Next Green Wave Holdings Inc (CSE:NGW) (OTCQX:NXGWF) announced Thursday that it will immediately move forward with expansion plans for a 50,000 square-foot premium indoor cultivation facility (Facility B) in Coalinga, in California.
The Vancouver-based seed to shelf craft cannabis producer said Facility B will be located on two acres of company-owned land directly adjacent to its current 35,000-square foot cultivation and distribution facility.
When fully operational, Next Green Wave will have a combined production capacity of close to 20,000 pounds of premium flower per year, representing a nearly 150% increase compared to current production levels.
The City of Coalinga has approved the expansion and the company will work towards the following timetable:
- Engineering and architectural designs fully complete by Q1 2021;
- Construction commencing Q2 2021; and
- Certificate of Occupancy obtained Q4 2021.
The company said it will finance the construction through current cash flows and debt. Next Green Wave says it does not anticipate the need to do a dilutive equity financing in order to complete Facility B.
Separately, the company said it has granted 2,350,000 stock options priced at $0.35 to employees and an officer which will vest 25% every six months for a period of two years.
"Moving into the growth stage of our business model is a huge milestone and testament to the momentum Next Green Wave established in 2020 as a premium CPG producer and brand in the California cannabis market,” said Next Green Wave CEO Michael Jennings.
“Expansion will allow us to capitalize on that momentum by increasing our branded product footprint throughout the state and by solidifying strategic partnerships in the bulk wholesale market.”
The Next Green Wave boss said the company is excited to work with the City of Coalinga on not only achieving "company growth, but also supporting the City's growth" by boosting job creation and tax revenue.
“It is a great partnership," added Jennings.
Vancouver-based NGW owns and operates a 35,000 square-foot indoor cultivation facility and possesses a seed library of over 120 cannabis strains, with multiple award-winning genetics among them. It sells its CBD and THC products in California.
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