Affinor Growers (CNSX:AFI) (OTCMKTS:RSSFF) jumped in midday trades after saying it has completed a triple play to become the first publicly traded Canadian company to serve Washington State’s marijuana users.
Shares of the Montreal, Quebec-based company surged 32 percent to 33 Canadian cents at 3:12 p.m. in Toronto.
Affinor announced the acquisition of a 49 percent interest in Good to Grow LLC, a medical marijuana dispensary and grower located on Washington's Olympic Peninsula.
"We are now a partner in a producing marijuana facility," company spokesperson, Nick Brusatore said in today’s statement. "When we receive the 502 licence, which we expect to happen by January 2015, we will be able to mass produce weed for Washington State's recreational users. That's a market of more than 700,000 users including out of state visitors."
Initiative 502 legalizes marijuana use in Washington which opens the door to legal investment in a $1 billion plus industry. Washington is one of two U.S. states that has legalized and now regulates and taxes recreational marijuana use.
Good to Grow is fully operational with a 5,000 square foot facility. Affinor's $600,000 investment will be used to scale it up to a state of the art production facility. The company has been generating cash flow supplying the medical marijuana market from a facility that is already I-502 compliant and with the granting of 502 status it will become a major revenue generator and local employer.
Affinor Growers’ chief executive officer Sebastien Plouffe said Dr. Bruce Bedrick will join the company as a consultant. Dr. Bedrick is a Chiropractic Physician and business owner with more than 20 years of diverse and innovative experience, Dr. Bedrick's focus will be the expansion of the licensing of the vertical farming system technology for the cultivation of produce in the US and Mexico.
The technology will first be showcased on a commercial scale in Affinor's strawberry facility under construction in Quebec. Construction should be completed by year end with production beginning early in 2015.
The third announcement was made September 9th with the signing of an agreement with Herbal Analytics, a Washington State testing laboratory, to provide quality control for cannabis products. Through a cash and shares deal Affinor Growers has acquired a 49% interest in Herbal Analytics.
Affinor said that Herbal Analytics brings a wide range of services to Affinor, providing them with critical data on which to base informed business decisions.
The company said by making these three major announcements, it has advanced its plan to mass produce “high quality, in-demand produce and pharmacy grade plants for global distribution.”
Affinor said it is currently working toward becoming a grower of premier medical marijuana and will soon begin producing other major cash crops such as romaine lettuce and strawberries.