NordikLeaf is founded on the premise of delivering a quality product in the rapidly growing and undersupplied legal marijuana market. Focusing initially on medical marijuana, and with recreational use being legislated in July 2018, NordikLeaf will offer a range of products, maximizing revenue potential and securing market share with a recognizable brand and customer-validated quality. NordikLeaf will be refining and using the safest industry leading cleaning procedures; taking the lead in innovative and creative new strains and turpine (flavour) profiles as demonstrated by the engagements of two Master Growers with a combined industry experience in excess of 40 years.
The NordikLeaf team is in the process of securing a 14-acre plot of land for the purposes of growing medical marijuana. Funds raised will help secure sufficient capital to build the production facility, acquire a license to sell, and achieve revenue. The financing structure is unique and leverages the greater access to capital with our construction partner to consequently provide significantly greater value for shareholders. Initial construction of a 100,000 square foot building is projected to provide a total annual yield of 10,000kg, which is the first of three large construction phases, with a total maximum annual yield of 40,000kg, making NordikLeaf one of Canada’s largest licensed producers. Existing suppliers have either quality with their small “boutique” size, or have achieved large scale with an industry-recognized low quality product. NordikLeaf’s business plan is to achieve the highest quality at large-scale production with much less shareholder dilution.
The medical marijuana market is currently estimated to be a $1.4B market in Canada, with the recreational market currently estimated at an additional between $5B-$10B. Current production capacity in Canada of all suppliers is approximately 50 tons. Conservative estimates peg market demand at 700 tons. As a result of the diversion of product to oil extraction and international customers, market saturation is not expected to occur within Canada before 5 years. Additionally, as Canada has been positioned as a world leader within this industry, Canadian supply, despite being already constrained, is being exported to those countries that can legally import, further reducing an already constrained supply.
Despite the industry prominence in financial and political news, customer demand is projected to exceed supply by a factor of at least 10 to 1. Medical market supply is currently constrained, and pressure on industry supply will only be increased as recreational use is unleashed. This will put an inevitable burden on current suppliers to rush to sell lower quality products. The customer will face higher prices for a poor product, creating a huge opportunity within that demand cycle for quality cannabis products that we are positioned to deliver.
NordikLeaf’s team of experts are combining industry best practices with layouts and designs learned from the high tech industry, to build a facility that can produce a clean and cured quality product at scale.
Initially, after a license to sell has been received, NordikLeaf’s revenue will come primarily from cured marijuana. This initial phase provides the genetic material to begin the diversification and specialization of genes for more unique and specialty strains. Product expansion has been planned to higher margin products like oils, edibles, powders, and salves, to maximize revenue potential from each crop once the first phase of growth and production is in motion. Annualized revenue after completing the first 100,000 square foot is expected to be more than $75M, and over $500M after completing all construction phases.