Making the Switch from Oil and Gas to Cannabis – LPC
SugarBud Craft Growers Corp. is an unusual licensed producer (LP), as licensed producers go. Anyone who thought for a second would easily envision farmers giving up one crop for cannabis. Mother Labs Inc. did that as we read last week, moving from vertical farming herbs to vertical farming cannabis.
What makes SugarBud different is that it moved not from farming, but from oil and gas.
“The junior (energy) sector, for all intents and purposes, is really dead,” said Craig Kolochuk. In 2006, there were 94 energy companies with a market cap below $500 million. In 2018, when this article was originally written (please see link below), there were 27. Calgary-based Relentless was one of them, and Kolochuk was its president.
One of the issues plaguing junior oil and gas was the fact they could raise money. Traditionally, these companies look for investors to fund exploration and development. Perhaps ironically, investors were flocking to the new cannabis industry instead.
So, the company went to where the money is. Relentless changed its name to SugarBud Craft Growers Corp., divested all oil and gas interests, and underwent its change-of-business process on the TSX-V. By September 2018, they announced $17 million in new investment.
Kolochuk said that although the industries were different, the entrepreneurial spirit is the same. “Our skillset is very transferable. We know how to protect a balance sheet. We know how to look at opportunities.”
SugarBud Craft Growers Corp. to Produce 15,000+ kg of Cannabis per Year – LPC
SugarBud Craft Growers Corp. got its Health Canada licence on August 30, 2019 for cultivation, processing, and medical sales. According to one news release, the company plans to “change the cannabis narrative”. In early August, it announced the near-completion of its Phase 1a 30,000-square-foot Stavely indoor facility. This includes two flower rooms designed to produce between 3,300 and 3890 kg of cannabis per year. SugarBud aimed to be up and running as soon as it received its licensed producer status.
“We are pleased with the progress that our teams are making,” said SugarBud Craft Growers Corp. CEO John Kondrosky.
Phase 1b and 1c will add six more flower rooms, bringing production up to 13,230 – 15,565 kg per year. SugarBud Craft Growers Corp. hopes to submit its licensing applications for those areas by early 2020.
This editorial content from the LPC News Editor is meant to provide analysis, insight, and perspective on current news articles. To read the source article this commentary is based upon, please click on the link below.