Lifestyle Delivery Systems Inc. Announces Planting of 7,000 Additional Plants for Outdoor Cultivation
Chosen by Staff Editors on 11-JUN-19
Lifestyle Delivery Systems announces that its subsidiary, Agrotech, has planted an additional 7,000 plants in addition to the 10,000 seeds already planted at the licensed outdoor cultivation farm near Sacramento, CA.
In April 2019 Agrotech planted 10,000 auto flowering seeds that will be ready for harvest in July. Earlier this week, Agrotech planted an additional 7,000 full term plants which started out as a mixture of clones and teens instead of seeds.
The first crop in July will serve as biomass and material to make pre-rolls. The farm expects to have a steady stream of auto flower harvesting every month going forward. These harvests will cover the farm's operating costs and, depending on the cannabis market, may generate profit from the initial harvest alone.
The 7,000 full term plants are the main purpose of the farm. The goal with these plants is to provide 20,000 pounds of usable material of various quality and at different price ranges. Harvesting these plants will allow CSPA Group, Inc., the Company's wholly-owned subsidiary, to process material into oil for the Company's flagship product, CannaStripsTM, as well as market outdoor flowers, small buds, pre-roll material, fresh frozen for concentrates, trim for bulk oil, and terpenes for vape products.
The above materials can be sold at higher margins, as compared to material purchased from an alternative farm. The Company's dispensary will be breaking ground next week and should be operational in time for the harvested materials being ready for resale, which will further increase the margins, as compared to sales through third-party providers.
The outdoor farm completes the circle of vertical integration and allows the Company to provide the California market with every product line at the highest margins possible while still being competitively priced.
Casey Fenwick, President of LDS, stated, "This farm opens new doors to a number of companies LDS' affiliates and subsidiaries can now do business with for added revenue streams. This allows us to control the market pricing due to the fact that plant material is becoming scarcer.
It is perfect timing for us to be in this space as we see prices going up for flower and other plant material. We are planning to monitor market trends over the next few months and be strategic about the best use for these materials in order to capitalize on our current position and available resources of raw material."
The Company will continue to update the market on all events as they become relevant.
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