RE:Waiting Page 17
Production and Sales
The Company has also completed the build out of its 6,540 square feet centralized processing facility in Coquitlam, British Columbia. The Company has built out the facility to be able to offer toll processing, and white label production to licensed standard and micro cultivators, hemp farmers, and standard processors. The centralized processing facility is intended to be used to commercialize the Company’s patented technology by offering cannabis extraction and distillation processing services to licensed cultivators and processors. The facility has an initial capacity to process up to 182,500 kg of dried cannabis biomass per year. The Company generates revenue through four verticals: toll processing, white label production, licensing intellectual property and selling equipment. In order to complete any sales of cannabis oil, the Company must be granted an Authorization to Distribute License. A distribution authorization will permit the Company to complete sales to other Cannabis Act licensed producers. The distribution authorization is contingent upon “practice lot” production, an evidence package submission and an additional inspection.