Can a humble farmer disrupt the cannabis industry, run by bankers, in the next five weeks?

After a long journey to build the necessary infrastructure and getting the licensing approval through Health Canada, the Geen name is about to put its stamp on a new crop. The 5th generation farming family, most recognized for their critical participation in SunRype’s success, is about to make history once again in cultivating one of the largest cannabis harvest in Canada.

Why Greenhouses Are Now Liability

Why does SpeakEasy (CSE:EASY)(FWB:39H) Marc Geen believe that greenhouses are now a liability in cannabis 2.0?

New regulations passed in fall of 2018 that allow outdoor for production has left many companies scrambling.

Find out why this year’s harvest will change the industry.

Harvest Model Outdoor

We look at the harvest model for 60 acres of outdoor – the anticipated harvest cost of $0.04 cents a gram, a peek at their innovative processing procedures, and why the climate of BC Rock Creek is the perfect match for growing cannabis.

The team at SpeakEasy has been working 7 days a week to plant 96,000 clones. Now they’re just months aways from seeing something absolutely spectacular! When these plants prepare to fully flower, SpeakEasy expects to harvest 70,000 KG of cannabis.

Harvest Model Indoor

SpeakEasy cannabis complex is 100% indoor small batch at scale.

BC Bud is considered to be some of the world’s best craft cannabis; SpeakEasy’s philosophy is to take the small batch growing style and apply the craft technique on a larger scale.

Still, to this day 85% of cannabis is sold through the black market^[1]. SpeakEasy believes one of the major reasons is because companies have invested in greenhouse infrastructure when 100% climate control is the only way to cultivate strain’s unique attributes to their fullest potential. You have to be mother nature in order to create perfection in cannabis, and that is what BC bud is known for.

The company is a strong buy. Here is my rationale:

Health Canada Delays – Delays through the Health Canada licensing process have slowed SpeakEasy’s ability to receive their cannabis sales license, but the team has been full force on cultivation infrastructure and it’s now ready to pop.
The Potential Revenue – the projected revenues for the next year are massive. The 2,600,000 SQFT of outdoor space paired with the craft indoor complex, the total harvest is expected to be 100,000 kg in the next 12 month.
Share Price Today – The company has a share price of only 50 cents and a market cap of 50 million; to date the company has almost raised that much in capital.
The Team – You’re always investing in people. The Geen family has been farming in the BC Okanagan region for almost 100 years, their experience in agriculture is nothing short of incredible.
Family Hasn’t Sold a Single Share – Since going public in 2018 not a single family member Marc, Merv, or Pat Geen have sold a single portion of their shares.
Cannabis Sales Growth – The bubble has popped but the Canadian cannabis sector has been steadily increasing in retail sales with no intent of slowing down.

2019 Q1 Average – 2020 Q1 Average → 275.81 % increase

Jan 2019 – Jan 2020 → 280.26% increase
Feb 2019 – Feb 2020 → 294.08% increase
March 2019 – March 2020 → 297.29% increase
April 2019 – April 2020 → 241.54% increase

Q2 Update

A timeline of Geen family farming and how they were brought into the world of cannabis

While many cannabis companies were out spending hundreds of millions on AI, greenhouses, and robotics that they thought was going to change the cannabis world, The Geen family was 15 years ahead of them investing in what they knew to be the most vital part of farming, site selection.
1995: Geen family acquired 2200 acres of land in Rock Creek BC. The area known as the Golden Mile – where their family has successfully farmed for 4 generations.
2013: Geen family applied for a cannabis license; in 2016 290 acres of the Geen family farm would become SpeakEasy Cannabis Co.
2018: Health Canada announces that outdoor cannabis cultivation would be allowed – SpeakEasy’s trajectory changes dramatically.
2019: Speakeasy is granted a cultivation license, followed by an amendment that allows outdoor cultivation on 2,600,000 square feet.

“This has been an extremely long journey, we can finally see light at the end of the tunnel and don’t even have words for how that makes me feel. It’s incredible to see that our vision for what we believed in day one, is finally playing out.

Public companies’ crazy news feeds, that SQFT equals the valuation of your company, is all coming back to earth. That true farming principals have to be your foundation. ”
Marc Geen – Founder

The Geen Family: a Canadian Farming Legacy that Lives on

If you’re not familiar with the last name Geen it’s likely you don’t live in the Okanagan or work within the Canadian farming community. Merv Geen was a farming pioneer. He changed how many farmers got paid and was instrumental in the success of SunRype as he chaired the company over 18 years.
Within the Geen family the apple doesn’t fall far from the tree. Marc and Pat Geen who are sons of Merv and Joan. They are some of the hardest working people you will ever meet.
Working 18 hours a day and getting your hands dirty while living on the ranch is simply a way of life for this family.
Today Marc and his family of 8 kids, 4 that still reside on the ranch with him. They literally have to drive through the Speakeasy’s farm just to get home or go to hockey practice.

