AgraFlora Organics Provides Update to Propagation Services Canada's Greenhouse Retrofit

Published: April 30, 2019

AgraFlora Organics International Inc., a growth oriented and diversified international cannabis company, is pleased to report on the progress of the retrofit of the large-scale greenhouse complex in Delta, BC. The retrofit of the 2,200,000 square foot complex has been split into three phases:

  • Phase 1 – includes the retrofit of 350,000 square feet of flowering space and 30,000 square feet of post-production facilities, completion scheduled for Q2 2019;
  • Phase 2 – consists of an additional 1,450,000 square feet to be completed by Q4 2019;
  • Phase 3 – consists of the remaining 400,000 square feet.

At a recent inspection of the greenhouse, AgraFlora management observed the considerable progress made in the first phase of the retrofit. Preparation of the greenhouse growing area including floor repair, electrical wiring, plumbing, installation of walls and security measures is progressing as planned. Installation of a comprehensive security system including renovating secure entrances and exists, and perimeter fencing have begun along with new construction of office spaces and post production areas.

“We continue to work aggressively to prepare the first 350,000 square feet of flowering area for the final Health Canada submission and for our first crop of cannabis,” said Derek Ivany, President and CEO of AgraFlora Organics International Inc. “At a recent walk through of the facility the team was impressed at the sheer scope and size of the greenhouse and the progress made on the first phase of the retrofit. They were also impressed by the care and the attention to detail undertaken by the Houwelings Group in the design and operation of the facility under glass. Not only are we expecting higher yielding crops, due to the onsite energy plant and the proprietary climate controls we expect to have the lowest carbon footprint of any cannabis greenhouse in operation.”

The Delta Greenhouse Complex is operated using a science-based approach to facility design and crop production. There is a focused to optimize every stage of production which ultimately benefits the plants. The greenhouse uses a complex and proprietary energy efficient air exchange, climate and humidity control management system. The ebb and flow watering system includes full irrigation recapture and treatment of water. There is an integrated natural gas-powered power plant providing heat and electricity while utilizing carbon dioxide emissions to benefit the plants. A 1.5-million-gallon hot water storage tank is used to store energy produced during day time for distribute during night. The facility is also designed to maximize natural sunlight balanced with multistage supplemental lighting. It is an impressive facility.

Upon completion of Phase 1 of the retrofit, the Company will prepare a detailed video to be submitted to Health Canada as part of the licensing of the Delta Greenhouse Complex. The application for the Delta Greenhouse cultivation license was submitted to Health Canada in  Q4 2018. The detailed video submission is the final step for Health Canada for the application and will include details about the growing area including proprietary air filtration, HVAC and watering systems, lighting, post-production facilities and of course the elements that make up the security system for the greenhouse complex.

The Company is also pleased to announce the investor and media tour of the 2,200,000 square foot greenhouse in Delta, BC, has been set for Tuesday, June 25. This date will ensure media, analysts and investors are able to witness the progress made to completing first phase of the conversion. Due to the significant response total registration will be capped at 100. The agenda will include a light lunch, presentation and tours broken into smaller groups.