Ontario-based cannabis producer Indiva Ltd. (TSXV: NDVA) has secured Health Canada approval for a major expansion of its cultivation facility.
Its amended licence now allows it to build another three grow rooms and two processing rooms, adding 10,000 sq. ft. of production space to its operations. It intends to fill the new grow rooms immediately in order to ramp up production of pre-rolls, oil and distillate.
One new production room will be dedicated to pre-rolls and the other will focus on a chocolate manufacturing operation. Canada officially legalized edibles and other concentrates last week and the demand for them is expected to be high when they hit the shelves by the end of 2019.
“The approval of this licence amendment powers the next step in our journey: infusing our cannabis into gourmet chocolate as well as other derivative products,” said president and chief executive Niel Marotta. He added that it would significantly increase the firm’s revenue potential.
Indiva has also announced plans to submit an evidence package to Health Canada for the final phase of its facility in London, Ontario. If it receives a licence, it would add a further 10,000 sq. ft. of processing space to its operations.
Last week, Indiva announced it has secured aggregate debt financing of up to $11 million through a $7.5 million secured bridge loan facility and a secured demand loan facility. It said this would aid its expansion plans as it prepares for Cannabis 2.0, namely an expansion into edibles.
The plan is to make its award-winning portfolio of products available to Canadian consumers, including Bhang chocolate. Indiva will also make Ruby cannabis sugar, Sapphire cannabis salt, and Ruby gems available in early 2020, pending approval from Health Canada, which said it will take 60 to 90 days to process applications.
Along with wholesaling to provincial distributors, Indiva also offers extraction services for fellow producers and it recently tied up a deal with TerrAscend to that end.
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