Chemesis (CSI.C) expands cultivation operations in Puerto Rico

On May 08, 2019 Chemesis International (CSI.C) announced a significant expansion to its Puerto Rico cultivation and manufacturing operations.

Chemesis has 4 main branches of operation:

  • Manufacturing: extractions, formulations & products, specializing in BHO, Alcohol & CO2 extraction with the current capacity of over 2000 lbs of raw material a day.
  • Distribution: with new regulations impacting the California market, CSI aims to be a fully compliant distributor. In Puerto Rico market, CSI serves the entire island from seed to sale.
  • Retail:  Actively engaging retail storefronts in the California market while working to open branded shops in multiple marketplaces.
  • Cultivation:  Grow opportunities currently under review in California. A Colombian grow facility in development.
  • Grow facility in Puerto Rico with 30,000+ lb overall grow capacity.

The Commonwealth of Puerto Rico is an unincorporated territory of the United States located in the northeast Caribbean Sea, about 1,600 km southeast of Miami, Florida.

Although Puerto Rico does not have a vote in the U.S. Congress, Puerto Ricans have been citizens of the U.S since 1917.

Recreational cannabis is currently illegal in Puerto Rico – but medical marijuana is an approved treatment for Alzheimer’s, cancer, Parkinson’s, arthritis, Crohn’s disease, epilepsy and more.

On September 20, 2017, Hurricane Maria devastated Puerto Rico, killing 3,000 people and wiping out most of the island’s medical marijuana crops.

“Medical cannabis companies in Puerto Rico suffered millions of dollars in damage in leveled greenhouses, lost business and rebuilding costs.” stated mjbizdaily, “Businesses had to start their crop from scratch and rebuild destroyed facilities.

The island is slowly getting its mojo back.

According to Puerto Rico’s medicinal marijuana page,  72,000 patients have signed up for the Department of Health medical program. Health authorities intend to register 100,000 new patients by January 2020.  Puerto Rico has issued 77 dispensary licenses of which 41 have already opened.

“Since the legalization of medical marijuana two years ago in Puerto Rico, the storied plant is quietly transforming the financial landscape here,” stated NBC News, “Millions of dollars in investments are financing marijuana farms and dispensaries that sell everything from pot-laced ylang-ylang scented massage oils to tropical-flavored edibles.”

“According to the government, companies, doctors, patients and workers who have paid fees for cards, permits and licenses to consume, sell, cultivate, transport, prescribe and manufacture have added $11.5 million to the island’s cash-strapped economy,” stated NBC, “which is still recovering from Hurricanes Irma and Maria in 2017 and a crushing $72 billion public debt.”

Chemesis confirmed that it has observed a “significant demand increase in the island’s cannabis industry.”

With the announced expansion, production will increase to 9,000 lbs per year while continue to expand towards a complete build-out of an annualized capacity of 30,000 lbs.

The cultivation build-out involves a partnership with VividGro, technology co. for consumer and commercial applications.

VividGro’s smart farming system, GroNet deploys The Internet of Things (IoT) to enable indoor farmers to optimize crop yields and profitability.

The “Internet of Things” (loT) refers to the exploding network of physical objects that have an IP address for internet connectivity, and the communication that occurs between these objects.

Granted, it may not be intuitively obvious why a juicer needs to converse with a rectal thermometer – but trust us – IoT is a thing.

VividGro’s low-cost end-to-end platform incorporates features that span the range of sensing, monitoring, alerting, and automating (SMAA). Ongoing data collection, accessible through a dashboard, enables a continuous process of human and machine learning.

VividGro is providing Chemesis’s Puerto Rico grow facility with LED lighting systems and environmental controls, creating a significant reduction in electrical costs.

“Our technology will help light the way for Chemesis to lower production costs compared to traditional cannabis cultivation,” stated David Friedman CEO of VividGro. “Adding capacity, lowering costs, and being more energy efficient is a win-win for everyone.”

If you have been lulled into the thinking that Chemesis is a Puerto Rico pure-play, check out a some of our other articles:

Chemesis gets it
Chemesis to launch Jay & Silent Bob weed brand in US
Chemesis rolls out three cannabis drinks
Chemesis to manufacture Dragonglass in Puerto Rico
Chemesis partners with Dank City
Chemesis strengthens capabilities in Colombia
Chemesis adds 25,000 square feet of manufacturing space in California
Chemesis announces $5.8 million PP
Chemesis targets 100% increase in California oil extraction capacity
Chemesis gets ready for large-scale cultivation in Colombia
Chemesis (CSI.C) buys an Arizona cannabis manufacturing facility

“Natural Ventures (a 100% owned subsidiary of Chemesis) continues to differentiate itself with high-quality products, and practices in Puerto Rico,” stated the CEO of Chemesis, Edgar Montero. “Our partnership with VividGro will increase yields and grow quality.”

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

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