Newstrike Resources Ltd. (TSXV: HIP) can now produce unrestricted amounts of cannabis, as well as cannabis oils at its Brantford facility
SmallCapPower | July 19, 2017: Newstrike Resources Ltd. (TSXV: HIP) announced recently that its wholly-owned subsidiary, Up Cannabis Inc., received approval from Health Canada to a number of requested amendments related to the production license at its Brantford facility. These amendments include authorizations to produce unrestricted amounts of cannabis; production of cannabis oils through plant upgrade; expanded sales to licensed dealers (will now include cannabis seeds and oils from the earlier restriction of only marihuana plants and dried cannabis), and enhanced storage capacity to 625 kg of dried cannabis.
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Newstrike Resources, the newest cannabis producer in Canada, continues to move aggressively with the execution of its business plan of production and distribution of cannabis in all acceptable forms, developing new products, and acquisition of complementary production facilities. The removal of production restrictions at the Brantford facility will aid Newstrike Resources in building the necessary growth platform and accelerating its commercialization strategy. Currently operational and licensed to cultivate 3,000 kg/year, sales from the Brantford facility are expected in 3Q17. The Company’s Creemore Facility with an estimated capacity of 3000 kg is expected to receive cultivation license in 1Q18 with sales expected in 3Q18. On July 13, 2017, Newstrike Resources announced the acquisition of 12,000kg-capacity greenhouse facility in Ontario’s Niagara region from Westbrook Greenhouses Ltd. that expands the potential annual capacity for the overall Company 5.0x to 15,000 kg.
Jay Wilgar, CEO of Newstrike Resources, said “this removal of production restrictions is an important milestone that we plan to replicate as we build-out our growing platform to accelerate our commercialization strategy. These amendments expedite the execution of our business plan to provide the greatest range of benefits to the greatest number of authorized cannabis users.”
Previously an exploration company, Newstrike Resources entered the cannabis market following the closing of the business combination with HPI Holdings Ltd. on May 29, 2017. Newstrike Resources has yet to generate revenues.
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