AgraFlora’s 2.2 Million Square Foot Delta Facility Now Fully Funded
VANCOUVER, B.C., March 25, 2019 (GLOBE NEWSWIRE) -- AgraFlora Organics International Inc. ("AgraFlora" or the "Company") (CSE: AGRA) (Frankfurt: PU31) (OTCPK: PUFXF) announced earlier today that it has closed the final two tranches of its $40 million equity participation and earn-in agreement with Delta Organic Cannabis Corp. Investors have been eagerly awaiting the completion of this deal, not only because it represents a landmark achievement for the Company, but also because it means that the Company’s 2.2 million square foot greenhouse facility in Delta, BC, is now officially, and entirely, funded.
AgraFlora owns an effective 50-per-cent economic interest in the Delta, BC greenhouse project that is currently the second largest built cannabis facility in Canada, and the Company is presently in the process of finishing the first phase of retrofitting operations on it. This first phase will include the full preparation of 350,000 square feet of cultivation and post-processing space, and the Company is aiming to have this phase completed by the summer of 2019. The remainder of the greenhouse space will be retrofitted in two subsequent phases, the final of which is scheduled to be completed at the start of 2020.
Beyond simply the finalization of this deal, the completion of this funding means several things for AgraFlora. For one, the Company can now focus its attention and resources on some of the new opportunities it has been pursuing over the last year. For example, AgraFlora announced just last week that it is in a due diligence process with Dixie Brands Inc., an organization whose cannabis-infused products are in high demand throughout the United States. The two companies are investigating how they might partner in penetrating the growing cannabis market in the European Union. AgraFlora has also recently executed a letter of intent with Blox Labs Inc. so that the two might join forces in managing and operating state-of-the-art agricultural greenhouse facilities, and several months ago the Company related to investors that it had, in partnership with Relay Medical Corp, formed Glow Life Technologies, an organization focused on pursuing medical-related technology opportunities in the global cannabis space.
Secondly, the finalization of this deal means that investors can be increasingly confident in the assertion that AgraFlora is on track to potentially become one of the mainstay players in the Canadian cannabis space in terms of its cannabis production capacity. With the completion of all three retrofitting phases at the Delta facility, AgraFlora estimates that, as of 2020, it will be capable of growing 250,000,000 grams of high quality cannabis every single year. Based on the landscape of the current Canadian marketplace, this would make the Delta operation the fourth largest grower in the country on a per gram basis. Despite this, AgraFlora, although not as advanced in terms of the business cycle, persists in having a market capitalization much lower than that of its competitors. For example, as of the time of this release, AgraFlora has a market capitalization of $278,842,211. Tilray Inc., an organization with an estimated 2020 growing capacity 25,000,000 grams lower than that of AgraFlora’s, has a current market capitalization of $6,626,789,577. This same phenomenon exists in the case of Aphria. Aphria has an estimated 2020 growing capacity just two percent greater than that of AgraFlora’s, but they have a current market capitalization that is more than eleven times higher at $3,233,949,098. While production capacity is certainly not the only measure of a company’s potential within the cannabis space, it does play a vital role in an organizations ability to meet the demands of its investors and clients.
AgraFlora now has the infrastructure and the financing they need in order to confidently move towards their goal of being one of the biggest cannabis producers in Canada, and with their multiple new opportunities with companies like Dixie, Blox, and Relay, they are well positioned to become a force within the global cannabis space as well.
About AgraFlora Organics International Inc.
AgraFlora is a growth-oriented and diversified company focused on the international cannabis industry. It owns an indoor cultivation operation in London, Ont., and is a joint venture partner in Propagation Service Canada and its large-scale 2.2-million-square-foot greenhouse complex in Delta, B.C. The company has a successful record of creating shareholder value and is actively pursuing other opportunities within the cannabis industry.
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This piece was written and distributed by Global Objective Marketing (GOM). All of the information contained within was produced using publicly available information and any opinions about individuals, companies or industries expressed within this release belong solely to GOM. The opinions expressed by GOM should not be considered as complete, accurate, or current investment advice. Any investment decisions made by readers are theirs and theirs alone. To ensure that you are making investment decisions that serve your own best interests, we recommend that you utilize the services of a professional financial planner or advisor. In order to comply with Section 17(b) of the 1933 Securities Act, GOM discloses that it was paid a sum of fifteen hundred dollars CAD to write this content for AgraFlora.
CONTACT: For additional information: AgraFlora Organics International Inc. E: ir@agraflora.com T: (800) 783-6056