Chemistree Technology Inc (CSE:CHM) (OTCMKTS:CHMJF), the US-focused cannabis firm, updated on the development of its assets in Washington state and California.
Last month, the firm closed a previously announced offering and concurrent private placement for a total of C$10.8 million, aiming to use the funds to expand its facilities in Washington State, as well as launch the Sugarleaf brand in California.
READ: Chemistree Technology shares advance as it sets to partner with Applied Cannabis Sciences of New Jersey
On Thursday, Chemistree said it had received reports from its Washington state licensee partner on further progress, including the appointment of a new head cultivator, and the upgrading of 288 grow lights in flower and the sale of retrofitted lights for US$30,000, and is expected to improve crop yields by over 20%. There has also been a 20% increase in product units. New ones include Diamonds, Live Resin, RSO, and Crumble.
Chemistree is also actively advancing its 9.55 acre Desert Hot Springs land package.
"Our design team is currently in the process of finalizing plans for our two 64,000 square foot greenhouses and 40,000 square foot manufacturing and distribution facility for submission to the city of Desert Hot Springs. We expect city review to be completed by the third quarter of this year. The project continues to track on schedule with completion targeted for the first quarter of 2020," said newly appointed chief cannabis officer Sheldon Aberman.
He added that in Washington state, with Chemistree as landlord and turnkey equipment provider, the team continued to do "a tremendous job in restoring Sugarleaf to its previous place in the Washington market for flower and pre-rolled products as well as introducing new exciting products to the market".
"We are confident that this trajectory of success will continue and that Sugarleaf's loyal retail customers will continue to enjoy the high quality products and welcome the new offerings as they are rolled out."
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