Speakeasy Cannabis Club (EASY.C) got the licensing nod from Health Canada to include 13,300 square feet of its 53,200 square foot new facility used for processing outdoor cannabis, and is presently being harvested, according to a press release.
Speakeasy’s end goal here is complete vertical integration, giving the company full control over the development of the end product while increasing their margins.
“The next chapter of Speakeasy begins with this amendment. Demand for extracts, concentrates and value-added products have been steadily increasing in the market and we are in an excellent position to take part in a big way. With our outdoor harvest nearing completion, we will have a large supply of input material perfectly suited for extract and concentrate products that gives us a significant price advantage over others in the industry,” said Marc Geen, founder of Speakeasy.
The company has specifically chosen the genetics, combined with their harvest and storage methods in their outdoor facility, to tie into their plans to extracts and concentrates to be manufactured in the new facility.
The licence amendment approved by Health Canada includes:
- An additional 13,300 square feet of processing and secure storage space in the company’s newly licenced cannabis facility will be used for extractions, concentrates and flower processing labs, occupying one of the four floors of the complex.
- The remaining 39,900 square feet of the facility are nearing completion and will be used for flower production, which, once fully operational, will provide an estimated 2,000 pounds (indoor craft cannabis) per month.
- The new licensing fully encloses the Speakeasy cannabis campus with the addition of six acres and a combined total of over 63,200 square feet of production and processing space.
Consumers are choosing to purchase extract products because they present a significant improvement in their experience including:
- Consistency: The dose can be refined more precisely and shelf stable for consistent experience.
- Convenience: Consumers are seeking solutions that are easy, portable and discrete.
- Potency: Consumption is required less often and offers a higher THC (tetrahydrocannabinol) dosage.
- Value: The high potency translates to fewer sessions and more savings.
BISWorld’s estimates have revenue for the Canadian cannabis industry exceeding $3.5 billion in 2020, with cannabis extracts accounting for $350 million of that. Industry revenue is anticipated to rise an annualized 4.7% to $4.4 billion and cannabis extracts are projected to grow 365% over the next five years.
—Joseph Morton
