BCBusiness

October 2019 – Making Waves

With a mission to inform, empower, celebrate and advocate for British Columbia's current and aspiring business leaders, BCBusiness go behind the headlines and bring readers face to face with the key issues and people driving business in B.C.

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The cannabis industry went from black market to grey market to today: an open medical and rec- reational market. As the sector grows, it continues to have systemic legacy problems that require immediate attention. Traditional indoor, outdoor and greenhouse cultivation face serious challenges such as inconsistent quality, crop drift and the threat of toxins such as mold and mildew. Many companies use irradiation, a process of exposing the crop to radiation, to control these and other pathogens. There are substantial concerns regarding cannabis cultivation's large environmental footprint—from the stress being put on the electrical infrastructure to the water needed to grow the plants. Not only is it costly, but it is also harmful to the planet. Addressing these fundamental issues is Van- couver's Canivate Growing Systems Ltd. Its strat- egy is to disrupt the cannabis and hemp industries with its proprietary facility design and automated growing system. "Traditionally, there have been three ways of cannabis cultivation: outdoor, indoor and green- house," says Ingo Mueller, CEO, Canivate Growing Systems Ltd. "We have identified a fourth way: The Canivate Way. It addresses the challenges facing the industry—from concerns about toxins to a need to substantially decrease its environmental impact. It is also expected to increase the per- square-foot crop yield and significantly lower the operating costs of a cultivation facility." Canivate has a unique strategy. Before deciding on a location, it identifies an exclusive independent operator (EIO), who will be licensed in its local jurisdiction to engage in cultivation activities. The EIO will work with commercial cultivators, while retaining control and management of the grow- ing system process. The company also works to facilitate signed offtake agreements with lead- ing brands through the EIO. This is done with the objective of ensuring that each facility will be profitable for Canivate and the EIO as soon as it is completed. Canivate is an IP/tech company—it never touches the plant but provides the specially designed facility and automated growing system— allowing cultivators to increase crop yield, maintain consistent quality, decrease costs and lessen the environmental impact. To date, industry leaders in California—the larg- est cannabis market in the U.S.—have recognized the business value of The Canivate Way. The EIO for Canivate's first facility in southern California, which is expected to be operational in late 2020, has signed contracts in place with several of the state's top brands. Mueller says: "We started from a foundation that all cultivation must be clean, green and pure— and that is what our proprietary facility design and automated growing system is focused on delivering. We are providing what the industry is calling for: a smarter way to cultivate cannabis and hemp." ■ thecanivateway.com Canivate's innovative technology is positioned to disrupt the cannabis and hemp industries REDEFINING INDUSTRY STANDARDS CANIVATE IS FOCUSED ON ESTAB- LISHING CLEAN, GREEN AND PURE CULTIVATION FOR CANNABIS AND HEMP PRODUCTS IN THE U.S., CAN- ADA AND, EVENTUALLY, GLOBALLY. C R E AT E D BY BCBusiness I N PA RT N E RS H I P W IT H CANIVATE GROWING SYSTEMS LTD. RENDERING BY CANIVATE

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