AgraFlora Organics International Inc (CSE:AGRA) (OCTMKTS:AGFAF) told investors that its greenhouse in Delta, British Columbia has started commercial cannabis growing and sales are expected to begin this year.

The group's asset Propagation Services Canada Inc (PSC) has begun cultivation using a portfolio of live-plant genetics, focused on producing high potency cannabis with attractive strains at a low cost, AgraFlora said.

READ: AgraFlora Organics subsidiary Farmako signs three-year supply agreement with Zenabis Global's ZenPharm

"Our partners at PSC have a long history of low-cost agricultural production which we expect to translate into our ability to produce low-cost cannabis at the Delta Facility," Brandon Boddy, AgraFlora's chief executive said in a statement.

"We have witnessed a trend in the market towards higher potency genetics with exotic strains on one hand, and a move towards value pricing on the other; but we have yet to see companies successfully do both.

"The design elements of the Delta Facility and the experience of the on-site management team, combined with the Elite Genetics makes PSC uniquely positioned to produce a compelling value proposition for customers: high potency cannabis with desirable strains at a competitive price,” he added.

The Delta Facility sits in a desirable agricultural micro-climate on the Pacific coast and the first phase of operations uses 422,828 square foot of it with state-of-the-art semi-pressurized, semi-open Venlo greenhouses.

Other key features of the facility include ebb-and-flow watering systems to enhance complete irrigation recapture and water treatment and climate and humidity control. The site also boasts a fully integrated natural gas power plant on site.

PSC is a joint-venture between AgraFlora and the Houwelings Group, one of North America’s leading producers and innovators in the greenhouse vegetable production industry.

Through the venture, PSC will operate an automated greenhouse facility with an expandable footprint of up to 2.2 million square foot.

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