of service will be critical for our clients to develop high-quality products resulting in a positive consumer experience. Our highly trained staff from PhD scientists to Certified Crop advisors are here to assist you.”

When choosing an analytical partner, cannabis producers would be wise to look for more than positive THC results. 

“Ask lots of questions, ask about turnaround times, service levels, additional services they can provide, any value-added insights,” he continues. “There are a lot of areas where companies can provide insights for anyone getting into the industry, do they provide value add services, education, that can be important for people who are just learning.”

Typically, A&L provides a 3-5 day turnaround for most tests, along with what McDougall calls their “high touch” customer service, with technical representatives located at their main lab facility and across the country who are trained to provide support to our clients to ensure they are producing the highest quality crop possible. In addition, their online submission and data portals make it easy for you to submit and receive your COA.

“We’ve been in this business for 35 years,” says McDougall. “For anyone in the industry that wants a partner that has a high degree of credibility and has high-level integrity in what they are providing for their clients, we are an excellent choice.”

Sponsored Content by: A&L Canada Laboratories

BC Cannabis Inc on the micro model serving First Nations in BC

Written by David Brown on . Posted in British Columbia, Cultivators, Profiles.

BC Cannabis Inc. is an Indigenous owned micro cultivator based in Sooke, BC.

Led by owner Albert Eppinga, the first of three micro cultivation facilities in Sooke under the BC Cannabis brand was licensed on April 9. Eppinga says he expects the next two licences, all located in the same building, to be licensed later this year. 

He also has plans for a nursery and processing facility on First Nations land near Chilliwack, BC, that he hopes to be licensed later this year or in early 2022.

Inside BC Cannabis Inc in Sooke, BC

The first micro cultivation facility in Sooke is serving as a template to secure future funding, and allowing him to build the company up slowly, rather than needing a large investment upfront, he explains. Ultimately, once all five facilities are licensed, his goal is to create a closed-loop system from nursery through to processing and packaging, all benefitting First Nations communities. 

“We want to provide jobs in our communities, jobs that can help First Nations in BC find a foothold in this industry,” Eppinga says, who will serve as the RPIC and master grower for all three micro facilities. “I just feel very proud to be an Indigenous person in this day and age. When I was younger it was very different, you know? We’re really excited to be a First Nations company. I feel very proud. It took so many years and sacrifice and money.” 

Ideally, cannabis companies like his can provide not only jobs but also a template for other Indigenous communities across Canada. 

“We want to fix those potholes in the soccer fields and the mould in the longhouses. We’re not here just to make money, we’re here to help our people as well. We want to help pave the roads. And that’s what really gets you success in life is when you give back to others, especially your own people.” 

“There are very few opportunities where a small facility can be placed on First Nation land and actually generate real income. And I think a micro facility is one of those opportunities,” he continues. 

Although some Indigenous communities in BC, and across Canada, have taken the path of pushing back against the federal and provincial regulations around cannabis production and retail, Eppinga says his goal is to help people see that they can work with these levels of government to find a viable place in the legal, regulated market. 

They have no money!” he says, as an explanation for why some communities are allowing unlicensed retailers or growers to operate. “They have their longhouses with mould, the soccer fields have holes in them, the busses to take the kids to school have no gas in them.” 

“So some are doing it out of desperation, some do it just to rebel against the government, and some want to do it by working with the law and those seem to be the larger and more sophisticated bands… they have more businesses, more land, more economic opportunities.”

Because of this, Eppinga says he’s heartened to see movement from the BC government recently to help businesses like his and many others. In addition to grant money that has been allocated to at least one First Nations community in Williams Lake, he says the government has also been helping First Nations retailers to get licensed and is laying the groundwork to help producers like himself position themselves to take part in a future “farmgate” retail model that would allow sales on the same site as the production facility. 

This is where his plans for a processing facility near Chilliwack come in, he explains. In the future, he’d like to be able to grow his starting material in his nursery in Chilliwack, grow out his flower in his micro facilities in Sooke, then process and package and sell on reserve in Chilliwack. 

In the meantime, he’ll be partnering with Sitka Weed Works, a cannabis cultivator and processor in BC, to package and sell their products into the retail system, while he waits for BC Cannabis Inc. to get all their appropriate licensing in place. 

