Aleafia Health, a Canada-based, vertically integrated cannabis health and wellness company, has acquired 60 acres of farmland directly adjacent to its Port Perry outdoor cultivation facility, allowing the company to launch Phase II of its outdoor grow expansion project.
The $1.2-million transaction, which closed Sept. 3, brings Aleafia’s total acreage in Port Perry to 86, according to a company press release.
See below for an aerial video of Aleafia’s Port Perry facility.
Upon closing, Aleafia will combine the new property’s address with the company’s existing Port Perry address, which will allow Aleafia to request an amendment to its existing Health Canada License instead of applying for a new cultivation license. Phase II of the facility’s buildout will begin later this month, according to the press release, and Aleafia plans to submit its full evidence package to Health Canada later this year to demonstrate that the facility is ready to commence cultivation operations.
Once Aleafia receives the necessary regulatory approvals, the company will increase its outdoor cultivation from 26 to 86 acres and convert existing on-site buildings to cannabis drying rooms and staff accommodations, according to the press release. This will allow Aleafia a more streamlined regulatory process as compared to building a brand-new facility, the press release said, and the company plans to support the local economy by hiring local contractors to complete the buildout.
Additionally, Aleafia’s wholly owned subsidiary, Emblem Corp., has sold its unused 43-acre property in Brant for $8.2 million in a transaction that closed Aug. 28.
“We are delighted to build on the success of our 2019 outdoor cannabis crop to date and significantly expand our low-cost production operations for next year,” said Aleafia Health CEO Geoffrey Benic, in a public statement. “Being one of a handful of LPs to operate an outdoor facility this year has positioned us well for a major expansion in 2020. These two transactions demonstrate a strong allocation of capital and fiscal prudence. With an additional $7 million cash on hand and 60 new acres of low-cost cultivation area, we are well positioned for sustained future growth."