The Joint Venture is converting the Delta 3 greenhouse operation to cannabis production with meticulous attention to the growing environment and systems, processing areas, and production ramp up, with a particular focus on management of climate and contaminants, optimizing yield, maximizing efficiencies, and achieving continuous year-round production. Key elements of the design, conversion, and operations include:
| | • | | Growing system with automation proven in different crops to provide optimal efficiencies; |
| | • | | Industry-leading HVAC systems reflecting hundreds of aggregate years of climate management experience, with technically advanced data systems; |
| | • | | High-tech light deprivation and light supplementation systems with individual control of over 15 growing zones within the 1.1 million ft2 footprint; |
| | • | | Fully automated 90,000 square feet nursery capable of supplying Delta 3 (as well as the 1.1 million ft2 Delta 2 facility should the Joint Venture exercise its option to purchase that facility, as described below); |
| | • | | State of the art drying, trimming and packaging areas; |
| | • | | Core upgrades to facility infrastructure; |
| | • | | Use of an established labour force and proprietary labour tracking systems; and, |
| | • | | Secure supply of low-cost electricity from BC Hydro sufficient to power Delta 3 at full production (and, if required, to power the Delta 2 facility at full production). |
Conversion of the first 250,000 ft2 section of the 1.1 million ft2 Delta 3 greenhouse to cannabis production is substantially complete and is expected to commence production in April 2018. Senior growing and operational personnel, including the established team transferred from Village Farms, are in place for production ramp-up. Conversion of the remainder of the 1.1 million ft2 is underway and the entire facility is expected to be in production in 2019.
The Joint Venture holds options on two additional state-of-the-art greenhouses owned by Village Farms (Delta 2 and Delta 1, with 1.1 million ft2 and 2.6 million ft2 of growing capacity, respectively). Exercising these options would expand the Joint Venture’s production facility to 4.8 million ft2 and make it one of the largest cannabis producers in Canada.
About Emerald Health Therapeutics
Emerald Health Therapeutics, Inc. (TSXV: EMH; OTCQX: EMHTF) operates through Emerald Health Therapeutics Canada Inc. (“EHTC”), a wholly owned subsidiary and Licensed Producer under Canada’s Access to Cannabis for Medical Purposes Regulations. Through EHTC, Emerald is authorized to produce and sell dried cannabis and cannabis oil for medical purposes. It operates an indoor facility in Victoria, BC, and is building a 500,000 ft2 greenhouse on 32 acres in Metro Vancouver, with expansion potential to 1 million ft2 to serve the anticipated legal Canadian adult-use cannabis market starting in 2018. Emerald owns 50% of a Joint Venture with Village Farms International, Inc. that is converting an existing 1.1 million ft2 greenhouse in Delta, BC to grow cannabis. Emerald’s team is highly experienced in life sciences, product development and large-scale agribusiness. Emerald is part of the Emerald Health Group, which is broadly focused on developing pharmaceutical, botanical and nutraceutical products that may provide wellness and medical benefits by interacting with the human body’s endocannabinoid system.
About Village Farms International, Inc.
Village Farms is one of the largest producers, marketers, and distributors of premium-quality, greenhouse-grown fruits and vegetables in North America. The food our farmers grow, along with other greenhouse farmers under exclusive arrangements are all grown in environmentally friendly, soil-less, glass greenhouses. The Village Farms® brand of fruits and vegetables is marketed and distributed primarily to local retail grocers and dedicated fresh food distributors throughout the United States and Canada. Since its inception, Village Farms has been guided by sustainability principles that enable us to grow food 365 days a year that not only feeds the growing population but is healthier for people and the planet. Village Farms is Good for the Earth® and good for you.
