Progress Report: 2.18.22

Grasshopper Family,

It's hard to believe this, but we are in FULL SWING with the 2022 mother plants!

Let's think about this for a moment. We had to wait to bring our plants to the farm until April 20th of 2021. It was a momentous day, for sure. This year we get to do everything on site!

But, as with almost everything in life, the process is way more than "grow mother plants" in Building 1. There has been a massive amount of cleaning. There has been a ton of planning. We have built additional systems. We made sure to have the right equipment. And then we proceeded with the initial cuts. The plants have been growing and have been transplanted into larger pots...and they look beautiful! Check out some of the pictures of the team doing all of this work!

Meanwhile, the quality control and packaging remain full steam ahead!

Adam has been doing an incredible job meeting with retailers and developing warm and hot leads. We are still in the phase of excess/recall inventory from others, but that will be changing soon. Our job is to remain consistent with our messaging and be patient.

Remember - we have a very small amount of supply relative to the number of retailers and overall demand. That means we need to embrace the opportunity of developing strong relationships with strong retailers we can partner with as the market matures.

In my humble opinion, this is where some make a bad decision. Some, being suppliers of like size. The wrong answer is selling to anyone and giving deep discounts out of the gate. My opinion is an initial deep discount is nothing more than your future price and is a race to the bottom. Not us.

We will focus on quality, consistency, and patience.

The team did more research on the tobacco wrapped cannabis cigars. It is shaping up to be something of a specialty item for a unique customer - but something that will absolutely gain differentiation, much like we have done with outdoor premium flower.

Speaking of which - a lot of people just don't know what to do with the fact that we have premium outdoor flower. If someone else is doing it on their farm in Michigan...we have yet to discover them.

Even more humorous and interesting, we are packing our product and deploying product resources to retailers differently than ANY grower in the state of Michigan.

Two more retail locations received product this week. We have a lot of growing interest. Our sales arc is exactly where I wanted to be.

New Jersey is going to award their first 37 licenses next week. We applied. I honestly don't think we will get one of the first. I believe there are companies that have been lobbying for a long time who will get them. BUT...it is awesome that we are a very viable player in this space. Our goal is to provide jobs to people in the cannabis space...people who thought they would NEVER be able to work in this industry. WE are helping them to realize their dreams.

We started this week with Valentine's Day. We ended it with a holiday weekend and a team that delivers on supporting each other in incredible ways each and every time an opportunity presents.

I need to say that again.

The Grasshopper Team supports each other in the strongest way I have experienced since being on specialty military teams and I am incredibly proud to be a part of this amazing family.

We are....Grasshopper Farms.