Cannara Biotech (CSE:LOVE)(FRA:8CB)
Headquartered in Montreal, Cannara Biotech is building the largest indoor cannabis cultivation facility in Quebec and one of the largest in Canada, a modern and secure 625,000-square-foot facility in Farnham, Quebec.
“Being in Quebec allows us to take advantage of the low cost of electricity and gives us a cost advantage over our competitors.” – ZOHAR KRIVOROT – CEO and Founder
Highlights
- Some 100,000 kg of cannabis production is expected per year once all 3 phases are operational. Today, phase 1 is being built with completion expected end of Q2 2019. Once completed, yield is expected at 15,000 kg.
- Cannara Biotech has raised $55M to date, has acquired 19 provisional patents for product exclusivity, and has developed 8 assorted THC/CBD infused product brands to add to their offerings.
- Low electricity cost in Quebec as well as reduced labour cost compared to the rest of Canada gives the Company a cost advantage over their competitors.
- Independent THC and CBD brands will be produced on-site accelerating speed to market.
- The Company will leverage the facility with joint-ventures to produce edibles, pet-products, cosmetics and beverages once the processing license is secured which is estimated for the end of 2019.
- The advantage of growing in an indoor facility offers lower risk of airborne infections, mold/mildew and produces a higher grade of cannabis.
- Cannara Biotech is building an online e-commerce platform (shopCbd.com) that will serve as a podium and distribution channel for US-CBD brands for the American market.
Closer look
Phase 1 will provide 130,000ft2 of growing space. Growing is expected to commence in the fall of 2019 with an estimated yield of 15,000kg.
Cannara Biotech raised $55 million from private investors during the introduction of this project and still have over $40 million in the bank with Phase 1 fully funded.
Phase 2 forecasted to be running by 2020 is 205,000ft2 and likely to yield 38,000kg per year. Phase 3 aiming to be operational in 2022 is 277,000ft2 and expected to produce 55,000kg per year. Cannara Biotech is looking to produce over 100,000kg per year once fully operational.
Currently, 300 sq. ft. space for Phase 2 is being rented by occupants that contribute to a rental revenue of $2 million per year. These earnings pay the monthly fee for the whole facility.
Cannara Biotech’s strategy is also to maximize on the low electricity rates Quebec has with its Hydro and low labour rates in Quebec.
Growing indoor cannabis often results in a higher grade of cannabis. Growing in a controlled environment, protected from many outdoor ailments and mildew creates a more consistent and desirable product for buyers and consumers.
Alongside selling cannabis to intermediaries who will transform the crop into their desired product, Cannara Biotech will have on-site independent THC and CBD brands, following the adoption of regulations on cannabis-infused edibles and beverages, that will produce and ship from the facility. Cannara Biotech’s facility will be a multi-purpose facility that will cultivate recreational cannabis and produce cannabinoid-infused products including edibles, cosmetics, pet products and beverages. These products will be shipped to stores and retail outlets in Canada and to international markets.
Cannara Biotech went public in Q1 of this year and is being traded on the CSE under the ticker “LOVE” and on the FRA under the ticker “8CB”. As of February 12th, 2019, LOVE closed at .22.
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Isabelle Arsenault
Media Relations
MomentumPR