Bedrocan Cannabis Corp. (BED: TSXV) provided an update to shareholders regarding the status of the construction of their new 52,000 square foot production facility. Construction has been moving forward as planned and remains on schedule to be inspected by Health Canada by the end of the year. If Bedrocan receives approval from Health Canada, BED will begin to import and cultivate live plant material from their Dutch partner Bedrocan BV.
Bedrocan supplies over 1,000 Canadian patients with medical marijuana, which they receive from their partner, Bedrocan BV. Once their new facility is operational, BED will transition from their importation strategy to selling domestically produced product.
The new facility is expected to be capable of producing up to 4,000 kg of product annually and they expect to be producing product at even higher growth yields than the industry-leading yields set by their Dutch partner, Bedrocan BV.
Bedrocan’s new facility will be designed to standardize whole cannabis buds that have consistent cannabinoid content that meet the strict requirements for pharmaceutical-grade cannabis. The new facility will offer standardization in regard to the product they produce, which is a critical requirement for any medicine.
Additional details of the new facility:
- The new facility will harvest and process a fresh crop every week, 52 weeks per year.
- The production rooms are designed to harvest up to seven crops in the same space each year, without the use of pesticides.
- Production rooms are designed and automated so that growers rarely, if ever, need to enter until crops are harvested. This virtually eliminates the possibility of exposure to bacteria, molds and other potential contaminants.
- The production rooms will include climate control technologies, which are expected to further increase yields.
- They will include smart inventory control and storage systems, which allow for demand-driven adjustments in growth and production in a timely manner.
The completion of this facility, and approval from Health Canada represent a major catalyst for BED. The stock has sold off since their IPO and is looking a bottom. Technical420 recommends remaining on the sidelines until some further clarity is given on timeframe to completion so a bottom can be better projected. The completion of this facility will enable BED to begin to generate revenue at an increased rate. Due the nature of the regulatory environment in Canada, a smooth execution could help BED take a lion share of the market opportunity Canada has to offer.
Written By: Michael Berger
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | email@example.com