As the coronavirus pandemic raged on, closing down thousands of businesses and confining folks to their homes for weeks, the cannabis industry chugged along. While several industries have been brought to their knees during the pandemic, medical and recreational cannabis dispensaries across the country have brought in millions of dollars in much-needed tax revenue. Now, a Toronto cannabis company that has been growing hemp in Illinois has announced that it signed an agreement to acquire the issued as well as outstanding shares of a marijuana company called Cannabis Capital Partners Inc.
With this acquisition, Red White & Bloom Brands Inc. will gain a cannabis cultivation license, two acres of land, the rights to purchase a 23,572-foot cultivation and manufacturing facility in downstate Shelbyville, and Cannabis Capital Partners’ associated inventory including several approved cannabis genetics. The cultivation license is among the 21 original “super licenses” issued by the state that allows for 222,000 square feet of THC cultivation and the processing and manufacturing of cannabis extract-based products.
The deal is part of an exclusive framework that supplies the state’s highly profitable cannabis industry ($1.3 billion annual sales) and its consumers (the state has 12.6 million residents and 117 million annual tourists) with high-quality cannabis. The grow facility Red White & Bloom (RWB) plans to purchase is currently operated by Shelbyville County Community, a nonprofit mental health group that hires people who are in rehabilitation.
RWB currently operates a 3.6 million-square-foot greenhouse in Granville, Illinois, through its subsidiary, Mid-American Growers, where it has been growing hemp flower and relatively nonpsychoactive cannabidiol (CBD) for more than a year. Upon closing the above-mentioned transactions then gaining approval of the Illinois Department of Agriculture (IDOA), the company hopes to transfer the cultivation licenses to its Granville grow facility. The cultivation licenses would allow RWB to enlarge the cannabis grow project, which coupled with processing and manufacturing, would add up to around 450,000 square feet of total marijuana operations.
Additionally, the cannabis cultivation license allows the Toronto-based cannabis company to launch its premium Platinum Vape Brand plus its exclusive High Times brand across Illinois. Since it already has a grow facility in Granville and the section of the greenhouse set aside for THC operations only requires minimal retrofits to convert to producing THC extracts and THC-infused products, the transition shouldn’t be a major issue. The cannabis company projects to grow around 100,000 pounds of cannabis per year and bring in annual revenue of $250 million at $2,500 per pound.
Cannabis sector players aren’t only involved in cultivation. Many engage in hi-tech manufacturing. A clear example of this type of operations is CannAssist International Corp. (OTCQB: CNSC). This company has designed proprietary technology that helps to make CBD products whose bioavailability is a lot higher due to the products’ water solubility.
NOTE TO INVESTORS: The latest news and updates relating to CannAssist International Corp. (OTCQB: CNSC) are available in the company’s newsroom at https://ibn.fm/CNSC
CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.
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