MJBulls: Cannabis investing and cannabis fundraising

GnomeWorks | Shawn Pahwa

Episode Summary

The team at Gnomeworks has developed processes for growing cannabis using aeroponics. Shawn Pahwa joins Dan Humiston to talk about this exciting, environmentally-conscious growing method and their plan to show-case it in their new state-of-the-art facility. Produced by PodCONX https://podconx.com/guests/shawn-pahwa

Episode Notes

The team at Gnomeworks has developed processes for growing cannabis using aeroponics. Shawn Pahwa joins Dan Humiston to talk about this exciting, environmentally-conscious growing method and their plan to show-case it in their new state-of-the-art facility.

Produced by PodCONX

https://podconx.com/guests/shawn-pahwa

Episode Transcription

Dan Humiston: [00:00:01] If you're Cannabis company is raising capital, you need to check out the online fundraising masterclass presented by Equity Capital Collective. The six week course was created exclusively for Cannabis companies by Sara Battersby using her proprietary methodology. Sara has helped founders raise over 50 million dollars. The fundraising masterclass starts on February 17th and you can register today at Equity Capital Collective dot com to be part of the only online fundraising course that goes beyond pitching. It actually provides a comprehensive and actionable process for raising money. Brands like Cuomo, Rock, Fellowes, Bioscience, Real Cannabis and The People's Dispensary and Left Coast Financial Services all relied on the techniques in this course to help them secure funding. As the founder and CEO of an Oregon Cannabis company, Sara experienced firsthand how prohibition has unfairly excluded Cannabis companies from accessing capital. She is so passionate about helping to overcome this injustice that she's teaching to free preview training sessions to give entrepreneurs a chance to see if the course is right for them. Now, more than ever, it's important for Cannabis entrepreneurs to have a solid fundraising plan sign up for the online fundraising masterclass in the two free preview trainings at Equity Capital Collective dot com and learn from someone of the rock solid track record for helping Cannabis founders get funded.

 

Shawn Pawha: [00:01:32] Put in a nutshell, what it allows us to do is eliminate growing media throughout all parts of the production process so we don't use coconut fiber, we don't use Rockwell soulless mix. So as you can imagine right off the top, it lends itself to a much leaner cost structure.

 

Shawn Pawha: [00:01:49] We don't have purchasing costs, transplant labor disposal, so there's a considerable benefit to using the technology.

 

Dan Humiston: [00:01:59] From MJBulls Media, it's the Raising Cannabis Capital show. I'm Dan Humiston. And on today's show, how these Canadian entrepreneurs are applying draconic, growing technology that they developed into the construction of their new state of the art cultivation facility.

 

Dan Humiston: [00:02:28] Today in Raising Cannabis Capital, we are joined by Sean Power from Noam Works, aeroponics

 

Dan Humiston: [00:02:34] Sean, welcome to the show.

 

Shawn Pawha: [00:02:36] Thank you for having me. Appreciate it.

 

Dan Humiston: [00:02:38] Well, I appreciate you being with us today to talk about your company. Let's jump right in. No, AmWorks has created proprietary eral panick technology. Now, I don't know anything about Aeroplan that listeners do either. So can you just explain to us what Errol panic's is absolutely for sure.

 

Shawn Pawha: [00:02:58] Sotechnology, some may be familiar with hydroponics and how there's a lot of benefit to using those systems in contrast to traditional methods. similarily Air panic's also has many benefits, specifically our system to just kind of put in a nutshell, what it allows us to do is eliminate growing media throughout all parts of the production process. So we don't use coconut fiber, we don't use Rockwell soil, it's mix. So as you can imagine right off the top, it lends itself to a much leaner cost structure. We don't have purchasing costs, transplant labor disposal. There's a considerable benefit to using the technology. And in addition, because we're able to remove that material from the growing environment, we're not as susceptible to pests and disease as media based systems. So we're a lot less reliant on fungicides and pesticides and that kind of leads to a superior product with fewer residuals.

 

Dan Humiston: [00:03:55] Wow. And if you find a success with this and with growing Cannabis.

