ZA Group has acquired a controlling interest of 60% in Econic Crop Solutions Inc. (Econic), a private company engaged in a rapidly expanding network of joint venture operations with First Nations communities. More specifically, it builds and supplies indoor farming modules to grow and extract cannabis products for domestic and export markets. These systems include the portable structures that house the production grow pods, the grow pod equipment itself, and finally the product extraction facilities. Finally, Econic also supplies and operates the on-site dispensaries which package and sell the end products through on-site sales as well as to export customers.
Econic operates a 15,000 square foot manufacturing facility in Red Deer, Alberta which serves as the company's manufacturing, assembly, and distribution centre for the equipment and resources that it supplies for the above ventures. This facility also provides retail purchase and shipping services for grow equipment, lighting systems for the wider indoor farming community, seed hybrid sales, nutrient systems as well as agronomic consulting services.
Econic currently has joint venture agreements in place to provide these services to three First Nations communities in western Canada and similar business discussions are actively underway for several more with many to follow soon.
Wade Eno, Chief Executive Officer of Econic stated, "We are excited to be joining with ZA Group Inc as the company provides us the opportunity to expand to a whole new level that we could not achieve with our own in-house resources. We know from all the discussions currently underway that our opportunities are vast. Our First Nations partners appreciate that we can provide and manage all the facilities while also sharing the profits through a generous and equitable joint venture arrangement with each host community along with the training programs and employment opportunities that each venture provides. On their part, these communities provide the important employee base, significant land base to expand into additional vertical farming opportunities that we expect to reveal shortly and finally, they have access to tax-free incentives and financing programs that are unique to First Nations."
John Morgan, President of ZA Group stated, "Our goal as a company has always been centered around increasing shareholder value by looking for more business opportunities with large growth potential. With that said, we are excited about the addition of Econic to our family. I have heard the company's plans and I'm excited about the future in this budding industry. I look forward to the next announcement coming shortly."