CAN (BC): Grower reports operational ramp up

Citation Growth Corp. has reported on its significant operational ramp up since completing the merger with ACC Group of Companies.

"Since the Merger with ACC on August 2, 2019, the Company produced an additional 89,250 grams of flower in August, of which 39,916 grams were sold to dispensaries for US$139,706 at an average price of US$3.50 per gram," the team with the company explains. "Additionally, ACC’s inventory was sold to the Company’s wholly-owned subsidiary, Marapharm Las Vegas, for US$366,832 which will be further processed into cannabis oils at the Company’s Eco Nevada production facility. The Company expects to generate an additional 30% from the sale of these Cannabis extracts. For the months of July and August, Marapharm generated gross revenue of approximately US$220,500 from the sale of Cannabis flower. The Company’s dispensary in California, Green Leaf Wellness LLC, recorded gross revenue of approximately US$231,000 for July and August and gross margin of approximately 23%."

At Pahrump 1, Citation has now brought the facility to up to 67% of its total potential output of 275,000 grams per month. "The Company expects to see 100% output out of the facility by the first quarter of 2020 before it begins its expansion in Pahrump with its Pahrump 2 and Pahrump 3 facilities," they further explain. "As previously announced, upon full build out, the Company’s Pahrump operations will have a total output of 6,000 kilograms per year across 50,000 square feet of grow. As previously disclosed, Pahrump 1 is a 26,500 square foot facility. Pahrump 2 and 3 represent an additional 15,000 square feet and 8,500 square feet, respectively. Citation also has an LOI on the fourth Pahrump facility adjacent to its current footprint which will add an additional 12,500 square feet. The Company also has additional room to build out an additional 225,000 square feet of premium indoor cultivation on its 100% owned Pahrump land holdings."

The Company is pleased to report that it is in the final stages of Health Canada approval for its Celista asset. "The Company is currently in the process of constructing the first of ten buildings, totaling 100,000 square feet of cultivation and processing space at this project."

The Company has decided to begin to divest its non-core assets in Lynden and Magna Bay as it further focuses on its US, cash flowing assets. The Company plans on completing this asset divestiture program by the end of 2019.

For more information:
Citation Growth Corp.    

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