Another cannabis company that has a large-scale greenhouse operation in Delta has agreed to a multi-million dollar deal as cannabis operations try to position themselves for the U.S. markets.
AgraFlora Organics International Inc. has a partnership with the huge Houweling Nurseries complex on 64th Street, a facility called Propagation Services Canada.
AgraFlora Organics recently announced it struck an agreement to sell its share of Edibles & Infusions Corp. to Organigram Holdings Inc. for $35 million.
Capable of producing a variety of edibles and drinks, the new 51,000-square-foot edibles facility in Winnipeg will be capable of producing approximately 60,000 pieces per eight-hour shift and manage a variety of brands at once.
AgraFlora also recently struck an agreement to sell its wholly-owned subsidiary AAA Heidelberg Inc. for around $1 million, but is keeping wholly-owned subsidiary Farmako GmbH, which plans to become a leading distributor of medical cannabis in Europe.
In a news release, CEO Elise Coppens told shareholders the “transformational sale” of two of its assets provided the company with the financial flexibility to look at entering more lucrative markets.
Coppens noted that the resources also empower AgraFlora to redirect its focus toward generating meaningful revenue and growing cannabis at its Delta facility.
“More importantly, the proceeds enable us to evaluate future opportunities in Canada and the United States,” added Coppens. “The cannabis industry is evolving rapidly and I see a lot of potential south of the border, including but not limited to the recent embracing of recreational cannabis by the state of New York.”
Coppens added that if the legalization of marijuana trend continued in the $22.9 billion U.S. market, then “one of my goals is to position Agra to be a participant in that ever growing and developing landscape.”
Meanwhile, Village Farms, the other huge cannabis greenhouse operation in East Ladner, is also carefully considering its U.S. market entry strategy.
“In the U.S., subject to compliance with all applicable U.S. federal and state laws, Village Farms is pursuing a strategy to become a leading developer and supplier of branded and white-labelled CBD products targeting major retailers and consumer packaged goods companies,” the company stated in a recent news release.
The Village Farms operation in Delta is called Pure Sunfarms.
On another front, an Ontario-based company that had a huge greenhouse operation in East Ladner before abruptly shutting it down last year is also continuing to position itself for the U.S. market.
Canopy Growth, already having entered the health and wellness consumer markets in the U.S., recently announced it reached an agreement with a distribution partner for Canopy’s U.S. portfolio of CBD-infused beverages.
Canopy Growth also recently announced celebrity Martha Stewart has agreed to serve as the company's official strategic advisor.