Cannabis cultivators and budtenders love to talk about genetics. While everyone has an opinion on the effects of specific strains, recent research suggests that the effects of cannabis aren’t necessarily consistent with strains, and the generally accepted classifications of indiva, sativa and hybrid varieties may be flawed. Very few companies are investing in truly understanding cannabis genetics, creating new strains, and patenting them.
In this article, we will look at the importance of cannabis genetics and The Supreme Cannabis Company Inc.’s (TSX: FIRE) (OTCQB: SPRWF) (FRA: 53S1) recent move to focus on cannabis genetics as a key differentiator in the space.
Cannabis Genetics Decoded
The biggest problem with cannabis genetics is basic quality control. According to one study, 35 percent of more than 80 strains tested had genetics that didn’t match the strain that was being sold. Consumers were buying Sativa strains that were advertised as Indica and Indica strains being advertised as Sativa. Consumers have gravitated towards brands that they can trust to deliver a consistent experience by properly labeling strains.
In addition to accurate labeling, cannabis genetics is important for creating the desired effects in consumers and patients. Medical cannabis patients have very different requirements than recreational cannabis users, and understanding and fine-tuning the genetics can help cater products to both of these end markets. With more than 25,000 different genes in the cannabis plant, research in this area is only starting to scratch the surface of what’s possible.
Cannabis genetics are important for cultivators looking to create proprietary products. With a detailed understanding of the underlying genetics, cultivators can file for patents and license strains to other growers. These dynamics could pave the way for pharmaceutical-grade cannabis products, as well as innovative new licensing-based business models. Companies involved early on in these trends could benefit the most from the long-term potential.
Supreme Focuses on Genetics
There are several companies focused on understanding and leveraging cannabis genetics to their advantage, but few have the experience necessary to truly drive significant value. Supreme Cannabis is a Canadian licensed producer that recently formed a new wholly-owned subsidiary, Cambium Plant Sciences, to lead the agricultural revolution of cannabis genetics, redefine consumer experiences, and improve cultivation economics worldwide.
“Our proprietary genetics selection methodology and ability to cultivate high-end cannabis at scale at 7ACRES has created strong industry demand for our proprietary genetics and cultivation techniques,” said Supreme Cannabis CEO Navdeep Dhaliwal. “It was as a result of the demand that we saw a global opportunity to create a company whose sole focus is innovating plant genetics and cultivation IP for the global cannabis market. We believe genetics are the foundation of proprietary cannabis products in the long term.”
Cambium Plant Sciences will develop cultivars that benefit the company’s in-house brands, as well as their domestic and global cultivation and manufacturing partners. Using 7ACRES’ established genetics, existing infrastructure, and experienced team, the company will enjoy a significant advantage in scaling up its understanding of plant genetics and gain long-term access to the technologies needed to scale up production.
The Supreme Cannabis Company Inc. (TSX: FIRE) (OTCQB: SPRWF) (FRA: 53S1) will invest approximately $14 million in developing a leading research and innovation facility to house the new subsidiary. The facility will include proprietary grow rooms, breeding rooms, and supporting infrastructure in an existing 34,000 sq. ft. facility. Management has already commenced the licensing process and will begin retrofitting the facility early this summer.
Investors may want to take a closer look at the company given these efforts. In addition to supporting the improvement of its existing award-winning products, the move could pave the way toward lucrative new business models and licensing agreements.
For more information, visit the company’s website at www.supreme.ca.
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