NEW SEMI-AUTOMATED PACKAGING LINES TO INCREASE EFFICIENCY AND IMPROVE GROSS MARGINS
WeedMD Inc. (TSX-V:WMD) (OTCQX:WDDMF) (FSE:4WE), a federally-licensed producer and distributor of medical-grade cannabis, is pleased to announce that its fully-licensed Aylmer, Ontario facility has secured a Health Canada (“HC”) licence amendment to include an additional processing area equipped with semi-automated packaging lines. The newly-constructed processing room and packaging lines are installed, and currently undergoing final testing and calibration, with the expectation that they will be fully operational in early Q3-2019.
“The integration of automation into our packaging systems is a significant production milestone for WeedMD. We expect this automation to increase our speed to market and drive costs lower,” said Keith Merker, CEO of WeedMD. “This will ensure our finished products get to market competitively and efficiently with an expected positive impact on WeedMD’s margins beginning over the second half of this year.”
The Company’s 26,000 sq. ft. Aylmer facility is located on an expandable site of four acres of land. Together with the Company’s 158-acre Strathroy, Ontario facility, WeedMD’s production output is expected to yield more than 150,000 kgs per year as it reaches peak production in 2020.
For more information, access WeedMD’s investor presentation here and recently updated corporate video here.
About WeedMD Inc.
WeedMD Inc. is the publicly-traded parent company of WeedMD Rx Inc., a federally-licensed producer and distributor of cannabis products for both the medical and adult-use markets. The Company owns and operates two facilities: a 26,000 sq. ft. indoor facility in Aylmer, Ontario and a 158-acre state-of-the-art greenhouse and outdoor facility located in Strathroy, Ontario. The Company currently has 136,000 square feet of licensed production space across its facilities and is expected to have a total footprint of more than 550,000 square feet of indoor and greenhouse production in addition to more than 25 acres of outdoor cultivation space online in the first half of 2019. WeedMD has a multi-channeled distribution strategy that includes selling directly to medical patients, strategic relationships across the seniors’ market and supply agreements with Shoppers Drug Mart as well as six provincial distribution agencies.
Published at Mon, 27 May 2019 19:30:40 +0000