CannTrust Holdings Inc. has closed the first of its previously announced transactions to acquire 200 acres of outdoor cultivation land. The Company has purchased four parcels of land for cash, representing 81 acres of land, to advance its outdoor cannabis cultivation operation in British Columbia.
“Cannabis harvested from this new location will be used to produce oil products as well as other products. We will continue to sell high quality dry flower from our Perpetual Harvest Greenhouses in Pelham, Ontario to medical and recreational consumers, and will use cannabis cultivated outdoors for its extraction products at a fraction of the cost,” said Peter Aceto, Chief Executive Officer. “Subject to Health Canada approval, it is our plan to have plants in the ground and our first harvest from the 81 acres in 2019. Additional land is intended to be secured by the Company, which will bring outdoor cultivation to 200 acres, and will lead to total annualized production capacity of between 200,000kg and 300,000kg for the Company. Production from these additional lands are expected to come online in the third quarter of 2020, subject to regulatory approvals. We believe the transaction further demonstrates CannTrust’s low-cost cultivation leadership and is another example of CannTrust taking bold action to reach its vision of becoming a global leader in providing innovative cannabis products.”
With the closing of this land acquisition, the Company has now secured 81 acres of land on which it will proceed to develop its outdoor cultivation capacity. CannTrust has commenced fencing of the property, installation of security systems and other infrastructure required for commercial production.
CannTrust expects to close a second transaction, which is currently under Letter of Intent, to secure additional land through long-term lease agreements in the near term. "As previously announced, between the land acquisition announced today and the pending lease agreement, the Company expects to secure over 200 acres of total land for outdoor cultivation. Details of these transactions, including the location of the properties, will be disclosed upon satisfaction of customary closing conditions of the lease agreement", the company concluded.
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