Viridium ready to flex its cultivation muscles
Viridium Pacific Group Ltd. (TSX:V VIR) is a company we first of heard about on the social media circles and wanted to do some more analysis into the Cannabis company.
It is a parent company of operating subsidiaries involved in horticultural production, property development, and human resource management.
They also are a parent company of Experion Biotechnologies Inc – a Health Canada Licensed Producer (LP) for cannabis.
Experion’s three core lines of business are:
- Plant propagation and tissue culturing
- Production of whole plant “starter material” for wholesale to licensed growers
- Production of dried flower and derivative products for wholesale distribution to medical patients.
They got their license back in August and have gotten their 8,300 sq ft indoor facility in Mission BC fully operational with all the latest advancements and passed the Health Canada inspection back in November.
They plan on beginning cultivation before Jan 15th and are already working on expanding their operations.
They exercised their option to purchase for $1M the whole 10 acres site which they were leasing previously and have already started work to expand their medical-grade 8,300 sq ft indoor operation with a 40,000 greenhouse canopy. The funds for this expansion have already been arranged via a private placement for $600K to accomplish this feat.
Viridium chose the Mission BC location for the following reasons:
- Approx. 1,900 hours of annual sunshine
- Zoned in ALR (Agricultural Land Reserve) i.e. more affordable
- Access to high-quality natural water sources
- Moderate temperatures
- Cheap hydro-electricity
- Close to highway for distibution
- Available land for expansion
They have stated the reason behind their land purchase is to “….providing us with the certainty that our future development at the Mission Property can proceed fully under the control of Viridium”
With a 10 acre land purchase they have only build out 10% and will probably be expanding more in the future.
They have not released any estimates for their yield but here are some quick conservative numbers:
8,300 sq ft x 20 g per sq ft (per harvest) x 5 harvests a year = 830,000 g
40,000 sq ft x 20 g per sq ft (per harvest) x 5 harvests a year = 4,000,000 g
They have a funded capacity to produce ~5,000,000 g per year
They did some management jugging late last year and they got a new CFO with a lot of experience Christopher McArthur. With a background in conducted detailed financial and strategic analysis of the legal cannabis industry in Canada and abroad.
They also appointed Jarrett Malnarick as Director (Malnarick is currently the COO of Viridium Pacific), who over the last four years, has helped various LP’s within Canada through the application and implementation period as well as project managed multiple cannabis greenhouse projects in California and Washington as well as, extraction facilities in Washington and Oregon.
With 55M totally diluted shares and a recent price of $1.20 gives a market cap of $66M. Pretty good for a Licenced Producer who owns the land and has the current resources to produce 5,000 kg per year.
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