Canada-based Delta 9 Cannabis Inc. recently confirmed that it received approval from Health Canada to place 95 new Grow Pods into production from its Phase II expansion.

According to reliable sources, the recent announcement will enhance the company’s production capabilities by 56%. Moreover, it will bring the total number of Health Canada approved Grow Pods in production up to 297.

Delta 9 claims that it expects the additional Grow Pods will add 2,975 kg/year in the production of dried cannabis flower, which will bring the company’s total production capacity to around 8,325 kg/year.

CEO of Delta 9 John Arbuthnot stated that the company’s production technique of the Grow Pods enables it to develop cannabis products which are of low-cost and high quality.

Phase II Expansion

Delta 9 is evidently working to expand its licensed perimeter from Health Canada to include additional facilities at its licensed production unit in Winnipeg, Manitoba. This will bring the total square footage under license to 135,000 square feet, while 80,000 square feet was licensed by Health Canada at the present.

The firm is also working to complete its fully automated packaging, labelling, capping and bottling functions in its purpose-build cannabis processing center. Delta 9 expects that after licensing the processing center, it will enable the company to process dried cannabis flower material of around 25,000 kg/year.

Delta 9 also announced that it has adjusted its previous expansion plans of Delta Facility in order to include 129 Grow Pods. These 129 Grow Pods include 15 support Grow Pods and 114 flowering Grow Pods which is less than previously contemplated 311 additional Grow Pods under the Phase II expansion plan. This would have resulted in total 608 licensed Grow Pods.

As a part of Delta 9’s Phase II expansion plan, the company expects to add 3,650 kg/year of dried cannabis flower in production process, which will increase the production capacity by 11,975 kg/year at the Delta Facility. The projected cost of construction of Phase II expansion project is around US $7 million. The company plans to fund the Phase II expansion through cash in hand as well as from operational cash flows.

Source Credits –

https://finance.yahoo.com/news/delta-9-receives-expansion-approval-230010537.html