AgraFlora Organics International Inc (CSE:AGRA) (OCTMKTS:AGFAF), a diversified international cannabis company, said Thursday that it had engaged seasoned cannabis industry executive John Fowler to drive asset commercialization and shareholder value creation.
In a statement, the company said it is “pleased” to welcome Fowler, who is the founder of one of Canada’s top consumer brands 7ACRES and CEO of the Supreme Cannabis Company Inc (TSX:FIRE) from 2014 to 2019.
Fowler is a principal of Blaise Ventures Inc, a full-service consulting firm which has been engaged to support the execution of AgraFlora’s strategic priorities to “license, operationalize and solidify” a path to profitability for the company’s key assets.
A growth-oriented and diversified cannabis company, Vancouver-based AgraFlora owns an indoor cultivation facility in London, Ontario, as well as the edibles manufacturing facility in Winnipeg. The company is also a joint venture partner in Propagation Services Canada Inc (PSC), which operates a 2.2 million-square-foot greenhouse complex in Delta, British Columbia.
AgraFlora’s wholly-owned subsidiary Farmako GmbH is scaling towards its goal of being Europe’s leading distributor of medical cannabis.
The company’s main assets include Propagation Services Canada, Edibles & Infusions Corporation, AAA Heidelberg Inc and Farmako GmbH.
Eyeing accretive corporate opportunities
Fowler and his team will help AgraFlora’s management team in identifying, evaluating and executing on “accretive corporate opportunities,” including “potential acquisitions, dispositions or new revenue channels” in domestic and international markets, said the company.
“I entered 2020 looking for strong assets in the cannabis industry where I felt that our team could contribute to building strong and sustainable businesses, with a focus on engaging with key consumer segments to drive profitability and return on investment for shareholders,” said John Fowler, Principal of Blaise Ventures.
Fowler said he spent the latter part of 2019 meeting with a wide range of cannabis companies throughout Canada, and was “particularly impressed” by AgraFlora’s market opportunity, which is further amplified by its key assets.
“Properly aligned, the company’s assets are well positioned in 2020 to transform from development projects into customer-focused businesses that fill unmet Canadian consumer demand in true commercial cannabis edible production, high potency low cost cannabis flower, and craft cannabis,” said Fowler.
“In addition, I saw an important International segment in the Farmako subsidiary which presents a great opportunity to organically scale one of Germany’s leading medical cannabis distributors into a leading distributor of medical cannabis for all of Europe,” he added.
To date, Fowler and Blaise Ventures have been focused on driving forward the licensing and commercialization of Propagation Services Canada, and Edibles & Infusions Corporation.
Revenue generating by end of 2020
Working directly with Health Canada, AgraFlora expects its facilities to be licensed, operationalized and revenue-generating before the end of 2020. Both Propagation Services Canada, and Edibles & Infusions will focus first on driving revenue through wholesale transactions, thus accelerating revenue ramp-up while reducing associated selling and marketing costs.
The company said it will leverage Fowler’s “extensive network of large and medium-sized Canadian licensed producers, brands and processors” to further “expedite” revenue generation within “its wholesale model.”
Given the relative lack of large-scale gummy manufacturing and the opportunity for high-potency cannabis flower, management believes that both PSC and Edibles & Infusions are “well positioned” to emerge as market disruptors when they start spinning revenue in the fourth quarter.
“When I started in the cannabis industry, I did not have the luxury of experienced partners, given how nascent this evolving space was at the time,” said Fowler. “Furthermore, we had to build our business in an environment of uncertainty with respect to how the regulations and retail landscape would develop. AgraFlora is in an enviable position as it commercializes its assets at a time where most market dynamics are known.”
Contact the author Uttara Choudhury at [email protected]
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