Health Canada has granted 48North Cannabis Corp. the required license for its state-of-the-art drying facility at Good:Farm, providing the Company with the capability to dry the planted crop at Good:Farm.
Working towards its second annual harvest, this decision builds on a series of operational and licensing improvements that will help the Company commercialize the Good:Farm, one of Canada's first and largest outdoor cannabis operations.
"Without question, 48North is a pioneer in the outdoor cultivation of cannabis in Canada. This first mover advantage positions the Company to build on lessons learned last year and make necessary corrections so that we can leverage Good:Farm as a source of low-cost, high-quality cannabis," said Charles Vennat, CEO of 48North.
"Last year's harvest demonstrated that 48North's Good:Farm would be an effective source for next-generation cannabis products that are now on the market. However, inadequate drying space reduced the harvest volume we were able to bring to the market last year. Today's announcement shows that we have corrected that problem and are better positioned to meet the high demand for our products."
With the industry no longer facing an undersupply of cannabis, quality and cost are becoming critical differentiators for 48North, which expects to cultivate cannabis at a similar cost than last year's benchmark of $0.25/gram. In addition to 48North's best-selling suite of cannabis products, this year's crop will be leveraged to drive 48North's cannabis contracting manufacturing business.
Leveraging the harvest from 2019, 48North continues to launch next-generation cannabis products utilizing distillate extracted from last year's crop. For example, 48North's best-selling Apothecanna and Trail Mix brands are powered by last year's farm cannabis. In turn, this year the Company is prioritizing a process that the Company expects will result in full-spectrum oils, baggable flower, pre roll biomass and further distillate.