Alliance One International, Inc. (AOI) said that its Canadian Prince Edward Island-based indirect subsidiary, Canada’s Island Garden, will undergo a significant expansion to support the growth of its Canadian cannabis line. Canada’s Island Garden is Prince Edward Island’s only federally licensed producer of cannabis. This expansion will increase Canada’s Island Garden’s production capacity to an excess of 35,000 kilograms.
The first phase of the expansion will include a 166,000 square-foot greenhouse and a 54,000-square-foot warehouse, which will cost the company $27 million or C$35 million. The second phase will add an additional 90,000 square feet of greenhouse space. According to a company statement, Phase 1 will increase the facility’s annual production capacity from 1,200 kilograms to 18,000 kilograms and is expected to be complete in spring 2019. It went on to add. assuming completion of Phase 2, Canada’s Island Garden would have a total annual production capacity in excess of 35,000 kilograms.
Both expansion phases are designed to take advantage of the latest in horticulture and cannabis production to allow for the production of a premium-quality and sustainable product for consumers in Canada. The end goal is to create a comprehensive transparency and traceability, from plant to final product, while also including security protections to maintain proper control of the facility.
Alliance One’s wholly owned indirect subsidiary of Canadian Cultivated Products acquired 75% of Canada’s Island Garden. The Canadian companies have been working on a new naming and branding concept which will be FIGR Cannabis. Canada’s Island Garden to FIGR East and Goldleaf Pharm, a sister company in Simcoe, Ontario, to FIGR Norfolk. The FIGR products are expected to be available to consumers once adult-use sales are legalized. Medial marijuana patients will continue their sales under Canada’s Island Garden.
Alliance One stock was lately trading at $18.65, down from the 52-week high of $30.70. It is one of the few cannabis companies that trade on the New York Stock Exchange.