WeedMD Inc (CVE:WMD) (OTCMKTS:WDDMF) announced plans to expand its cultivation capacity by adding a 25-acre outdoor grow operation in Ontario.
The licensed producer and distributor of medical-grade cannabis applied for an amendment to its municipal license allowing it to increase capacity up to 50 acres. It has secured support from the local municipality of Strathroy-Caradoc, around 200 kilometres west of Toronto.
The expansion is expected to allow WeedMD to yield over 100,000 kilograms of cannabis by 2020, which would double current production levels from the indoor greenhouse alone. The first phase will expand an initial 25 acres, while the second will add an additional 25.
The Toronto-based company initially selected the 98-acre property in November 2017 because of its expansion potential, said CEO Keith Merker in a statement. "With our outdoor grow site, we will continue producing cannabis products at an expected lower cost, in a supportive municipality that will complement our existing robust production platform with our first outdoor harvest expected in fall 2019.”
Scaling up production
"Our methodologies and standardized innovative practices have been derived from more than 15 years of outdoor growing experience under Canada's legal cannabis programs” said Derek Pedro, Chief Cannabis Officer of WeedMD. ‘With cannabis plants being readied for transplant in June 2019, WeedMD is optimally positioned to rapidly scale production and is already being recognized as an industry-leader and expert in outdoor cultivation."
In addition to the Strathroy facility, WeedMD operates a 26,000 sq. ft. indoor facility in Aylmer, Ontario The Strathroy site currently has 110,000 square feet of licensed greenhouse space in production and is expected to have a total footprint of more than 550,000 square feet.
Shares of WeedMD were trading at C$2 in Canada and US$1.48 in the US on Wednesday afternoon.
Updated to reflect share price
Contact Angela at firstname.lastname@example.org
Follow her on Twitter @AHarmantas