VANCOUVER, British Columbia, Dec. 19, 2018 (GLOBE NEWSWIRE) -- Agraflora Organics International Inc. (CSE: AGRA) (Frankfurt: PU31) (OTCPK: PUFXF) (formerly PUF Ventures Inc.) released a three stage timeline last week for the retrofitting of their new greenhouse facility in Delta, BC. What they did not relay to the public at the time, however, is that this 2.2 million square foot facility in Delta now represents the second largest cannabis greenhouse facility in Canada (among those that are currently physically built). AGRA’s Delta facility is second in size only to the Smiths Falls facility owned by Canopy Growth Corp., the world’s largest cannabis company, and it is larger than the other two biggest cannabis facilities in Canada. AGRA’s Delta greenhouse is 100,000 square feet larger than Aurora Cannabis Inc.’s facility in Edmonton, and it is also more than 700,000 square feet larger than the current size of the Leamington facility owned by Aphria Inc.
With this substantial square footage, of course, also comes the potential for significant plant growth and sales. According to AGRA CEO Derek Ivany, the facility in Delta will be capable of producing “...approximately 0.12 kg [of cannabis flower] per square foot,” allowing it to boast an annual production capacity of 250 million grams of high-quality cannabis product, and AGRA has already solidified offtake agreements with two major cannabis organizations in Canada in order to provide themselves with potential future sales outlets. AGRA became part of Canopy Growth Corp’s CraftGrow Family in 2017, and, in an announcement released this past Thursday, AGRA stated that Namaste Technologies, through its wholly-owned subsidiary Cannmart Inc, will have the right of first refusal on the purchase of up to 25,000,000 grams of cannabis from AGRA at a price of $4.00 per gram. The Namaste arrangement alone represents up to $100 million in potential future revenue for AGRA.
The greenhouse in Delta was secured through a partnership with the Houweling’s Group, and it is this partnership that will also help AGRA both maximize the growing potential of the facility and ensure that it is up and running on schedule. The Houweling’s Groups brings forty years of greenhouse experience and growing expertise to the project as well as a plethora of established infrastructure. The Houweling’s Group is a fully vertically integrated organization with a total of 8.4 million square feet of greenhouse space in Canada and the United States and more than 200 employees. They have employee groups working in growing, harvesting, distribution, administration, I.T. and finance, and this means that they are fully self-sufficient.
In order to fund AGRA’s plans for retrofitting the greenhouse in Delta, AGRA has secured another $7.5 million in financing from the Delta Organic Cannabis Corp. (DOCC). In September of 2018 AGRA entered into a $40-million equity participation and earn-in agreement with DOCC, a privately held Toronto-based investment company managed by some of Canada’s leading cannabis investors, and so far $20-million of this money has already been provided. On October 18th, an initial tranche of $12.5 million was secured, while the most recent $7.5 million came through on December 10th. Both tranches were purchased at a share price of approximately 45 cents.
As stated previously, AGRA will be retrofitting their Delta greenhouse in three stages, aiming to make the facility fully operational by 2021. The first stage will include the completion of 350,000 square feet of growing space and 100,000 square feet of post production facilities and is scheduled to be completed in the second quarter of 2019. The second stage will include an additional 1.45 million square feet to be completed by the fourth quarter of 2019. Finally, another 400,000 square feet of space will be completed by the end of 2020.
With all of these aspects combined, AGRA has placed themselves in an enviable position within the Canadian cannabis industry. Not only does the company have one of the top three largest cannabis greenhouses in the country, but they also have the financing, expertise, infrastructure, and sales outlets needed to maximize the potential of the project.
About Agraflora Organics International Inc.
Agraflora Organics International is a growth-oriented and diversified company focused on the international cannabis industry. It has ownership in several cannabis companies, including AAA Heidelberg Inc. and Propagation Services Canada in Canada, and is actively pursuing other opportunities within the cannabis industry. Agraflora Organics has an option to purchase 100 percent of AAA Heidelberg, a licensed producer under the Access to Cannabis for Medical Purposes Regulations.
ON BEHALF OF THE BOARD OF DIRECTORS
Derek Ivany, President & CEO
For additional information:
AgraFlora Organics International Inc.
E: ir@agraflora.com
T: (800) 783-6056
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