Chemesis International (CSE:CSI) announced it increased its controlling stake in SAP Global from 51 to 80 percent.
As quoted in the press release:
SAP is a California Corporation that controls legal cultivation and manufacturing licenses for the new state-of-the-art facility, where the Company will manufacture and distribute medical and recreational [tetrahydrocannabinol]THC and [cannabidiol] CBD products for the California market.
With recreational cannabis legal in California, SAP’s flagship facility and operations strategically located in Cathedral City, California, have the legal standing necessary to meet the California medical and recreational application requirements, which in turn will facilitate the sale of over-the-counter and holistic cannabis products.
SAP is able to process up to 2,000 [pounds] of agricultural trim and yield as much as 200 [pounds] of clean, compliant cannabis oil per day at its flagship facility. This capacity is intended to provide Chemesis with a consistent revenue stream with products that are essential to the industry and cater to both the medical and recreational cannabis markets in California. To increase its ownership of SAP to 80 [percent], the Company committed and paid an additional C$700,000 toward additional capital expenditures at the flagship facility.