There are a lot of cannabis names for investors to choose from. Sorting through them all is quite a task. Each day there are new names popping up on our radar screen. The latest company to do so is Organic Flower Investments Group Inc (OTCMKTS: QILFF).
Organic Flower Investments
Organic Flower Investments is a new player on the scene as the company was formed just this year. Its primary asset is 100% ownership of 1180782 B.C. Ltd. d/b/a Delta Organic Cannabis. DOC’s sole asset is equity participation and earn-in agreement with Agraflora Organics International Inc (OTCMKTS: PUFXF), a growth-oriented and diversified company focused on the international cannabis industry. Organic Flower Investments owns 44,852,040 common shares of AgraFlora Organics International Inc, an 10.12% stake in the company.
Agraflora Organics International
With the funds from Delta Organic Cannabis, Agraflora is developing a large scale 2.2 million square foot commercial medical cannabis cultivation operation in Delta, British Columbia. The retrofit of the 2,200,000 square foot complex has been split into three phases: Phase 1 includes the retrofit of 350,000 square feet, including post-production facilities, completion scheduled for Q1 2019; Phase 2 includes an additional 1,450,000 square feet to be completed by Q4 2019; and the final phase consisting of 400,000 square feet.
Initial activities of the retrofit include site preparation for propagation operations including 250,000 square feet of flowering area, development of standard operation procedures and completion of security audit and development of the overall plan, plus ordering of long lead time items and planning with plant genetic experts in preparation for the first crop.
In addition to an equity interest in Agraflora itself, DOC will receive a 20% direct interest in the facility itself. Additionally, Agraflora has ownership in several cannabis companies, including AAA Heidelberg and Propagation Services Canada in Canada, a large-scale greenhouse project in Australia, and is actively pursuing other opportunities within the cannabis industry.
Beyond its relationship with Agraflora, QILFF has signed several LOIs. The problem is that these are just letters-of-intent. They may or may not happen. That’s why we will not discuss them here.
The Edibles and Infusions Corporation Joint Venture
QILFF has a JV agreement with The Edibles and Infusions Corporation to develop a 50,000 square foot manufacturing and product formulation facility (the “Facility”), located in Winnipeg, Manitoba. The Facility will be operated by a roster of experienced chocolatiers and confectioners, as well as equipped with industry-leading manufacturing equipment capable of producing an assortment of both cannabinoid/terpene-infused products for medicinal, functional and adult-use. Joel Dumaresq, Chief Executive Officer and a Director or Organic Flower said:
“Establishing a controlling stake in this JV is truly transformative transaction for Organic Flower. Along with our highly reputable JV Partner, we have firmly positioned ourselves at the forefront of the next phase of cannabis normalization- ‘Cannabis 2.0’. Armed with this state-of-the-art facility, Organic Flower expects to become the unequivocal leader within the highly lucrative cannabinoid-infused edibles and functional food marketplaces.”
Right now, an investment in QILFF is highly speculative. The company is simply a holding company without an operational business. While it has invested in assets and is not a blank shell, there is very little to fall back on. If one has a choice and wants to bet on QILFF, the smarter play is to buy Agraflora Organics International directly.
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Disclosure: We have no position in QILFF or PUFXF and have not been compensated for this article.