AgraFlora Organics International Inc () (OTCPK:AGFAF) said its subsidiary, The Edibles and Infusions Corporation (EIC) has submitted its Site Evidence Package to Health Canada for a standard processing license at its edibles manufacturing facility in Winnipeg, Manitoba.

The company currently holds a research and development license that it intends to use to develop and perfect the recipes and formulations for client edibles, increasing customer satisfaction, reducing operational risk, and allowing the company to move into revenue quickly once the standard processing license is obtained.

Although there is no guarantee on licensing timelines, AgraFlora said its management estimates that the first revenue post-licensing will be delivered in the fourth quarter of 2020.

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“License permitting, we are confident in our timelines to be able to reach first packaged sales in Q4 of this year,” James Fletcher, one of the founders and the operational manager of EIC said in a statement on Wednesday.

“We have designed our facility to be technologically advanced and highly efficient, which will position us to be able to handle high-volume output while maintaining industry-leading quality and cost structure. We will leverage our nearly 100 years of knowledge and experience manufacturing confectionery to produce the best quality cannabis-infused candies and disrupt the existing cannabis edibles marketplace,” he added.

The recently completed and fully automated 51,500 square-foot production-ready edibles facility utilizes state of the art equipment technology. When fully operational, EIC expects to produce over 250,000 pieces of precisely dosed edibles per an eight-hour shift. 

AgraFlora said EIC can easily pivot to provide specific dosing and custom candies to meet regulatory requirements and customer specifications, while also reducing the risk of contamination or degradation of the cannabis inputs.

"We believe that our technological and personnel advantage gives us the opportunity to make a significant impact on the edibles market,” said AgraFlora CEO Brandon Boddy.

“Once our license is received, our ability to immediately produce multiple and precisely dosed product lines from our superior production infrastructure allows EIC to offer a higher quality and lower cost product to industry,” he added.

Vancouver-based AgraFlora also owns an indoor cultivation facility in London, Ontario and is a joint-venture partner with Propagation Services Canada Inc, which operates a 2.2 million-square-foot greenhouse complex in Delta, British Columbia.

And AgraFlora’s wholly-owned German subsidiary Farmako GmbH is scaling towards its goal of being Europe’s leading distributor of medical cannabis.

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