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AgraFlora Organics says Delta greenhouse facility gains standard cultivation license from Health Canada

The group's CEO Brandon Boddy said obtaining the license marks the 'end of a journey' started in the fourth quarter of 2018 and is the 'key milestone' in beginning cannabis sales

AgraFlora said the inaugural harvest of high-potency THC genetics at the Delta greenhouse complex, in British Columbia will occur in the fourth quarter of 2020

AgraFlora Organics International Inc () (OTCPINK:AGFAF), a joint venture partner in Propagation Services Canada Inc which operates a greenhouse in Delta, British Columbia said the facility has secured a standard cultivation license from Health Canada.

"Obtaining the license at the Delta facility marks the end of a journey commenced in Q4 2018 and is the key milestone in beginning cannabis sales from what is the second largest and one of the most advanced greenhouses in Canada,” AgraFlora Organics CEO Brandon Boddy said in a statement on Tuesday.

“With license in hand, we’re commencing the cultivation of a curated portfolio of elite live plant genetics that will enable us to execute on a focused strategy of high-potency, low-cost cannabis to drive high-volume value brands from coast to coast,” he added.

READ: AgraFlora Organics closes $28,750,000 private placement in a sign of investor confidence

The company said the Delta facility’s first phase represents 422,828 square feet of cultivation space utilizing an advanced pressurized, “semi-open Venlo greenhouse design” considered one of the most “technically advanced” and “environmentally friendly greenhouse platforms” in North America.

The facility is located advantageously in an agricultural micro-climate on the shores of the Pacific. Meanwhile, the company said the Delta greenhouse is scalable up to 2,200,000 square feet. 

Key features of the Delta greenhouse include:

Fully integrated on-site natural gas powered power plant Advanced climate and humidity control management infrastructure Proprietary energy-efficient air exchange to maintain stable climate conditions at a fraction of the cost of traditional HVAC systems Ebb-and-flow watering systems to enhance complete irrigation recapture and water treatment Multistage supplemental lighting augmented by natural sunlight to foster optimized illumination equilibrium A proprietary ERP system to allow for efficient resource management and cost tracking

The company said Propagation Services Canada will now kick off cultivation of its “portfolio of elite live plant genetics” curated by an award-winning Canadian cultivator.

“The inaugural harvest of high-potency THC genetics at its Delta greenhouse complex will occur within the fourth quarter of 2020,” AgraFlora said.

Ruben Houweling, general manager of Houweling Nurseries which provides "agricultural expertise” to Propagation Services Canada commented: “We have a well-integrated organization with more than 200 employees. Our facility is located in a unique agricultural micro-climate on the shores of the Pacific Ocean that will help the company produce high-potency, low-cost cannabis."

AgraFlora also owns an indoor cultivation facility in London, Ontario, as well as an edibles manufacturing facility in Winnipeg, currently being retrofitted. In addition, AgraFlora’s wholly-owned subsidiary Farmako GmbH is gearing up towards its goal of becoming Europe’s leading distributor of medical cannabis. 

Contact the author Uttara Choudhury at [email protected]

Follow her on Twitter: @UttaraProactive

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