Download the letter here.
January 15, 2021
Dear Fellow Shareholders,
What a year it has been!
To say that all of us have experienced extraordinary challenges only barely begins to describe the events of 2020. This was a year like no other, and we have grown and learned so much in the last twelve months. But crisis creates opportunity and while the world as we all knew it was transformed in 2020, we kept our composure, made several strategic decisions, and positioned Pure Harvest Corporate Group (OTCQB: PHCG) to succeed in a changing marketplace.
We truly found opportunity in the midst of adversity, and our investments in cannabis, hemp, R&D, innovation, renewable energy, and leadership leave us well positioned for success in 2021.
2020 was a remarkable year for Pure Harvest and we believe that what we have achieved in the last twelve months is prelude to an explosive 2021. We made several strategic acquisitions, including a vertically integrated Colorado cannabis business. We built great teams of incredible people with a broad range of skills to operate businesses in several exciting, high-growth industries. We established a solid foundation that will allow us to continue our growth and development in line with our vision for the future of Pure Harvest.
I would like to thank our early shareholders for believing in Pure Harvest’s vision as we continue to grow as a company. Thanks to your continuing support, we believe that we are closer than ever to achieving our goals.
We honestly could not have done it without you.
Growth Through Acquisition
Pure Harvest had an amazing 2020 for several reasons, but the pace of acquisitions and subsequent growth of the Company was chief amongst them. In twelve short months, we made numerous strategic acquisitions in three high growth industries: state-licensed cannabis; industrial hemp/CBD; and renewable energy.
The table is set.
Closing the acquisition of Sofa King Medicinal Wellness Products, LLC, a state-licensed cannabis business in Dumont, Colorado, was an incredibly exciting accomplishment for Pure Harvest. When this transaction closed in August, Pure Harvest was one of the first public companies to acquire a Colorado cannabis business. This acquisition is Pure Harvest’s first entrance into the cannabis industry, and we are extremely excited about the opportunity to grow this business into a successful multi-state operator in the coming years.
In September, we acquired the assets of Solar Cultivation Technologies, a local renewable energy company focused on powering indoor cannabis cultivation facilities with solar energy. In addition to indoor cannabis grows, we have designed solar energy systems for standard commercial facilities like warehouses, car dealerships, office grow-ops and dispensaries. We are thrilled to be entering the solar business at this crucial juncture in history and we believe that this is an exceptional opportunity for Pure Harvest. As the world’s economy decarbonizes and renewable energy replaces fossil fuels, solar energy will be a critical component in the transition. This transition will require massive investment and take decades to accomplish. Pure Harvest is well positioned to take advantage of the increased demand for renewable energy.
We made several acquisitions in the industrial hemp/CBD industry. We leveraged these acquisitions to take advantage of an extraordinary new discovery we made in our hemp processing facility earlier this year. We filed a provisional patent for this discovery, known internally as “Cannabinoid Complex”, in mid-summer and have spent the last six months working to build brands and product lines around what we believe is truly game changing technology for the cannabis industry. Simply put, Cannabinoid Complex is an ingredient that provides an unparalleled, positive mind and body experience. Furthermore, I am thrilled to announce that we made our first large sale of products incorporating this technology in December. We are already seeing a remarkable market reception for these products in 2021 and have contracted an elite marketing and market strategy team to officiate our product roll-out.
Acquisition of Talent
As Pure Harvest grew in 2020, we assembled an incredible team of individuals with a wide array of skills and experience in their respective industries. The management positions in our subsidiaries have expertise in science, technology, product development, business operations, cannabis cultivation and processing, sales, holistic medicine, corporate law, banking, and much more. In addition to the skills required in their areas of expertise, each of these team members have repeatedly demonstrated the ability to succeed in dynamic circumstances. We believe that the team we have assembled will take us into the next stage of development for Pure Harvest in 2021.
In addition to acquiring businesses and building teams in our target industries, Pure Harvest spent 2020 developing the corporate team to support the operations of our subsidiaries. Our corporate staff is the backbone of our business that supports our subsidiaries’ growth every step of the way. We have built an outstanding team of people at the corporate level and we are excited to support the continuing growth and development of Pure Harvest moving forward.
I am a firm believer that if I assemble a team of good people, good things will happen.
A Vision for the Future
As we move forward into 2021, Pure Harvest will work towards achieving its goals and building its vision for the future. In the coming year, we will be focusing on 1) expanding our cannabis business in Colorado and the rest of the US, 2) marketing and distributing a range of new hemp derived wellness products utilizing our patent-pending technology, 3) building a portfolio of IP, and 4) growing our renewable business.
Growth in Cannabis Operations
The Colorado cannabis market has grown every year since adult-use cannabis was implemented in 2014. We are thrilled to grow our own operations in the Colorado market and to expand into other states as the national industry continues to grow. The knowledge and experience we have acquired will allow us to support rapid growth in Colorado and other legal states. We are extremely excited about the enormous potential in the national cannabis market and we are perfectly positioned to grow with the industry in 2021.
A Renewable Future
The transition to renewable energy is in its infancy and we believe that the opportunity in solar energy is truly extraordinary. We have assembled a talented team to develop and scale the solar business to match the opportunity and take part in decarbonizing the global economy. The technology we are developing is extremely exciting and has the potential to revolutionize the commercial solar industry. We believe that entering the solar industry right now is a strategic decision that will create opportunities for Pure Harvest well into the future.
New Hemp Derived Wellness Products
Our next-generation hemp products have been in development for the last six months and we are delighted that our first sales of these products were completed in December. These products have been extremely well received in all our pre-market testing and we cannot wait to see how they will do in the marketplace in 2021. We believe that this patent-pending discovery is revolutionary for the industrial hemp/CBD industry and we have planned several brands and product lines to bring to market in 2021.
2021 and Beyond
We have put Pure Harvest in a position to have an enormous impact in three high growth industries and I am incredibly pleased with the progress we made in 2020. In 2021 we expect to continue to grow and develop as a company and to begin fulfilling our vision for Pure Harvest. We are certain to face challenges as we continue to expand but I am confident that the team we have assembled is more than capable of working through any growing pains and pushing forward through the next stage of development as a company. The opportunities facing Pure Harvest are extraordinary and I believe that we have assembled the team and the assets necessary to take full advantage of these opportunities.
This year we look forward to Pure Harvest achieving its goals and becoming a successful, sustainable business. I am grateful for your continuing support and the faith and trust that you have placed in me and in Pure Harvest. I truly believe that our best days are ahead of us and that we are perfectly positioned for success in the coming year.
As a thank you, I want to personally invite you, your friends, and your family to our private production launch for our life changing and industry disrupting wellness products being produced over at Test Kitchen. This will provide you with a first look at some of the products we have been cooking in “The Kitchen” ahead of our April 2021 reveal to the world. Please see link below.
Thank you again for your support and all that you do for Pure Harvest. A wise person once told me to think big, start small, and scale fast. We are eager to continue to execute and make a name for ourselves in 2021.
Matthew D. Gregarek
Chairman & CEO
Pure Harvest Corporate Group, Inc
Private Product Launch Access
Please click on the link to access our private shareholder product launch for Test Kitchen:
Access code: PHCG
We encourage you to place order(s) and try our initial cutting-edge products that are now available. Please watch the video of Dr. James Rouse and we look forward to your feedback in the near future. We plan to launch additional products in February, along with brand names and logos, as we gear up for full launch in April 2021.
*Note – for this initial beta product launch, shooters contain 2.5mg of Cannabinoid Complex. Previous samples provided may have contained amounts of 5mg or greater.