() () (FRA:AC4) reported that ALPS, a company in which Australis is in the process of acquiring, has entered into an agreement with Bluehouse Greenhouse (BHGH) for the development of a 62 acre (2.7 million square foot), high-tech, fully integrated greenhouse for the sustainable production of vegetables in California. 

Australis said the greenhouse facility, which will be developed by ALPS’ wholly-owned subsidiary Larssen Greenhouse Consulting (LGC), is expected to save up to 90% on water use and 90% on labour while growing 48 million pounds of produce on a footprint 1/30th the size of a traditional farm.  

“With this sizeable $1.9 million project, ALPS continues to capitalize on opportunities and grow revenues at a rapid pace,” AUSA Interim CEO Dr. Duke Fu said in a statement. 

READ: Australis Capital unveils significant expansion moves with plans to acquire both Green Therapeutics and ALPS

He added: “Conversion of ALPS's substantial business development pipeline in both the cannabis and traditional horticulture sectors will provide AUSA, once the acquisition is completed, with cash flow to further fuel the execution of its capital-light expansion strategy.”

BHGH CEO Ari Kashani also weighed in on the agreement, stating: “With an aging and shrinking pool of farmers, increasing wages and scarce and expensive natural resources, as well as increasingly stringent food safety and traceability regulations, greenhouse-grown produce has become a critical and essential component of the local food supply chain.”  

He added: “ALPS has spearheaded many advances that will enable us to establish a sustainable and economically highly viable cultivation operation. We are very excited about this first BHGH facility in California, and intend to replicate our 'by locals for locals' approach in other regions as we expand our operations across the US.”

Australis noted that the BHGH facility will enable the cultivation of produce year-round, without volatility in quality, price, taste or look.

As well, BHGH's proximity to its primary markets significantly reduces the carbon footprint related to the transport of produce.

Australis said it considers ALPS to be the world's premier design, construction management, commissioning and post-commissioning consultancy company for horticultural crops, such as cannabis, fruits, vegetables, mushrooms and algae.

With its acquisition of ALPS, Australis Capital will also be obtaining the iconic west coast cannabis brand Mr. Natural.

Contact Sean at sean@proactiveinvestors.com