+ 7.05
+ 2.21%
+ 4.00
+ 1.18%
+ 6.32
+ 1.54%
+ 1.27
+ 0.94%
+ 1.54
+ 0.9%

Avicanna To Build Cannabis Extraction Facility In Colombian Free Trade Zone

October 1, 2019 9:36 am
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Avicanna To Build Cannabis Extraction Facility In Colombian Free Trade Zone

Vertically integrated cannabis company Avicanna Inc. (OTC: AVCIF) announced Monday it will start building an industrial scale cannabinoid extraction and manufacturing facility in a Colombian free trade zone near Santa Marta.  

The development of the new 11,000-square-foot facility is the third phase of the company’s extraction strategy as it expands its aggregate annual capacities in Colombia, Avicanna said. 

The company signed a commercial lease agreement with Inmobiliaria Bondue S.A.S. for space to house the facility.

Bondue will own 40% and Avicanna 60% of the new subsidiary, Subco, that will be in charge of the operations at the new facility, which are expected to begin in the second half of 2020.

The location of the new facility offers considerable tax benefits due to its location in a Colombian free trade zone, according to the Tuesday press release. 

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The facility will utilize cannabis from Avicanna’s other Colombian subsidiaries, Sativa Nativa S.A.S and Santa Marta Golden Hemp S.A.S., both located in Santa Marta.

The company said it plans to sell the final products manufactured in the new facility internationally. 

“This new facility’s proposed contribution to our API business, which benefits from its location in a free trade zone, makes it a fine example of Avicanna’s focus on efficiencies across all of its business units and our aim to ensure each unit, including the ones that are focused on cannabinoids as APIs, are both efficient profit centers and are competitive in a commodifying global landscape,” CEO Aras Azadian said in a statement. 

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