Expansion of existing cannabis grow facilities and construction projects for brand-new greenhouses continue at a breakneck pace in Canada following the legalization of recreational marijuana.
Ontario-based cannabis producer WeedMD Inc. (TSX-V: WMD; OTCQX: WDDMF) announced six additional grow rooms are being constructed on schedule and are now nearly operational.
When complete in early 2019, these new rooms will bump up the company’s current production facility space to 550,000 sq. ft.
The company secured approval from Health Canada for the six extra cultivation rooms the day before Christmas, and each of those rooms will consist of 10,000 sq. ft. of grow space.
WeedMD is currently undergoing the company’s second harvest at its Strathroy, Ontario facility from previously licensed rooms.
The additional grow space with the newly completed rooms will be utilized to ship out additional product as legal cannabis producers and retailers struggle to keep up with increasing demand that has far exceeded federal government expectations.
WeedMD Chief Executive Officer Keith Merker commented on the ongoing construction at the Strathroy facility:
Our experienced operational team combined with our state-of-the-art hybrid greenhouse have enabled us to bring production online faster and more cost-effectively than any other Canadian licensed producer. With our fully-financed expansion plans, we are on schedule to rapidly increase our annual production capacity to more than 50,000 kg.
Merker also stated the company is currently finalizing plans for producing gel capsules, pre-rolled dried flower products, and CBD-infused beverages.
WeedMD has primarily focused on medical-grade cannabis, but also supplies marijuana products for recreational use in British Columbia, Alberta, Nova Scotia, and Ontario.
Following the legalization of the adult use market in Canada, WeedMD saw a more than 400% increase in revenue over the previous year, with $2 million in revenue reported in Q3 2018.
In early November of last year, WeedMD inked a deal with Lifford Cannabis Solutions for retail marijuana distribution, and just this month also signed a new licensing deal to distribute products through Shoppers Drug Mart (TSE: SC).
The Canadian pharmacy chain previously announced plans to get into both medical and recreational cannabis sales before the Cannabis Act went into effect back in October.
The opinions provided in this article are those of the author and do not constitute investment advice. Readers should assume that the author and/or employees of Grizzle hold positions in the company or companies mentioned in the article. For more information, please see our Content Disclaimer.