“We want to hire First Nations people where we can, employ, educate, and empower them in the cannabis sector and then change what people in these communities think of cannabis, to show them we can do it safely and fully secure and allow the FN people to capitalize on it as well, and can put gas in their busses to take their kids to school.”

The process is not easy or cheap, he adds. Although BC Cannabis Inc enjoyed some benefits of First Nations identity by working with Health Canada’s Indigenous Navigator service, he says the process still took a lot of time and money. Even finding a suitable location in BC that would allow cannabis cultivation was a chore. Although he had initially hoped to locate his micro facilities on First Nations land, the location he settled on in Sooke was the only one that ended up being receptive to his proposal. 

“It takes a lot of money, it takes a lot of energy and time and regulations, security clearances, all of that,” says Eppinga. “And a lot of First Nations people, they don’t really have good security clearances, the guys who want to do it.” 

“Many of us come from the black, or grey, or legacy market or whatever you want to call it. It’s changed so much over time. But a lot of my colleagues and friends, we’ve been growing for decades so we know what we are doing. We have over a hundred years of experience on our team. But getting the money, and being able to pass a security clearance, or having the confidence to navigate the regulations, it’s hard for many.”

“We want to fix those potholes in the soccer fields and the mould in the longhouses. We’re not here just to make money, we’re here to help our people as well. We want to help pave the roads. And that’s what really gets you success in life is when you give back to others, especially your own people.” 

“We want to hire First Nations people where we can, employ, educate, and empower them in the cannabis sector and then change what people in these communities think of cannabis, to show them we can do it safely and fully secure and allow the FN people to capitalize on it as well, and can put gas in their busses to take their kids to school.”

This BC company wants to bring more clarity to cannabis strain names and genetics

Written by David Brown on . Posted in British Columbia, Profiles, Services.

Tim Harvey wants to change how consumers choose and buy cannabis and give cannabis growers and breeders a better understanding of what they are actually growing. 

The founder and CEO of Lighthouse Genomics, Harvey has been working with a handful of researchers since 2016, taking samples of cannabis plants from partners in Canada and around the world, in order to build a genetic database of cultivars.

Using this database to help growers and breeders better understand and identify the genetics of the plants they are growing, Harvey says the ultimate plan is to build a certification system that is geared towards consumers to assist them in knowing what they are smoking or vaping and make more informed choices. 

This certification system would draw from their database of thousands of cannabis varieties, each measured by 40,000 genetic data points.  Optional reports will allow cannabis growers to check for consensus around the conventional “strain name”,  which specific family the cultivar belongs to and how close to other similar varieties it is. 

As an example, Lighthouse just spent the last six months testing several varieties of cannabis in the Canadian market, from plant samples from growers to products on shelves, and comparing their “genetic fingerprint” with each other to map similarities and differences. 

Two of those strains they identified for this research, Pink Kush and Blue Dream, gave them two different examples of strain name accuracy and genetic variation within strain names. While samples of Pink Kush from all parts of Canada showed an extremely narrow range of genetic differences between them, Blue Dream showed not only a wider diversity of genetic traits but also had more outliers. 

The reason for this, explains Harvey, is likely in the origin of those two strains and how strain names have historically operated in the illicit market. While Pink Kush is alleged to have begun as a single superior cutting in BC that was passed from grower to grower, Blue Dream is a strain that originated and became popular in California. 

This means Blue Dream was likely to have found its way into Canada in the form of different seeds, which provides exponentially greater genetic variation than a population of clones. In addition, because these may have been harder to get and even harder to authenticate, the few extreme outliers—plants that may have been labelled Blue Dream but were possibly an entirely different variety—could have been a mistake when labelling a plant, or renamed of a desire to hop on a fad name.

“The results are highly informative,” explains Harvey. “In the case of Pink Kush, there is great uniformity of genetics – eight of the nine samples tested from across the nation were in fact clones of one another. But this was not so with Blue Dream. Perhaps because this variety originated in California, there is a cluster that appears to be siblings, and yet some outliers which may be Blue Dream in name only.”

“It’s the same underlying technology that 23andMe uses to provide a genomic profile for humans, and the same platform a lot of agricultural crops use. We’re doing the same thing for cannabis. 

