Up Cannabis Inc., a wholly-owned subsidiary of Newstrike Resources Ltd. (TSXV:HIP), has obtained a producer’s license to cultivate in its 160,000 sq. ft. greenhouse facility in Niagara
SmallCapPower | April 4, 2018: Newstrike Resources Ltd. (TSXV:HIP) Monday announced that its wholly-owned subsidiary and licensed producer of cannabis, Up Cannabis Inc., has obtained a producer’s license to cultivate in its 160,000 sq. ft. greenhouse facility in the Niagara region. The license is for three years and allows production at the Niagara Facility by Up Cannabis of dried and fresh marijuana, marijuana plants and seeds, cannabis in its natural form (cannabis resin), and cannabis oil (bottled).
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The production of cannabis is anticipated to commence during April 2018 at the Niagara Facility followed by the first harvest expected in Q3 2018. By the end of 2018, the production at the existing greenhouse site is forecast to reach the projected annual capacity of ~12,500 kilograms.
Newstrike Resources CEO Jay Wilgar said, “The receipt of this cultivation license marks the achievement of another critical milestone and showcases the ability of our production team to move from concept to cultivation effectively and quickly. In just over eight months, we acquired, financed, engineered, permitted, retrofitted and now licensed this fully-automated greenhouse facility and, in doing so, we expect to have aggregate annual production capacity of approximately 15,000 kg coming online for the opening of the Canadian adult-use cannabis market.”
After completion of the planned expansion to the Niagara facility, Up Cannabis’ total annual production capacity is estimated to increase to ~27,500 kilograms. Furthermore, the wholly-owned subsidiary got 9001:2015 certification for its Quality Management System at its original Brantford facility (primary facility). Up Cannabis aims to employ the now-certified cannabis production, packaging and delivery systems developed and implemented at the primary facility to all of Up’s facilities as additional production capacity is built or acquired, beginning with the Niagara Facility.
Newstrike Resources stock currently trades at a market capitalization of $540.26 million on the TSXV with a price-to-book multiple of 33.94x. The addition of a marijuana cultivation site is likely to increase the top line of the Company going forward.
Disclosure: Neither the author nor his family own shares in the company mentioned above.
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