On April 18, 2019 Lifestyle Delivery Systems (LDS.C) announced that its 100%-owned subsidiary, Core Isogenics has contracted 2 acres of licensed California cannabis farm and .75 of an acre of covered canopy cultivation land in Sacramento, California.

Sacramento (pop. 502,000) is California’s capital city.  An educational and financial hub it is also the world’s largest almond-processing center, churning 12 million lb/day during harvesting season.

Core Isogenics is part of LDS’s grow/extract/manufacture/distribute compound in Adelanto California.

LDS’ flagship product CannaStrips (similar to breath strips) offer superior bioavailability of cannabis constituents. Some strips include supplemental co-active ingredients such as nutraceuticals, vitamins and peptides.

Owning a cultivation and nursery license, Core Isogenics creates isogenic strains for specific cannabis genetic characteristics, eliminating any variation of ingredients or pharmaceutical outcomes for the user.

If you are an electrical engineer in Great Falls, Montana looking to catch a Thursday-night buzz at the local Sip ‘n Dip Lounge – that’s probably not important to you.

But if you are a multiple sclerosis sufferer from Los Altos, California – dosage control, purity and delivery method are vitally important.

In the mainstream press, the medical marijuana market is often eclipsed by it’s fun-loving sexy cousin, the “adult-use market”.

But make no mistake, the medical marijuana market is monster, expected to generate about $40 billion globally by the end of 2024, according to Zion Market Research.

Core Isogenics strains are created to be genetically specific to the requirements of terpenes and cannabinoid profiles, both in variation and elemental structure, allowing for significant reduction of production cost as a result of extracting the exact formula from one plant vs many.

Equity Guru had a peek at the Isogenics nursery when it was just getting going:

Core Isogenics will supply “expertise, seedlings and nutrients” to the Sacramento farm, which already has a couple of years of contaminant-free growth. The farm has existing infrastructure and is ready to begin cultivation of cannabis for Core Isogenics.

Soil preparation and drip line irrigation installation is scheduled for next week. The planting of seedlings is anticipated in early May 2019.

The Sacramento farm will produce about 12,000 kilos of flower and trim for CannaStrips and for Highway 395 Dispensary.  LDS plans on applying for additional cultivation licenses in order to maximize the footprint of the land.

Deal summary:

Harvest will generate significant revenue
Clean biomass for CannaStrips
Additional products for Highway 395 Dispensary
Leaf acquired below current market price
Elimination of middle-man

Core Isogenics will now be able to “prove out the seed genetics in multiple environments.”  The plan is that this will attracting other growers and farms to Core Isogenics’ products.

“The contract cultivation on this farm will enable us to compete against black market pricing,” stated Casey Fenwick, President of LDS, “To be competitive in the current cannabis market, companies need to produce their own biomass on a large scale.”

On April 17, 2019 LDS announced the CannaStrips THC had been delivered to multiple new stores including: Purple Star – SF, Redstone Delivery – Oakland, Elevated – SF and Fire Farms – Sacramento.

To keep up with the rapidly increasing demand, the LDS is preparing a shipment in anticipation of the next order coming in shortly.

Last week, LDS entered into a 5-year lease agreement for 20,000 square feet of warehouse space at $2 per sq. ft. per month, proximal to its existing facility in Adelanto California.

The new space will be used to expand the LDS’s transportation and distribution operations in Adelanto, California.

For a wide-ranging discussion on LDS and CannaStrip, listen to Chris Parry’s March 27, 2019 interview with LDS boss, Eckenweiler.

“The Sacramento farm is another milestone in the vertical integration of LDS,” stated Brad Eckenweiler, CEO of LDS, “Now, each element of the vertical structure is capable of supporting its own operations while adding value to the entire operation. This should result in increased overall profitability for LDS.”

Full Disclosure:  LDS is an Equity Guru marketing client, and we own the stock.

Written By:

Lukas Kane

Lukas Kane was previously the CEO of a North American investment news syndicate. He was also the Communication Director for a consortium of publicly traded companies. A Senior Writer at Equity.Guru, Mr. Kane writes about mining, cannabis, energy, technology and biotech.

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