 

Shawn Pawha: [00:04:00] Yeah, absolutely. I mean, we we originally set it up to it was originally a vertical system. We were cultivating culinary IRBs and produce. And then along the way, we kind of started dabbling in a horizontal iteration for cannabis plants. We've been experimenting with our system now for about four or five years. And within the last 24 months, we really hit our stride and we're producing some fantastic product.

 

Dan Humiston: [00:04:23] Oh, my gosh, that's really exciting. That is really exciting. You're in the process of something which is even more exciting, and that's building a cultivation facility in Brighton, Ontario, which for those of you that are not familiar, it's sort of northeast of Toronto about, you know, on your way to Montreal. But it sounds like a really exciting project. Maybe you can give our listeners just a brief overview about the project.

 

Shawn Pawha: [00:04:48] Of course, it's something that I really think we need to talk about briefly before we get into that, is that no Merc's team. And what's really unique about us is, you know, you hear in the industry there's a shortage of qualified labor, and that's essentially where networks really sets itself apart. Almost every individual in our administrative team from top to bottom has some sort of culinary expertise, whether it be, you know, 20, 30 years as a professional landscaper or cat enthusiast, several master growers so associated with the companies having that collective passion for cultivation and plant science has really allowed us to consider all aspects of cultivation. So what we were able to do was develop a comprehensive production platform, which is highly competitive. So in addition to our irrigation systems, which I've touched on already, we engage in a multi-year process with leading industry professionals to develop a Jehu GMP compliant facility from the ground up. So essentially what it entails, it's it's a steel superstructure with a transparent roof and that allows us to have all of the environmental control of an indoor facility, but also realize the cost savings and horticulture benefits of growing under natural light in the facility that you're building and bright and utilizes that technology. That's correct. Yeah. Phase one will essentially be six greenhouses which have been isolated into smaller bays. So 12 cultivation bays and then one processing warehouse. Phase two is a similar layout just mirrored on the other side.

 

Dan Humiston: [00:06:29] Okay. I don't candidate well, , United States, wherever licensing is always a challenge. You guys are pretty far along in this process.

 

Shawn Pawha: [00:06:40] Yeah, I know a lot of your listeners might be in the US. But things are a little bit different in Canada and it has been a kind of a working process in terms of the regulatory framework. So originally under the previous framework, applicants were required to submit an application which is quite comprehensive. Our application specifically was upwards of 300 pages and it touches on everything from a workflow, security, infrastructure, record keeping, packaging, etc. It's pretty much the entire overview of the company. And so once the application went through a considerable review process, companies either received approval or not. And those that did were then considered by the Canadian industry to more or less have licensing approval. The last.

 

Shawn Pawha: [00:07:27] Remaining is to build out the facility, submit an evidence package to kind of show that the facility built is in compliance with the application that was submitted, and once that's approved, then you're off to the races. I see now we applied under that previous framework and were subsequently approved. But since that time, Health Canada has changed the regulatory framework. They essentially no longer accept applications upfront. Interested parties are required to build up their facility outright before even submitting an application. So you can imagine that creates significant barriers to entry for four new individuals. Oh yeah. So we're in a very great position now. We have an approved application. We're now just looking for financing to build our Phase 1 of the facility.

 

Dan Humiston: [00:08:11] We've already acquired the land,. 

 

Shawn Pawha: [00:08:12] Right? Yeah. That's again, part of the process, actually. So before we even started the process, we went out to Brighton.

 

Shawn Pawha: [00:08:19] We met with the municipal council. One thing that we we've seen other companies do is they you know, they purchase the land to begin development and they don't even really tell people what they're doing until it's kind of too late. And we really wanted to take a transparent approach from the get go. So we met with council. Explain to them the size and scope of our project, address any concerns that they had. And then once they'd approved the project, they agreed to sell the land. We purchased the land and then continued with the application process.

 

Dan Humiston: [00:08:47] So right now in your possession, you have the property. The town's already blasted in.

 

Dan Humiston: [00:08:53] The license process is far enough along so that you're pretty much assured provided you'd hear to what you've submitted that the license will be there when the facility is complete. That's exciting. You've done a lot of legwork in this project.

