California cultivator LEEF Brands Inc (CNSX: LEEF) (OTCMKTS: LEEEF) (FRA: H3G) will be completing one of the largest cannabis harvests in United States history within the next few days.
The extract specialist will be processing over one million pot plants spread throughout a 65-acre patch of land at its Salisbury Canyon Ranch property outside of Santa Barbara. Their yield will be used to produce vast quantities of oil.
LEEF started planting the farm’s first crop in February after obtaining the necessary licenses from state regulators. The grower aims to boost the organic weed field’s size by over 120 acres within the next couple of years and solidify its stature as one of the world’s largest cultivations. LEEF’s permit is valid for 187 acres.
The company recently boasted that its cultivation footprint is currently twice as large as Curaleaf Holdings Inc (TSE: CURA) (OTCMKTS: CURLF).
Chief Executive Officer Micah Anderson says production from the site will start having a positive impact on the company’s balance sheet by the end of this quarter.
LEEF is currently growing only one cultivar to be used for concentrates with this batch, but says the next one will be more diverse.
“We have a summer harvest on the way and we’ll re-plant for a fall harvest,” said Jesse Redmond, Investor Relations Manager. “The plants should be beautiful and reeking of OG terps. I love my job.”
The aim will be to grow 20 or 30 different strains in the autumn crop.
“Some of it we’ll dry, some of it will go toward oil, alot of it will go towards frozen,” Anderson explained.
Photo credit: LEEF Brands
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Farm has appreciated, but business remains unprofitable
In a video shared on social media Tuesday, Anderson claimed that a recent appraisal determined the ranch was now worth about four times as much as LEEF has sunk into it. The grower has invested over US$13 million into the project.
On another note, LEEF recently entered a dispensary management partnership with the popular California operator Glass House Brands Inc (OTCMKTS: GLASF) (FRA: 4KF0). Unfortunately for LEEF, Glass House and other state operators, California just upped its excise tax on cannabis by 4 per cent to 19 per cent.
This will take a toll on the production yield from Salisbury Canyon.
LEEF also expanded its operational footprint outside of California by getting a cannabis processing license in New York last month.
On the financial front, LEEF boosted its revenue by 19 per cent year-over-year in Q1 at US$9.4 million while cutting losses substantially. Additionally, the company observed an 81 per cent annual rise in California Sales in Q2.
Despite those positive balance sheet details, the cultivation and extraction expert is currently unprofitable and reported adjusted EBITDA of negative US$0.8 million in Q1. This was attributable to increased expenses at the ranch in preparation for the impending harvest.
Shares have slid by almost 27 per cent this year on the OTC Markets and the company currently owns US$11.2 million to creditors in the form of notes payable.
Join me on an ATV for a quick tour of Salisbury Canyon Ranch. The scale is hard to comprehend—2.4M square feet and hundreds of thousands of plants. Check it out ⬇️ $LEEF $LEEEF pic.twitter.com/MBQcOcRT7E
— Jesse Redmond (@jesseredmond) June 25, 2025
Read more: LEEF Brands secures California cultivation licenses; boosts extraction capacity
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