Friday's Health Canada license. 21,000 KGs this summer?21,000 KG this summer. This makes WEEDMD and instant target for acquisition that is better than the merger with Hiku which is more of a branding and retail exercise. If the agreement is broken with HIKU, it will benefit WMD. The model that WMD uses in converting greenhousesis the same as Aphria and APH needs flowers to leverage its new extration facilities annonced last week.
Unless one looks on the Health Canada Web site or in some of these Social Media site, the investing public would not know the important 2nd site license was approved.
Greenhouse Expansion This expansion was first announced November 21 , 2017, WeedMD entered into a definitive lease and purchase option agreement for a large - scale modern greenhouse cultivator located in Strathroy, Ontario. The 98 - acre property includes 610,000 sq. ft. or 14 acres of state - of - the - art greenhouse facilities that are ready for rapid retrofit for cannabi s cultivation. WeedMD initially leased 217,800 sq. ft. or 5 acres of greenhouse, with an option to expand into the remaining 392,040 sq. ft. or 9 acres of greenhouse space at its discretion. The agreement also includes an option to purchase the property, greenhouse facilities and infrastructure (“Purchase Option”) . This transformational expansion , among the most capital efficient in the industry, will increase WeedMD’s annual production to more than 21,000 kg of cannabis . The retrofit was fully funded wi th the Company’s current treasury and once fully retrofitted, the 14 - acre facility will increase WeedMD’s annual production capacity to more than 50,000 kg. That was Phase 1 and what is they obtained the license for Friday.
With Phase II of the expansion, the Company will begin to retrofit another 175,000 sq. ft. of greenhouse space, which will result in additional annual production of 12,000 kg. This will increase the production area to a total of 395,000 sq. ft. and the Company’s annual production to more than 33,000 kg.
Retrofit costs of less than $70 per sq. ft. is amongst lowest in the industry, given the favourable condition of the existing greenhouse facilities and supporting infrastructure .
WeedMD has the option to expand into the entire 14 acres or 610,000 sq. ft. of existing greenhouse at its discretion, which will represent more than 50,000 kg o f annual production .
WeedMD has the option to acquire 100% interest in the property, consisting of up to 98 acres of land, infrastructure and cultivation equipment. The combination of a lease with an option to purchase is a compelling and capital efficient expansion strategy .
It's important to note that WeedMD converted it's first site from this lease to buy to a purchase last year. This model is working and allows the owners to these assets to become instant investors in this worldwide Canadian dominance.
I really hope that it's a merger with APH.