RavenQuest BioMed Inc (CNSX:RQB) (OTCMKTS:RVVQF) (FRA:1IT) CEO George Robinson is enthusiastic about the company’s recently signed supply agreement with Wayland Group (CNSX:WAYL) (FRA:75M) (OTCMKTS:MRRCF). The company will supply Wayland with product, securing a 2019 revenue stream for RavenQuest. Robinson shares details of the company’s innovative cultivation approach, which uses an orbital garden to grow cannabis. In this approach, plants rotate around a tube light, which generates max yields because of proximity to the light source. Using the orbital garden method provides attractive savings on energy, power, and water. RavenQuest’s 2019 focus is to build out both its cultivation model and its formulation model to ensure the company has significant product offerings once derivatives are legalized.
James West: George! How are you doing? Welcome back.
George Robinson: Awesome, I’m doing great. Thanks for having me back, James.
James West: Yeah, you get. So RavenQuest, you’ve just announced quite the significant supply agreement with Wayland Group. Tell me about that, how that all came about, and what’s the positive for Wayland Group, what’s the positive for RavenQuest shareholders?
George Robinson: You know, I think what’s happened here is, people are starting to realize that our developed technology, our approach to business, obviously our B2B sales license, the opportunity to be part of our company and our product offering, really created some interest in several LPs.
What really created a 1 + 1 = 5 for us and for Wayland Group was that we already had a good relationship with each other, we had been talking about other opportunities in the past, and what it really does for us is, it provides our company with certainty that we have a revenue stream for 2019. But more importantly, we are part of a process that allows Wayland to reach out and get product to market, which they need so badly and the Canadian market needs so badly.
James West: Right, okay, so great. So you’re, now RavenQuest business model, the last time we spoke, you were in the business of helping First Nations becomes LPs. Is that still the source of this cannabis for the Wayland Group? Is it still an aboriginal First Nations group, or is it some other source?
George Robinson: This source is actually from our two facilities that we have: our facility that’s in Markham, Ontario, and our facility that’s in Edmonton. But our aboriginal, our First Nations, our Indigenous Peoples group, is still moving forward rapidly. Lots of conversations.
What we’re hearing a lot in the indigenous space is that these communities are starting to move to writing their own cannabis Act, so slight little bit of concern when we go through that, but all of our projects in those spaces are moving according to positive manner.
James West: Hmm, interesting. So when you say that First Nations groups are writing their own cannabis legislation, does that suggest that on First Nations territory they don’t recognize the Cannabis Act?
George Robinson: No, it’s not that they don’t recognize the Cannabis Act; what they’re suggesting is that if they write their own Cannabis Act on their sovereign land, that potentially they can control all the taxation, all of the sovereignty of the product an move the product as they see and wish to from Canada to nation to nation, making, more importantly, for an indigenous community to an indigenous community on a worldwide basis.
James West: Ah-ha, okay, well that makes perfect sense! Why give the taxes to the government in Ottawa when you can keep it in the government on your own land? I like that. Sometimes I wish I was born First Nations. But, so that’s great. Well then, tell me about your operations in Markham and Edmonton; what sort of footprint have you got, and what’s sort of the operational strategy there?
George Robinson: Okay, so in Markham, Ontario, we’re 20,000 square feet. We’re flat table, but we will be converting those over to our orbital garden strategy probably in the middle of next year.
But our facility in Edmonton is 35,500 square feet, with 336 orbital gardens in place through 2019. We currently have 142 gardens ready to start cultivating, so it’s a footprint, but this footprint will create about 11,000 kilograms.
So going back to our last discussion, the smallest footprint with the highest output in yield, the lowest costs are our power consumed; 70 percent less water consumed, and more importantly, 90 percent less nutrients.
So it’s a really attractive business model on our side as far as cost, but more importantly, it’s as an environmental and sustainability plan, which many organizations love to be a part of.
James West: Interesting. Tell me about these orbital gardens.
George Robinson: Well, the last time we talked, it was a real cool strategy where the actual plants rotate around the light down the centre of a tube. So image a drum with a light down the tube and the plants orbiting, or going around, that garden. What it does it, the plants naturally stunt. So they grow to about 14 or 16 inches tall, but since the plants are so close to the light source, we get a max amount of yield from 2,400 watts of power. Normally, that same yield will come from about 8,000 to 10,000 watts of power.
That’s largely due to how closely the plants are to the light source. But since they’re so short, one, they don’t use as much water; and any water they don’t use we re-collect and we put nutrients back into it and re-pH the water. But more importantly, since they’re so short, what it allows us to do is even less because they don’t need as much nutrient through some of the plant leaf and some of the plant material that is essentially just thrown out.
So imagine a four-foot plant versus a 14-inch plant, how much nutrient does it really take to get up to the bud? Well, it’s very small, because it only has to go up a 14-inch stalk and set itself into the bud structure.
James West: Interesting. Well, that’s fascinating, George, we’re going to have to send a camera crew out to see these orbital gardens!
George Robinson: I hope you will. I think it’s going to be really cool for everyone to see.
James West: Yeah, great, okay. So apart from this excellent Wayland Group deal, what other big things are going to happen in 2019 for RavenQuest?
George Robinson: You know, I think we’ve got a lot of very interesting things that we’re looking at right now. You know, since we have this other way for ourselves, we can start focusing on some other things that we’ve had in our tactical plan, such as how do we move on formulation development or even buying formulation technology so that we’re ready for October 2019 or maybe sooner, when the derived products are going to allowed under the new Health Canada Cannabis Act.
I think more importantly, we can start taking a look at what we have already developed and looking at today which is our craft cannabis groups that we want to start working with, and be a part of their success.
And lastly, we still have a lot of, let’s call it, applicants that are coming to us to really look at what is the best way to move forward, so in our consulting and management services side we’re starting to get a lot of traction with people saying your technology is interesting, your approach to business is essentially how can we be a part of RavenQuest? And how we can be a part of us?
So I think 2019 is continuing to build out the cultivation model, continuing to build out the model on formulation, and making sure that we have enough products, not only in dried cannabis but in derived products, whether that be vape pens, beverages, or whatnot. We have a plan going forward.
So we’re working on that in 2019, and hopefully very soon we can make some announcements in those areas.
James West: Sounds great, George. Well, I’m going to look forward to spending more time looking at RavenQuest and coming out with a cameraman, so we’ll keep that conversation going. When do you think would be a good time for us to come out there?
George Robinson: I’m hoping that you can come out January and I think by that time we’ll have the license in place, and we’re having big events on January 15th and 16th with a bunch of other stakeholders that are coming out to just take a look at the facility. It would be great to benefit from the cannabis rotating around to have you and your team there.
James West: We’d love to be there – I look forward to seeing you then. Thanks for joining me today!
George Robinson: Thanks again for having me, it’s been wonderful again.
James West: You bet, George. Bye for now.
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