Our business is a first-to-market high-growth business focused on cannabis clones, seeds, and biology. The gold rush that saw mass investment lost in the legalization of cannabis in Canada is coming to a close opening the way for a mature profitable market as the industry continues to grow. Now is a great time to invest in the Canadian market with clear market validation and due diligence performed to protect investors and cultivate companies. Our tech and science align perfectly with traditional agriculture, allowing us to provide a premium product to our customers.
Current Status
To date, we have acquired over 500,000 dollars in pre-orders for clones while building a strategic partnership with consult and grow in Montreal to guarantee our license and help us open distribution to over 70+ growers through Quebec and Eastern Canada. For our breeding of new genetics, we have engaged with a 3-time Winner of the Remo cannabis cub sacred cut seed co for exclusivity on their genetics. We have a working product, team, and market validation, the next step is the funding and then the build-out.
Market
Our phase one target market is 956 commercial cultivators, 40,000 medicinal growers, and Canadian home growers.
Larger Licenced producers make up a quarter of the commercial growers but produce fifty percent of the cannabis in the Canadian market.
The Micro cultivators make up the quarters of the market and produce the other fifty percent. Medicinal growers and home growers comprise an average of six percent of all Canadians. We will continue to target the entire market as we scale up to meet the estimated 46% growth per year of the cannabis industry globally with no expectation of slowing down.
Problem or Opportunity
We met with growers across Canada to let them tell us what their pain points in the industry are, the first pain point is cost and shipping, shipping of clones is 50% of the cost due to the delicate nature of shipping a living plant in a seedling stage that is very temperature and environmentally sensitive. The second is Disease, during 2020 the cannabis industry disease affected $4 billion in cannabis crops in North America. The third is space, commercial producers are forced to give up production space to maintain their mother plants and clones or import them.
Solution (product or service)
The solution to their problems is MaryGen Nurseries
We became the solution by cutting the costs of importing clones for growers by designing and building our nursery model within the grower's region and making it easy for us to clone the business and replicate it in other cannabis markets globally.
This also allows us to provide clean disease-free starting material at a competitive price, our lab will be able to clean old and tired genetics bringing them back to life for our clients while testing and storing different genetics for later use.
Providing healthy guaranteed clean clones to growers allows them to focus on growing and maximizing their production while we grow the mother plants and produce the clones.
Competitors
In Canada, there are 30 cannabis nurseries supporting 956 commercial, medicinal, and home growers.
central to western Canada holds 365 growers and 22 nurseries.
Central to Eastern Canada hold 559 growers and 8 nurseries.
To ship clones is fifty percent of a grower's total costs due to the conditions they need to be kept in to export successfully.
Advantages or differentiators
MaryGen will build its first nursery in Winnipeg, Manitoba, and then expand east. The advantage of being in Canada's geographical center is that we will initially save growers' shipping costs compared to other nurseries.
Our team comprises a combined 60 years of indoor growing and hydroponics. I come from the vertical indoor farming industry, Anthony and Chris bring their talent and passion from the medicinal legacy growers world. At MaryGen we are all about having the best people in the best positions to produce a product that helps growers grow better plants.
Our starting genetics have won international cannabis awards, they will all be bred in-house giving us exclusivity for top-quality cannabis clones while we continue to create more strains and exclusive genetic lines. We have one of if not the best cannabis legacy breeders in North America leading that department.
Finance
We make this vision go and scale up quickly by providing cannabis clones at a sliding price scale depending on the target market and volume. The larger Licensed producers average 14 dollars a clone compared to the home growers at 40 dollars per clone.
Clones make up 85% of our revenue with an average profit of 75% per clone.
Our lab services are tailored to meet the needs of the growers and take the headaches out of their facilities by testing, storing, and bringing back to life crops that they and their customers love
As we move into different global markets, we will offer consultation to new cultivators, helping them solve pain points early while building the relationship that will lead to them buying their starting material from us. We see every revenue stream as a marketing opportunity.
Growth every year will bring us to over $42 million net with thirty to fifty percent growth every year
Our nursery fills a gap in the support network for commercial, medical, and home cannabis growers
In recent years reducing the environmental burden has become more and more important for logistics and transportation,
We are demonstrating our strengths and innovative efforts with our business model of producing the products regionally rather than shipping over long distances. The Marygen model provides a better service to growers and a locally grown product in the grower's region. By producing a product exclusive to MaryGen we can duplicate our model by opening new nurseries in all areas.
Money will be spent on
This investment will fund the facility build-out in Manitoba allowing us to take the first step in our vision of MaryGen becoming the international name in cannabis clones and genetics.
The breakdown is
$75,000 for the building renovation
$650,000 on equipment.
$50,000 for consulting and license
$350,000 for staffing and training
Offer for investor
We are looking for an investment of 1.1 million for 35% of MaryGen.
Available for this raise are class D common shares although we would be open to the discussion of voting shares depending on the size of the investment.
The cannabis market in Canada is always changing and growing, it has also proven to be recession and pandemic-proof.
The main risks are saturation of the market which is why we are expanding east rather than west. The sooner we achieve our market share in Canada the better the risk mitigation.
Incubation/Acceleration programs accomplishment
North Forge technoligy accelerator 2021 in Winnipeg Manitoba.
Won the competition and other awards
MaryGen's exclusive in-house genetics have won 2 Canadian cannabis cups and 3 Remo cannabis cups.