241
Cash position is strong, and with the recent flurry of expansion plans announced not just with HVST but others in the industry, HVST is well positioned to do just that. Recently it announced that its $15.0 million bought deal financing was upsized to $17.5 million, with an Underwriter option to increase gross proceeds to $20.125 million, all the while without diluting its share price.
With that being said, United Greeneries is expanding quicker than originally planned. Recently, the company announced that it has entered into an LOI with a third party for the lease of property in Chemainus, BC to accelerate and expand production capacity beyond the Duncan facility capacity. Total annual capacity would be 8,000kg initially, and United Greeneries has a lease option for 8 more acres on site, for a total capacity of 35,000kg on a full build out. The Duncan facility will still remain at current capacity of 1,000kg. The facility expansion at Chemainus is fully funded with their current cash balance and is expected to cost about $9 million, about the same as the Duncan expansion was going to cost. Existing infrastructure is in place and the company expects an efficient construction and licensing time period, with cultivation expected to start up in 2018. The new incoming financing will fund further expansion immediately.
In addition, the company owns a facilty in Lucky Lake Saskatchewan is a 62,000 sq foot facility located on 18 acreas of land that has capacity to cultivate up to 12,000kg per year, and is an ACMPR applicant last reported to be at the security clearance stage.
Latter stage ACMPR license applicant with a market cap of <$8.2MIllion
VIEW CASE STUDY ARTICLES HERE
Next Case Study --->
By William Weady
HARVEST ONE CANNABIS INC
TSXV:HVST
As At Date 11/29/2017
Shares Outstanding: 89,177,458 (www.tmxmoney.com)
Share Price: $0.88 Market Cap: $78,476,163
Warrants: $0.135 Strike Price & Expiry: $1.50 June 29, 2019
Feel free to follow me on twitter @Weady28