WeedMD and Hiku’s Merker on having one of the largest cannabis production platforms in Canada
April 19, 2018 – “In other words, what we have done is for a very low capital investment come up with a strategy whereby we will have one of the largest production platforms under the ACMPR…” states Keith Merker, CFO of WeedMD Inc. (TSXV: WMD) and the newly appointed President of Hiku, in an interview with InvestorIntel’s Andy Gaudry.
Andy Gaudry: WeedMD has been in the news a lot lately. You guys recently announced your greenhouse expansion in Strathroy, Ontario. I am curious to know how your greenhouse deal differs from what your peers are doing.
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Keith Merker: In a lot of ways so thanks for asking. Then again thanks for having me here today. What we have done in Strathroy has a number of benefits for WeedMD and our shareholders. In a lot of ways I think it stands apart from some of the other expansion strategies you have seen across the industry. Essentially what we did is we landed upon an opportunity whereby WeedMD could lease 5 acres of greenhouse on a state-of-the-art property. It is a 98 acre farm. There is 14 acres currently under glass that up until quite recently was growing tomatoes, for instance, in the 5 acres that we are currently retrofitting. What we did is we leased that 5 acres from the group that owns this property. They are still operating the remaining 9 acres growing tomatoes currently and peppers and eggplants. This 5 acres that we have taken over for a very, very, very low cost to WeedMD. It is currently being retrofitted. We will have that completed over the next month and a half. We have already received approvals from Health Canada for the licensing. What that means is that the license will be issued once we have completed our security and that passes through Health Canada’s hands and we will have plants in there early spring for harvest to be ready by late summer. In other words, what we have done is for a very low capital investment come up with a strategy whereby we will have one of the largest production platforms under the Access to Cannabis for Medical Purposes Regulations (ACMPR) in production come this summer ready with harvest, ready for the advent of the recreational market in Canada. We are tremendously excited about it. One of the most capital efficient and efficient in terms of timeline and get to market that you will see in the industry.
Andy Gaudry: That is wonderful news. With pending legalization, come summertime, what is your strategy moving forward?
Keith Merker: We have got a bunch of strategies that we are working on currently. Unfortunately I am not at liberty to disclose some of them quite yet because it has not been publically disclosed. We have not quite dotted the I’s and crossed the T’s on a couple of our exciting strategies. What I can tell you is that we do have relationships and we are at the table with the various provincial agencies to provide our product. On the branding side, again, that is the part that I have not disclosed yet and unfortunately I am going to have to leave you today in the dark on that, but stay tuned and you are going to see some really exciting stuff coming from WeedMD. I think critically beyond that we have got, again, a very successful platform currently operating in Elmer, full licensing regime so we will be able to provide dried product. We will be able to provide oil. We will also be able to provide live plants for those provinces that will allow it under the legalized recreational regime…to access the complete interview, click here
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