- SpeakEasy Cannabis Club (CSE:EASY) has received approval from Health Canada to significantly expand its outdoor cultivation facility
- The approval will enable the 10,000 square foot site to cover more than 2.6 million square feet
- With a favourable climate in Rock Creek, British Columbia, SpeakEasy expects its production costs will be well below the industry average
- The company’s first outdoor crops should be planted by May of this year
- SpeakEasy Cannabis Club (EASY) is up 16.67 per cent to C$0.49 per share, with a market cap of $49.15 million
SpeakEasy Cannabis Club (CSE:EASY) has received approval from Health Canada to significantly expand its outdoor cultivation facility.
The approval will allow the company’s existing 10,000 square foot cultivation facility to grow to over 2.6 million square feet.
Based in Rock Creek, British Columbia, SpeakEasy Cannabis has been eagerly waiting for the opportunity to grow outdoors.
The southern interior of the province offers a predominantly arid climate. Combined with warm summers and little rainfall, this makes an ideal environment for growing quality outdoor cannabis on large scales.
With the infrastructure now in place, SpeakEasy Cannabis is expecting to plant its first outdoor crops by May this year. Over the course of 2020, the company has forecast approximately 70,000kg of outdoor, sun grown cannabis.
SpeakEasy Cannabis Club’s CEO, Bin Huang, said that the expanded cultivation capacity puts the company in an enviable position.
“The scale and cost efficiency of the operation opens the opportunity to be competitive in domestic and global markets.
“Combining our high quality, eco-sensitive farming practices and projected industry-leading low cost of production, we believe we have a very bright future ahead of us,” he added.
Typical indoor or greenhouse production yields a variety of production costs, normally between C$0.50 and $2.00 per gram. However, Speakeasy Cannabis has projected the cost of its outdoor-grown flower to be less than $0.10 per gram.
The company has also estimated the production of extract materials, which are used in a range of products, to be under $0.04 per gram.
However, the company’s real value, according to its founder Marc Geen, is in the expertise of its growers.
“Without our growers and their vast knowledge of cannabis, our facilities would be just like any other group of nice buildings.
“Combining their knowledge and giving them everything they need to grow, with the addition of our outdoor facility, together, creates what we believe to be a winning combination,” he said.
SpeakEasy Cannabis Club (EASY) is currently up 16.67 per cent to $0.49 per share at 10:49am EST.