Maple Leaf Green World (MGW-V) is pleased to announce that its joint venture partner in California, a non-profit co-operative licensed to sell marijuana under existing state regulations (the “Collective”) has finished the harvesting of the joint venture’s first two crops.
The Collective has reported total production of 300 lbs, comprised of 200 lbs of Early Indica (“GDT”) and Late Sativa (“BDH”); and100 lbs of five other high quality strains of cannabis. These production results are 50% higher than the management’s original expectations of 100 lbs per crop per greenhouse. Current market prices for GDT and BDH are in the range of US$1,300 to $1,400 per pound. The existing market price for the other five strains produced is approximately US$1,800 per pound. Accordingly, gross revenue derived from the joint venture’s first two crops is expected to be about US$450,000.
Based on these results and assuming a total of 4 crops (3 month for one crop) each year, the current California operations should generate total annual revenue of US$900,000. The Collective signed a wholesale contract to supply one dispensary in early 2016 and this dispensary has indicated it is willing to purchase all of the joint venture’s production for US$1,200/lb or US$360,000 in total. However, the Collective has advised the Company that it is confident it will be able to achieve prices that better reflect current market prices by selling to other buyers for the joint venture’s existing production.
Starting in 2017, the Collective intends to begin harvesting on a 2 month cycle, which would result in a total of 6 crops a year. In addition, the joint venture has plans for further expansion through the construction of 9 more greenhouses in 2017. If such plans are realized, Maple Leaf would be well on the way to achieving its revenue target of US$10 million for its California joint venture operations. With such an operational base in place, the Company believes it will be well prepared for the anticipated increase in demand when recreational cannabis becomes legal in California on January 1, 2018.
Cultivation Permit in Nevada
Further to the announcement made yesterday on the extension of LOI with BioNeva, Mr. Bill Monroe, representative for BioNeva stated, “The extension of the LOI between BioNeva and Maple Leaf is a normal course of action in a new business relationship, and has been put in place to allow proper time to secure the cultivation facility in Henderson, NV. BioNeva guarantees the sale of the 33,500 square foot cultivation permit to Maple Leaf, and is excited to be working with a great partner in the cannabis space in Nevada. BioNeva is committed to assist Maple Leaf to achieve the best possible positioning in the Las Vegas cannabis market.”
For further information regarding Maple Leaf Green World Inc., please visit the www.mlgreenworld.com.