The race for licensed cannabis producers to cultivate enough high-quality supply to outpace the black market continues as companies seek to expand existing grow facilities or strike new supply deals.
Licensed producers have been hobbled in that race as they await proper licensing from federal authorities – an issue that black market suppliers don’t face.
Today, The Supreme Cannabis Company, Inc. (TSX: FIRE; OTCQX: SPRWF) announced that subsidiary 7Acres is on track to bump up production capacity by another 50% after receiving approval from Health Canada for additional flowering rooms.
Six new rooms are now approved to operate at the company’s Kincardine grow facility, adding 60,000 sq. ft. of cultivation space. That bumps the facility up to 18 operational rooms, with the company aiming to hit maximum capacity with 25 rooms by the end of the summer.
Supreme Cannabis President John Fowler had this to say about receiving Health Canada approval for opening additional grow space:
Fowler went on to say that 7Acres is expected to produce 50,000 kg of cannabis annually when the final rooms receive approval and begin growing new crops later this year.
Like many licensed producers operating in Canada after the Cannabis Act went into effect, Supreme isn’t solely focused on increasing cultivation capacity at home and is also looking to international growth.
Most recently, Supreme signed a letter of intent to begin the licensing process for cannabis cultivation in Malta. The end goal of acquiring the necessary licensing for Malta operations is to produce cannabis oil for distribution throughout markets in the European Union where medical marijuana has become legal.
That move follows a $10 million investment from Supreme into African cannabis oil company Medigrow last year. Oil produced through that partnership is shipped back to Canada, as well as other international markets.
Supreme Cannabis also released the company’s quarterly financial report last month. An overview of the reported revenues and losses can be found over here.
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