Glimpse into Perfection: GMP Cleanroom Reveal

Dear Community,

We have exciting news for you in our likely final blog post and video of the year 2023. Christmas is around the corner, and the year 2024 is already knocking on the door. We want to express our heartfelt gratitude to all of you and acknowledge that our project has experienced delays and faced economic challenges.

However, as a company, we have persevered and not given up, unlike nearly 98% of Swiss CBD cannabis companies. We have gained significant experience and are in a stronger position than ever before to kickstart the new year, especially with the launch of our THC program. Our brand new GMP cleanroom facility sets us apart from the competition and positions us at the forefront of medical cannabis cultivation in Switzerland. The establishment of this GMP facility has been a massive financial and time-consuming challenge.

Due to the significant hurdles, there is no one in Switzerland who is as close to completion as we are or has even embarked on this journey. From day one, we have worked towards this, and now, five years later, we stand in a cleanroom area similar to that of Novartis. The video you are about to watch will give all of us goosebumps.

We are aware that most of you can hardly imagine the efforts required behind the scenes, whether in the pharmaceutical sector or in production. Numerous meetings have taken place and continue to ensure the smooth running of our production. Imagine having to operate and monitor 6,000 more computers from one computer. In Fraubrunnen, there are numerous access points and communication channels, all of which must be reviewed, numbered, and documented by the internal compliance department. This effort is hard to comprehend unless one works in the pharmaceutical or industrial sector.

Below, we would like to inform you about some important topics:

1. GMP (Good Manufacturing Practice) 
2. Roadmap 
3. Holiday Support 
4. Customer Reviews

1. GMP

The moment has finally arrived! After more than 5 years since our inception and vision, we present to you the Cannerald GMP cleanroom area for the first time in the form of a video. This milestone was just a dream five years ago and has now become a reality. With our production in Fraubrunnen, we are pioneers in medical cannabis cultivation in Switzerland, and we have achieved this together with you.

In the following video, which you will see shortly, we offer you an exclusive first look into the world of GMP. Enjoy!

We have a team of six individuals dedicated exclusively to the creation of SOPs (Standard Operating Procedures). These processes govern how products are moved from point A to B within production and are recorded and documented in the Quality Management System (QMS). Once full production is running, four of the six quality personnel will be solely focused on reviewing and confirming the documents generated by production. We are subject to various regulations:

Here are the website links to the mentioned laws and regulations in Switzerland:

1. Medicinal Products Act (AMG): Link

2. Therapeutic Products Act (HMG): Link

3. Narcotics Act (BetmG): Link

4. Narcotics Control Ordinance (BetmKV): Link

5. Good Manufacturing Practice (GMP): Link

6. EudraLex Volume 4, Pharmacopoea Helvetica 11th Edition: Link

7. European Pharmacopoeia (Ph. Eur.) 10th Edition 2020: Link

8. Good Agricultural and Collection Practice (GACP): Link

At the end of the day, we personally bear the responsibility for any violations in the pharmaceutical environment. Therefore, ourl Responsible Person (FvP) and Quality Assurance Person (QP) must carefully oversee every detail.

To illustrate it in more detail, we would like to provide you with an overview of the many SOPs in the Sales and Distribution area. Although this is the area with the fewest SOPs per category, you can imagine the thousands of pages of instructions in other areas. These instructions must be followed at all times and are continuously reviewed by the internal compliance department (QP & FvP).

Each of these SOP documents consists of 9-28 pages in A4 format and covers topics such as the sale of products and specific requirements in various situations:

SOPs for Sales and Distribution:

QA-FORM-6 Client Registration Form 
QA-FORM-7 Application to Amend Registration Form 
QA-FORM-8 Review of Client Registration Forms 
QA-SOP-3 Records Retention and Archiving 
QA-SOP-6 Deviations and Investigations 
QA-SOP-14 Client Registration, order and distribution 
QA-SOP-16 Complaint handling and Investigation 
PRO-SOP-9 Order Picking and Shipping Procedure 
PRO-SOP-10 Returned goods 
PRO-SOP-16 Single cultivation permit request and requirements 
PRO-SOP-17 Export procedure for controlled substances 

Another example involves quality control and external audits. Whether it's machines, packaging, or customers, our employees must conduct audits. For instance, someone from our team had to travel to Washington to conduct an on-site audit for a trimming device, just to ensure we can use that device. It's clear that our employees don't only conduct audits in the USA.

The entire topic of GMP is fascinating and, at the same time, daunting! Once you understand the efforts required and the high level at which the qualification of a single device takes place, you will surely be shocked. Nevertheless, as a company, together with our dedicated team, we have overcome these challenges and are now on the verge of commissioning and making a historic step in the history of the Swiss cannabis market!

2. Roadmap and Support Information:

In your dashboard, under the "Roadmap" menu, you will find the timeline for the launch of your respective rooms. We have now included our second location in the roadmap, complete

with estimated start times for these rooms. These roadmaps are continuously updated, and you will also find an important and exciting FAQ section there.

Here is a direct link: https://backend.cannergrow.com/roadmap

3. Support

Please note that our team will be on vacation from December 23, 2023, to January 14, 2024, and during this time, no support tickets, withdraws and deliveries will be processed. If you have any concerns, we will be happy to assist you again starting January 14, 2024.

4. Customer Reviews and Our Shared Future:

We are aware that the project has experienced delays for well-known reasons, and some of you are dissatisfied with this situation. We share this dissatisfaction as our monthly costs continue. However, we want to emphasize that negative reviews and statements significantly hinder our efforts as a company to fulfill our promises to you. Reputation is crucial in the pharmaceutical industry. If our reputation suffers, generating revenue becomes increasingly difficult. It's akin to poking holes in our own boat and wondering why it's sinking.

Instead, it would be extremely helpful for us and our team if we collectively adopt a positive approach. We encourage you to share positive experiences online as well. This way, we could generate more revenue, which ultimately benefits all of you. The project's launch is within reach for most of you.

Furthermore, we want to emphasize that, so far, we have refrained from applying Article 7 as per the contract. However, starting in 2024, if necessary, we will take stricter action against damage to our reputation, which in extreme cases could lead to the immediate termination of the contractual relationship. Our shared successful future depends on constructive collaboration and positive feedback.

ARTICLE 7 DURATION AND TERMINATION OF THE SERVICE AGREEMENT

"It may be terminated by either party with one month's notice, especially if the yields from the crops no longer cover the ancillary costs of providing the services by Cannerald or in the event of endangering or impairing the reputation of one of the parties (or an affiliated person) by the other party."

"In the event of termination of the service agreement, the customer must collect all his plant(s) on-site within two weeks. If the customer is unable to collect the plant(s), he must instruct Cannerald to send the plant(s) to a specific address in Switzerland (or, if permissible, in the EU). The delivery costs are solely borne by the customer. Delivery is at the customer's risk. Furthermore, in the event of termination of the service agreement, Cannerald is not obliged to repurchase the plant(s)."

Once again, we would like to express our sincere thanks to all of you and wish you all a Merry Christmas with your families and a successful start to the year 2024!

Thank you, your CannerGrow Team