Anders Goncalves da Silva, Lighthouse Genomics

Rather than contradicting many legacy strain names, he says the research actually supports the common understanding of the origin of these two varieties. While their Pink Kush examples were all very similar, even the Blue Dream still showed a similar ancestry in many cases, if not as tightly related.

“It’s encouraging to see that the industry has remained true to that tradition when it comes to Pink Kush,” he says. ”And there is a lack of consensus when it comes to Blue Dream, and if there is an authentic cut, but certainly there does seem to be consensus towards a zone.”

“It’s encouraging to see that the industry has remained true to tradition in the case of Pink Kush being associated with a very specific genetic identity. Even with Blue Dream, we also see consensus, with the Blue Dream name assigned to cuts that are clustered in what appears to be a ‘zone of authenticity’ within the cannabis population.” 

Looking at these traditional varieties in terms of families is a useful analogy, says Anders Goncalves da Silva, the Chief Bioinformatics Officer at Lighthouse. He likens their genetic mapping to that of a popular DNA testing company for people. 

“Essentially what we’re doing is similar to what 23andMe does,” says da Silva. “It’s the same underlying technology that 23andMe uses to provide a genomic profile for humans, and the same platform a lot of agricultural crops use. We’re doing the same thing for cannabis. 

“So we used the same technological platform to develop an assay specifically for cannabis. We get samples from different cannabis products, extract the DNA, isolate the DNA from the tissue and then it goes through our platform for genotyping.”

Philippe Henry is a biodiversity researcher and adjunct professor at the University of Northern British Columbia who through his own company, Egret Bioscience lab in Kelowna, teamed up with Lighthouse on their DNA analysis of Pink Kush and Blue Dream.

“This is the way other major crops are tested and sold, and now cannabis is going in this same direction,” says Henry. 

“Cannabis is catching up to all these other crops. It was the last of the billion-dollar commercial crops to have its genome sequenced, it’s got a lot of runway ahead of it in terms of the scientific standards compared to where these other crops are at.”

Tim Harvey, Lighthouse Genomics

This helps consumers, he says, especially medical users, because they can more accurately identify the specific variety they are looking for with a specific, replicable effect. For breeders and growers, it can both help them know with certainty what they are growing and help them better identify new or unique varieties that can help them distinguish themselves on the market. 

Another advantage, especially for new breeders just entering the market—often through a nursery or micro cultivation licence—is to hold on to and protect their own unique genetics they bring in with them through a new licence. 

“The small-time breeder who wants to outsource some of the cultivation to other groups and still have the ability to know they can audit and take samples from a grow room or the shelf and verify that another company they worked with aren’t selling particular genetics under a different brand,” says Henry. “Now we’re really getting to a place where people can do this, and it’s really affordable with this platform.” 

Harvey agrees. 

“Breeders today have so many more tools,” Harvey says. “Back in the day, it was their nose and experience, and maybe a few metrics like THC potency. Today it’s gone a step farther because of the tools that companies like Lighthouse and Egret are presenting to the breeders.”

“This will also level the playing field, providing smaller, more craft-scale businesses with a chance to really showcase their unique, valuable assets and draw attention to this. One huge thing we’re seeing since legalization is either the nurseries or the breeders that want to transition now into an LP, or be the genetic provider for the LP, now that they can migrate new genetics in.”

“This is the way other major crops are tested and sold, and now cannabis is going in this same direction.”

Philppe Henry, Egret Bioscience

“With the Cannabis Authenticity and Purity Standard, it’s about being able to verify for consumers that not only is the product they are buying chemically stable between batches, but the genetics are the same batch after batch,” continues Harvey. “Cannabis is catching up to all these other crops. It was the last of the billion-dollar commercial crops to have its genome sequenced, it’s got a lot of runway ahead of it in terms of the scientific standards compared to where these other crops are at.”

“I would like to see genetic testing implemented as an industry standard. I’d like there to be transparency over the identity of the products on the shelf. Because ultimately, it’s all about giving the consumer a consistent experience. All parts of the supply chain deserve transparency and authenticity, but above all, these tools provide a powerful opportunity for producers to build trust with the cannabis consumer, just by doing the right thing.” 

You can watch our recent presentation with Tim and Philippe here on YouTube

Left to right: Timothy Harvey, Lighthouse Genomics, McKinley Hlady, CanTec Global Dr. Steven Newmaster, NHP Research Alliance, Dr. Philippe Henry, Egret Bioscience. 

