US (CA): Letter of intent issued for 300,000 sq.ft. greenhouse facility

Cannabis Strategic Ventures has issued a Letter of Intent (“LOI”) to obtain a new 300,000-square-foot greenhouse facility for cannabis cultivation. 

“In this environment, the market is going to take as much as we can produce given our steady evolution in product quality, and we see those conditions extending for quite some time,” stated Simon Yu, CEO of Cannabis Strategic Ventures. “That strongly points to strategic value in expansion. We have seen recent strong improvements in output, pricing and sales volume, and we are aggressively interested in expanding capacity to capitalize on micro and macro factors to drive more value for our shareholders.”

The LOI, which was issued this week, represents an offer to obtain a cannabis cultivation facility with a 300,000-square-foot, ready-to-grow greenhouse in excellent condition. 

However, the addition of this amount of cannabis cultivation capacity would more than double the Company’s total output potential. Given current trends, management believes this would also result in an increase in total sales by more than 100%.

Yu continued, “More than doubling our production capacity doesn’t just mean a proportionate jump in sales. It also represents an additional bonus in terms of market positioning, putting us at a volume level that would likely create additional relationship opportunities with major distribution partners.”