Auxly's Advancing AutomationThe automated packaging equipment designated to Auxly Ottawa was delivered in February after a Covid related delay of 6 months.
As stated in the latest MD&A :
https://auxly.com/wp-content/themes/auxly2018/media/2021Q4/MDA_Q4-2021.pdf ---------
Auxly Ottawa (formerly Kolab Project)
In October 2017, we acquired our subsidiary Auxly Ottawa and its facility located in Carleton Place, Ontario. Auxly Ottawa holds licences for cultivation and processing under the Cannabis Act. In 2020, we made the strategic decision to cease cultivation at the facility and shift our focus to the manufacturing, processing and distribution of pre-roll and dried flower Cannabis Products. Auxly Ottawa is the Company’s hub for the processing and packaging of its Cannabis 1.0 Products, including the Kolab Project Growers Series, Back Forty 40s, Kolab Project 950 Series pre-rolls and Back Forty dried and milled flower products.
Near the end of 2020, the Company undertook new capital projects to increase pre-roll production volumes at the Auxly Ottawa facility through the purchase, installation and commissioning of automated manufacturing and packaging equipment and minor associated building alterations, which would quintuple output from the facility. The manufacturing equipment was installed and commissioned during the second quarter of 2021, however, the packaging automation equipment was delayed and received by the Company in February 2022. As at December 31, 2021, expenditures of approximately $4.0 million have been made towards the completion of this project. Due to increased demand for Cannabis 1.0 Products, we expect to incur expenditures of approximately $3.0-4.0 million towards capital projects focused on flower and pre-rolled cannabis automation throughout 2022, including the commissioning of the previously noted packaging automation equipment received in February 2022.
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Let's get that puppy rollin'!
Fire it UP!
cheers