Salt Spring Island’s Magi Cannabis

Written by David Brown on . Posted in British Columbia, Cultivators, Profiles.

Magi Cannabis is a small, family-run micro-cultivator on Salt Spring Island, in British Columbia. Josh Beckett and his partner Nadine are long-time islanders, with deep roots in the community.

Beckett is a second-generation cannabis grower who grew up with a love of the plants. Since 2009 Beckett worked with medical patients and developed a deeper understanding and appreciation of cannabis’s use in pain management and palliative care.

The process of transitioning from supporting medical patients to creating a business within the recreation framework has been a challenge at times, explains Beckett.

Banking is one obstacle he says he ran into early on. Initially, his local credit union reached out to him to see if he needed a business account only to call him back a few months later to say they were told by company leadership not to work with a cannabis business.

The regional application was just as difficult as the federal application. And more expensive because of all the professionals that were needed.

Josh Beckett, Magi Cannabis

Another challenge was just getting through the regional licensing and approvals. The Capital Regional District (CRD), the administrative body that manages all the southern Gulf Islands including Salt Spring, took six months just to reword their cannabis covenant, he says. There was also a requirement for registered professionals such as engineers and architects to be connected to his application, and limitations on where he could build.

“The regional application was just as difficult as the federal application. And more expensive because of all the professionals that were needed.” 

“If you have a lot of capital, great. But if you don’t have a lot of capital, you really need to be careful with how you spend the money. There are a lot of experts out there that will use up your project financing pretty quickly.”

While he has faced a lot of hurdles, and continues to do so, Beckett is committed to making the business a success.

“My business plan is fairly simple: pay good living wages to the gardeners and trimmers, and produce an amazing product.”

Beckett works seven days a week, operating as the head of security, master grower, and license holder, with help from family and friends. He also did the entire application himself, which took hundreds of hours, with help from his sister Nova Kodaly.

“I’m overburdened and overworked. Honestly, I’ve gone through some periods of just wondering why I bothered doing this. It’s been challenging. It’s hard on the property, and it’s hard on me. It’s not like the old days.”

“This is a true craft, family, ma & pa legacy grow, and I’m a second-generation grower on Salt Spring Island. We love what we do and despite all the challenges, we want to make it work.” 

Josh Beckett, Magi Cannabis

Another difference from the old days, continues Beckett, is that he needs to grow just one or two strains, not a handful. While he used to do lots of varieties for patients as a designated grower, but now realizes he needs to focus on just one or two to ensure he has large enough batches for market. 

“I’m used to growing lots of different varieties to support different patient’s needs,” he says. “But what I’m realizing is with the compliance costs, I have to really rethink that.”

The custom-built shop that houses Magi Cannabis is only 2,000ft2, just under the allowable canopy for a micro cultivator. His actual canopy, he says, is around 1,300ft2 – a little over half of the allowed 2152ft2 (200m2). This was largely due to the logistics of his property, including suitable construction space and power needs.

Although he wouldn’t mind having a little bit more space, he says the small size makes it more manageable and helps him focus on high-quality products.

“We’re the craft of craft,” says Beckett.

Despite this small size, he says it cost upwards of $600,000 to build out and equip the facility with lights, HVAC and more – a price he says would be close to double for someone building something slightly larger and with the current increases in building and materials costs. He’s had to take out personal loans and investments from friends and family since he couldn’t secure a line of credit for his business.  

These costs and challenges, he says, might work for growers in other parts of the country with more capital and lower overhead, but for legacy growers in the Gulf Islands, he thinks it might be difficult to convince people to transition to the legal market.

“The regional requirements are difficult enough that I don’t think we are going to see a ton of people transitioning,” says Beckett. “Legal cannabis cultivation is less profitable than the black market, so I just don’t see a lot of people doing it, not here.” 

Beckett is hoping all the hard work is going to start to pay off soon, and make the workload and debt load worthwhile. Magi Cannabis has just entered into a supply agreement with Bud Coast (Joint Venture Craft Cannabis) to get their first crop of Hippie Headbanger and Salt Spring Sugar Star on the market, and into the hands of discerning consumers.

