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Weedman character was created and is the sole property of and owned by Chloë Kyron. All rights reserved. The image including any likeness cannot be used in any manner without the expressed written consent by Chloë Kyron.
Any company referenced is purely for discussion purposes and not intended as a recommendation.
Louis Kyron, CPA, CGA
Charles continued: There are, for example, cost advantages to having the facility in Moncton, NB. The province has energy costs that are approximately
30% cheaper than in Ontario, where many Licensed Producers operate. In addition, wage rates in NB are 5 to 10% lower than in Ontario, while the cost of living is also more affordable than Ontario, attracting workers to OGI. Efficiencies have also been achieved using a 3 tiered-grow room, with stacked shelves and a unique irrigation technique that is generating additional yield through faster crop growth. As a result, OGI has been able to post costs per gram of $1.22 in its most recent quarter, among the lowest cost indoor producers.
In terms of expansion planning, OGI has been able to secure land and buildings at attractive prices as land values in Moncton are favourable to those in other parts of the country. In terms of production capacity, the phase 2 expansion is now complete providing 22,000kg of annual capacity and phase 3 is expected to begin this month (June) which takes OGI near-term annual capacity to 36,000kg, placing the company’s output amongst the industries top five LPs.
OGI has secured provincial supply agreements with New Brunswick and PEI and in our opinion based on their current capacity and product offerings, they could be considered a dark horse when it comes to Ontario when the OCS announces their initial supply allocations.
With that current capacity, they are “ready for rec”. OGI has launched their retail brand under The Edison Cannabis Company banner, with three lines to meet different consumer needs. Edison Reserve, focussed on a knowledgeable consumer, is a premier line catering to those that want access to large bud size, unique strains, and hand manicured dried buds. The Next