In October 2018 our majority owned subsidiary, AAA Heidelberg, received a license to produce under Health Canada’s Access to Cannabis for Medical Purposes Regulations for its facility in London, ON. AAA is currently preparing for its first crop and is working closely with partner Canopy Growth as the harvested product is to be sold through Tweed Mainstreet’s CraftGrow Collection.
Our second site is the retrofit of a 2,200,000 square foot greenhouse complex in Delta, BC. We are working aggressively to prepare the large-scale greenhouse for the first 250,000 square feet of cannabis flowering and propagation plants expected in early 2019. The retrofit will be completed in three phases:∙Phase 1: the completion of 350,000 square feet, including post-production facilities, scheduled for Q1 2019;∙Phase 2: Phase 2: an additional 1,450,000 square feet to be completed by Q4 2019; and∙Phase 3: the retrofit of the remaining 400,000 square feet.
Greenhouse plant propagation is a specialization that is used all over the world for a wide variety of plants. By eliminating propagation costs and optimize growing operations, Licensed Producers will be able to generate much more revenue and shareholder value over the long-term. As the first large-scale propagation operation in Canada, and likely the world, AgraFlora has “first mover advantage” over competitors and has generated much interest from Licensed Producers across the country.
Over the past 24 months we have focused our strategy to diversify and mitigate risk in response to the ever-changing cannabis sector. With the legalization of cannabis in Canada on October 17, 2018, we are witnessing the birth of an entire new industry and an economic force. Pioneers and early adopters like AGRA will reap the early rewards, become the leaders of this new multi-billion-dollar industry and establish the direction of the industry for future generations. As a large-scale Licensed Producer, we are now officially part of that conversation.
Moving forward will continue to work to creating shareholder value by:∙Executing a business plan to lead and succeed in the global cannabis industry;∙Partnering or acquiring other opportunities on a domestic and international basis;∙Creating ancillary businesses like Cannvas MedTech and Natures Hemp that adds to our Company value today and in the future.
Canada is fostering the emergence of an influential and powerful industry by taking a leadership position in the legalization of medical and recreational cannabis. AgraFlora is poised to become a leading cannabis company in the cannabis industry and we welcome you to join us on this great adventure.