“This is a true craft, family, ma & pa legacy grow, and I’m a second-generation grower on Salt Spring Island. We love what we do and despite all the challenges, we want to make it work.” 

Covert Valley Reserve

Written by David Brown on . Posted in British Columbia, Cultivators, Profiles.

Covert Valley is a husband and wife team who began making the transition from an ACMPR personal production licence to a micro cultivation licence in 2018. 

With their facility located in Langley, BC, Kim and Mark Qvist’s small, indoor facility holds about 1,800ft2 of cultivation space. Covert Valley has produced several crops since receiving its licence in May of 2020, initially selling through a third-party partner. They are excited to now have two different varieties, a GSP and a Sour Chem, available under their brand name coming to BC stores in April. 

The Qvist’s also have a nursery application in process at the moment, for a location in Nanoose Bay, and in the meantime have been using their small micro cultivation space to produce starting material for other commercial growers. 

Kim Qvist, who, among many other roles, serves as the company’s RPIC, says they began using their current micro space to grow clones for other cultivators as a way to bring in revenue as they navigate the sometimes fickle provincial market for dried flower. Plus, she says this gives them a head start on establishing sales channels for when they get their nursery licence. 

Covert Valley Reserve

“It’s definitely decreased our volume for flower, but it’s a trade-off” explains Kim. “What we’re doing is, while we’re building for our nursery, we’re using our micro licence to really prelaunch sales and get our name out there. Then once we licence the nursery we can pivot to that quickly.”

“There’s a lot more labour and paperwork to do clones than flower,” she says. “But from the production side, it’s something that we knew we had to do to bring in revenue. Especially with where the market is right now for more unique strains, processors wanting COAs, the 20% THC issue, all of that. To grow a whole crop and not know what you’re going to get can be a little nerve-racking. So selling genetics can help balance that out.” 

“We’re focussed on bringing in some very unique, high-end flower,” says Mark. “That’s our main focus. Small batch, hand watered. Nothing is automated, it’s a very truly hands-on produced product. We’re excited to have products in BC because that’s home base for us.”

Getting to the stage of licensing wasn’t easy, explains Mark, but what they have learned with their micro licence has already helped them take better approaches with their nursery licence. For others entering the market, they both say that keeping your burn rate low and preparing for the unexpected is key. 

“Be cautious with your overhead, your facility cost, leases, things like that,” says Mark. “Be prepared for longer timelines for licensing than you might have anticipated.”

“I think they should be prepared for at least two years,” he continues. “There’s a lot of things that need to fall into place, from having the right genetics to having your rooms running to their maximum efficiency and that takes time, that sometimes takes several crops to adapt and adjust the rooms. Things don’t just work perfectly on your first crops. It takes several crops and constantly adjusting your parameters to get that quality of product that you need. 

“That’s just one hurdle. Then you have the sales hurdle, the branding, and the marketing, that’s another issue. There are quite a few steps along the way from construction to your first sale. A lot of stages to be ready for.”

With all those hurdles and challenges, though, The Qvists are hopeful for the future of the market for small-batch, craft cannabis. 

“One of the things we’ve been quite excited to see is if there is a market for craft,” says Kim. “Being small business owners, we really like to promote the small craft product, especially from BC. There’s definitely some struggles but we’re seeing more craft coming to the market and I think it’s a positive sign.”

Alberta’s iNaturally Organic on their path to market

Written by Staff on . Posted in Alberta, Processors, Profiles.

iNaturally Organic Inc. is a wholly-owned subsidiary of Emprise Canada Inc, and a holder of multiple micro-processing licenses, operating in Alberta. The company manufactures cannabis soft gels, topicals, nano-emulsions, and cannabis oils. Their facilities are located in Olds and Calgary, Alberta.

The brainchild of Mukhdeep Mangat and Dr. Anil Jain, iNaturally is one of the first micro processing licenses given by Health Canada and one of the first to get the sales licenses. The Company is already selling cannabis products in more than 1,000 stores in BC, Alberta and Ontario. 

iNaturally’s first micro processing license in the city of Olds was issued in July 2019, while its second facility in Calgary received its processing license in August 2020. Sales license for extracts, edibles, and topicals was received in June 2020.