 

Shawn Pawha: [00:09:07] Yeah. I mean, it's really funny. Me, my partner, we kind of, you know, had to learn a lot. We've been through a lot. It's been a long process for us, but it's really allowed us to be engaged in every aspect of our business. So we really have a comprehensive understanding of all elements of the business. Like you said, well, we've done quite a bit as far as we're aware of every company that has received application approval and has subsequently built out that facility in accordance with their application has never been denied licensing.

 

Shawn Pawha: [00:09:36] Okay. So, yeah, we're very excited about our position right now and looking forward to getting things on.

 

Dan Humiston: [00:09:43] I think a short break to let you listen to a quick preview of our next episode.

 

Fiachra Mullen: [00:09:49] When it comes to Asia, we really like to think about our market opportunities as ATC versus prescription. We very much feel that THC will remain prescription. You see the big O T-C or over-the-counter non-prescription opportunity to be CBD and other minor cannabinoids. And it's got focus, I think, which is allowing us to establish such and such a beachhead in markets such as Hong Kong, Japan and Thailand.

 

Dan Humiston: [00:10:15] Tune in on Thursday to hear Fiachra mullen and Ian Alexander from AltumInternational. And now let's get back to the show.

 

Dan Humiston: [00:10:26] Is this an extra value on this one is you can use this new facility as a showcase to highlight all the advancements you've made with Aaron Panic's in the construction of the building?

 

Shawn Pawha: [00:10:38] Definitely. We are generally speaking, taking a much more conservative approach based on just basic business fundamentals, a very modest, scaled facility and looking to really focus on one specific aspect of the industry, which is cultivation. And then, of course, maybe incorporating oil processing as a natural extension as part of Phase 2 of the facility. But we want to keep things very focused. But definitely something that we want to look at down the road is other applications for this technology. So if you consider existing commercial greenhouses for, you know, pepper tomato farming, often they're set up with rows of Rockwell cubes and then drip lines at the base. And that's kind of how they feed their plants. Our system can easily be adapted that it can just be dropped into an existing produce greenhouse such as that, and they can realize increased margins by not having those inputs, coconut fiber growing, etcetera.

 

Dan Humiston: [00:11:32] Yet you be able to license that technology. So that's another income stream for you guys.

 

Fiachra Mullen: [00:11:36] Yeah, I mean, that's kind of the whole point. There's a lot that goes into it really. And had the hardware is one thing. But we also have proprietary software and controllers that allow our system to work. And then in addition to that, there's the expertise of using this system.

 

Dan Humiston: [00:11:51] This whole project is exciting. And you're in the middle of a capital raise right now. You share any details with us, for sure.

 

Shawn Pawha: [00:11:56] So we're again, just looking for capital to build out or complete the construction of Phase 1 of our facility. Brian, it's essentially twelve million Canadian or actually nine million U.S. Seven and a half of that will be for construction and the remainder will be some working capital and additional cash on hand. And so we're we're looking for financing. There's some contact context. We're looking to kind of develop dialogue with over the next 60 days, see where things land and then hopefully get things going by June, July.

 

Dan Humiston: [00:12:24] Well, I think that's probably a good timetable considering all the work that you've done already. This is an exciting project. We were speaking with Sean Power from Ñome Works Area Panics, and Sean's information and information about the company will be in the show notes and an MJ MJBulls.com. So if you're interested in finding out some more information about this project, just reach out to Sean directly.

 

Dan Humiston: [00:12:49] Sean. Thanks for being on the show.

 

Shawn Pawha: [00:12:51] I appreciate it. Thank you for having me.

 

Dan Humiston: [00:12:55] Today's show was made possible by the generous support of our sponsors, like all 36, the country's premiere blockchain payment processing platform that's providing dispensaries and its customers with a safe and secure payment option other than cash. To learn more. Go to all 236.com. Today's podcast was produced by MJ Bulls Media. The industry's premier Cannabis Podcast network with original music, produced in part by Jamie Humiston.

 

[00:13:22] I'm Dan Humiston and you've been listening to the Raising Cannabis Capital podcast.

 

*IMPORTANT DISCLAIMER*

THIS IS AN AUTOMATED TRANSCRIPT AND THERE MAY BE INACCURATE AND OR INCORRECT COMPUTER TRANSLATIONS.  DO NOT RELY ON THIS OR ANY TRANSCRIPT ON THE MJBULLS MEDIA WEBSITE.