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Toronto, Ontario--(Newsfile Corp. - July 29, 2019) PRESS RELEASE - Leviathan Cannabis Group Inc. has closed the previously announced acquisition of a 5-acre property with an existing 37,000-square-foot building located in Smith County, Tennessee.
The acquisition facilitates the establishment of a new business unit in Smith County, Tennessee to manufacture cannabidiol isolate and other CBD products from hemp. Leviathan US, Inc., of which the Company owns 75 percent of the issued shares, controls a conditional hemp processing license from the Tennessee Department of Agriculture, subject ONLY to various ordinary-course operational permits being issued during the process leading to commercial launch, which is expected to culminate on or before Nov. 15, 2019.
Leviathan projects that the cost of the first phase, including the purchase of the property, building retrofitting, and extraction equipment, will total approximately US$3 million. Leviathan US has already taken possession of the property and has commenced retrofitting the building for hemp processing operations.
Upon completion of the first phase of its development plans for the property, Leviathan US will be able to produce 1,000 kilograms of high-grade CBD isolate per month.
The building, as well as the property as a whole, offer significant expansion capacity beyond the first phase. The Company envisages increasing the CBD isolate production capacity to 3,000 kilograms of high-grade CBD isolate per month and adding other hemp-derived product lines by 2021.
Smith County is located in scenic Middle Tennessee with proximity to Nashville, Knoxville and Chattanooga.
