Chemesis International (CSI.C) subsidiary Natural Ventures vertical grow doubles output to meet demand

09/16/2019

Chemesis International’s (CSI.C) installation of VividGro LED lighting and environment controls in their Natural Ventures cultivation facility takes a serious step towards solving the chronic shortage of cannabis in Puerto Rico.

Natural Ventures is a seed to sale, medical cannabis company based in Caguas, Puerto Rico.

The shortages in medical cannabis stem from unfortunate timing involving cultivators planning their harvests for May, leaving a gap covering the months of June to August. This collided with a demand from a surplus of 15,080 new patients joining the registry this summer, and from tourists.

CSI’s new VividGro system allowed the company to double their cultivation area and significantly decrease its energy requirements and costs, pumping out new cannabis to meet the demand.

“Installing VividGro systems has allowed the Company to directly add shareholder value in many ways. Natural Ventures was able to reduce costs, add property value and increase consistency, quality and grow space. Chemesis will continue to add shareholder value by providing high-quality products to consumers through our advanced manufacturing processes and practices,” said Edgar Montero, CEO of CSI.

CSI had to contend with spatial limitations. There was only so much room allotted for plants in various stages of development, which meant they had to get creative. So after they used all of the available space, they doubled that amount by building up instead of out.

They did this through their LED lighting system and environmental controls, which use 1000 Watt HID lights. Their slim, lightweight aluminum fixtures allowed for a vertical grow construction, stacking two tiers of plants, basically doubling the 35,000 square foot of usable space and increasing yields by 200%

The lights could be controlled centrally, giving operators the ability to adjust for temperature, humidity, lighting and other key elements required to optimize growth conditions.

“The team at VividGro provides a full suite of solutions for Companies looking to take advantage of technologies that provide great ROI. The Company provides solutions that bring long term value, by reducing costs and increasing efficiencies. Solutions such as these are a no-brainer for any cannabis company looking to expand its operations,“ Montero said.

Last week, Natural Ventures entered into an agreement to purchase three cannabis dispensaries in exchange for USD$1.3 million in cash for over 24 months. The San Juan-based dispensaries presently operate under the Caribbean Green Brand and will generate $3.6 million in revenues for 2019. This will bring CSI’s total operating dispensaries to eight, with five more in development.

Through its existing licenses and infrastructure, Natural Ventures will continue manufacture, process and distribute the following products to retail consumers in Puerto Rico.

  • Cosmetics
  • Tinctures
  • Patches
  • Beverages
  • Edibles
  • hemp-derived CBD infused products.

GSRX

CSI closed an all-shares deal to acquire controlling interest in Puerto Rico based GSRX Industries late last month.

Here’s what GRSX adds to CSI’s portfolio.

  • Five operational dispensaries in Puerto Rico
  • An additional five prequalified dispensaries in Puerto Rico
  • A fully licensed cannabis distribution centre in Point Arena, Calif.
  • The Green Room, a boutique dispensary located in Point Arena, Calif
  • The Green Room, a 4,500-square-foot large-scale dispensary located in Palm Springs, Calif.
  • Retail CBD  stores in Texas and Tennessee
Source: stockwatch.com

The general downtrend shown in the chart above isn’t necessarily cause for worry, because this is indicative of the entire cannabis industry right now. What should be noteworthy is that their decline hasn’t necessarily been as steep as others, and shows signs that it may have hit its bottom at the end of last month.

—Joseph Morton

Full disclosure: Chemesis International is an equity.guru marketing client.

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