Craft cannabis and affordable weed – a proven path to pulling product off the shelf

When it comes to consumer facing brands, the focus for Speakeasy is not to get lost in the middle where greenhouse products dominate the industry, and with brands that lack substance and authenticity.
Cannabis advocates are continually posting on forums “that corporate weed still sucks” and have yet to commit to this new area of legal weed.^[3]
After 3 months of first hands on market discovery, initial cultivation assumptions have been proven:
1 ) that REAL high end products that have the same premium attributes of blackmarket high THC content (over 25%) are very hard to order for dispensary owners in large amounts because the supply is currently being allocated through a lottery system.
2 ) that affordable cannabis flower and extract products, that are priced more affordably than blackmarket, are flying off the shelf.
3 ) that a multi brand strategy is required as consumers are as diverse as those whom consume alcohol.

While we recognize our competitors in the space, our major competition is the blackmarket that still makes up 85% of cannabis sales. If the product is not better quality and cheaper we as an industry will struggle to convert the true cannabis enthusiast to the legal side. That is our goal at SpeakEasy, it is us against the blackmarket not Canopy or Tilary and ukwe strongly believe we have built a business to win this battle.
Marc Geen – Founder

5 reasons why emerging companies after the bubble could soon lead the cannabis industry in a few short years. Just like Facebook and Google now lead the global tech industry.

Leadership – Almost all of the CEOs of Canada’s “top” cannabis LP’s are gone. What does that mean? It is not an easy task to rally the new team and get them to buy into the vision once your company has been destroyed in the public market as the bubble popped.

Bloated Companies – The bigger you are, the slower you move. In an industry that changes on a dime, these behemoths will struggle to find niches and prove out real business.

Cash Flow – As many of these companies have ramped up personnel, multiple sites location and dove deep into acquisitions. The current reality is these companies are burning money at a wild rate, yet breaking even and raising money has become harder than ever.

A public company driven business – So many of our “top” cannabis companies have been driven by stock price and have been focused on acquiring unnecessary assets while adding debt to the books. These poor business decisions will have a hard price to pay in the coming months when faced with reality.
No clear business model – Let’s remember that trying everything like what the “major” cannabis companies have done for the last 3 years is not a proven formula for success. Google started as a simple search algorithm and facebook was a social network for universities. These companies found their niche and expanded on it.

SpeakEasy 5 generations of family farming experience and site location poised to shatter all competition

Only a few outdoor licenses were issued for the 2019 harvest, and many companies have struggled drastically with their harvest. While everyone thought they’re getting rich off the green rush, many drastically underestimated that knowledge base you need to create agricultural success. The story again brings us back to what the Geen family does without thinking; it’s like muscle memory, you come back to the ranch 3 months later and are blown away by the progress. But to the humble team at Rock Creek, it is just part of the plan, and that plan that has been perfected over the last 100 years.

SpeakEasy is expected to cultivate outdoor product at an extremely low price of $0.04 for trimmed flower and $0.02 for extract material

Expected harvest is 70,000kg in the first year

IN COMPARISON

48NORTH:
48North expects to cultivate outdoor cannabis on their 100 acre facility at $0.25 per gram ^[4]

ALEFIA Health:
Alefia Health expects to cultivate outdoor cannabis on their 87 acre facility at $0.10 per gram ^[5]

WEEDMD
WEEDMD expects to cultivate outdoor cannabis on their 27 acre facility at $0.16 ^[6]

SpeakEasy’s expected total harvest for next 12 months broken down

Outdoor smokeable flower total projected annual KG and expected harvest cost:

Cost per gram – $0.04
Total harvest – 30,000 KG (Approximately)

Outdoor biomass total projected annual KG and expected harvest cost:

Cost per gram – $0.02
Total harvest – 30,000 KG (Approximately)

Small batch craft cannabis total projected annual KG and expected harvest cost:

Cost per gram – $o.80
Total harvest – 7000 -8000 KG (Approximately)

Cheapest: Pure Sunfarms Sativa – $4.20/gram^[7]
Most Expensive: Qwest Reserve MAC1 – $19.13/gram^[8]

A look at SpeakEasy (CSE:EASY)(FWB:39H) against the top 3 cannabis companies, what is the easiest path to double your investment?

The major players in the cannabis industry were heavily focused on promoting their public company over the last 5 year. The result is even after the cannabis bubble popped these valuations still seem obscene for any company in this emerging space. If investors are now looking for a way to double their investment, the valuations of these top 3 would have to add billions of dollars to their market cap.

Is that a reality in this new area of cannabis or is it time to look for emerging companies that have been focused on their business model? The financial statements will soon drive these companies’ valuations.

With SpeakEasy’s projected harvest it is hard to see how this company doesn’t generate $100 million plus in the near future. If we look at current comps, multiplier of revenue to establish market capitalization, SpeakEasy seems poised for substantial growth in their share price -if harvest in the next 12 months is remotely successful.

Top 3 Cannabis Companies:

Canopy Growth
- KG Produced: 500-550,000kg ^[9]
- Market cap 8 Billion

Aurora
- KG Produced: 230,000kg^[9]
- Market cap 1.93 Billion

Aphria
- KG Produced: 255,000 kg ^[9]
- Market cap 1.5 Billion

SpeakEasy
- KG Produced: (Projected 12 months) 100,000 KG
- Market Cap – 50 Million

Licensed producers made a massive assumption that simply getting on the shelf would lead to success. Cherries are one of the hardest crops to harvest, cannabis is no different, agriculture at this level is an art and these consumers are no different than wine connoisseurs, you simply can’t cut corners.
Marc Geen – founder

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