SugarBud Craft Growers has received cultivation, processing and medical sales licenses from Health Canada in respect to “Phase 1A” of the Company’s fully constructed, state-of-the-art 29,800 square-foot vertical cannabis cultivation facility in Stavely, Alberta.
"The newly licensed “Phase 1A” area of the Stavely facility includes two dedicated flower rooms and all the necessary auxiliary rooms to support an estimated annual cultivation design capacity of approximately 3,300,000 – 3,890,000 grams per year at full-scale production," the team with the company explains. "SugarBud will immediately commence cultivation and expects to complete its initial two harvests in December 2019, after which SugarBud intends to submit an application to Health Canada to amend the Licenses to permit cultivation in the remaining six flower rooms in Phase 1 of the facility." According to them, at full operational levels, with four layers of flowering canopy, the estimated total cultivation design capacity for Phase 1 is expected to be approximately 13,230,000 – 15,565,000 grams per year. SugarBud expects to begin construction on Phase 2 of the facility in 2020. "At full scale the facility is expected to occupy approximately 98,000 square-feet of floor space encompassing core production activities such as cultivation, extraction, processing, genetic breeding, research and development, product development, packaging and distribution," they further explain. "Upon completion of Phase 2, SugarBud estimates that the Stavely facility will have a total cultivation design capacity of approximately 33,075,000 - 38,912,000 grams of premium cannabis annually. Phase 1 is estimated to cost approximately $22.2 million with four layers of flowering canopy. Of this amount, approximately $11.7 million remains to be deployed to complete Phase 1 of the facility. The Company must access additional capital funding to complete Phase 1 through a combination of debt, equity and convertible securities. The Company will commence construction of Phase 2 when capital permits."
Mr. John Kondrosky, Chief Executive Officer of SugarBud, stated: “We believe that the heart and soul of everything we do starts with what we grow. We cannot wait to officially launch that mission and deliver on that promise.”