James E Wagner Cultivation Corp (CVE:JWCA) (OTCMKTS:JWCAF) CEO Nathan Woodward made a very material prediction to Midas Letter Founder, James West, this morning. He believes that his company is on-track to becoming a certified organic cannabis producer in time. If so, JWCA would become an important power player in a market segment lacking few operators of scale within Canadian borders.
This important revelation occurred during today’s Midas Letter full-day live broadcast, celebrating Canadian cannabis legalization. Among the several poignant questions asked by Mr. West, one in particular stands out for those closely following the country’s organic cannabis scene. Here is what Mr. Woodward had to say:
James West: Does aeroponically mean, or imply, more organically than, say, hydroponics?
Nathan Woodward: Not necessarily, no. However, although I can’t talk about it much, as the first aeroponic grower in Canada, we have a little better insight into the way aeropincs works—especially with long growth cycle crops such as cannabis. And we have developed a very important new wrinkle on that technology, which I believe will allow us to operate in a fully certified organic fashion. That will be the first time in the world that this type of system has been introduced, the first time in the world that aeroponics and organic will be brought together into the same equation.
For those not aware, aeroponics is the process of growing plants in an air or mist environment without the use of soil or aggregates. Since this medium eliminates rooting variables from the growing equation, crop yields are always robust, consistent, and deliver maximum terpene and cannabanoid profiles.
Furthermore, aeroponics growing is efficient and cost effective. James E Wagner’s aeroponics growing methods can produce 5.2-6.4 crops per year—significantly above the industry average. Station costs, or costs associated with growing a plant during the cultivation cycle, can be as low as $55 over 5 years, compared with $20-$30 per traditional growing cycles. There’s no earth to add or dispose of, less nutrients to supply; only minor parts to replace once plants are harvested. Crop failures—recently witnessed with two high profile Canadian LPs—are virtually unheard of.
James E Wagner is Canada’s only licensed aeroponics cannabis company, with its new 345,000 square foot facility just getting off the ground in Kitchener, Ontario. It currently does not possess organic certification, nor is particularly close to obtaining it. However, there’s little reason to believe such an outcome isn’t an inevitability, given the sterile and chemical-free environment in which aeroponics cannabis is grown. If so, the company will join Green Organic Dutchman Holdings Ltd. and OrganiGram Holdings Inc. as major players in this emerging market segment, where cash crop premium are approximately 30% higher than standard cannabis grow.
The full interview will be posted later on as it becomes available.
Update 8:55 pm EST
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