The approval of cultivation license from Health Canada for the first four grow rooms within 220,000 sq. ft. puts WeedMD Inc. (OTCPK:WDDMF) in a strong position to capitalize on the boom in the cannabis industry.
The potential cultivation from its phase 1 this summer will improve its production potential to 21,000 kg per annum from 1,500 kg per annum at present. The company plans to bring 20 grow rooms online in the following months smoothly.
Phase 2 Expansion is on Track
WeedMD, on the other hand, has also been aggressively working on fully-funded Phase II expansion – which could bring the additional yield of 12,000 kg for the company. The company’s production potential could reach more than 33,000 kg by the end of this year on completion of initial two expansions of its 610,000 sq. ft. modern greenhouse in Strathroy, Ontario.
Improving production potential from its large-scale modern greenhouse will be a major source for handing increasing demand from medical as well as adult-use cannabis market.
“The milestones achieved in the last 12 months exemplify the break-out year we’ve had at WeedMD as we continue tracking to schedule and budget, while we refine our cannabis production methods and set benchmarks for cultivation in Canada,” said Keith Merker, CFO of WeedMD.
Merger With Hiku Brands
WeedMD has also announced a merger agreement with Hiku Brands Company to get a leading position in medical and recreational cannabis markets. The combination of both companies will expand the network of retail stores in Canada and other countries.
Alan Gertner, Chief Executive Officer of Hiku, say’s, “The combination of Hiku and WeedMD creates a cannabis company capable of fulfilling the vision of delivering the best in class experiences from in-store to product, from medical to adult-use, but also capturing full retail and wholesale margins.
Overall, WeedMD is working on the strategy of creating a long-term value for the company and its shareholders.
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