- Recreational marijuana sales in Canada have been slow to take off despite legalization in October 2018 but look to be on the rise
- A survey carried out in February 2021 revealed that 40% of Canadian marijuana consumers still resorted to illegal means to obtain product due to poor quality of legal marijuana, lack of stock at retail outlets
- Pac Roots Cannabis seeks to avoid peers’ fate through relentless focus on premium-quality strains, coupled with strategic licensing agreement with Phenome One Corp
- Earlier this year, Canada’s legal market was shown to have finally overtaken illicit sales, commanding 56% of sector turnover
“The legal stuff is garbage”—so read a Reddit user’s comment on one of Vancouver’s cannabis-focused reddit feed earlier this year. Recreational marijuana was legalized across Canada in October of 2018 (https://cnw.fm/U1x2p); however, since then, legal recreational marijuana sales have been slow to take off. Remarkably, a Canadian government survey released in February 2021 (https://cnw.fm/14uQg) found that 40% of the country’s marijuana consumers admitted to having obtained the drug illegally since legalization – largely a result of the poor quality inherent to legal produce as well as a distinct lack of retail store locations. In the face of this, innovative cannabis up-and-comers are raising the quality bar. Pac Roots Cannabis (CSE: PACR) (OTCQB: PACRF) (FSE: 4XM), a Canadian cannabis company dedicated to producing premium-quality strains and products by leveraging a genetics-focused approach, has sought to address the poor reputation of legal Canadian marijuana through a relentless focus on cutting-edge cultivation techniques.
Pac Roots has entered into a strategic licensing agreement with Phenome One Corp, granting Pac Roots access to one of Canada’s largest live genetic cannabis libraries with lab and field-tested, selectively bred seedlings, which the company has employed to grow, breed and clone their own unique brands. The tie-up in turn has allowed Pac Roots to offer its customers a remarkable portfolio of over 350 meticulously designed cultivars, ranging from CBD-dominant plants with rare terpene profiles to plants with over 30% THC-content as well as West Coast outdoor, botrytis-resistant cultivars.
“Preserving the excellence of our elite strains while introducing the highest quality of new strains to the public is our passion,” Pac Roots Cannabis states on its website. “Genetic variation and stability are the foundation that drives the decision making for our business” (https://cnw.fm/paRxz).
At least part of Phenome’s expertise lies in its state-of-the-art growing systems that are carefully designed to incorporate proprietary nutrient regimes with experience in all growing mediums. Phenome One’s elite line of rigorously tested production cultivars consists of hundreds of cultivars that have a minimum of nine commercial production cycles.
Pac Roots has thus sought to avoid the fate of companies such as sector leader Canopy Growth (TSE: WEED), which has seen its market capitalization decline from over $24 billion in April 2019 to just over $8 billion at present (https://cnw.fm/KMx0x). In early 2020, Canopy Growth announced that it would be closing two cultivation greenhouses in British Columbia while simultaneously cancelling plans for a third greenhouse in Ontario. At the time, Canopy Growth’s management blamed the cutbacks on Canada’s recreational market, which they said had “developed slower than anticipated.”
However, the Canadian recreational marijuana market may now be turning the corner. Earlier this year, data revealed that the legal market had finally overtaken illicit sales, accounting for 56% of sector turnover (https://cnw.fm/6hJjX). Meanwhile, retail locations are now proliferating; about 50 locations a month are now opening in Ontario, leading prices to decline by approximately 20 percent since legalization due to the fierce competition among hundreds of licensed producers.
With Canada’s legalized marijuana market finally on an upswing, Pac Roots Cannabis Corp.’s relentless focus on high-quality cultivars and marijuana products may place it in the ideal position to benefit from rising demand from an increasingly discerning Canadian retail consumer base.
For more information, visit the company’s website at www.PacRoots.ca.
NOTE TO INVESTORS: The latest news and updates relating to PACR are available in the company’s newsroom at http://cnw.fm/PACR
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