High Ground Medica has initiated the process to secure a Letter of Intent ("LOI") with Malta Enterprises, the economic development agency of Malta.
The LOI is the first step of High Ground’s application for a Cannabis Processing License (the "License") in Malta. Such License would allow the Company to process and package cannabis for medical use within Malta and to export cannabis for medical use to other European markets. Once successful, High Ground intends to process and package to EU-GMP certified standards dry flower and cannabis oil for wholesale distribution throughout the European market.
"I’m pleased to announce we have initiated this next step in our business plan which centers on cultivating high-quality, potency consistent, stable cannabis using an aeroponic production process for wholesale distribution via our European distributors. High Ground can’t stress enough its’ thanks to the Maltese government for their progressive and supportive efforts towards cannabis as medicine and towards our efforts to establish an operation in Malta. Further, we look forward to monitoring the progress of the potential adult-use legalization of cannabis in Malta and will position ourselves to be at the forefront of this opportunity should this evolve.
"Our consultant partners at Cannanalytica and RSM have been very supportive and High Ground is confident in our success based upon the competence, professionalism and enthusiasm they have demonstrated to date. With their experienced guidance we believe High Ground will be able to achieve our goals to meet the burgeoning demand in Europe which is the next major growth market." said Jeff Callaway, CEO of High Ground Medica.
“It is with great pleasure that we announce that Cannanalytica will be working with High Ground Medica, in creating a European hub for the company in Malta.
"In the coming weeks we will apply for an LOI with Malta enterprise which will be the starting point for the company in order to obtain an EU GMP license in Malta.
"High Ground has excellent timing to enter the European market as medical cannabis demand is expanding quickly and prospect of adult use is nearing a reality both here in Malta and across Europe.
Furthermore, as founding member of European cannabis medical association (https://eumca.org/), we firmly believe in quality of product, which is something that Jeff and his team at High Ground can supply our continent with,” said Nicholas Spiteri, CEO of Cannanalytica.
While COVID certainly impacted High Ground’s construction schedule, development of the Oyen Cultivation facility remains on track with crews working steadily since April. All of the major materials are now on site with the exception of HVAC equipment which is the last equipment to arrive and be installed. Progress pictures will be posted on the www.high-ground.ca website.
“The development is designed to be expanded in phases within the current facility footprint allowing for rapid and cost efficient expansion. The priority is to get the facility licensed as quickly as possible given the demand we have received is well in excess of our phase 1 development.
"At relatively little additional capital we can have the facility producing at a run rate exceeding 5 million grams/year by Q2, 2022 for the full phase 1. However, we will be in production this fall (assuming Health Canada approvals are received in a timely basis), ramping up production volumes and focused on receiving our Sales License from 2 successful grow cycles.
"Our cultivation costs are budgeted at $0.50/gram and this is based on similar facility operations in the US with the same equipment. All-in costs are approximately $2.50/gram while the European market for dry flower is between $5-$8/gram of dry flower. Capturing as much of the value chain without incurring the cost of building out an expensive distribution network (when dozens of distributors are short medical grade quality supply), should lead to strong profitability,” noted Jeff Callaway.
For more information:
High Ground Medica
717 - 7 Avenue SW, Suite 1220, Calgary, Alberta, Canada