To deliver on our low cost strategy, we will be using modern greenhouse facilities for the Precision Cultivation Company, Ltd.’s model.  According to Horticulture Solutions Ltd., cannabis greenhouse production costa are 60-70 % less than warehouse production costs because greenhouses provide reduced lighting, heating & cooling, and overall ventilation needs by leveraging the use of natural light.  It is scientifically proven a greenhouse delivers two times (2x) the photosynthesis achieved in a warehouse with artificial lighting.  It is simple, plants need sunlight.  Greenhouses also maintain a lower relative humidity level than warehouses, which leads for a substantial reduction in insects, molds and other pest problems.  The result is greatly enhanced plant development and yield with reduced crop cycle time.  Additionally, greenhouse facilities and construction costs and 65% less than warehouse construction, resulting in far less overhead costs for each facility.

Our production process development will be tailored specifically to greenhouse cultivation.  The three largest cost factors in Cannabis warehouse production are lighting at 33%, ventilation & dehumidification at 27%, and calling at 19%.  These three largest cost factors represent 79% of the total cost of warehouse cassabas production.  All three of these costs are significantly reduced by utilizing sunlight and natural ventilation in a greenhouse.  Using greenhouse facilities will provide PCC with an immediate and substantial production cost advantage.  This will position PCC as a leader in precision cannabis cultivation and with a long term competitive cost advantage.