Dr. Jain says the Company chose the micro category because, “we felt that it was the best starting point to grow their business, and it would allow us to determine where consumers’ demands were and respond to them effectively, rather than investing tens of millions of dollars into a large production facility”. 

“We knew we needed a low-cost structure,” says Jain. “We didn’t want to build big and hope for the demand. We built small and planned to grow organically with demand. And what this does is make the company financially sustainable. You don’t have to chase money, you can let money chase you”.

“Micro has allowed us to maintain a low-cost structure,” he continues. “The strategy has proven out because had we gone for a standard license and a large facility, maybe 20,000 sq ft building, we might be facing a challenging time financially right now since much of the capital dried up in 2020.”

Mangat, iNaturally’s Director of Manufacturing, agrees.

“The micro license has played a big role and it is part of our key strategy,” he adds. “Companies are building these large facilities but there is not enough demand for their products. I think a lot of the demand expectation was set by investors or bankers who really didn’t understand how the industry would evolve. So the micro category seemed like the best avenue to enter this industry and then grow as needed. It’s really worked out for us and has allowed us to be nimble in execution.”

““We didn’t want to build big and hope for the demand. We built small and planned to grow organically with demand. And what this does is make the company financially sustainable. You don’t have to chase money, you can let money chase you”.

Dr. Anil Jain, iNaturally Organic

Part of being nimble for their company has been their ability to get their second facility licensed and working on new, innovative products they hope will be in the market later this year, a powdered nano-emulsion that will be mixed with coffee, a partnership with Paradise Mountain Organic Coffee.

“You may have had other infused coffee products before,” says Mangat, but what we’re doing with nano-emulsion is something very unique, and a much better infusion. We’re excited by it.”

Being small, explains Mangat, also allows us to focus on innovation without too much corporate bureaucracy. 

“We have just five employees, plus Dr. Jain and I”, explains Mangat. “We all work very hard, but this is our passion and we’re excited about what we’re doing, and I think that helps us innovate quickly and effectively. We’re focused on products that consumers want, but also on how we can differentiate ourselves so we can compete with the bigger players.”

“That’s why we can compete with the big boys,” adds Jain. “Because we can innovate and manufacture just as well as them, with a micro processing license.” 

Part of that innovation includes research they are doing right now that can help consumers, especially medical patients, formulate the exact cannabinoid and terpene ratio for their specific DNA. You can find more information on their website www.emprise.ca.  

Although iNaturally Organic says they are not opposed to eventually expanding into a standard license if demand increases enough, Dr. Jain says they are in no rush. 

“We are excited that we have built a sustainable business with cool products. We expect $50 million in sales with our current facilities and licenses”. 

Origin Coast on micro cultivation and starting small

Written by David Brown on . Posted in Cultivators, Nova Scotia, Processors, Profiles.

Origin Coast is a micro cultivator and processor in Sydney, Nova Scotia, recently licensed in February 2021.

Born and raised in Cape Breton the company’s Founder and CEO, Michael Fong, spent close to two decades in the video game industry while living in Hong Kong, before he says the opportunity to grow cannabis called him back home to Nova Scotia. 

He wrote out a business plan, found a piece of land outside Sydney, and built a facility large enough to hold 20 different rooms, from flowering to mother and veg rooms, processing, drying, etc. He brought in two other Nova Scotians with a passion for and a background in cannabis and also hired on a QA. Between the four of them, they run the bulk of the operation on a day-to-day basis.

Although the company has its micro cultivation, micro processing and medical sales licences, Fong says the immediate focus is entirely on growing flower and selling to third-party processors. Long term he may undertake processing on his own and work towards a sales licence, but right now it’s about drawing on their extensive library of unique cultivators and growing great flower. 

“Even though we have a processing licence, we’re in no hurry to use it,” explains Fong. “I’m a strong believer in fostering long-term, mutually-beneficial partnerships. If someone can do something better than I can at the same price or cheaper, then why not?  This will allow us to concentrate on happy plants and the quality of the flower instead of being distracted by also trying to juggle processing, packaging and distribution, at least in the beginning.”

Once they have built their own brand and can control more of the supply chain, he says he would love to see Origin Coast as a Nova Scotia brand sold in Nova Scotia, and thinks the position on Cape Breton Island can be an advantage for an LP partnering with them who may want to enter the provincial market there. 

