Our Process and Business Model
We are currently developing our existing operations into a world-class growing facility focused on the production of two primary products. Cannabis Seeds and Cannabis Flowers.
When it comes to the cannabis flower itself, which also serves as a source of oils and concentrates, the quality and genetic makeup of each strain have become even more important, with major corporations and innovative cannabis companies working to improve their base product for specific needs.
Driven by cannabis connoisseurs, medical users and entrepreneurs in need of strains that produce unique remedial effects, the legalization of the cannabis industry has caused an explosion of innovation when it comes to cultivating the optimal cannabis plant.
We have focused our early efforts on selecting and testing genetics, and the production of seeds.
Once GMP certification have been obtained from the Danish medical board, GMP certified seeds and GMP medical cannabis flowers will be produced as well.
Most cannabis seeds are grown from not controlled sources and there are almost no producers that are GMP certified.
The market is ready for an institutional-level seed supplier with the knowledge and experience to deliver a pharmaceutical grade product,
and the discipline to ensure organizational sustainability through compliance and the consistent application of the highest industry standards.
For Real Canna Seeds becoming GMP compliant and certified GMP grower means competitive advantage - our products will have a high level of differentiation from competitors, and allow to sell medical seeds at a premium to current market prices.
Medical cannabis seed production is characterized by high demand, high regulatory and legal barriers to entry, and an unparalleled opportunity for growth and profitability.
Real Canna Seeds expects it's unique seeds to capture at least EUR 100 million in sales in the next 5-10 years.
For our financial models, we assume a production capacity of 40 - 60,000 seed units per square meter per year on a 5-6 cycle per year basis.
Medical Cannabis flower represents the traditional THC cannabis product.
We expect to yield 500 grams of flowers per square meter per harvest. This will result in 3000 grams/m2 total yearly on a 6 cycle per year basis.
Subject to GMP certification, we use average sale prices of €5,000 per kilogram for the cannabis flower in our financial models.
Also, we will commence growing operations for cannabis flowers, with an initial grow area expanding to 1,125 square meters in year 3 of operations dedicated to growing GMP-certified medical marijuana.