Westleaf Completes construction of its Large-scale Extraction, Processing and Product Formulation Facility

Published: July 4, 2019

Westleaf Inc. announced the completion of construction on its wholly owned cannabis extraction, processing and product formulation facility, The Plant by Westleaf Labs, which will have throughput capacity of up to 65,000 kilograms per annum in Phase I. The facility is now entering the final stages of the Health Canada licensing process. The Company expects to receive a Standard Processing license for The Plant as early as Q3 2019 and anticipates that production at the facility would commence shortly thereafter. This marks a major operational milestone for Westleaf and, once licensed, will allow the Company to produce its own branded cannabis products, as well as provide contract manufacturing and white-label opportunities to other cannabis companies.

“This is a significant milestone for Westleaf, marking our transition from construction to operations and execution on our plan to build a brand focused vertically integrated cannabis company,” said Scott Hurd, President and CEO. “Once licensed, this facility will produce the current suite of legal cannabis derivative products, and as we move towards additional cannabis product legalization in the fourth quarter, we will expand our product lines to include vapes, edibles and other derivative cannabis products.”

The Plant Operational Highlights:

  • Positions Westleaf for Future Growth– The completion of The Plant positions the Company to meet the expected new demand for cannabis derivative products anticipated to be coming to market in December of this year; 

  • Scalability – Phase I is a 15,000 square foot extraction, processing and product formulation facility with designed throughput capacity of up to 65,000 kgs of cannabis feedstock per year. The facility has additional 45,000 square feet available for expansion;

  • Multiple Revenue Streams – The Plant will produce Westleaf’s suite of brands, LoonBackstage and General Admission, in addition to providing contract extraction & processing services, and white-label products for third parties; 

  • Leveraging U.S. Industry Expertise – The facility was designed by U.S. cannabis extraction industry leaders, XABIS, and will leverage their existing product formulation expertise, R&D, and best practices developed in Colorado, the most mature legal U.S. cannabis market.

As a result of Westleaf Inc.’s unique brand focused vertically-integrated business model, it is expected that The Plant will give the Company a competitive advantage in being adaptive to consumer needs and interests. “The Plant will also allow us to be flexible and responsive to consumer demand and underscores the value of the Westleaf business model,” said Adam Coates, Chief Commercial Officer at Westleaf. “By owning the customer experience and feedback loop through our Prairie Records cannabis stores, we can alter production based on the trends of our customers.”

Westleaf anticipates the next phase of cannabis legalization in Canada, which is expected to come later this year, will see a significant change in consumption habits among Canadians. A similar legalization framework in Colorado led to a shift where consumption of edibles, concentrates and vapes now make up more than 50% of the market.1

Located in southeast Calgary, Westleaf expects that The Plant by Westleaf Labs will positively contribute to the city’s economic resilience and diversification. Calgary, with its highly educated workforce, its entrepreneurial spirit and its position as the major economic and trade centre for Western Canada, is the ideal place to build a hub of cannabis extraction, processing, product formulation and research and development.