Cannabis company C21 Investments Inc. CXXI CXXIF has plans to development its cultivation and production facility in Nevada.
The Vancouver-based company aims to add 40,000 square-feet, including 11 new flowering rooms and two vegetative rooms.
This should increase the space by 200% and enable the facility to produce around 7,500 pounds of indoor flower — plus 3,000 pounds of trim/biomass — per year.
The expansion is expected to be finalized during the second half of 2021.
The projected price for the expansion is roughly $6 million, which the company plans to support internally.
C21 chairman Bruce MacDonald told Benzinga that this expansion, which should triple flower production, is “the next logical phase of C21’s growth strategy.”
“We know there is untapped demand for our in-house products, as well as wholesale opportunities in the state," he said. "Extending our existing high margin business and achieving greater economies of scale not only flows to the bottom line, it puts us in a strong position to expand our retail footprint.”
C21 CEO and president Sonny Newman said he is thrilled to take this step as part of a growth plan.
“This expansion will give us significant economies of scale and the ability to deliver even stronger margins. Cultivation expansion supports our plan to increase the degree of vertical integration for in-house products, as well as take advantage of wholesale opportunities in the state for premium indoor flower," Newman stated. "Most importantly, this positions us well for accretive expansion of our retail footprint in Nevada."
In addition, C21 said it will release its third-quarter unaudited financial results on Dec. 16.
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