Although the facility itself has a fairly large footprint at 8,000 sq ft, with only 200m2 of cannabis being grown, and their use of automation and centrally controlled environmental systems, Fong says he and his other three team members can manage the entire operation. This allows them to keep a low overhead, he says, which he argues will be needed as they manage the first six months or more with no immediate revenue. 

Fong brings extensive business management experience to Origin Coast, while relying on his master growers to manage the plant itself. Helping build and manage the China/Asia division as the Managing Director and Vice President of the Asia Pacific region for Blizzard Entertainment, a large US video game company, gave him a wealth of experience he says helped him build out the strategy and plan for his new cannabis company. 

“This is from my corporate training I suppose,” he says. “I strongly believe that if it can’t be measured, it can’t be managed. So we are very data-driven in our operations. We measure and track everything we possibly can. Not just to make sure we are where we need to be and dialed in, but also so we can trace back to why certain results may have turned out different than we were expecting and determine whether we want to replicate those results. Especially as we are constantly testing new growing techniques, mediums, and products, and also in our pheno hunting. Traceability is important in our bid to provide a consistent premium quality product.”

Once he and his team have dialed in the cultivation side of the operation and the business model has proven itself, he says they have plans for further expansion beyond a micro licence on their three-acre lot. For the most part, this expansion will include additional indoor cultivation but may also include capabilities in processing and packaging. Taking these small steps and a phased approach will help him focus on the fundamentals, he explains. 

Although there are and continue to be challenges, from licensing to financing and banking to finding a place and demand for your product in the market, Fong is encouraging to others but also cautions discipline and patience. 

“It can be a great opportunity for some people, but not necessarily for all. I think you have to have realistic expectations. To get into this industry, there are high barriers to entry, particularly from a financial perspective; from the fact that banks won’t give you financing, you’re not able to apply for many government programs, and even just opening a bank account for your business is a challenge.” 

“But if you can get over those barriers and you’re able to hold the line, be patient and work through the processes you have to go through, and of course produce a good quality product, then I think it’s a great business to be in.”

“Set yourself up so you can withstand the many storms you are going to be faced with. And a lot of the time that means you have to work hard, be very prudent in spending, and be smart about how you work. Make sure you are setting yourself up for the long term.”

Okanna Craft on their long transition into the legal rec market

Written by David Brown on . Posted in British Columbia, Cultivators, Profiles.

COMPANY:Okanna Craft
LICENCE TYPE:Micro Cultivation, Nursery
APPROACH:Indoor
TIMELINE:~1 year (late 2019 to December 2020)
COST:~$2m
FACILITY:Retrofit indoor space

The family behind Okanna Craft is another success story of a legacy BC grower transitioning into the legal recreational market, but the process wasn’t easy, they say. 

Now that they have their first harvest ready for sale soon, they’re eager to share their story of the long road it took to get to this point. 

Growing inside a facility they bought several years ago operating under their ACMPR licence, Travis Tully, along with his mother Nanette Tully and stepfather began retrofitting the four unit building to hold up to four licenses, micro and nursery, in 2018. 

Although already using the space for cannabis, the trio says they spent several hundred thousand dollars retrofitting the interior to bring it up to the regulations, often stretching themselves financially thin, with the hope they would soon get a licence and could begin seeing the rewards. The retrofits, they estimate, were around $750,000 for the licence.

Travis, the family’s grower, has spent years cultivating this craft in BC, having taken an interest in cannabis plant science in his teens and with an entrepreneurial spirit, he found his hands in the dirt and a connection to the plant. When Travis saw a way to grow legally on the horizon, his desire to share his craft cannabis became his goal. He approached his mother and stepfather for support and they didn’t hesitate to put the plan in motion and apply for their Micro-cultivation license as well as a nursery license for their Kelowna facility.

“We still don’t know what it will look like, but we have some creative ideas and will be working with the right team to support our farmgate vision. We see a lot of tourist traffic, especially in the summer.” Travis says. “And it will be a great opportunity to showcase BC Bud in its natural habitat.” 

Travis Tully, Okanna craft

Although they initially planned for an additional micro cultivation and nursery licence, Travis’ mother Nanette, who manages Okanna’s sales and marketing, along with several other responsibilities, says they are currently reevaluating and diversifying potentially looking at a processing licence. 

