Auxly Cannabis (TSXV: XLY) announced this morning that its joint venture partner Sunens Farms has finally seen the first phase of its Leamington, Ontario greenhouse licensed by Health Canada. 360,000 square feet of the 1.1 million square foot facility has now been approved to cultivate, process and store cannabis.
While only the first stage of the greenhouse facility has been licensed by the regulator, it will enable to facility to finally become operational. Product cultivated at Sunens is said to be organic, and will commence bulk sales of product upon harvest without any additional regulatory approvals being required. This is due to the regulations allowing for business to business transactions to occur among licensed producers, even if no sales license is present.
Further, product produced at the facility is intended to support production of Auxly’s cannabis 2.0 products manufactured by Dosecann in PEI, eliminating the need for Sunens to sell product to other producers or to consumers at this time.
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The remaining space within the greenhouse facility is expected to be submitted for further licensing later this year, however the need for additional cultivation space is questionable at this point in time.
Auxly Cannabis last traded at $0.34 on the TSX Venture.
Information for this briefing was found via Sedar and Auxly Cannabis Group Inc. The author has no affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
