Agraflora Organics Interational (AGRA.C) Greater Toronto Area-based subsidiary Sustainable Growth Strategic Capital (SGSC) formed a cultivation partnership to grow hemp in Ontario today according to a press release.
SGSC has planted 50 acres of hemp at a farm in Brinbook, Ontario, and now the company is expecting the farm to yield around 50,000 kilograms of high grade CBD hemp by fall 2020.
“Cultivation at Binbrook represents another milestone for this core-asset strategy. With our expected high yielding CBD crop and the unique postharvest methodology, we expect to be able to create a large volume of CBD inventory of the highest quality ready for our enterprise customers. By controlling the process from soil to oil we can ensure we are optimizing the economic value of the resulting distillate and isolate while managing costs throughout the value chain. We can look forward to a strong vertically integrated extraction model of high-quality CBD crude, isolate and distillate,” said Brandon Boddy, Agraflora executive chairman and chief executive officer.
SGSC does all of their cultivation through a company called MicroC45. Their mechanical separation process produces greater extraction value, and a better yield of both major and minor cannabinoids. The company expects to be able to able to produce 1,000 kilograms of CBD isolate, CBD distillate and THC-free distillate inventory for sale for its clients, past and present, based on forecasted yields and MicroC45’s tech.
Also, the company is going to raise $2 million through a non-brokered private placement, including up to 20,666,667 company units at $0.075 per unit. Each unit will be equivalent of one common share and one transferable share purchase warrant. Each warrant gives the holder the opportunity to buy one additional share for the next five years at $.10 per share.
Agraflora’s fortunes dipped 9% today, closing at five cents.