Lifestyle Delivery Systems Plans for 200k+ Sq. Ft. Cultivation Facility in California, Plus Exclusive Onsite CEO Interview
November 29th, 2017
Exclusive, News, Top News
There are a growing number of investment opportunities in the cannabis industry, but few public companies provide exposure to California’s nascent market. Among these companies, Lifestyle Delivery Systems Inc. (CSE: LDS) (OTC: LDSYF) (FSE: LD6) stands out with its newly proposed 202,500 square foot cultivation facility in California’s “Green Zone” where it could produce over 150,000 mature cannabis plants every 100 days to supply and power its ambitious plans.
Significant Growth Potential
Lifestyle Delivery Systems recently submitted plans for a cultivation facility to be developed on its ten acre parcel in the City of Adelanto. The proposed 202,500 square foot facility will be an environmentally-controlled greenhouse capable of producing over 150,000 mature cannabis plants from seedlings every 100 days. Management plans to subdivide the facility to lease to permitted and licensed cultivation entities that meet its strict requirements. Construction is expected to begin before the end of fiscal 2017.
“This facility will represent approximately 20% of the raw cannabis material required to meet the manufacturing, extraction, and distillation requirements of CSPA and LDS Scientific,” said Lifestyle Delivery Systems CEO Brad Eckenweiler. “We will continue pursuing qualified contract growers for our product-specific cannabis genetics grow program. This will be necessary to meet the additional raw material needs of the manufacturing facility as well as decrease our dependence on current Northern California growers.”
Lifestyle Delivery Systems’ newly proposed facility is designed to produce the exact ingredients that are needed for its sublingual, dissolvable CannaStrips™ and cartridges for its metered dosage products. In particular, the facility is designed to produce specific genetic strains which the company believes will assist and help in treating specific conditions, ranging from improved sleep to pain management. The tightly controlled cultivation process will ensure that its products remain extremely consistent and reliable.
How the Process Works
Lifestyle Delivery Systems spent approximately $6 million to retrofit and equip its existing 20,000 square foot facility. Within the facility are eight isogenic rooms, an agricultural nursery, a cultivation division, three distillation and extraction labs, and a manufacturing division for CannaStrips™. Independent third party testing has ensured that the facility is capable of making products without any pesticides, fungicides, mold, or infestation.
The company’s cultivation process will begin with seeds that are packaged into individual barcoded seed pods. After being planted, these seeds spend ten days in a nursery to develop into seedlings that are then sterilized. This ensures that no pollen escapes from the seed-stage nursery into the vegetative phase, since cross-contamination with pollen could lead to unpredictable genetics and a host of problems.
After transitioning from seedlings to adolescent plants, the seedlings will be moved into the production grow rooms. Management’s intention is to have contract growers take 90% of the adolescent plants to production rooms and grow them to the company’s specifications, ensuring that the genetics remain extremely consistent throughout.
Every ten days, 10% of the growth will be taken down to check for genetic purity and then processed into final products. This might include drying or freezing depending on whether the end product is destined to be dry resin or cannabis oils. These products will then be blended into the CannaStripsTM technology or into cartridges for use in its metered dose products, where consumers can be certain that the genetic purity is consistent every time.
See also: What’s in YOUR… Edible?
Lifestyle Delivery Systems Inc. (CSE: LDS) (OTC: LDSYF) represents a compelling investment opportunity in the burgeoning cannabis industry. The company anticipates breaking ground on its 202,500 square foot cultivation facility by year end. Once completed, the company will be uniquely positioned to become a leading grower of medical cannabis for use in its proprietary product lines in California’s nascent multi-billion dollar cannabis industry that’s poised to legalize recreational marijuana in approximately one month (January 1st, 2018).
LDS CEO Brad Eckenweiler lays out the case for investors, saying, “Only a handful of companies will be positioned to participate in the estimated $3 billion market of medicinal and Adult-Use cannabis oils in 2018 and we’re one of those few that are properly licensed and that can scale with organic grade quality biomass, predicated on sales. In addition, because we don’t have any middle men or brokers to deal with, our margins are extremely attractive.”