In an effort to ramp up their production capabilities Newstrike Resources (TSXV:HIP), announced on July 13 that it had acquired a greenhouse facility accounting for 16.6 acres of land in the Ontario’s Niagara region for approximately $7.3 million.
This new facility joins Newstrike’s main one in Brantford, Ontario, which will allow the company to increase production as they gear up for the legalization of adult-use cannabis in Canada next year.
“Our expectations from an overall production of cannabis capacity we expect that first of two phases will allow us production around 14,000 kilograms per year,” Jay Wilgar, CEO of Newstrike told The Investing News Network (INN). As an early estimate, the company’s wholly-owned subsidiary, Up Cannabis, indicated their annual capacity will now be 25,000 kilograms.
Up Cannabis obtained it’s Licenced Producer (LP) status on December 19, which Wilgar revealed they had originally applied for it in 2013. According to Wilgar, following the acquisition, the company must work to bring the facility up to speed on the standards from Health Canada.
Amendments to their license allows Newstrike to now produce oils
The company also recently announced that Health Canada granted them a set of updates on their production license for Up Cannabis.
As part of the amendments, Newstrike is now allowed to produce an unrestricted amount of cannabis from its main facility. The company can also now begin producing and selling oil-based products and will be allowed to increase their storage capacity to 625 kilograms of dried cannabis.
Wilgar told INN that Newstrike’s cannabis strategy includes the creation of brands that resonate with consumers and are able to develop a trust relationship that investors can count on when it comes to long-term sales.
According to Wilgar, consumers in the cannabis adult market will want consistency in their purchases moving forward.
“What we’re going through here all of us is an experiment in choice,” he said. “Allowing Canadians the ability to choose between various companies and various brands, to us is vitally important.”
Newstrike also made headlines this year when it announced a strategic business partnership with the Canadian band, The Tragically Hip. Wilgar said the grouping wasn’t merely promotional, but instead a business partnership.
Since it launched under the symbol HIP on June 1, Newstrike’s shares have soared 134.48 percent.
The move by Newstrike to expand their production capabilities indicates a need for more product to be available as the market prepares for the legalization of recreational cannabis next year. Newstrike’s focus on brands and consumer relationship also speaks to the need for some of these LP’s to set themselves apart in the eyes of the consumers.
Don’t forget to follow us @INN_LifeScience for real-time news updates.
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
American cannabis sales hit US$17.5 billion in 2020, a research group’s new study shows.
Meanwhile, a Canadian cannabis producer began offering CBD beverages in the US, another move that shows how interested Canadians are in the overall US cannabis market at the moment.
Some pretty important news out of health and wellness; beverage and natural products company BevCanna Enterprises Inc. (CSE:BEV, Q:BVNNF, FSE:7BC) this week. For those of you following the Company with us, stay tuned.
As investors continue to prioritize cannabis opportunities in the US, market watchers expect mergers and acquisitions (M&A) to play a role in the future for Canadian companies.
A consolidation trend has been expected in the Canadian cannabis space for some time now based on the size of the market compared to the number of operations in the country.
BioHarvest Sciences Inc. Unveils the Unique Polyphenolic Content of Its Upcoming Olive-Based Nutraceutical
The product will include polyphenols known to have significant health benefits.
BioHarvest Sciences Inc. (CSE: BHSC) (“BioHarvest” or the “Company”) has reached an important milestone in its development program of additional Nutraceuticals. The olive-based Nutraceutical product scheduled for market availability in the second half of 2022 will contain the following unique matrix of polyphenols: hydroxytyrosol, trosol, and verbascoside. These compounds are the major polyphenols in naturally grown olives and are responsible for the high antioxidant activity of olives and olive oil. Importantly, the BioHarvest olive-based Nutraceutical product will provide all the benefits of olives and olive oil with a low calorie count per serving.
Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced today that it will report financial results for the fourth quarter and full year ended December 31 st , 2020 on Thursday March 25 th , 2021 before the market opens.
The Company will host a conference call and webcast to discuss its financial results and provide investors with key business highlights on Thursday March 25 th , 2021 at 8:30am Eastern Time (7:30am Central Time).