SpeakEasy Cannabis Club Ltd. (CSE: EASY) (Frankfurt: 39H) (the “Company” or “SpeakEasy“) a holder of a federal licence to cultivate, process, and sell cannabis under the Cannabis Act, is pleased is happy to provide a corporate update to the Company’s shareholders.
Marc Geen, SpeakEasy Founder
Thank you all for taking a moment to read this letter. We have made substantial progress on all fronts and I would like to take a moment to detail some of our most significant accomplishments.
Current State of the Cannabis Market
Since legalization in 2018 the cannabis industry, as a whole, has dealt with blowbacks from investors who have been over promised but under delivered, as a result, up and coming companies who can deliver have been left to carry a negative sentiment. I write this letter to our investors with utmost confidence in the decisions we have made up to today. I feel that the combination of our hard work and your continued support will allow us to compete with the top cannabis companies in the world, at a fraction of the cost to build this company compared to the largest Canadian LP’s. I wish you could all see what we have built together, especially at this time of year, it’s something incredible to experience.
Proving our Business on Lean Farming Principles
Since 2016, SpeakEasy has been focused on monetizing cannabis like any other crop my family had in the past. Our strategies and core principles are based on generational knowledge, land selection, and lean farming principles that would allow SpeakEasy to compete not only with Canada‘s largest producers, but on a global scale. With over 150 years of agricultural knowledge and experience, we were able to achieve high quality, high THC product at an ultra-low cost of cultivation. This positioned SpeakEasy to be able to participate in the wholesale market with competitive pricing while maintaining healthy margins.
The Following Milestones Have Been Achieved
- Health Canada licensing for cultivation for cannabis
- Health Canada licensing for sale of cannabis
- Health Canada licensing for sale of extracts
- Proving the Company’s outdoor cultivation strategy
- One of the largest harvest in Canadian history
- Efficiency at scale with an ultra-low cost per gram
- Proving product quality through high THC (15-18%) flower
- Proving the Company’s indoor craft cultivation strategy with producing high THC flower (25%+)
- Establishing multiple extraction processes at scale and 2.0 product innovation
- Proving product demand through B-to-B sales
- Proving Company efficiency by maintaining a healthy margin in all sales to date
Established Infrastructure in Place
Our facilities have been completed using our own employees almost exclusively, built to the high standards set by health Canada with the aid of our experienced growers giving guidance all the way through. What we have ended up with are custom, purpose-built facilities that our growers and operators can step into and operate in an environment they are very familiar with, eliminating the learning curve. The breakdown of projects completed and in use as well as the projects still ongoing are as follows:
- 3,200,000 sqft total security cleared area
- 2,800,000 sqft of outdoor cannabis cultivation
- 30,000 sqft greenhouse
- 94,800 sqft of building erected (standing structures)
- 36,600 sqft currently operational
- 13,300 sqft processing and lab
- 13,300 sqft clone production and vegging facility
- 10,000 flowering facility
- 13,300 sqft flowering facility operational soon
I believe that SpeakEasy will soon become a major global player due to its combined agriculture experience, lean farming principles, proven product quality and an authentic brand building strategy. As we don’t have any unnecessary fat to trim, our goal moving forward is to stay efficient, scale up, and meet market demands. With the necessary infrastructure in place, the Company’s goal now is to expand and scale our business.
Building Strong Company Culture
Without the hard work and dedication of the SpeakEasy team, the support of our stakeholders and shareholders, none of this would have been possible. The core values that this Company was founded on, creates our biggest competitive advantage today, it’s the people that make this business successful. We currently employ over 100 people from our local community, making us the largest employer in Rock Creek. We will continue training and educating our employees to build their careers.