CannTrust Holdings Inc. (OTCMKTS:CNTTF) has announced that they have obtained the required permit to go on with the third phase expansion from the Town of Pelham. The company expects to commence the construction process immediately.
Third phase expansion
The company has received permission for the construction in a revised 390,000 square feet footprint which is less of the initial 600,000 application. However, the revised expansion has an enhancement that is above the initial specifications that CannTrust contemplated. It nonetheless maintained the 100,000kg total production capacity per year once the third phase construction gets completed.
The enhancements in the third phase expansion include high-level climate control as well as automation. Because of the upgrades and the time it has taken to get the construction permit, the expansion is likely to be complete by Q3 of 2020. The company will realize the first harvest of the expansion during the second quarter of 202 fiscal with full capacity production expected in the second half of next year.
CannTrust plans to address the local concerns of light emission from their facility by adding another fan ventilation to close their shades at a marginal incremental cost completely.
Expansion to meet supply targets
Speaking on obtaining the permit, Pete Aceto, the CEO CannTrust, said that the company was pleased with the discussion outcomes with Town of Pelham adding that the decision shows that the company is a trusted community member ready to listen to stakeholders. The CEO indicated that the demand of their recreational and medical products is multiplying and for the company to meet their supply targets they are accelerating the phase III expansion.
Mr. Pete added they are continuously evaluating various strategic options that enable them to meet as well as increase their production capacity targets. The company is pursuing the acquisition of more strategic facilities and land in Ontario and beyond and they will inform the stakeholders about the initiatives soon.
The company’s active patient count continues to grow with their recreational market currently being undersupplied.
The second phase expansion is currently on course, and it will bring CannTrust’s annual capacity to 50,000Kg with harvesting due in the Q1 2019.