CAN (ON): MedReleaf purchases 1 million sq.ft. greenhouse
"The addition of greenhouse production in concert with our two best-in-class indoor cultivation facilities will allow us to more rapidly expand capacity and to address the growing need for raw material inputs for extract and other non-flower related products from our premium and exclusive varieties. We also continue to scale our indoor production of high quality, award-winning, premium dried flower in order to serve the recreational and global medical markets," said Neil Closner, CEO of MedReleaf. "MedReleaf brings to this exciting project a proven track record of operational excellence and of continuous process and yield improvements at an industrial scale. With a complete portfolio of cultivation options, we will be better positioned to meet the growing demand for our industry-leading products and to continue to align our capital spend with emerging market opportunities."
Under the terms of the Agreements, MedReleaf will acquire 1 million square feet of existing greenhouse infrastructure situated on a 69 acre property in Exeter, Ontario and an additional 95 acres of undeveloped adjacent land. The value of the Agreements is approximately $26 million, consisting of $21.5 million in cash and 225,083 MedReleaf shares. The issuance of the MedReleaf shares remains subject to the approval of the TSX.
"This third Canadian facility will help to further diversify our risk across production sources and provide us with greater operational flexibility to scale in a manner that should enhance global profitability across our business. As we always have, we will add capacity incrementally and in a financially prudent manner that is in lockstep with forecasted global demand and through the ultimate lens of maximizing long term and sustainable return on invested capital", added Igor Gimelshtein, CFO of MedReleaf.
MedReleaf is fully funded to complete the retrofit of the Exeter Facility's existing one million square feet of greenhouse, a new processing building, general site infrastructure upgrades, and site security. The greenhouse retrofit will incorporate state-of-the-art environmental monitoring and control systems, supplemental lighting, advanced irrigation systems, and fully automated growing systems.
For more information:
MedReleaf
medreleaf.com