Information about the upcoming launch

by Cannerald
Posted on March 23, 2020 13:00

Dear Cannerald community 🌱 

We couldn't keep it a secret for any longer: Next Wednesday, the sale of our new location will be launched. This will also involve a price increase, the background of which we would like to explain to you in more detail here.

Growing rapidly, we have to cope with an almost unimaginable number of tasks every day: New hires, production, as well as sales efforts are currently increasing from day to day in many ways. In the meantime, we have sold such a high amount of plants, that we have to bring several hundred kilograms of cannabis from our high-tech facility to the market each month. 

In Switzerland, the stated yields were set very high, as we aimed to sell all cannabis to end customers through our products. In the meantime, this has proven to be no longer feasible, as we have an immense amount of CBD, which cannot be sold exclusively via the B2C market.

For example, we bought the cannabis of the last harvest from our customers - (which is intended for our shop) - for a very good market price. Such high prices are currently not possible via the B2B market, though. For this reason, we have to adjust the targeted sales price of the yields for our upcoming plant according to the production mass. 

Distribution is easy for us since we are at the top of the B2B market due to the premium-quality that our cannabis facility offers.

Another adaptation to our product is the initial price of a plant: In Switzerland, we have topped up in favor of the company and adapted to GMP-regulations with a lot of motivation, effort and high investments of our own, so that we can be at the forefront of the race for the most successful cannabis sales.

These costs were included in the calculation for our next facility, as we also will grow our plants there according to the same GMP-regulations. That way, we can be at the top of the EU market. Besides, there is a very likely future scenario that the EU will only allow cannabis on the market that is produced according to these GMP-regulations. 

Should this be the case, Cannerald is optimally prepared for these circumstances to happen and can continue selling any harvest yield without encountering problems.

What is GMP and what is it for?

The GMP license is the highest possible license in the production sector. By way of comparison: Normally, only companies such as Bayer or Novartis are GMP-licensed. The license allows us to sell medical cannabis directly to pharmaceutical companies or the government. 

There is currently no Swiss cannabis producer with a GMP license (laboratories only) since the process is very difficult and requires many years of experience and a high investment of money. Due to the high requirements for the GMP license, we need protocols for every step we take: For example, we have to explain to the inspector how we clean the walls, racks, floors or how our staff put on their cleanroom clothing in the airlock.

The good news is: We will be one of the first cannabis producers in Switzerland, Germany, and Austria with a GMP license! We are planning to obtain this license Q4 2020, as the inspections will be carried out by a government agency. There is no fixed date, so this will take some time.

Your Cannerald Team.