Ontario cannabis producer 48North Cannabis Corp. (TSXV: NRTH) is converting its indoor Good:House cultivation facility into a propagation, processing and packaging operation that the company will use to process its low-cost outdoor weed supply for both next-generation products and the dried-flower market.
The company announced this week it is partnering with Canadian cannabis distributor humble+fume to build a state-of-the-art extraction operation on its 46,000 square ft. facility located in Brantford, Ont.
48North said the new extraction facility will use CO2 extraction technology to produce full-spectrum oil, distillates and isolates, all critical ingredients to develop edible, vape and other derivative products. The operation will be able to process more than 30,000 kg of cannabis mass annually, and the current site is expandable to 350,000 square ft.
“48North is steadfast in its commitment to outdoor-grown cannabis,” said 48North co-CEO Jeannette VanderMarel in the release. “As a company we know that low-cost, environmentally friendly cultivation, for both next-generation products and the dried-flower market, is the way of the future.”
The extraction lab will also produce items for cannabis specialty product companies Mother & Clone and Avitas, including vape pens and under-the-tongue (sublingual) spray products that 48North touts are 100 per cent natural, single-strain and ultra-refined.
The Canadian market for the next-generation of cannabis products are set to be on store shelves by the middle of December.
— Matt Maurer (@MattPMaurer) July 9, 2019
48North looks to exploit its massive outdoor grow-op
The Toronto-based company made a separate announcement on Friday that it completed planting its first outdoor cannabis crop at its Good:Farm location in Brant County, Ont.
48North said it has successfully planted more than 250,000 cannabis plants at its 100-acre farm – the largest legal cannabis cultivation site in the world, according to the company.
The pot producer said it is growing 10 unique high-THC and high-CBD strains that are proven to do well in outdoor climates. 48North added it will be able to harvest two crops this year – one in late-August and another in mid-October – and the outdoor facility will yield as much as 40,000 kilograms of dried cannabis each year.
Once the pot is harvested, it will be transported 10 minutes away to the new extraction facility where it can be processed and packaged.
“Planting nearly 100 acres of organic cannabis outdoors was a significant accomplishment for the organization, relying on both established agricultural practices and innovative cannabis production techniques,” said VanderMarel. “Our team of expert farmers and growers ensured this ground-breaking task was a success.”
The company has been one of only a few cannabis producers to receive an outdoor grow license from Health Canada so far this year, which it says will allow it to produce the lowest costing gram in the country.
Outdoor grow operations are considered a way to help Canadian companies and the legal industry compete with the black market, as Statistics Canada recently showed prices in the black market continue to fall, while prices for legal weed move up.
— 48North (@48Nrth) May 23, 2019
According to Simply Wall St., an investment website, two insiders shelled out $230,000 for shares of 48North this month and so far none have been sold. Reportedly, insiders own 17 per cent of the company’s shares worth about $23 million.
48North shares dropped five per cent on Friday closing to 81 cents on the TSX Venture Exchange. The company’s current market value sits at $135 million.