Looking to expand into new areas of the cannabis industry and find business-to-business opportunities, Toronto-based Supreme Cannabis Company, Inc. (TSX: FIRE; OTCQX: SPRWF; FRA: 53S1) today spun off a new wholly-owned subsidiary.
Based out of Goderich, Ontario, new company Cambium Plant Sciences sees its official launch with a $14 million investment from Supreme to retrofit a 34,000 sq. ft. facility for researching and developing new cannabis genetics.
Those genetics and cultivation techniques researched by Cambium will aid Supreme’s existing in-house brands, such as the company’s 7Acres subsidiary, as well as working with other global cultivation partners.
The newly formed company will be led by General Manager Dr. Alan Darlington, who moves into the role after previously serving as the director of special projects for 7Acres.
Supreme Cannabis Chief Executive Officer Navdeep Dhaliwal commented on the company spin-off:
With supply of high-quality product from licensed producers remaining low and emphasis on choice driving customers away from legal retail outlets, Cambium will be tasked with developing disease resistant, sustainable seed stock for both recreational and medical users.
According to a statement from Dr. Darlington, the company is seeking to apply commercial agricultural techniques that have radically transformed the cultivation capacities of other industries to the fledgling legal cannabis market.
While Cambium Plant Sciences awaits licensing from Health Canada, Supreme Cannabis Company is also ramping up output in other ways.
Most recently, the company’s 7Acres subsidiary was just granted approval to bump up its production capacity by 50% with licensing now in hand for another 60,000 sq. ft. of grow space. That extra cultivation space is now operational at a Kincardine-based facility that is currently running 18 out of a projected 25 total grow rooms.
A rundown of Supreme Cannabis Company’s Q2 2019 earnings can also be found here.
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