177
CCIM: Can you explain the importance of construction of the Cannabis Botany Centre that will be co-developing with PharmaGreen? Your recent news that this facility will be expanded is particularly intriguing.
ACG: The strategic equity investment in the Cannabis Botany Centre provides an opportunity for ACG to participate in substantial revenues and profits generated by the Cannabis Botany Centre. Our co-development provides a solid partnership to supply tissue cultured plantlets, that are superior to conventional clones for licenced cultivators. This asset is the basic building block to successful cultivation on a mass scale as hundreds of thousands of plantlets will be available to the Cannabis cultivators, which in turn will allow them to start their growing with the best plantlets that are disease free, bug free and best genetics on a consistent basis. The recently announced increase in size of the facility provides for a much larger supply plantlet capability to the cannabis industry, which includes industrial hemp farmers and THC cultivators.
CCIM: Including the recent announced intent to acquire Quebec based late stage ACMPR applicant Biocannatech, how many ACMPR applicants does ACG have an ownership stake in and in what provinces are they located?
ACG: The great news is that we have now executed the agreement for the acquisition of Biocannatech Inc. giving us and interest in three ACMPR entities, the the Cannabis Botany Centre in B.C.; BiocannaTech in Quebec; and Canwe in Ontario.
CCIM: Building off that last question, assuming all goes to plan and that all become Licensed Producers what is the expected total production capacity in 2019 and 2020?
ACG: Alliance will have production from multiple streams. Tissue Culture plantlet sales, CBD oil from Commercial hemp, the Quebec ACMPR and other CBD oil initiatives. Its premature to estimate production from the global CBD oil project so I will stick to the three streams here in Canada.
Plantlet sales we expect to be 5 million units as we will likely start delivering half way through 2019. We expect production to be at full Capacity 10 million plantlets in 2020, with steady moderate growth after that. At full capacity selling plantlets at $5 per unit with a cost of $1 per unit, will yield anticipated annual profits of $40 Million (CDN).
Also in 2019, on the same land as the Cannabis Botany Centre, we are doing phase one of a two stage joint venture with Pharmagreen on a Commercial Hemp operation. We start with 200,000 female only tissue cultured plantlets of the