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320,000 sq.ft. production space

CAN (ON): MMJ grower receives approval to double production capacity

Newstrike's wholly-owned subsidiary and licensed producer, Up Cannabis, has received site plan approval from the Town of Lincoln, Ontario, for its automated greenhouse facility in the Niagara region. This key approval permits Up Cannabis to double the footprint of the Niagara Facility to approximately 320,000 sq. ft. of dedicated cannabis production space, complemented by a further 80,000 sq. ft. of cannabis processing space.

"This approval provides a clear path to double the capacity of this technologically advanced facility. It marks the achievement of yet another milestone in our focused strategy to develop cost-effective, production to support demand for our branded products", said Jay Wilgar, CEO of Newstrike and Up Cannabis. "When this expansion is completed, our Niagara Facility will be capable of producing approximately 24,500 kg per year of high quality dried-cannabis and provide ample space for manufacturing and packaging of related products to meet the evolving cannabis market."

The Niagara Facility is situated on 16.6 acres of land in the heart of the Niagara growing region. This current 160,000 sq. ft. modern greenhouse utilizes a Dutch-tray system and is undergoing the requisite upgrades to meet Health Canada's stringent security and related requirements for cannabis facilities of this size and scale. Up Cannabis acquired the Niagara Facility in July 2017 from Westbrook, a recognized innovator in commercial greenhouse design, with more than 50 years' experience.

Up Cannabis has submitted an application to Health Canada to designate the Niagara Facility as an "adjunct" facility to Up Cannabis's fully-licensed Primary Facility in Brantford, Ontario. The Company expects to begin cultivation and production in the current 160,000 sq. ft. greenhouse facility in the second quarter of 2018 with the further expansion space coming on-line in 2019.

"We are members of this community and look forward to enhancing our investment and presence in the Niagara region generally, and the Town of Lincoln in particular," added Wilgar. "We look forward to providing specialized training to the skilled workforce who have site-specific experience and delivering something truly exceptional in the near term and, with the implementation of our expansion plans and opportunities that will cultivate long term growth for our community, our people and our shareholders."

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