WeedMD Inc (TSXV:WMD) has announced that it has entered into a lease and purchase option agreement with a large scale greenhouse cultivator
WeedMD Inc (TSXV:WMD) has announced that it has entered into a lease and purchase option agreement with a large scale greenhouse cultivator, Perfect Pick Farms Ltd, in Strathroy, Ontario. Strathroy is conveniently located 30 kilometers away from London, Ontario, and 60 kilometers from WeedMD’s existing facility in Aylmer. As part of this expansion, WeedMD will benefit from a strategic relationship with a strong team of greenhouse management and cultivation specialists that make up Perfect Pick.
Of the total 610,000 square feet of greenhouse facilities, WeedMD will initially lease 217,800 square feet, which is capable of producing 21,000 kilograms of cannabis a year. WeedMD has the option to expand into the remaining space at its own discretion.
WeedMD is fully funded to begin retrofitting its 217,800 square feet, a process the company has already begun in anticipation of their first harvest in June 2018. The company anticipates that the retrofitting cost will be lower than $70 per square feet, which is of the lowest in the industry.
As part of the agreement, WeedMD also has the option to acquire a 100 percent interest in the Perfect Pick property, which is made up by 98 acres of land, infrastructure and cultivation equipment.
“This transformational partnership represents an outstanding opportunity for WeedMD, with the potential to increase our production capabilities more than twelvefold in the first year and the optionality to materially increase our footprint in a risk-free, sustainable way over the long-term – all part of our strategic growth plan,” said WeedMD CEO Bruce Dawson-Scully.
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