WeedMD Plans Big Expansion with Low-cost Greenhouse Production
WeedMD (TSVX: WMD) (OTCQX: WDDMF)
a federally-licensed Canadian producer and distributor announced its plans of expanding cannabis production using a large-scale, low-cost, outdoor cannabis growth operation.
The company plans to use outdoor cultivation in its Strathroy greenhouse operation to increase its production area by over 2.7 million square feet. This new production area is set to increase yield to over 100,000 kilograms of cannabis by 2020.
WeedMD has applied to Health Canada for approval and once it gets the nod will start with Phase 1 of the expansion. It will start win a 25-acre growth operation that is projected to produce 25,000 kilograms of cannabis. It has already started preparations and is expecting its first harvest this fall.
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WeedMD currently operates a state-of-art-610,000 square foot greenhouse facility. It plans to cut production costs by utilizing its existing, on-site storage and packaging facilities for its new harvest.
This move has the support of the local government as this according to officials translates to long-term growth for the municipality and create more jobs.
“Our municipality is proudly home to a thriving agricultural community which has long supported our local businesses and we’re pleased that WeedMD continues to expand its local footprint in a progressive and economically-viable manner,” Vanderheyden said in the press release. “We welcome and wholly support its push for outdoor expansion along with the job opportunities, sustainable cultivation and community engagement it will bring for the continued long-term growth of our municipality.”
Higher Yields – Lower Production Costs
The move to increase production using outdoor cannabis cultivation is designed to cut production costs. This is significantly cheaper compared to its current greenhouse operations. WeedMD is also planning to use more sustainable growing practices like natural sunlight, pre-tested live soil, onsite water reservoir, appropriate ventilation, and state-of-the-art irrigation mechanisms.
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WeedMD Plans Big Expansion with Low-cost Greenhouse Production
