An outdoor cannabis producer located in BC announced today that it has completed the acquisition of a new outdoor cultivation site in Midway, BC.
Christina Lake Cannabis (CLC) first announced the deal on February 5, which included the acquisition of outdoor cultivation facilities in Southern British Columbia, related harvesting and manufacturing equipment, and approximately 19,000 kg. of biomass for a total purchase price of $3 million.
The facilities, which include all associated lands, support buildings, and related equipment, along with the biomass, were formerly owned by BZAM. BZAM had previously also purchased a hotel in Midway to house its employees at the outdoor farm near the US border.
“This acquisition will solidify our position as a key supplier to the country’s top brands,” said Mark Aiken, Chief Executive Officer of Christina Lake Cannabis. “We are expanding our growing capability to meet rising customer demand. The increased capacity is a catalyst for robust topline growth and improved profitability by harnessing economies of scale. As the demand for our products has continued to grow over the last 2 years, we have had to supplement our own cultivation with tens of thousands of kilos of biomass supply from the wholesale market. The Midway acquisition secures our supply chain providing CLC with cost certainty and solid control over input quality.”
The Midway property is 342 acres, with just over 100 acres of licensed cultivation space. With this acquisition, CLC will expand its total licensed outdoor cultivation footprint to over 120 acres. Potential further expansion of additional acreage is available and could be licensed by the Company should the demand arise.
“Over the last 18 months CLC has focused on operational efficiencies and investment in their processing infrastructure,” said Jay McMillan, Chairman of the Christina Lake Cannabis Board of Directors, in a company press release. “This has resulted in increased productivity and expanded capacity. The investment in the Midway property now aligns CLC’s cultivation and processing capability, positioning the company for future growth.”
Christina Lake Cannabis plans to plant its first “proprietary” 80-acre crop in spring 2024, expanding to 100 acres in 2025. In the company’s most recent quarterly report for Q3 2023, it showed nearly $9 million in revenue and almost $500,000 in income.
Featured image via christinalakecannabis.com