AgraFlora Organics International (CSE: AGRA), which has a JV partnership with the Houweling Nurseries, received its cultivation license from Health Canada today. AgraFlora has finished retrofitting phase 1 of the Houweling greenhouse, aiming to make the facility fully operational by 2021 at the latest. Bringing the total 2.2m square feet online. The first phase will include an estimated 300,000 square feet of growing space and 100,000 square feet of post-production.
The Delta facility is the epicentre of the company’s ambitious growth strategy. Receiving its license is just the first step in becoming an instant competitor to that Pure SunFarms. While Zenabis (TSX: ZENA) and Canopy Growth (TSX: WEED) (NYSE: CGC) have moved out of the Delta area. It makes AgraFlora instantly one of the two market leaders in the area. In addition, they have prior relationship via growing tomatoes with Village Farms (TSX: VFF), whom owns the controlling interest of PSF. Making for friendly competition once again but with cannabis this time. Both companies in the future should succeed and feed of each other.
Propagation Services Canada will attempt to improve on the model first implemented by Pure Sunfarms. As PSF currently produces cannabis at an all-In Cost of Production basis of C$0.88 per Gram. A number that AgraFlora can set as a bench mark going forward. This cheaply produced cannabis can be used for extraction to compliment AgraFlora’s Edibles and Infusions Corporation. Which operates a 51,000 square foot edibles manufacturing facility located in Winnipeg, Manitoba. Upon completion it is set to be the nations pinnacle edible gummy and candy producer.
This news should create a significant bump in the share price. When AgraFlora announced that it’s wholly owned subsidiary Sustainable Growth Strategic Capital Corp received Health Canada approval to commence extraction, the share price saw a one day increase from .045 to .065 on March 27. With over 6.8m in trading volume. This licensing news is significantly greater than that, therefore shareholders can expect that a similar spike in volume is in the works.
AgraFlora closed at Friday’s session at $0.06 on the CSE.
Content provided via Harvest Moon Research, LLC.
Information for this briefing was found via Sedar and AgraFlora Organics International Inc. The author has no securities or 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.
