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Maple Leaf Green World (NEO:MGW) reveals CBG greenhouse expansion plan

Environment
TSX:MGW
23 January 2020 03:02 (EDT)

Maple Leaf Green World Inc. (MGW) has announced a California-based greenhouse expansion plan to include the cultivation of Cannabigerol (CBG) enriched hemp seeds.

CBG is a highly sought-after, yet newly discovered, non-psychoactive cannabinoid that offers significant potential in providing medical relief to ailments not seen with the more established compound Cannabidiol (CBD).

With renovations already underway on the two existing greenhouses at the company’s 20 acre site in Riverside County, California, Maple Leaf Green World intends to perform a complete sterilization of the facility to ensure a clean start up.

The renovations are expected to reach completion in late-February, with cultivation due to begin soon after.

Growing demand for CBG enriched hemp has seen the company enter supply contract negotiations with several North American and overseas buyers, including Singapore-based Lin International, which signed a letter of intent on September 17, 2019.

To ensure that this demand can be reliably met, Maple Leaf Green World is looking to expand the greenhouses by an additional 1,000 sq. ft, bringing the total growing capacity to 7,000 sq. ft.

While the company has acknowledged that further research is required, the initial evaluation of CBG for medical purposes has shown great promise.

With over 100 cannabinoid compounds identified so far, CBG is the precursor to which all other cannabinoids, such as Tetrahydrocannabinol (THC) and CBD, are synthesized.

Maple Leaf Green World shares are up 36.00%, trading at $0.068.

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