Major addition of ability to produce product for sale
("LDS" or the "Company") announces that its wholly-owned subsidiary, Core Isogenics Inc. ("Core Isogenics") has contracted a licensed California cannabis farm consisting of over two acres of outdoor cultivation and three-quarters of an acre of covered canopy cultivation land in Sacramento, CA.
Core Isogenics will supply expertise, seedlings and nutrients to the farm. The farm has two years of successful contaminant-free growth and all the necessary infrastructure to immediately begin cultivation of cannabis for Core Isogenics. The planting of seedlings is anticipated in early May 2019, upon completion of soil preparation and drip line irrigation installation scheduled for next week. The farm has already started cleaning and preparing the property in order to put cannabis plants in the ground as soon as possible. The farm is estimated to produce over 12,000 kilos of flower and trim for CannaStrips™ and for Highway 395 Dispensary. After the first harvest the Company plans on applying for additional cultivation licenses in order to maximize the footprint of the land, another half an acre of covered canopy.
The benefits of contracting with the farm are many. The harvest from the farm will generate significant revenue from the crop, as well as clean biomass for CannaStrips™ and additional products for Highway 395 Dispensary. These products will be acquired well below current market price and without any middlemen. As an additional benefit, Core Isogenics will have access to large-scale outdoor and covered grows in order to prove out the seed genetics in multiple environments, while attracting other growers and farms to Core Isogenics' products and supplying CSPA Group, Inc. with biomass at extremely attractive prices.
Casey Fenwick, President of LDS, stated, "We are fortunate to have established a relationship with this farm to contract this cultivation on their property. The contract cultivation on this farm will enable us to compete against black market pricing and still remain profitable. It's becoming apparent that to be competitive in the current cannabis market, companies will need to produce their own biomass on a large scale. With this farm, we have been fast-tracked to be able to accomplish this in a short amount of time because it is already an operating contaminant-free farm."
The Company's CEO, Brad Eckenweiler, stated, "This accomplishment is just another milestone in the vertical integration that will support our company and our subsidiaries well into the cannabis future. The most amazing element of our vertical structure is that at every level of operation, each element of the vertical structure is capable of supporting its own operations while adding value to the entire operation. This should result in increased overall profitability for LDS."
The Company will continue to update the market on all events as they become relevant.
About Core Isogenics Inc.
Core Isogenics Inc. holds a cultivation license and a nursery license located in Adelanto, California. Core Isogenics is creating isogenic strains for specific cannabis genetic characteristics, which will be consistent in each and every plant eliminating any variation of ingredients and or results for the customer experience. The strains produced will be genetically specific to the requirements of terpenes and cannabinoid profiles, both in variation and elemental structure, allowing for significant reduction of production cost as a result of extracting the exact formula from one plant vs many.
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