The company plans to build improvements at the Alternative Medicine Association cultivation facility in Las Vegas to expand its production area to 2,215 square feet from 483 square feet, doubling its potential production capacity to 80 liters of distillate per month.
Once its cannabis plants are moved to a new cultivation facility, the company will submit layout plans to the city of Las Vegas for approval. The operation is expected to kick into gear in the fall of 2019.
Additionally, the Vancouver-based company is working with an engineering firm on custom equipment to establish one of Nevada’s largest hemp-extraction facilities. The operation will be capable of isolating cannabidiol, cannabinol, cannabigerol, cannabichromene and several other cannabinoids to create oils and isolates.
The company has ordered its custom and is working on the final layout. Its processing capacity is expected to be roughly 68,000 kilograms of hemp biomass per month, which would yield about 5,000 kilograms of oils or 4,500 kilograms of CBD isolate.
"The process has been scaled up after a lengthy research phase, where we aimed to create a method of extraction using specialized chemistry and equipment in order to obtain a higher yield of CBD, thus increasing our efficiency,” CEO Chris Rebentisch said. “The competitive advantage of the new facility will be the isolation of not only CBD but of additional individual cannabinoids at scale, which is unique and novel in the cannabis marketplace."
The company's stock slid 2.4% on Friday to C$0.41 on the CSE and 2.6% to US$0.31 on OTC Markets.
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