Latter stage ACMPR license applicant with a market cap of <$8.2MIllion
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By William Weady
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MARICANN GROUP INC.
CSE:MARI OTC:MRRCF
As At February 5, 2018
Shares Outstanding: 92,386,723 (www.tmxmoney.com)
Share Price: $2.51 Market Cap: 231,890,675
CORPORATE PRESENTATION
Production and Capacity
As previously reported, 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 starting up this year. 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. As security clearance regulations have been laxed recently, approval may be coming sooner rather than later, and the company expects this in the third quarter of 2018, bringing its 2018 capacity to 20,000 kg of dried cannabis flower (Chemainus 8,000 kg + Lucky Lake 12,000 kg).
HVT recently announced that its United Greeneries division closed the purchase of 398 acres of agricultural land that will become the largest legal outdoor grow operation in Canada, subject to regulatory approval. The “Proposed Approach to the Regulation of Cannabis” consultation report published by the Government of Canada, section 2.3.3 Location, notes that “it is proposed that the regulations would permit both outdoor and indoor cultivation of cannabis”. If this passes, at capacity, it is estimated that up to 50,000 kg of dried flower will be grown at this site by the end of 2019.