THE PCC BUSINESS MODEL

This business model is not new.  Commercial agriculture has utilized genetic management and crop production system optimization successfully with food crops for decades.  PCC is simply applying those proven commercial agriculture and horticulture practices, methodologies and technology to the cannabis plant.  Utilizing these proven practices and technology, PCC will be able to accomplish for cannabis, in a few short years, what took commercial agriculture decades to achieve for commodity crops.

PCC’s “least cost” production system focuses on efficiency through lower costs, higher production, technology & automation.  Our goal is to deliver maximum production output at minimal input cost.  Because of the low prices received for commodity products, agriculture production system research and development has been focused for decades on production efficiency to continuously reduce cost.  Applying the many proven agricultural processes, and technologies that already exists will expedite the impact we can have on cannabis cultivation.  

 

FROM SOLID FOUNDATION TO EXPANSION

PCC’s plan is to establish a solid foundation on which an entire system can run efficiently & smoothly allowing for innovation and quality product delivery to an ever changing marketplace.  A “plug & play” model will be scaled and replicated in other states as legislation advances the regulated cannabis industry.  Developing the cultivation model and a brand recognized for innovation, quality, consistency and performance will provide for faster expansion into other markets.  As the cannabis industry continues to evolve, it is anticipated that inter-state boundaries will erode and open the door to establishing a business with true national reach.  

Phase 1 is the foundation of our strategy and develops the most efficient, least cost, production method &

system for cannabis cultivation. This involves the integration of genetics, production methods and environmental controls that

deliver desired traits most effectively and consistently.

Phase 2 builds upon the phase one foundation and develops products with specific traits, qualities &

consistency by establishing a research and plant breeding program. PCC’s focus will be on the development

of traits for specific uses and health indications.

Phase 3 leverages the prior phases to establish a “plug & play” model as an established brand that can be scaled and replicated in

other states as legislation advances the legal cannabis industry.

WHY GREENHOUSE CULTIVATION OVER WAREHOUSE?

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.