A cannabis company which has a partnership with the large-scale Houweling Nurseries greenhouse in East Ladner has announced a subsidiary now has a big inventory CBD crude oil and distillate ready to sell.
AgraFlora Organics International Inc. in a news release said its wholly owned subsidiary Sustainable Growth Strategic Capital Corp., a federally licensed Toronto area cannabis firm, in partnership with its biomass partner MicroC45, has generated an inventory of approximately 1,000 kilograms of CBD crude oil and distillate, which it is readying for sale.
The CBD oil was produced from approximately 10,000 kilograms of hemp biomass that underwent pre-extraction processes.
The company has retained an inventory of approximately 10,000 kilograms of additional hemp biomass ready for extraction and processing, AgraFlora states.
The company is currently working to further refine the oil into CBD isolate with manufacturing expected to start this month.
If the CBD oil is converted fully into isolate, the company says it forecasts it would have an inventory of over 850 kilograms of isolate.
The company also says it is currently engaged in negotiations with potential buyers to determine the optimal sales mix of CBD isolate, CBD distillate and CBD crude oil and expects to close its first bulk transactions this quarter.
“It is our view that the CBD product market is still in the early days in Canada. We are well positioned to solve the short term supply issues of CBD ingredients such as CBD isolate and CBD distillate, which will help unlock growth in Canada’s CBD product market,” stated Brandon Boddy, AgraFlora executive chairman and CEO.
“We’re also thrilled to see the efficiency that our partners have been able to harvest, process, extract and purify our hemp biomass. This points to our ability to maintain competitive pricing over time.”
AgraFlora has a partnership with Houweling Nurseries in Delta that will see the conversion of the 2.2-million-square-foot greenhouse for cannabis production, a joint venture called Propagation Services Canada.
The 20-hectare (49-acre) facility on 64th will be the second largest cannabis greenhouse facility in Canada among those that are currently built.
AgraFlora is calling the 2.2-million-square-foot greenhouse facility in East Ladner the Delta Greenhouse Complex
AgraFlora says the greenhouse will be focused on reshaping the Canadian flower market with high-potency, low cost cannabis flower.
Propagation Services Canada this spring received a license from Health Canada to cultivate the cannabis.
Among AgraFlora’s other Canadian assets are Edibles & Infusions, a fully automated manufacturing cannabis edibles facility in Winnipeg.
According to AgraFlora, the edibles facility is designed to be flexible as far as future product lines including chocolates and drinks, and scalable up to one million pieces of edibles per eight-hour shift with additional manufacturing lines.
AgraFlora also says its wholly owned subsidiary Farmako GmbH is scaling towards its goal of being Europe’s leading distributor of medical cannabis.
Farmako currently has active distribution operations in Germany and expects to commence active operations in the United Kingdom in this year.
Earlier this year, the huge Canopy Growth marijuana greenhouse on Hornby Drive in East Ladner abruptly ceased operating in a cost cutting move by Canopy.
Delta, however, has other greenhouse operations that are ramping things up including the large-scale Pure Sunfarms and the smaller Rubicon Organics Inc., both also in East Ladner.
