HERITAGE UPDATES EXPANSION PLAN
Heritage Cannabis Holdings Corp.'s (CANN.C)subsidiary, PhyeinMed Inc., has commenced the construction of greenhouses as part of a revised phase 2 plan for the production of cannabis in Falkland, B.C. The initial order of four greenhouses will cost approximately $350,000 and will be financed from cash on hand.
"Considering the impending changes to Health Canada's regulations and the ability to cost-effectively comply with the proposed regulations with respect to outdoor grow options, we re-evaluated our current plan and were able to pivot in a manner which is much more accretive to shareholder value," says Debra Senger, chief executive officer of PhyeinMed. "This allows for a more effective use of funds, both in capital spending and ongoing operational savings."
PhyeinMed started the revised building plan on May 22, with the first four of 10 year-round greenhouses to be completed in the fall of 2018, and the additional six greenhouses expected to be complete by spring 2019, however greenhouses will be brought on-line, and growing will commence as they are completed. Total grow canopy of the revised second phase will be 41,580 square feet. This is similar to the previous plans for the indoor grow facility, but the revised plan will contain more grow canopy and capacity.
Utilizing greenhouses as a cost-effective option will increase production while substantially reducing operational costs. Pending approval of our production licence allowing cultivation, it is anticipated that the first crops will be ready for harvest in the first quarter of 2019.
PhyeinMed has plans to take advantage of the additional acreage surrounding the company's current processing facility and greenhouses by erecting a series of up to 30 additional seasonal small-scale greenhouses in the spring of 2019. The seasonal greenhouses bode well for extracted production products.
About Heritage Cannabis Holdings Corp.
The company is currently listed as a marijuana issue having a 75-per-cent interest in PhyeinMed Inc., a Health Canada late-stage applicant under the ACMPR (Access to Cannabis for Medical Purposes Regulations). It is a parent and development company with strategic plans to continue to acquire cannabis-related companies.