AgraFlora Organics Reviews Delta Greenhouse Infrastructure Upgrades; Deploys Over C$30,000,000 in PPE Expenditures
October 02 2019 - 3:01AM
AgraFlora Organics International Inc.
(“
AgraFlora” or the
“
Company”) (
CSE: AGRA) (Frankfurt:
PU31) (OTCPK: AGFAF), a growth oriented and diversified
international cannabis company, is pleased to provide a summary of
the Phase 1 Delta Greenhouse Complex infrastructure upgrades
completed to date. AgraFlora has deployed over C$30,000,000 in
plant, property and equipment expenditures (“PPE”) at its Phase 1
Delta Greenhouse Complex retrofit (“Phase 1 Retrofit”) in
preparation for receipt of its standard cultivation license from
Health Canada.
AgraFlora's Delta Greenhouse Complex (the “Delta Facility”) is
second in size and magnitude only to the Smiths Falls facility
owned by Canopy Growth Corp., the world's largest cannabis company.
By way of additional comparison, AgraFlora's Delta Facility is
100,000 square feet larger than Aurora Cannabis Inc.'s facility in
Edmonton, Alberta and it is also more than 700,000 square feet
larger than the current size of the Leamington facility owned by
Aphria Inc.
Milestone infrastructure upgrades, directly correlated to
AgraFlora’s anticipated award of a standard cultivation license,
which were highlighted in the Company’s recent affirmation of
readiness and video evidence package submission to Health Canada
include:
- Completion of perimeter security fencing;
- Installation of comprehensive surveillance and anti-intrusion
systems, as well as access control infrastructure supported by
servers and sustained by independent, backup generators;
- Completion of postharvest zones including dry rooms, trim room,
secure storage and packaging facilities;
- Installation of state-of-the-art air exchange system equipped
with climate and odour controls;
- Full roof vent insect netting installation for crop
protection;
- Supplemental light output upgrades and the furnishing of light
deprivation screens;
- Installation of irrigation buffer tanks, mixing stations, and
distribution system;
- Retrofit and upgrade of Argus Titan climate control
system;
- Completion of grow room divisions for climate and hygiene
isolation; and,
- Retrofitting of garment hygiene rooms, security/administration
offices, as well as staff amenities;
AgraFlora's internal forecasts indicate that upon
receipt of its aforementioned standard cultivation
licence from Health Canada, the Company will become the
fourth-largest licensed producer (“LP”) in Canada by 2020 financed
production metrics; strategically positioned in close proximity to
Canada's largest cannabis economic centres: Toronto and
Vancouver.
Figure 1.
Issuer |
2020 Estimated Annual Capacity (in grams) |
Current Market Capitalization |
Aurora Cannabis |
700,000,000 |
$5,938,602,000 |
Canopy Growth Corp. |
525,000,000 |
$10,521,098,000 |
Aphria |
255,000,000 |
$1,733,854,000 |
AgraFlora & PSC |
251,250,0001 |
$157,303,000 |
Tilray |
225,000,000 |
$3,121,407,270.00 |
The Green Organic Dutchman |
195,000,000 |
$559,266,000 |
Cronos Group |
150,000,000 |
$4,084,620,000 |
OrganiGram Holdings |
113,000,000 |
$710,615,000 |
Hexo Corp. |
108,000,000 |
$1,344,018,000 |
The Delta Facility is a state-of-the-art pressurized, semi-open
Venlo greenhouse, which is widely considered to be one of the most
technically advanced and environmentally friendly greenhouse
operations in the world. The Company’s forecasted production
metrics are further substantiated by the Delta Greenhouse Complex’s
industry-leading cultivation infrastructure, including:
- Fully integrated on-site natural-gas-powered power plant;
° Providing ample heat and electricity, while repurposing
carbon dioxide emissions to benefit the plants;
- Proprietary energy-efficient air exchange;
- Advanced climate and humidity control management
infrastructure;
- Ebb-and-flow watering systems to enhance complete irrigation
recapture and water treatment;
- 1.5-million-gallon hot water storage tank configured to store
energy produced during the day, for redistribution during non-peak
hours, thereby increasing operational efficiencies and reducing
associated energy costs;
- Multistage supplemental lighting augmented by natural sunlight
to foster optimized illumination equilibrium.
