Cannasouth announces cannabis cultivation venturePosted by On


Media Release

14th August 2019

Cannasouth announces
significant cannabis cultivation joint venture

Cannasouth
today announced a long-term strategic joint venture (JV)
with Aaron Craig and his family (Craig Family Interests) to
construct and develop a world-class cannabis cultivation
facility in the Waikato.

The JV will construct and
operate a medicinal cannabis and hemp cultivation and
production facility, which will service and supply
Cannasouth’s production requirements. Construction is
expected to start before Christmas and be fully operational
by the mid-2020.

The JV is structured as a joint venture
company, Cannasouth Cultivation Limited (JV Co), which will
be owned equally by Cannasouth and the Craig Family
Interests.

JV Co will commence stage one of its operations
by constructing a state-of-the-art hybrid greenhouse
cultivation facility utilising part of the 111-acre site. It
will grow medicinal cannabis and complementary product,
primarily for Cannasouth, but potentially for other
medicinal cannabis companies in New Zealand and
internationally.

JV Co will also investigate expanding
into broadacre operations (outdoor growing) across the
balance of the land, and/or in conjunction with developing a
network of New Zealand-based contract growers.

Cannasouth
CEO Mark Lucas says the capital costs associated with the
construction of a state-of-the-art cannabis cultivation
facility are significant.

“This joint venture
arrangement has enabled Cannasouth to maximise the
allocation of capital raised during our recent IPO and
achieve an important objective of the company’s vertical
integration strategy.

“Our goal is to have complete
control over every stage of the production and distribution
of our medicinal cannabis products to ensure we achieve the
highest possible standard of quality at every step.

“It
makes sense for us to share the considerable capital costs
of developing a cultivation facility with a third party,”
he says. “Entering into a strategic relationship with a
trusted and experienced partner like Craig Family Interests
will add considerable value in terms of the skill set they
will bring to the table.”

Mr Lucas says the JV also
provides Cannasouth with a commercial footprint and model
from which the JV can expand into other locations throughout
New Zealand as the medicinal cannabis market
matures.

“We are…

Original Author Link click here to read complete story..

News

AnnouncescannabisCannasouthcultivationventure

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.