Outdoor Grow. 27-acre, low-cost, outdoor grow operation ready to plant, pending licensing. With expansion capabilities to more than 100 acres for a total yield of more than 100,000 kgs of outdoor cannabis planned for 2020.
Facilities and Production Update. An additional 10 hybrid cultivation rooms, each 10,000 sq. ft., are complete and are expected to be licensed once the outdoor licence is secured. The Company is also now in the late stages of completing the retrofit of two large traditional greenhouse rooms that will add more than 300,000 sq. ft. in 2019.
Licensing and Packaging Efficiencies. Secured a Health Canada licence amendment for an additional processing area equipped with semi-automated packaging lines at its Aylmer facility to increase speed to market and drive costs lower. Also secured a processing licence at the Strathroy facility.
Extraction Initiative. WeedMD is currently converting its fully-licensed Aylmer facility into a large-scale cannabis extraction and processing hub with an annual capacity to process more than 200,000 kgs of biomass.
Operating Metrics Improve.Margins continue to improve through increasing yields, economies of scale beginning to be realized as production expands, and a focus on refining processes.
Supply and Distribution Agreements. WeedMD secured additional provincial distribution agreements with Manitoba and Saskatchewan. Shipping to a total of six provinces across the country, the Company is now able to reach about 70% of Canada’s projected adult-use market.
Retail Initiative. WeedMD partnered with Pioneer Cannabis and Pita Pit to pursue opportunities in cannabis retail. A Master Cannabis Retail and Licensing Agreement was signed with an Ontario cannabis retail lottery winner who will own and operate the first Pioneer Cannabis store located at 1200 Brant Street in Burlington, Ontario.
