GrowLife Inc (PHOT)

[Lombardi]

Lombardi re ques...

its interesting to hear your takes.

re ques. 5 & 7, I mistakenly referenced cannabis as hemp. My essential theme in those questions was whether or not that you've heard or felt that eventually rec cannabis will morph into micro cannabis brands & strains, much like the beer industry as splint into quite a significant micro beer industry.

niche strands like that play to indoor growing.

Also, do you feel the way legalization is playing out in re to the 1st step allowing only small amounts grown be individuals a boom for hydro? ... it would seem if phot can establish branding they can ride the legal evolution to the legalization of my large scale commercial growing.

LAmerica – it only lets me post 3 a day, sorry for the delay.

This is actually a great example of what I could hope or expect the industry to become. Take the Netherlands for example. Different coffee shops offer different brands or types of bud. Some have unique products they have become reputable for. The Abraxas Café for example is known for their ‘space cake’ hash brownies. Amnesia coffee shop is also famous for their Amnesia Haze strain of cannabis. Similar to microbrews, you’d see a lot of variety. Different shops carrying different products, most with niche items.

Some of the shops you’d see in Amsterdam are run in a large company scheme. Example - Greenhouse Seeds is a company that sells the seeds of their genetics, the buds of their seeds in their coffee shops and intensely advertise themselves. They produce a lot of different strains, but only a select few worth keeping.



Lots of shops will purchase from independent parties as well just like in California. ‘Freelance’ growers will pop up and try to provide product to shops that will be high enough in quality and yield to turn a profit. Not many will get it right the first time. Some may be forced to convert a low quality harvest into a concentrate or edible just to sell a more appealing product.

Newcomers will buy a basic startup set whether it be just a light or a discounted grow setup complete with tent, fan, light and filter. Over 90% of these people who are just starting out will create a product they don’t feel they did EVERYTHING right with. Something may be lacking – potency, flavor, bag appeal, taste.

Perhaps they didn’t flush their soil, or they want to try different nutrients, maybe they’re ticked off with soil and want faster results with hydro. Whatever reason, you develop return customers who are sure to stock back up on something after their harvest. Even if they’ve dialed in a strain correctly and are just buying more general supplies like soil and nutrients, you have customers coming back.

Heck you’ll even have a grower buy something mid-way through their current grow to take care of an issue. Neem oil products make a good example of this as they are usually purchased AFTER a grower finds they have a spidermite infestation and not as a precautionary measure beforehand.