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On July 11, 2018 Pure Global Cannabis (PURE.V) began trading on the TSX.V after an amalgamation and reverse takeover (RTO) with PureSinse, a life science cannabis company based in Toronto.

PURE is now a Canadian licensed weed producer.  Its ambition is to serve the medical, wellness and future legal adult recreational markets.

Pure Global is currently constructing an 18,000 square foot facility in Brampton, Ontario, slated for completion in Q4, 2018.

Pure Global intends to add another 23,000 square feet of production space by the end of Q1 2019, making a total square footage of 41,000 square feet.

If you are thinking, “stock dilution” – don’t worry – they’ve already raised the money (more on that later).

PURE believes it can generate about 200 grams per square foot.

That’s ambitious.

To understand how they might achieve that, we need to review three hot trends in agriculture:

  1. Hydroponics is a method of growing plants with no soil, using mineral nutrient solutions in water.  Normal plants (buried in the ground) can only extract nutrients from the earth.  Nutrients in hydroponics can utilize exotic materials like duck manure.
  2. Aquaponics combines conventional aquaculture (raising aquatic animals in tanks) with hydroponics in a symbiotic environment.  Water from the snail tank is broken down by nitrifying bacteria and then recirculated back to the aquaculture system.
  3. Aeroponics is the process of growing plants in mist environment without the use of soil or any aggregate medium.

Because it’s easy to spot illegal pot plantations from helicopters – marijuana farmers have been mostly hiding indoors for the last 30 years.

Weed growers already have a strong “indoor hydroponic culture”.

But PURE is kicking it up a notch.

Nader Gheshlaghi, VP, Production – an award-winning plant geneticist and horticulture specialist has designed a unique multi-ponic growing system that combines the best-practices of these three plant growing trends 1. hydroponics, 2. aquaponics, and 3. aeroponics.

According to PURE literature, “this automated system is capable of growing more plants in less time, without the use of herbicides or pesticides.”

The Root Is The Heart: with closed-loop systems you can tailor the biochemistry and nutrients to deliver exactly what the roots need at every stage for optimal growth.

Best In Class: Targeted spectrum LED lighting systems help the plant to use all its energy on growing the purest, most abundant high-grade flower.

More Canopy/ Less Space: Vertical farming enables us to grow multiple tiers of canopy, exponentially increasing potential yield from the same square footage.

The advent of “vertical farming” has been capturing imaginations for the last 10 years.

According to Bloomberg a “Glass skyscrapers filled with floors of stacked plants,” will reduce produce costs in major cities.

Scroll down on this link and you’ll see that – as well at growers – PURE’s management team is loaded up with pharma-industry and capital market dudes.

“Our vision is to become the most trusted global brand, while harnessing the therapeutic properties of cannabis in tomorrow’s medicines and consumer products,” states PURE, “Our strategy is to deploy leading-edge pharmaceutical technologies to create world-class, innovative cannabis products that strengthen our position in both the medical and adult-use markets.”

Key PURE take-aways:

Heavy-weight Leadership:

  • Pharma-industry management experts
  • Famous plant geneticist designing the facility
  • Capital markets dudes have raised over $600 million

Intellectual Property (IP) Advantage

  • Canada’s first multi-ponic cannabis farm
  • Patent-pending system
  • Greater yields
  • Lower costs
  • Vertical farm maximizes grams per square foot

Cashed Up for Announced Milestones

• Dec 2017: ACMPR Cultivation Licence Q3 2018: ACMPR Sales Licence
• Phase 1: Q3 2018 Packaging, QA, storage and supercritical CO2 extraction
• Phase 2: Q4 2018 18,000 sq. ft. facility producing 4,000 kg/yr
• Phase 3:  Q1 2019 Doubles production capacity to 8,000 kg/yr

PURE has branding ambitions too.

But let’s not get ahead of ourselves.  Right now, they are a well-capitalised company, traded on a reputable exchange, building an ultra-modern weed factory a stone’s throw from downtown Toronto.

On the first day of public trading, 2.69 million shares of PURE exchanged hands. The company is now trading at .33 with a market cap of $48.7 million.

Full Disclosure:  Equity Guru has no commercial relationship with Pure Global Cannabis, but we do own stock.

Disclaimer: ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.

Lukas Kane

Lukas Kane is a Vancouver-based investor and writer.Previously the CEO of a North American investment news syndicate, Mr. Kane was also the Communication Director for a consortium of resource extraction companies.In the course of his career, he has toured copper mines on the Antagfonasto desert in Chile, potash projects in Saskatchewan, cannabis labs in California and clothing factories in Shenzhen, China. A rudimentary speaker of Mandarin, Mr. Kane’s passions are his family, writing and playing football (real football - with the spherical ball).

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