Canadian federally-licensed producer and distributor WeedMD Inc. (TSXV:WMD) (OTCQX:WDDMF) is planning to significantly expand its existing cannabis cultivation with a large-scale, low-cost, outdoor cannabis grow operation.
WeedMD has applied to Health Canada for approval for outdoor cultivation at its Strathroy greenhouse operation, an expansion that would increase the company’s total production area to over 2.7 million square feet. The new growth space would have the potential to yield over 100,000 kilograms of cannabis in 2020.
Once approved, WeedMD will start with Phase 1 of the expansion with an initial 25-acre cannabis growth operation, which will produce more than 25,000 kilograms of cannabis. The company has already begun retrofitting the highly secured space, with its first outdoor harvest expected this fall.
The outdoor expansion will complement WeedMD’s existing state-of-the-art 610,000 square foot hybrid greenhouse facility and utilize existing, on-site storage and packaging, which is in line with Health Canada regulations.
WeedMD Expansion Supported by Local Government
Strathroy-Carado Mayor Joanne Vanderheyden supports WeedMD’s planned expansion, as it will mean long-term growth for the municipality and promote new jobs.
“Our municipality is proudly home to a thriving agricultural community which has long supported our local businesses and we’re pleased that WeedMD continues to expand its local footprint in a progressive and economically-viable manner,” Vanderheyden said in the press release. “We welcome and wholly support its push for outdoor expansion along with the job opportunities, sustainable cultivation and community engagement it will bring for the continued long-term growth of our municipality.”
WeedMD Production Costs Will Be Lowest in the Industry
This move to outdoor cannabis cultivation will reduce production costs significantly, as outdoor growing is a cheaper alternative to indoor and greenhouse cultivation. WeedMD expects to lead the industry with some of the lowest production costs.
The outdoor expansion will also use sustainable growing practices like natural sunlight, pre-tested live soil, onsite water reservoir, appropriate ventilation, and state-of-the-art irrigation mechanisms that are already in place.
Despite the encouraging news, WMD stock dropped slightly to $2.00 CAD, down $0.02 (-0.99%) on the TSX Venture Exchange at the time of writing.
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