Health Canada has awarded production and cultivation license to MJardin Group Inc (OTCMKTS:MJARF) for Manitoba based cultivation facility (120,000 Sq. Ft. retrofitted facility). The company has completed phase 1 cultivation and expects to begin cultivation at this facility soon.
A great milestone for MJardin
CEO of MJardin, Pat Witcher, said it is a great milestone for the Winnipeg, Manitoba based flagship facility and the team. It has accomplished the facility at the right time and expects to achieve full capacity by the end of next year. The company can reap rich dividends by focusing on extraction at this facility and the high-value market.
High quality dried flower
MJardin expects to complete phase 2 build-out in Q4 2020. The phase 1 and phase 2 areas comprise greenhouse and indoor production capacity. They will also have EU GMP certified processing, extraction, and packaging. With the completion of phase 2 build-out, MJardin would expect to produce 800 liters of bulk oil. It will also produce 4,500 kg of good quality dried flower.
Receives a payment of CAD 11 million
MJardin has received a payment of CAD 11 million on October 4, 2019, towards an LOI JV accord with Peguis First Nation. As per the terms of the deal, Peguis will acquire the buildings and land of MJardin. It will also provide funding of CAD 20.5 million to complete phase 2 of the facility. It is the third cultivation and production facility of MJardin. The company expects to receive a second sales license and fourth cultivation license soon.
Glenn Hudson, Chief of Peguis, said his partners are putting in significant efforts to accomplish full production next year. The facility will also generate employment and contribute to the economy.
MJardin has reported revenues of CAD 7.6 million (down 17.39%) in Q3 2019. Its net loss increased to CAD 12.43 million in Q3 2019 when compared to the same period last year. It has reduced the corporate overheads to improve efficiencies.
MJardin will begin the monthly supply of 250 kg from its AMI facility as per the EU supply accord. The company would release the revised guidance in early 2020.