We’ve definitely talked about MedReleaf Corp (OTCMKTS:MEDFF) much less than some other Canadian cannabis companies, like Aurora and Aphria, but the fact remains that it is Canada’s first and only ISO 9001 and ICH-GMP certified cannabis producer, and was voted Top Licensed Producer at the 2017 Lift Canadian Cannabis Awards.
ISO 9001 is a set of international quality management standards that organizations adhere to, to consistently provide products and services that meet customer and regulatory requirements. ICH-GMP is the Good Manufacturing Practice standard set forth by the International Council for Harmonisation of Technical Requirements for Pharmaceuticals.
MedReleaf Corp (OTCMKTS:MEDFF) itself is an R&D-driven company engaged in the production of top-quality cannabis at two state of the art ICH-GMP and ISO 9001 certified facilities in Ontario, Canada. From there MEDFF delivers a variety of premium products for the global medical market, as well as providing a product assortment for the adult-use recreational consumer , and this week we’ve learned that its future production capacity just shot up exponentially
MEDFF announced that it has closed its agreement to acquire 1 million square feet of existing greenhouse infrastructure on a 69 acre property in Exeter, Ontario and 95 acres of adjacent land. The total purchase price for the transaction is approximately $26 million, consisting of $21.5 million in cash and 225,083 common shares of MedReleaf.
“MedReleaf is advancing on all fronts through focused capacity expansion, innovative brand and product development, and significant supply agreements that reinforce our position as one of the leading producers of premium cannabis to the Canadian adult-use and global medical markets,” said Neil Closner, CEO of MedReleaf. “The Exeter Facility expansion will add timely capacity to support market share leadership in our target segments while maximizing long-term return on invested capital.”
Work to retrofit the Exeter Facility for cannabis production will begin in April with first harvest expected in the first quarter of 2019, subject to receipt of a license from Health Canada. MedReleaf is fully funded to complete the project with cash on hand. The Exeter Facility, after full retrofit, will have annual production capacity of up to 105,000 kilograms, increasing MedReleaf’s fully funded annual production capacity to 140,000 kilograms.
The company believes the move strategically positions MedReleaf with one of Canada’s largest and most diverse cannabis cultivation portfolios. Greenhouse cultivation is ideal for producing raw material inputs for extract production, which complements MedReleaf’s award-winning portfolio of premium indoor grown cannabis products.
Greenhouse production at scale will lower overall unit production costs and provide added flexibility to enhance adjusted aggregate production contribution margin across product lines, and the expansion plan for 35,000 kilograms per year of premium indoor production remains on track for completion by the end of summer of 2018 and the first product is anticipated to come from the retrofitted Exeter Facility by the first quarter of 2019.
The Exeter location has adjacent land totaling 95 acres, which could accommodate a greenhouse approximately 1.5 times larger than the Exeter Facility, allowing for future capacity expansion that would leverage investment in shared infrastructure developed as part of the initial retrofit. (Source: Canada Newswire)
As we said above, we’ve given Canadian cannabis companies like Aurora and Aphria preferential treatment in the past, but MEDFF is another big bopper on the block that we’ll definitely need to make an effort to track more closely as it prepares its new facility and massive cannabis production boost. Stay locked to Street Register for updates, and we’ll deliver important developments on MEDFF as they unfold. In the meantime, if you’ve yet to sign up for our 100% free newsletter, do so now! Just enter your active email address into the box below and submit!
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in MEDFF stock, short or long.