As the Canadian cannabis market gears up for the entry of edible and infused products, a variety of players — including Rubicon Organics (CSE:ROMJ,OTCQX:ROMJF) — are looking to serve higher-end consumers who want premium marijuana to smoke.


In anticipation of the legalization of adult-use cannabis in the country, many producers in Canada pursued the buildout of massively sized production facilities.

Nearly a year after legalization, consumers have decried product from some licensed producers (LPs) as being of poor quality and offering lackluster results compared to black market offerings.

A debate has been sparked about which type of consumer is pursuing dried flower marijuana products and how capable LPs will be of reaching these consumers.

Rubicon Organics has placed a specific interest in the production of higher-end cannabis denominated as “super premium.”

The company is aiming to reach a production cost of C$1 per gram with the intention of eventually landing at C$0.50. The producer estimates an average price for higher-end dried flower product of between C$14 and C$20.

“It doesn’t matter what you tell investors, the consumer is going to tell you if your product is premium or not,” Jesse McConnell, CEO and director of Rubicon Organicstold the Investing News Network during a visit to his company’s growing facility in Delta, British Columbia.

The executive added that investors have been hit by multiple companies promising various high degrees of quality product, and not all have delivered.

“If you’re an investor and you’re looking at which one of these companies can actually deliver against those promises, look at their track records,” he said.

“What have they done in the past that demonstrates that they’re the kind of management team who knows how to deliver that value proposition around premium? Not just because it says on their deck or their website that they are an industry leader.”

McConnell was a co-founder of Whistler Medical Marijuana, a cannabis producer that obtained its license early in 2014. The producer was then acquired by Aurora Cannabis (NYSE:ACB,TSX:ACB) in early 2019 in a transaction worth C$175 million.

The company, along with a collection of players in the space, such as The Supreme Cannabis Company (TSX:FIRE,OTCQX:SPRWF) and privately held Tantalus Labs, is betting that savvy consumers will follow superior quality for products and are also willing to pay a premium for these items.

In a recent note, CIBC Capital Markets equity analyst John Zamparo said Supreme’s focus on “premium-seeking consumers” is the most effective and neglected strategy for the recreational space in Canada.

“An assessment of developed cannabis markets, Colorado and California for example, demonstrates that commoditization does occur, but that top-quality flower retains higher prices and is more defensive against margin compression, supporting Supreme’s strategy,” Zamparo wrote.

Watch the video above to see Rubicon Organics’ facility up close and personal, and to hear more insights on the state of the marijuana market from McConnell.

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

Trulieve to donate $20,000 in scholarship funding and $15,000 to support leadership development

Trulieve Cannabis Corp . (CSE: TRUL) (OTC: TCNNF), a leading and top-performing cannabis company in the United States today announced a new partnership with the Thurgood Marshall College Fund (TMCF), the nation’s largest organization exclusively representing the Black College Community. Trulieve will donate $20,000 to help fund several college scholarships awarded to students who are attending one of the organization’s member-schools as part of Trulieve’s diversity, equity, and inclusion initiatives. The $15,000 in talent funding is earmarked to support TMCF’s internship program, reaching a diverse talent pool of students and alumni from their 47 member-schools to provide immersive experiences at Trulieve.

Keep reading... Show less

The new dispensary expands patient access to Florida’s largest inventory of medical cannabis products

Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) (“Trulieve” or “the Company”), a leading and top-performing cannabis company based in the United States announced today the opening of a brand-new Florida dispensary, the Company’s 80th nationwide. The new location marks the Company’s first in Tamarac and third in Broward County expanding patient access to Florida’s largest and broadest assortment of high-quality medical cannabis products.

Keep reading... Show less

Revive Therapeutics Ltd. (“Revive” or the “Company”) (CSE: RVV, USA: RVVTF), a specialty life sciences company focused on the research and development of therapeutics for medical needs and rare disorders, is pleased to announce an update on the Company’s U.S. Food & Drug Administration (“FDA”) Phase 3 clinical trial (the “Study”) to evaluate the safety and efficacy of Bucillamine in patients with mild to moderate COVID-19.

With its recent $23 million dollar financing, the Company plans to aggressively expand from 14 clinical sites to up to 50 clinical sites to meet the next enrollment goals for the Study in Q2-2020. The Study is a randomized, double-blinded, placebo-controlled trial and the safety and efficacy data analyzed at each interim analysis timepoint of 210, 400, 600 and 800 completed patients are only made available to the Independent Data and Safety Monitoring Board (“DSMB”) for review and recommendations on continuation, stopping or changes to the conduct of the Study. In the event of any serious safety concerns, the DSMB would be notified to determine any risks and provide its recommendations. To date, in this initial 210 interim point there have been no serious safety concerns that required the DSMB to be notified.

Keep reading... Show less

HempFusion Wellness Inc. (TSX:CBD.U) (OTCQX:CBDHF) (FWB:8OO) (“HempFusion” or the “Company”), a leading health and wellness CBD company utilizing the power of whole-food hemp nutrition, is pleased to announce that its common shares have been approved for DTC full-service eligibility in the United States by the Depository Trust Company (“DTC”) and can now be both traded and serviced through DTC’s electronic book-entry system.

DTC is a subsidiary of the Depository Trust & Clearing Corp. (“DTCC”) that provides clearing and settlement services for the financial markets and settles the majority of securities transactions in the United States. This electronic method of clearing securities speeds up the receipt of stock and cash and thus accelerates the settlement process for investors and brokers, enabling the stock to be traded over a much wider selection of brokerage firms.

Keep reading... Show less

CFN Enterprises Inc. (OTCQB: CNFN) (CFN Media) partners with FMW Media Works LLC to produce a regular series on the global cannabis markets to air on major financial news networks across the US. Initial segment features leading cannabis analyst and US Multi-State Operator (MSO)

CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the leading media network dedicated to the global legal cannabis, CBD and psychedelics industries, today announced that its inaugural news segment on the cannabis markets, “Cannabis Market Outlook for 2021,” will air on Bloomberg, Newsmax and Fox Business.

Keep reading... Show less