Letter from the CEO
Dear Investors, Partners, Colleagues & Key Stakeholders:
At GrowForce, we strongly believe that an ongoing dialogue and open communication between the Company and its many Stakeholders is paramount for our mutual success.
Our ongoing goal is to keep everyone up-to-date and well informed about GrowForce’s activities and the progress the Company is making in executing our business plan, and meeting our objectives in Canada and other federally legal cannabis markets worldwide.
I would like to take this opportunity to share some of the key highlights and accomplishments our team has achieved over the recent months. The GrowForce team remains very active on many fronts including the next major phase in the legalization of recreational cannabis in Canada on October 17th.
On the capital markets front, GrowForce achieved a significant milestone at the beginning of August 2018 with the closing of more than CAD $38 million in capital funding (see press release).
Another important milestone, set to be accomplished in the coming weeks, is for GrowForce to be listed on the TSX Venture Exchange (TSX-V). The Company recently completed the required steps including the definitive merger agreement for a reverse takeover (RTO) with Platform Eight Capital Corp., and the filing of the listing statement with the TSX-V. With all the necessary steps and filings completed, we are currently awaiting confirmation from the TSX-V to be listed.
We continue to enjoy and benefit from our strong relationship with Bridging Finance Inc. which will continue to be our non-dilutive source of capital as we execute our strategic plan by growing our operations, revenues and in due course our earnings and cash flow. Our partnership with Bridging enables GrowForce to use growth and operation levers for significant value creation as we push forward.
Investor Relations & Marketing
In support of GrowForce’s ambitious growth plans for Canada and other federally legal cannabis markets worldwide, we built a team of strategic advisors to help guide the Company to public company-status and become a recognized player in the North American investor marketplace. To that extent, GrowForce retained the services of ICR and Spinnaker Capital Markets for Strategic Communications and Investor Relations services.
Acknowledging the unique attributes of the Canadian cannabis market, GrowForce also partnered with Canadian-based advertising agency John St. to help build and establish our brand and product portfolio. John St. has been working with the GrowForce team on the development of a unique branding approach for the Company’s medicinal and recreational product and sales platform. We look forward to sharing this platform in the coming weeks.
To launch and elevate our corporate brand presence in the Canadian market and build awareness to GrowForce’s unique proposition, the Company is working on numerous initiatives to raise its profile and that of its executives with media and other key influencers. The results of these efforts thus far have yielded strong coverage and exposure for the Company and our Executive Vice President of Operations, James Lowe, who was interviewed by The Midas Letter and Business of Cannabis. This positive exposure in Canadian media is coupled by a recent interview I had the pleasure of doing with Jim Cramer on CNBC Mad Money, as secured by ICR. In addition to traditional media we are also excited to have launched our podcast series called Cannabis Elevated which will allow us to connect with a wider audience.
Our marketing efforts and reach are not limited to the North American market. In late August our Vice President of Marketing, John F. Kennedy presented at the Cannabis Business Europe 2018 conference, held in Germany. To an audience of hundreds of international cannabis stakeholder attendees John outlined and shared how GrowForce is leveraging its deeply-rooted experience in cannabis to build a sustainable and successful cannabis brand.
GrowForce WPG (Winnipeg, MB): Our 120,000 sqft flagship facility in Winnipeg is actively under construction targeting a Phase 1 completion date by end of 4Q2018. Simultaneously, our cultivation license application is underway for this facility and we hope to receive that by end of Q4 2018 as well. Phase 2 is targeted for Summer 2019.
GrowForce WILL (Brampton, ON): I am pleased to share that we moved forward from the cultivation license-status and achieved all of the necessary requirements to obtain a sales license for this facility. We submitted paperwork to Health Canada for the sales license and expect to receive confirmation in 4Q2018.
GrowForce GRO (Dunnville, ON): We are currently in the Evidence of Readiness stage leading up to our cultivation license. Once construction is finished for the initial building, we will submit for the cultivation license which we expect to receive in 4Q2018.
GrowForce AC (Halifax, NS): The construction progress for Phase1 of the facility (48,000 sqft) is on-time and on-budget thanks to our local partners and development experts, the Halef Family. We expect to submit the requisite paperwork to Health Canada for the cultivation license within the next few weeks.
First Nations Update
GrowForce announced a joint venture with Peguis First Nation in Manitoba to explore cultivation and retail partnerships (see press release). This is an important first step in GrowForce’s efforts to launch a coast-to-coast Canadian footprint and closed-loop system with our Indigenous partners. I look forward to updating you on the details of this specific partnership as well as others across Canada in the very near term.
Our tireless effort and initial success with our Indigenous partners could not have occurred without the strong partnership and guidance from our dear friends at Bridging Finance Inc. David Sharpe and his team stand by us on each and every Indigenous project we collectively pursue, and together we are creating a multi-generational opportunity for Indigenous communities throughout Canada.
I would like to take this opportunity to introduce you to our expanded GrowForce team. I am proud to work with this talented and passionate group as each individual has brought their own skills, knowledge and experience to the table in order to move the Company towards our mutual goals. Please take a minute and meet our team.
In closing, we are all beyond enthusiastic about the future of the Company and the opportunities that lay ahead as the global cannabis market continues to evolve. These are exciting times for the industry and I have no doubt GrowForce is well positioned to leverage its unique expertise to drive significant value to its shareholders and various stakeholders. I hope you found this briefing note of interest and look forward to keeping you informed as we continue to execute and expand the Company.
Your feedback and thoughts are always welcomed and appreciated. Thank you.
Rishi Gautam, Chairman and CEO
GrowForce Holdings Inc.