Medical cannabis producer ABcann updated its expansion plans and provided a timeline for increased production Wednesday.
Backed by $43 million in investment raised through a public offering earlier this year, the company plans a 1,200-square-metre (13,000-square-foot) addition to its Vanluven Road facility and a new, 9,300-square-metre (100,000-square-foot) facility on a 26-hectare (65-acre) property on Kimmett Side Road near its existing building.
Construction of the new facility is expected to start later this summer.
In early May, ABcann went public with shares selling on the Toronto Stock Exchange Venture Exchange as ABcann Global (TSXV: ABCN).
The company went public through a process called a reverse takeover, where it amalgamated with an existing publicly traded shell company that is not operating. ABcann transfered its operations to that company and assumed its public status.
“ABcann’s strong cash position from its go public transaction, subsequent warrant exercises and recently announced equity financing for $2.25 per share has positioned the company to aggressively expand our production capacity at both Vanluven and Kimmett,” said ABcann chief executive officer and director Aaron Keay. “The imminent expansion plans and decision to expand our Phase 1 construction plans at Kimmett are in line with ABcann’s corporate strategy to take advantage of the current domestic demand for a high quality standardized pesticide free product, in addition to becoming a strong competitor in a number of the emerging markets internationally.”
ABcann is one of the 34 companies licensed to grow medicinal marijuana in Canada.
The company’s production process is characterized by strict control over every aspect of a marijuana plant’s growth.
Using seeds purchased from Holland, the process of growing each plant is tightly controlled and monitored, both to maximize output and quality and to provide a precise log of its history.
Computerized control of the system allows technicians to grow different plants in tightly controlled conditions where everything from soil composition, temperature, humidity, irrigation, light and time are set by technicians.
Before entering the growing rooms, workers shower and change into clothes that are professionally cleaned. They pass through an air shower, designed to blow off dust and fine particles, before entering the most sensitive areas.
Microbial tests are performed twice a week, and positive air pressure means air where the plants are growing flows out, never in, when doors are opened.
The company currently employs about 50 people. Once up and running, the new facility and expansion are expected to employ more than 300 more people.
The new building is to be a scaled-up version of the existing facility, which is licensed to produce approximately 625 kilograms of medical cannabis a year.
The company announced Wednesday that the first cultivation from the new facility is expected near the end of 2018 and it will be up to full production in early 2019.
The first cultivation from the expanded Vanluven Road facility is expected in early 2018.
“ABcann has moved methodically through each stage of our growth since first obtaining our license in 2014. Providing a high quality standardized pesticide free product to our patients remains our number one priority as we initiate our largest expansion plans to date,” said founder and director Ken Clement. “With a proprietary growing technique that is repeatable and consistent, we are in a great position to deploy our capital and production knowledge on a massive scale.”
Bird Construction Inc. is to be the general contractor on both construction projects and NORR Engineering is to be the project engineer.
credit:420intel.com