WeedMD Inc (CVE:WMD) (OTCMKTS:WDDMF) unveiled news Friday that it has received an outdoor pot cultivation licence from Health Canada, marking a promising start to the summer.
Shares responded, up 2.2% at C$1.88 in Toronto, up 1.4% at US$1.39 in New York.
The firm said it has secured Health Canada approval for 27 acres of low-cost, outdoor cultivation at its Strathroy, Ontario property.
It will start planting more than 20,000 clones in early June with plans to harvest in fall 2019, increasing potential production output by an additional 27,000 kgs.
"Our ability to scale, coupled with our team's proven experience in growing our proprietary genetics outdoors, positions us as a first-mover in the industry," said CEO Keith Merker in a statement. "We have put together the most compelling outdoor cultivation plan in the industry and this licence is the final piece of that plan to fall into place."
The company now has a combined indoor and outdoor production footprint of over 5.2 million sqquare feet, with a projected annual output of 150,000 kilograms of cannabis by 2020,
"WeedMD is leading the way by bringing its unique outdoor cultivation plan online in record time," said Derek Pedro, chief cannabis officer of WeedMD. "With construction, irrigation and security complete and more than 20,000 live plants propagated, prepped and ready to be planted, we are on track for a successful harvest this fall."
Outdoor cultivation and production strategy
The firm said that with its Health Canada licence amendment secured, it will have 27 acres of organically-certified soil for its newly-licensed Phase 1 grow.
In Phase 2, 100 acres of production is planned in 2020 on the existing property. The outdoor cultivation area is directly adjacent to WeedMD's existing licensed greenhouse facility, with infrastructure and human resources onsite, as well as municipal approval secured.
WeedMD's cultivation team has experience growing outside, and has selected strains that have proved to excel outdoors in southwestern Ontario.
The firm announced that more than 20,000 clones are already rooted in organic material and are ready to be planted.
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