CANNAINVESTOR Magazine January / February 2017 - Page 78

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Lighting, HVAC, and Dehumidification - These systems account for the bulk of cultivation COGS in any indoor cultivation model. Many producers approach these decisions with somewhat of an old-school mindset by simply scaling up what they did in basement or small warehouse grows. There should be clear indications that a company is involved in a detailed exploration of systems and technologies that will offer efficiencies in a scaled model.

Renewable Energy - A producer’s mid-range planning should considers the cost and reputational risks of the energy choices that they are making. Are they aware of the brand strength or baggage associated with these choices? Are they mapping a pathway toward low-carbon energy sources being integrated into their model?