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Be the first with the news that moves the market- Auxly Cannabis’ (TSXV:XLY) joint venture partner, Sunens Farms, has successfully obtained a standard cultivation licence from Health Canada
- The licence is for the first phase of its 1.1 million square foot greenhouse facility in Leamington, Ontario
- Auxly will use cannabis harvested from the Sunens facility to support the company’s branded cannabis product line
- The companies expect that Sunens will apply for additional licence amendments throughout 2020, allowing the remaining phases to begin
- Auxly Cannabis (XLY) is up 1.49 per cent and is currently trading at C$0.34 per share
Auxly Cannabis (TSXV:XLY) joint venture partner, Sunens Farms, has successfully obtained a standard cultivation licence from Health Canada.
The licence is for the first phase of Sunens’ 1.1 million square foot greenhouse facility, located in Leamington, Ontario. The facility is purpose-built, fully automated, and now operational.
With the licence, Sunens will immediately start cultivating organic cannabis within the facility’s licensed area. The first phase’s licensed area covers approximately 360,000 square feet of space, for cultivation, processing, and storage.
The licence will also allow the company to start bulk sales of its cannabis, without additional regulatory approvals. Sunens has obtained a diverse genetic library of over 200 unique cannabis strains, providing a competitive edge for sales.
Auxly will use cannabis harvested from the Sunens facility to bolster production of its own branded cannabis products. The company already produces derivative cannabis products at its Dosecann facility on Prince Edward Island.
Auxly’s CEO, Hugo Alves, said that the cultivation licence marks another key milestone for Auxly.
“The speed with which the joint venture project has been developed, constructed and licensed relative to its peers is a testament to the hard work and dedication of a very focused and capable team.
“Sunens will provide Auxly with a consistent, high-quality and cost-effective source of organic cannabis, giving us greater traceability and flexibility in the development and manufacturing of our branded products.
“We are focused on executing against our business plan and Sunens is an important piece of our strategy. This is a very happy day for everyone at Auxly,” he said.
Throughout the rest of 2020, Sunens will submit applications for additional licence amendments to Health Canada. Once received, the amendments will allow the remaining phases of the facility’s cultivation to begin.
Auxly Cannabis (XLY) is up 1.49 per cent and trading at $0.34 per share at 11:56am EDT.
