- Sunniva acquires 126-acre property for cannabis production in British Columbia
- Construction at sibling cultivation site in California continues
- Company hosts VIP event at International Cannabis Business Conference, joins M&A panel discussion
Sunniva Inc. (CSE: SNN) (OTCQX: SNNVF), a rising cannabis producer that is gaining a solid foothold in the consumer-populated markets of California and Canada, has announced the close of its 126-acre site in British Columbia’s rural Okanagan Falls-Similkameen district located 45 kilometers (28 miles) north of the U.S.-Canada border.
The 126-acre industrial-zoned property will be the site for a 740,000-square-foot state-of-the-art greenhouse capable of producing an estimated 100,000 kilograms of dried cannabis per year (http://nnw.fm/4FmNw). Sunniva CEO Dr. Anthony Holler noted that the campus allows the company the option to expand with the construction of an additional facility once market demand has been established.
“This facility will produce pharmaceutical-grade cannabis products. And when I say products, it’s not just dry products — it’s all the different things, like oils, capsules, tinctures, patches, lotions,” Holler told Canada’s Global News in a June 4 interview (http://nnw.fm/58EyN). “Because it’s a (Good Manufacturing Practice regulations compliant) facility, it can be shipped domestically and internationally. … The European Union is starting to import large quantities of cannabis from Canada with the proviso that that cannabis, whether it’s a dry product or an oil, that product has to be produced and be compliant with good manufacturing practices. So there’s obviously a bigger market than Canada out there for these products from this facility.”
The purchase, executed by the company’s Sunniva Medical Inc. (“SMI”) subsidiary, involved $3.5 million in cash plus an additional $3.5 million in vendor take back mortgage financing (“VTBMF”). The VTBMF is for a one-year term with five percent interest rate annually. The company has received the necessary development permits from the local authority and site grading is near completion.
Construction is expected to take about eight months, with production potentially beginning during the first quarter of 2019 and full-scale operations achievable another eight-to-nine months after that (http://nnw.fm/9S4gD) . Sunniva previously reported that licensed producer Canopy Growth Corp. (TSX: WEED) (OTC: TWMJF) has contracted to buy 45,000 kilograms of product per year from SMI’s Canadian campus for an initial two-year term (http://nnw.fm/EEx94).
In the meantime, construction has been racing ahead at Sunniva’s California facility. Holler told Public Entrepreneur that the operation at its 500,000-square-foot high-technology campus in Cathedral City is expected to begin production later this year, meaning that it could potentially deliver its first crop in Q1 2019 and join the Canada site at full-scale production later that year (http://nnw.fm/B2YKs).
On June 25, Holler addressed the recent trend toward mergers and acquisitions in the cannabis space at the International Cannabis Business Conference, Canada’s first cannabis conference since the country’s government passed a bill (http://nnw.fm/9vHzt) that eliminated the final hurdle for full legalization of the cannabis plant’s products. Holler’s comments about the company’s subsidiary strategy (http://nnw.fm/oQk53) were part of a panel discussion hosted by the ICBC, and Sunniva hosted the conference’s kickoff VIP gathering on June 24, featuring an opportunity for attendees to mingle with keynote speaker Henry Rollins (http://nnw.fm/5UwTC), a musician and radio-TV personality known for his activism.
Sunniva began trading on the Canadian Securities Exchange in January and the U.S. OTCQX Market in February after a successful 2017 in which the company reported C$16.1 million in revenues, most of which came from its acquisition of Canadian cannabis clinic network Natural Health Services, which has more than 95,000 registered active patients.
For more information, visit the company’s website at www.sunniva.com
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