SpotLite360 IOT Solutions announced a contract to provide design services, equipment, and technology for KORcannabis, a large indoor cannabis cultivation, and environmental control operation. This contract represents an expansion of an existing agreement and will exceed $21 million once fully implemented. This implementation is expected to be completed in the fiscal year 2023. E3 Service Group, a subsidiary of SpotLite360 IOT Solutions, will be responsible for the execution of the new construction and ongoing maintenance services.
Bryson Guyer, founder of E3 Service Group, states, "We are thrilled to be working with an industry leader such as KORcannabis. We are leveraging years of expertise in designing and implementing state-of-the-art solutions to generate optimal cultivation environments. The concept of 'environment-as-a-service' drives a philosophy of facility optimization and product quality, using technology for real-time data capture and analytics. In today's indoor cultivation facilities, environmental control hardware is IoT-enabled and monitored in real-time, allowing for better decision making, process improvement, and product quality."
In response to the expansion of business with KORcannabis, E3 has formed a general construction management division to manage a tight deadline for completion in one hundred and twenty-nine days from the date of permit issuance. The current project represents the development and configuration of a 50,000-square-foot, multi-level cultivation facility. Revenue for this project will largely be the result of hardware and equipment sales along with the necessary installation and management services required to achieve a timely completion and fully operational facility for the customer. Given the revenue composition, the Company expects the gross margin on total contract revenue to be more in line with that of typical hardware and services contracts completed by the Company in previous quarters.
Neil McCabe, Vice President of E3, states, "E3 has built a strong reputation around innovation, quality, and execution and is committed to exceed our customer's expectations and timelines. We leverage technology extensively to offer full facility design, scheduling, staffing, and project management for all parties and partners involved with our growing list of opportunities."
E3 and other key partners are working closely with KORcannabis in support of their growth objectives and anticipates seeing additional facility design and construction projects nationwide, including in such states as Massachusetts, Alabama, Florida, Montana, and even South Dakota, all of which are very exclusive and new markets for indoor cultivation. "E3's custom design went above and beyond and merged with our cultivation philosophy," said Gary "Benji" Baker, KORcannabis Director of Cultivation.
James Greenwell, President and CEO, added, "We are entering an era where the chain of custody, proof of origin, authenticity, and proof of sustainability are mandatory and not just afterthoughts. We use sensors, IoT devices, live alerts, and comprehensive analytics to capture real-time data and ensure consistent quality for every cultivation cycle."
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