WeedMD Inc (CVE:WMD) (OTCMKTS:WDDMF) is beefing up its southwestern Ontario facility thanks to a new Health Canada approval for a new processing area.
The Toronto-based company announced Monday that it had received a licence amendment from Health Canada to include an additional processing area with semi-automated packaging lines, which have just been constructed and installed. The processing room and packaging lines are currently undergoing final testing and calibration, and are expected to be fully operational in the third quarter of this year.
READ: WeedMD posts strong revenues and significant cash balance during its second year of operations
“The integration of automation into our packaging systems is a significant production milestone for WeedMD,” said said Keith Merker, CEO of WeedMD in a statement.
“We expect this automation to increase our speed to market and drive costs lower. This will ensure our finished products get to market competitively and efficiently with an expected positive impact on WeedMD’s margins beginning over the second half of this year.”
WeedMD owns and operates two facilities in southwestern Ontario to produce and distribute medical-grade cannabis. The Aylmer, Ontario facility houses 26,000 square feet of grow space on an expandable site across four acres of land, while its 158-acre Strathroy, Ontario facility includes both indoor and outdoor grow capacity.
The two locations are expected to yield more than 150,000 kilograms per year of cannabis once peak production is achieved in 2020.
Shares of WeedMD slipped 0.6% on Monday to sit at C$1.71 in Toronto.
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