AgraFlora Organics Reviews Vertically Integrated Asset Portfolio
Press Release
Vancouver, British Columbia / June 18th, 2019 – AgraFlora Organics International
Inc. (“AgraFlora” or the “Company”) (CSE: AGRA) (Frankfurt: PU31) (OTCPK: PUFXF), a growth oriented and diversified international cannabis company, is pleased to provide the following corporate updates pertaining to the Company’s vertically integrated cannabis (“THC”) and cannabidiol (“CBD”) asset portfolio.
Over the past four quarters, AgraFlora has continued to deploy an assertive corporate acquisition stratagem, amassing a diverse portfolio of vertically integrated cannabis assets and industry partnerships. Culminating with the Company’s recent acquisition of a suite of unique downstream and cannabinoid product formulation assets from Organic Flower Investments Group Inc. (“Organic Flower”) (CSE: SOW)(FWB: 2K6)(OTC: QILFF), AgraFlora now boasts the following upstream/downstream operations, partnerships, off-take agreements, exclusive licences and asset exposure:
70 PER CENT OWNERSHIP STAKE IN PROPAGATION SERVICES CANADA (“PSC”)
Pursuant to the terms of an executed asset purchase and sale agreement between AgraFlora and Organic Flower, the Company now controls 70 per cent of PSC’s flagship Delta Greenhouse Complex. The Delta Greenhouse Complex is equipped with 2.2 million square feet of dedicated cultivation area under glass and is widely considered to be one of the most technically advanced and environmentally efficient greenhouse operations in the world.
AgraFlora continues to achieve material progress with regard to the retrofit and licensing of its bellweather Delta Greenhouse Complex. After a comprehensive review of its anticipated final preparations and submissions, including its affirmation of readiness and video evidence package, the Company anticipates, based on recent standard timelines for review and award and assuming no major required amendments or augmentations, the award of a cultivation licence from Health Canada by the fourth quarter of 2019.
Upon successful award of its aforementioned Health Canada cultivation license, the Delta Greenhouse Complex will hold claim to the highly coveted spot as the world’s second largest cannabis cultivation operation under glass, with an estimated replacement cost of $190,000,000.
AgraFlora’s internal corporate projections indicate that upon receipt its aforementioned cultivation license from Health Canada, the Company’s Delta Greenhouse Complex will be the fourth largest Licensed Producer (“LPs”) in Canada by 2020 funded production metrics (see Figure 1), strategically positioned in close proximity to Canada’s largest cannabis economic centres; Toronto and Vancouver.
Figure 1.
| Issuer | 2020 Estimated Annual Capacity (in grams) | Current Market Capitalization |
| Aurora Cannabis | 700,000,000 | $10,272,832,000 |
| Canopy Growth Corp. | 525,000,000 | $19,036,764,000 |
| Aphria | 255,000,000 | $2,283,968,000 |
| AgraFlora & PSC | 251,250,0001 | $173,852,000 |
| Tilray | 225,000,000 | $3,793,000,000 |
| The Green Organic Dutchman | 195,000,000 | $894,586,000 |
| Cronos Group | 150,000,000 | $6,910,173,000 |
| OrganiGram Holdings | 113,000,000 | $1,304,743,000 |
| Hexo Corp. | 108,000,000 | $1,930,895,000 |
| CannTrust Holdings | 105,000,000 | $944,630,000 |
AgraFlora’s forecasted production metrics are further substantiated the Delta Greenhouse Complex’s industry-leading cultivation infrastructure, including:
- Fully integrated on-site natural-gas-powered power plant;
- Providing ample heat and electricity, while repurposing carbon dioxide emissions to benefit the plants;
- Proprietary energy-efficient air exchange;
- Advanced climate and humidity control management infrastructure;
- Ebb-and-flow watering systems to enhance complete irrigation recapture and water treatment;
- 5-million-gallon hot water storage tank configured to store energy produced during the day, for redistribution during non-peak hours, thereby increasing operational efficiencies and reducing associated energy costs; and,
- Multistage supplemental lighting augmented by natural sunlight to foster optimized illumination equilibrium.
ACMPR LICENSED AAA HEIDELBERG FACILITY
AgraFlora’s wholly-owned subsidiary, AAA Heidelberg Inc. is a licensed cannabis cultivation facility under Health Canada’s Access to Cannabis for Medical Purposes Regulations (“ACMPR”). The AAA Heidelberg facility is equipped with five partitioned flower rooms, affording the company ample canopy earmarked for ultra-premium, artisanal craft cannabis cultivation.
Once fully optimized, it is forecasted that the AAA Heidelberg facility may achieve annualized dried cannabis production capabilities of circa one million grams, including the successful recapture of 225,000 grams of premium cannabis trim to be manufactured into ancillary value-added cannabis products.
The Company previously provided the following Q3 2019 – Q4 2020 operating guidance and licensing milestones pertaining to its AAA Heidelberg facility:
- Application and anticipated receipt of a Health Canada awarded sales licence;
- Application and anticipated receipt of a Health Canada awarded processing licence;
- Application and anticipated receipt of a Health Canada issued export permit;
- Proposed on-site dispensary as per Alcohol and Gaming Commission of Ontario (AGCO) regulations;
o Potential 1.5-million-purchaser catchment area within a 90-minute radius;
IBF4
