GCAC CEO Brad Moore answers questions about signing an LOI with COMSOL PPV Telecom to create a joint venture to sell licensed medical cannabis to Canadian veterans. The Canadian federal government pays the cost of medically licensed cannabis at $8.5/gram for up to three grams a day (with the possibility of up to 10grams a day) through Veterans Affairs. All cultivators wishing to access this lucrative market will be required to cultivate cannabis using the company’s Efixii software.
Q: As a veteran, you must be very excited about jumping into this market.
A: I am so happy that our first entrance is into the veteran market. I know of many of my brothers and sisters in arms who use medical cannabis to treat a long list of service-related injuries. They deserve the best, and I believe that cannabis cultivated on Efixii will give them that.
Q: Tell us about your partner Comsol and why is telecom company entering cannabis?
A: Comsol is the entity we signed the deal with as part of the structure. The owners of Comsol are also the owners of Sana’a, our first customer. This arrangement will provide the best structure for all involved from a regulatory perspective.
Q: We know you worked hard and waited to get the non-possession selling license. Why give up majority control?
A: First and foremost, GCAC is a technology company that has created a blockchain-generated supply chain solution. We got the license for precisely this purpose to find the best cultivator with the best in class products; Sana’a provides that part. I am delighted to partner with them in supporting their products. On a practical note, banking restrictions on cannabis companies are very tough, and our partners are best suited to deal with this aspect.
Q: Do you make money on the license of Efixii AND a percentage of the net sales of the JV?
A: Yup, it’s a fantastic arrangement. Everyone is doing what they are best. Through Comsol, Sana’a focuses on products and GCAC on telling the product story. We like to think of Efixii as a ‘force multiplier’ as we say in the army- a better way to prove the product story to the veteran community.
Q: There are 15K veterans in Canada having their cannabis covered by Veterans Affairs for a whopping $117M. What are your revenue projections over the next 12 months?
A: We want to do this right as there are many unhappy service members with how things have been handled regarding the cannabis prescriptions. We will take a measured approach with a goal of 500 veterans using the service in the next 12 months. That is still a significant business to the tune of $4.6M in gross sales of products alone, with 547k+ grams cultivated on Efixii!
Q: Do you plan to expand into the adult recreational market in Canada?
A: Heck yes. Sana’a themselves wants to use Efixii to produce cannabis for medical and adult recreational markets. This opportunity is to say to all Canadian cultivators, ‘we can help you provide better products, make more money and have fewer regulatory issues!”
Q: So, you just closed a deal with EMTRI for USD1.5M, an exciting LOI with South Africa, launched ESG and now the LOI for the Canadian JV. Are you sleeping much?
A: Lol, a bit. I am off this Sunday to Germany to speak at the Cannabis Business Europe 2022 in Frankfurt ( https://www.worldclassbusinessleaders.com/events/CBE22). Never miss an opportunity to tell the GCAC’s story about Citizen Green Technologies!