Like a miner finding gold in the 1800s, the most rewarding aspect of our job is the feeling we have when we have identified an opportunity that others have missed.
A few weeks ago, we had this type of feeling when we were pulling up to the future Pure Harvest Cannabis Group’s (PHCG) facility in Dumont, Colorado. With a massive sign that stands more than 100 feet above the facility, people who are visiting world-class ski resorts or the Rocky Mountains will be able to see the sign from a far away and we find the location itself to be of strategic value.
The facility is located in one of the last towns before Breckenridge and is next to a Starbucks. The Starbucks is one of the most highly trafficked locations in the state and Pure Harvest will benefit from the number of vehicles that stop for gas or coffee in the town.
Another reason we are favorable on the facility is due to its size and structure. When compared to the prior facility, the footprint of the new location is substantially larger. We are favorable on the steps the business is taking to reduce expenses as well as its carbon footprint as evident by the solar array on the roof of the facility.
Led by a Management Team that is Focused on Execution
When we analyze companies, the management team is one of the first aspects of the story that we conduct due diligence on. With regard to Pure Harvest, we were always favorable on the strength and the diversity of the management team. After an in-person meeting with the management team, we have a much stronger conviction level in Pure Harvest and are impressed with the type of people who make up the team.
During the last year, Pure Harvest has made several substantial additions to the leadership team. From an expertise standpoint, the team is well-rounded and comprised of experts in their respective fields. From solar technology to medical science, there is a lot to be excited about with the Pure Harvest management team and we find this to be a bright spot of the story.
From C-level executives to administrative assistants, the corporate culture at Pure Harvest is second to none. There is a cohesiveness between the team that is nearly impossible to replicate and we expect this to play an important role in the success of the business. Starting with CEO Matthew Gregarek, Pure Harvest is led by a team that is focused on creating value for its shareholders and on reducing the carbon footprint that is associated with the cannabis industry.
Through Solar Cultivation Technology (SCT), Pure Harvest has substantial upside potential and we believe that the market does not fully appreciate this aspect of the story. Pure Harvest has an option agreement to acquire 100% of SCT and has been providing the seed funding and testing for the entity. We met with the founders of SCT and were impressed with how they brought the business to where it is today. Once under the Pure Harvest umbrella, we believe that SCT is better positioned for growth and are bullish on the amount of synergies that can be found between the businesses.
Over the next year, we expect SCT to prove to be a significant part of the operation and believe that the market is missing out on something as it relates to this asset. As cannabis companies work to reduce expenses, SCT will represent a fantastic solution and we are favorable on the impact that the technology can have on the cultivation process. From higher yields to lower costs, the state-of-the-art technology provides Pure Harvest with a major differentiator and we find this to be of importance.
A Growth Story that is Flying Under the Radar
Although we try to refrain from using the phrase “seeing is believing”, we are of the opinion that this is the case with Pure Harvest. The company is working on creating something special and we are confident in the management team’s ability to execute. So far this year, Pure Harvest has announced several major milestones and we are most excited about the planned expansion into the Michigan market upon state approval.
In Colorado, Pure Harvest has been focused on acquiring strategic assets and we are favorable on the amount of synergies that can be generated from these transactions. Over the next year, we expect the business to record substantial growth and are favorable on the growth profile that is associated with the operation.
Unlike many cannabis companies, Pure Harvest has been patient and has not rushed to make investment and acquisitions. This strategy is starting to pay off as the business has been able to acquire legitimate assets at attractive valuations. We believe that Pure Harvest could be a diamond in the rough and is an opportunity to be aware of.
If you are interested in learning more about the US cannabis company, please send an email to firstname.lastname@example.org to be added to our distribution list.
Pursuant to an agreement between StoneBridge Partners LLC and Pure Harvest Cannabis Group (PHCG) we have been hired for a period of 90 days beginning March 11, 2020 and ending June 11, 2020 to publicly disseminate information about (PHCG) including on the Website and other media including Facebook and Twitter. We are being paid $7,500 per month (PHCG) for or were paid “0” shares of restricted common shares. We own zero shares of (PHCG), which we purchased in the open market. We plan to sell the “ZERO” shares of (PHCG) that we hold during the time the Website and/or Facebook and Twitter Information recommends that investors or visitors to the website purchase without further notice to you. We may buy or sell additional shares of (PHCG) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.
Published at Thu, 28 May 2020 12:07:36 +0000