AgraFlora Organics International has closed the acquisition of Sanna Health originally announced on December 5 2019. Sanna is a Canadian cannabis company based in the Greater Toronto Area (GTA) which holds a standard cultivation standard processing and medical sales licences awarded under the Cannabis Act.
Extraction
"Sanna is headquartered in the GTA only 30 minutes from downtown Toronto affording the Company access to Canada’s largest cannabis marketplace," the team with the company explains. "Sanna’s flagship facility is situated on 16 acres and includes 27000 square feet of Health Canada licensed cultivation and processing space. Sanna holds an option to expand its current production area to 89000 square feet as well as ample commercial-industrial space for future expansion."
"With ethanol extraction equipment installed on-site and high-margin agreements being negotiated to process upwards of 1000 kg of hemp biomass per month Sanna is primed to realize sustainable near term cash flows. The Company forecasts that once optimized and upon receipt of the required licence amendment Sanna’s extraction facility will boast annual extraction capacity of 250000 kilograms of dried cannabis and hemp biomass much of which will be supplied by the Company’s 88-acre outdoor cannabis grow located less than 90 minutes from its GTA headquarters permitting streamlined logistics and reduced transportation costs."
Outdoor Cultivation
Sanna owns an 88-acre late-stage Health Canada outdoor cultivation applicant. The Company plans to submit its affirmation of readiness and video evidence package for its initial 13-acre Zone One outdoor immediately following closing of the share exchange in preparation for the 2020 outdoor cultivation season.
"Located in Southwestern Ontario Sanna’s Zone One 13-acre outdoor grow is forecast to produce up to over 1000 kg per acre of high-quality low-cost cannabis flower with a per gram unit contribution of less than $0.10," they further explain. "Sanna’s planned Zone Two outdoor grow expansion will add an additional 75 acres of cultivation expanse and once licenced is expected to yield over 75000 kg of dried cannabis per harvest."
"The Company will deploy proprietary varietals of auto-flower and photoperiod cannabis seeds on its 88-acre outdoor grow thus optimizing production yields. Sanna will also leverage various cultivation and plant physiology concepts with the objective of enhancing plant performance." The Company’s cultivation concepts have been developed over five years of Canadian commercial cultivation experience and include:
- Proprietary soil/nutrient monitoring and plant health monitoring solutions;
- Consistent delivery of ideal primary secondary and micronutrients;
Evaluation and comprehension of the rhizosphere and its effect on inputs and yield; - Creation of crops that are more resistant to pests and disease; and
Manipulation of nutrient and substrate conditions to drive plant health and yield.
Once operational and in receipt of Health Canada approval, the true value of the Company’s outdoor grow will be realized via its ability to serve as a robust feedstock source for the multiple downstream value-added assets that are domiciled under the AgraFlora corporate banner. The successful implementation of full vertical integration will support increased efficiency across business channels and allow for maximum economic margin capture for the enterprise as AgraFlora continues to capitalize on the next phase of cannabis normalization."
Cash cost per gram to harvest includes all operating expenses such as labour supplies consumables services and staff overhead. All-in cash cost per gram to harvest includes all operating expenses along with capital costs including irrigation security infrastructure as well as the contemplated drying facility.
The Company’s 2020 harvest will be dried and cured on-site at a dedicated drying building comprising approximately 5000 square feet and featuring a 20-foot-high ceiling and a purpose-built climate control and dehumidification system to maximize throughput efficiency.
For more information:
AgraFlora Organics
agraflora.com