Germanabis: Overcoming Budget Diversity

Germanabis Case Study: Overcoming Budget Adversity

GrowerIQ is certainly well experienced and consulting with them saves us time. We can be very sure they will bring us successfully through the process. I can warmly state for myself, also on behalf of our company, thank you for your unique, creative, and constructive advisory services. We are also very grateful for your patience in solving our previous challenges. We look forward to our future successful cooperation.Matt, Managing Director, Germanabis

From Germany to Canada, Germanabis Organic Farming Inc. (GOFI) is crossing international boundaries. The group came to GrowerIQ after seeing them online. After some initial meetings Germanabis decided to work with GrowerIQ to design their facility and apply for their cannabis micro-cultivation license. GOFI already owned land, and it was zoned appropriately. The challenge was figuring out how they could establish a small license on the property to appease their potential investors, without breaking the bank.

Originally, GOFI had a $600,000+ budget, but investors were scared away by Health Canada’s requirement for a pre-built site.

Losing investors was a major setback. The budget had to be reduced from $600,000+ to around $75,000, which meant that none of the previous planning would be feasible.

GrowerIQ consultant Daniel Kain explains, “In our first 2-3 meetings, GrowerIQ provided a suitable layout for the project. There was an existing layout they had, but it was not overly functional, or compliant with the regulations, so we re-did it.”

Daniel was upfront that delivering a successful license under a $75,000 budget would be extremely challenging to pull off. However, delaying the project in hopes of finding more investors was not an option.

Daniel's solution was a phased-approach, whereby in Phase 1, GOFI would build an initial structure of 650 square feet. Limiting size would both keep upfront costs down, and establish the license on the property. Once Phase 1 is licensed, they’ll devote 360 square feet to begin establishing their mother-stock. He explains that after Phase 1, GOFI can amend their license to include a larger footprint, as originally planned, maximizing the available 200 m2 of canopy space allowed by the micro-cultivation license. By then, Phase 1 will have a developed mother stock and they will be prepared for a Phase 2 expansion.

With our support, they’ve successfully completed the construction procurement and budgeting phase. With their budget and planning back on track, GOFI is poised to bring their German know-how to the Canadian cannabis industry.

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