As part of the loan, the group's Delta Facility will receive $5,000,000 which will provide full funding to the licensed cultivation areas and will allow the team to bring their first crop of low cost, high potency cannabis to market
() (FRA:PU31) (OTCPINK:AGFAF) said that Propagation Services Canada Inc. (PSC), its flagship cultivation asset located in Delta, British Columbia has received an agriculture loan to bring its cannabis cultivation to market and continue Phase 1 of the company’s cultivation strategy.
As part of the loan, the group's Delta Facility will receive $5,000,000 which will provide full funding to the licensed cultivation areas and will allow the PSC team to bring their first crop of low cost, high potency cannabis to market, on a wholesale basis, in Q1 2021.
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The curated portfolio of elite genetics at the Delta facility has been tailored to work with PSC's Delta-based infrastructure and utilizing 422,828 square foot of cultivation space with state-of-the-art semi-pressurized, semi-open Venlo greenhouses.
In a statement, the AgraFlora board of directors commented: “Having a fully-funded Phase 1 cultivation strategy allows us to deliver high potency cannabis strains in 2021. As partners at PSC, we have full confidence in the Houwelings family's ability to achieve this strategy, given their long history of high-quality agricultural production in low-cost environments, as well as the healthy condition of our award-winning genetics.”
With demand for high potency product trending upward especially within the value pricing segment, the company said PSC is uniquely positioned to produce a compelling value proposition for wholesale customers: high potency cannabis with desirable strains at a competitive price.
AgraFlora Organics is a leading cannabis company building shareholder value through the development of revenue-generating operating assets in the global cannabis industry. It is focused primarily on the Canadian cannabis industry, the world’s most advanced and regulated legal cannabis market.
Flagship Canadian assets include: Edibles & Infusions, a fully automated manufacturing facility in Winnipeg, MB for white-label and consumer branded edible production; Propagation Services Canada, a large-scale commercial greenhouse in Delta, British Columbia focused on reshaping the Canadian flower market with high-potency, low-cost cannabis flower, and AAA Heidelberg, a craft-focused cannabis producer in London, Ontario.
In addition, AgraFlora’s wholly-owned subsidiary Farmako GmbH is scaling towards its goal of being Europe’s leading distributor of medical cannabis. Farmako currently has active distribution operations in Germany and expects to commence active operations in the United Kingdom in 2020.
Propagation Services Canada is a joint-venture formed between AgraFlora and the Houwelings Group, one of North America’s leading producers and innovators in the greenhouse vegetable production industry. Through the JV, Propagation Services Canada will operate an automated greenhouse facility with an expandable footprint of up to 2,200,000 square foot, and it is expected to commence cannabis operations and revenue in 2020 with a focus on producing high-potency cannabis at the lowest possible cost to drive margin growth and profitability.
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