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Pac Roots Cannabis Corp. (PACR) Set to Benefit as Hemp and Cannabis Producers Evolve, Differentiate Crop Cultivation

  • Pac Roots Cannabis Corp. specializes in creation of unique, proprietary cannabis and hemp strains
  • Following its tie-up with Phenome One Corp, Pac Roots offers over 350 meticulously designed cultivars possessing wide array of characteristics
  • Introduction of patent protection on genetically modified hemp strains along with insurance provided to hemp growers incentivizes hemp production, drives greater demand for genetically modified seeds and cultivars

Since completing its RTO and being listed on the CSE in May of 2020, Pac Roots Cannabis (CSE: PACR) has earned a reputation for operating on the cutting edge of hemp and cannabis cultivation. This foresight in staying ahead of the times has proven invaluable as the industry weathered its share of waves. One such hurdle can be seen in the results of the legalization efforts of the past several years, which led to an overabundance of hemp. This caused industry professionals to seek new ways to differentiate their crops—and genetic modification has found itself at the epicenter of this conversation.

In December 2018, when the United States officially legalized hemp cultivation, legislators stated that “[b]y removing hemp from the federal list of controlled substances, farmers [could] explore the bright future of this versatile crop, found in everything from a coffee mug to your car dashboard” (https://ibn.fm/WQnRN). However, only 12 months later, a study carried out by the Brightfield Group found that upwards of 87% of 2019’s hemp acreage was destined for CBD extraction (https://ibn.fm/hx8GK) rather than for the multitude of applications originally envisioned. The proliferation of hemp supply, which has led to a state of oversupply and declining crop prices (https://ibn.fm/oZern), has led to the belief that the true revenue potential in the sector lays not with hemp producers, but rather with the creation and licensing of proprietary plant material – an area which Pac Roots Cannabis has sought to specialize in.

Should a cultivator wish to plant a certain CBD-rich hemp or cannabis strain, then they would necessarily have to go to a seed or specialized cannabis cultivator to obtain the required raw material. Pac Roots addresses this rapidly expanding market through its strategic licensing agreement with Phenome One Corp., which has granted Pac Roots access to one of Canada’s largest live, genetic cannabis libraries with lab and field-tested, selectively bred seedlings, which the company has employed to grow, breed and clone its own unique brands. The tie-up in turn has allowed Pac Roots to offer a remarkable portfolio of over 350 meticulously-designed cultivars, ranging from CBD-dominant plants with rare terpene profiles to plants with over 30% THC-content as well as West Coast outdoor, botrytis-resistant cultivars.

Following the landmark decision to legalize hemp cultivation, federal regulations have recently been enacted in a bid to protect the interests and intellectual property of firms innovating within the field of hemp genetics, with the U.S. Patent and Trademark Office granting its first hemp plant patent in late 2019 (https://ibn.fm/jL0ST). Separately, the USDA’s Risk Management Agency recently announced a pilot insurance program for hemp growers (https://ibn.fm/IhAN9), providing cultivators with certain safeguards should adverse conditions affect the commercial viability of their crop. As a result, farmers will now have a greater incentive to grow hemp at scale and to innovate, which in turn will lead to a more lucrative and dependable market for firms specializing in seed and hemp genetics firms.

As with any industry, it is evident that companies focused on developing and adding value to their product stand to benefit relative to producers focused on cultivating and harvesting a more commoditized good. With hemp and cannabis cultivators increasingly seeking to differentiate their products through the use of genetically modified seeds and cultivars, companies such as Pac Roots Cannabis stand well positioned to benefit.

For more information, visit the company’s website at www.PacRoots.ca

NOTE TO INVESTORS: The latest news and updates relating to PACR are available in the company’s newsroom at http://ibn.fm/PACR

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