MMJ PhytoTech Limited (ASX:MMJ) (“MMJ” or “the Company”) is pleased to provide its quarterly activities report for the period ended 30 September 2016.
– Proposed spin-out of Canadian subsidiary United Greeneries and Swiss subsidiary Satipharm by way of reverse takeover of TSX-V listed entity Top Strike Resources (TSX-V; TSR)
– MMJ enters strategic option agreement to lease 13-acre land package located directly adjacent to existing Duncan Facility
– Phase 2 Clinical Trial of PTL101 capsules to measure efficacy for reducing seizures in children with intractable epilepsy set to commence
– Appointment of experienced pharmaceutical executive Catherine Harvey as Chief Operations Officer
Duncan Facility Expansion Strategy
During the September quarter, MMJ advised that its wholly-owned subsidiary United Greeneries Holdings Ltd (“UG”) had executed a binding letter of intent (“LOI”) with Cowichan Tribes (“Cowichan”) in respect to the leasing of a 13-acre strategic land package (‘Expansion Land”) located immediately adjacent to the Duncan Facility.
MMJ estimates that the Expansion Land could support up to 10 acres of greenhouse production space, potentially yielding approximately 25,000kg/year of cannabis, which is more than 25 times the current production capacity of the Duncan Facility. Together with the existing production capacity, the expanded Duncan Facility could produce up to 26,000kg of cannabis per year, which would position it as one of the largest cannabis cultivation operations in Canada.
Expanded production capacity would further strengthen the Company’s supply chain and will play a key role in supplying the soon to be legalised Canadian recreational market, with conservative estimates forecasting annual sales of approximately C$5 billion.
As one of only 29 companies currently licensed to produce medical cannabis in Canada, MMJ expects to be well positioned as a first mover in this emerging recreational market.
Cowichan Agreement Overview
The LOI grants MMJ an option to lease 13 acres of the 40-acre strategic land package directly adjacent to the existing Duncan