“We’re looking at getting our own processing and sales licence, absolutely,” says Nanette. “But we’re going to start slow because we’re farmers really. But we’re looking at starting processing with a pre-roll solution, as pre-rolls seem to be contracting out and we need to evaluate what is best for our flower, our bottom line and supporting the craft community.”

The family also intends to get their own processing and sales licence, says Travis, because they hope to be able to open their own retail farmgate store once BC allows it. Located right along Kelowna’s rail trail, and in close proximity to the Okanagan UBC campus, their property is perfectly suited to cater to consumers living in and visiting the Okanagan Valley.

“We still don’t know what it will look like, but we have some creative ideas and will be working with the right team to support our farmgate vision. We see a lot of tourist traffic, especially in the summer.” Travis says. “And it will be a great opportunity to showcase BC Bud in its natural habitat.” 

New Cultivars

Although the process of licensing took longer than they anticipated, the extra time has given them a chance to observe the market and make important changes, says Nanette. For one, they have had to reprioritize which cultivars they first bring to market, she says. 

“If we would have come into the market a year ago, the market wouldn’t have been ready for us,” explains Nanette. “And we wouldn’t have been ready for the market. What we’ve learned in the last year with all the pitfalls we’ve gone through has staged us for where we are now.” 

Maureen, a staff member at Okanna Craft

Originally, they had hoped to bring a cultivar they have a lot of experience growing, Tora Bora, but because it has less than 20% THC they decided to wait until the market is more receptive to that kind of cannabis. Even the strain they decided on for their first entrance into the market, Blue Coma, she says is not as high in THC as others, but says the high terpene count more than makes up for this. 

“We have decided to go with God’s Berry, a cross between Kish and Gods Bud, a great smoke with a strong berry fruit smell and taste, a great chunky frosty bud that will not disappoint. We are growing for the legacy and new consumer to enjoy true BC Bud again”. 

Securing unique genetics that have yet to be seen on the legal market is a big part of what they hope can distinguish themselves in the market, says Travis. Okanna brought in around 100 different cultivars, and he expects to choose the best of the bunch, narrowing his picks to about thirty in the next year or so as they use their nursery space to pheno hunt the best varieties. 

Working with another BC-based micro*, Joint Ventures in Salmon Arm, they expect to have Blue Coma on shelves in BC, Alberta and Saskatchewan in the coming months. They also hope to release pre rolls in partnership with another micro cultivator under their proprietary pre-roll brand tOKANNAgan. 

*Note: Joint Ventures recently amended their licence from micro to standard. 

Challenges for growers transitioning to the legal market

Working with A like-minded processor like Joint Ventures, says Nanette, has been a positive experience. 

“What Joint Ventures does for us, for example, is great. Their sole purpose is to package and to  distribute products for their cultivators. Their mission is to transition and this aligns with our values.”  

These kinds of partnerships are important, she says, because a lot of the micros getting licenced might be good at growing cannabis, but they don’t necessarily know how to run a business or market and network their products and brand. 

“This has been the hardest thing we’ve ever done in our whole life,” she says. “It’s been the scariest thing we’ve ever done in our whole life. Just in terms of financially, legally. We’re just seeing the light at the end of the tunnel right now.”

Nanett Tully, Okanna Craft

Working with the BC Craft Farmers Co-op, Nanette says she sees this as one of the biggest challenges for the success of many micros.

“I see (business acumen) as a big hurdle for the micro cultivators,” says Nanette. “Just as an example, there are farmers sitting on their product right now who can’t sell it. They call processors who don’t call them back. At the co-op, we’re addressing this. We’re educating people on this right now, every day.” 

“This is often missed,” she continues. “They’re farmers, they’re not business people. You can have the best product and not know how to market it. Or you can have a mid-grade product and do great marketing and make more than the guy who doesn’t know how to market.”

She points to other successful micro brands like North 40 and Dunn Cannabis, who have built the right partnerships and been active and engaging online to help build brand awareness. 

“This has been the hardest thing we’ve ever done in our whole life,” she says. “It’s been the scariest thing we’ve ever done in our whole life. Just in terms of financially, legally. We’re just seeing the light at the end of the tunnel right now. But have we stretched ourselves and put our entire savings into this, believing in this vision? Now is when we need to make money to make this work.”