Brandon Boddy, Chairman and Chief Executive Officer of AgraFlora
stated: “Our flagship Delta Greenhouse Complex is projected to
achieve industry leading cultivation metrics, approximately 0.12 kg
of premium cannabis flower per square foot, with estimated packaged
unit contribution of C$0.80 per gram. With two significant off-take
agreements already in place, representing 125 million grams over a
five-year period, AgraFlora is primed to realize material cash
flows over the next twelve months and beyond.”
AgraFlora’s esteemed JV partners, the Houweling's Group, bring
40 years of greenhouse experience and agricultural expertise to the
project, as well as established infrastructure with a replacement
cost of circa C$190 million. The Houweling's Group is a fully
vertically integrated organization with a total of 8.4 million
square feet of greenhouse space in Canada and the United States,
and more than 200 employees. They have employee groups working in
growing, harvesting, distribution, administration, information
technology and finance.”
The Company plans to commence Phase 2 of the Delta Greenhouse
Complex retrofit in December of 2019, which will include:
- 10 flower rooms with over one million square feet of
canopy;
- 40,000 square feet of EU-GMP postharvest/processing
space; ° Equipped with ozone-rich drying
rooms
- Installation of an industrial kitchen; and,
- Workflow design to include commercial C02 and Ethanol
extraction capabilities.
________________________________1 Forecasted fully funded
production metrics derived upon achievement of optimized production
at AAA Heidelberg and the Delta Greenhouse Complex.
About AgraFlora Organics International Inc.
AgraFlora Organics International Inc. is a growth oriented and
diversified company focused on the international cannabis industry.
It owns an indoor cultivation operation in London, ON and is a
joint venture partner in Propagation Service Canada and its
large-scale 2,200,000 sq. ft. greenhouse complex in Delta, BC. The
Company is also retrofitting a 51,500-square-foot good
manufacturing practice (“GMP”) edibles manufacturing facility in
Winnipeg, Manitoba. AgraFlora has a successful record of creating
shareholder value and is actively pursuing other opportunities
within the cannabis industry. For more information please visit:
www.agraflora.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Brandon Boddy Chairman & CEOT: (604) 398-3147
For additional information:
AgraFlora Organics International Inc. Tim
McNultyE: ir@agraflora.com T: (800) 783-6056 |
For French inquiries: Remy
Scalabrini, Maricom Inc.E: rs@maricom.ca T: (888)
585-MARI |
The CSE and Information Service Provider have
not reviewed and does not accept responsibility for the accuracy or
adequacy of this release.
Forward-looking Information Cautionary
Statement
Except for statements of historic fact, this
news release contains certain "forward-looking information" within
the meaning of applicable securities law. Forward-looking
information is frequently characterized by words such as "plan",
"expect", "project", "intend", "believe", "anticipate", "estimate"
and other similar words, or statements that certain events or
conditions "may" or "will" occur. Forward-looking statements are
based on the opinions and estimates at the date the statements are
made, and are subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ
materially from those anticipated in the forward-looking statements
including, but not limited to delays or uncertainties with
regulatory approvals, including that of the CSE. There are
uncertainties inherent in forward-looking information, including
factors beyond the Company’s control. There are no assurances that
the business plans for AgraFlora Organics described in this news
release will come into effect on the terms or time frame described
herein. The Company undertakes no obligation to update
forward-looking information if circumstances or management's
estimates or opinions should change except as required by law. The
reader is cautioned not to place undue reliance on forward-looking
statements. Additional information identifying risks and
uncertainties that could affect financial results is contained in
the Company’s filings with Canadian securities regulators, which
are available at www.sedar.com.
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