Federally regulated cannabis producer Aphria expects the 1st harvest from its Diamond facility in Leamington, Ontario, to be sold to provincial wholesalers in March, capping off a year-plus delay from when shipments have been initially anticipated to start out.
Aphria anticipated Diamond to be completed in time for its 1st sale in January 2019 – a aim lengthy-considering the fact that abandoned – as the 1.three-million-square-foot greenhouse was not authorized by Well being Canada for cultivation till Nov. 1, 2019.
Apart from attributing the setback to receipt of the federal cultivation permit, some of the infrastructure for the greenhouse seasoned a two-month delay due to an Ontario Ministry of Transportation approval requirement due to the fact the facility was positioned adjacent to a provincial highway.
Aphria Diamond is a 51%-owned Aphria subsidiary. Double Diamond Farms owns the rest of the firm.
Because securing cultivation approval, Aphria Diamond was in a position to lock up a 3-year term loan worth 80 million Canadian dollars ($60 million) arranged by an unidentified chartered bank.
In a news release, the firm stated the proceeds would be “strategically deployed.”
Aphria stated it expects the facility to be 70% planted this week.
At complete capacity, Aphria Diamond will add 140,000 kilograms (308,647 pounds) of annualized cannabis production to Aphria’s cultivation portfolio, reaching 255,000 kilograms when the producer’s other facilities are incorporated.
Well being Canada pegs the country’s annualized cannabis demand at roughly 900,000 kilograms, raising the specter of looming oversupply for the sector.
The most up-to-date expense breakdown of the Diamond facility is:
- CA$10.two million of initial capital was offered to the venture by Aphria.
- CA$9.eight million was offered by Double Diamond Farms.
- CA$42.four million was spent acquiring 100 acres of land, like 32 acres of greenhouses.
- CA$82 million of added expenses have been incurred for the greenhouse retrofit and operational gear as of Aug. 31.
Aphria’s other facility in Leamington was totally authorized by Well being Canada to commence cultivation in March 2019 at a total expense of about CA$190 million.
The Canadian firm reported money and money equivalents of CA$464 million as of Aug. 31.
Aphria trades as APHA on each the New York Stock Exchange and Toronto Stock Exchange.