Aleafia Health’s wholly owned subsidiary, Aleafia Farms Inc., has acquired the farmland directly adjacent to its Port Perry Outdoor Grow facility. "The purchase will allow the Company to commence its Outdoor Grow Phase II expansion, adding an additional 60 acres of cannabis cultivation area, for a total of 86 acres," the team with the company explains. "The transaction closed on September 3, 2019, with a cash purchase price of $1.2 million."
"Following closing, the Company will commence the process of having the new property’s address amalgamated with the current Port Perry address. This would allow Aleafia Farms to request an amendment to its existing Health Canada licence, rather than applying for an entirely new Cultivation Licence. The Outdoor Grow Phase II buildout will also commence in September, with the intention of submitting a full evidence package to Health Canada in late 2019, demonstrating that the site is in a grow-ready state."
Outdoor grow phase II expansion highlights
Upon receipt of requisite regulatory approvals, the acquisition will:
- Increase outdoor cannabis cultivation area from 26 to 86 acres
- Leverage existing buildings on-site for conversion to cannabis drying rooms and staff accommodations
- Benefit from significant economies of scale and streamlined regulatory process compared to the building of an entirely new facility
- Positive local economic impact, through the continued hiring of regionally based contractors and labour
Completion of sale of unused property
In addition, the Company’s wholly owned subsidiary, Emblem Corp., has completed the sale of an unused 43-acre property, located at 539 Paris Road in Brant for net cash proceeds of $8.2 million. The transaction closed on August 28, 2019.
“We are delighted to build on the success of our 2019 outdoor cannabis crop to date and significantly expand our low-cost production operations for next year. Being one of a handful of LPs to operate an outdoor facility this year has positioned us well for a major expansion in 2020,” said Aleafia Health CEO Geoffrey Benic.
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Aleafia Health
AleafiaHealth.com