The approval will help the company to effectively double its production, increasing its capacity to 6,000 kilograms per year. With the Health Canada approval, Radicle will have 40,000 sq. ft. dedicated to indoor hydroponic cultivation.
“The cannabis industry is showing many similarities to the craft beer movement, where local, artisanal operators are succeeding in securing loyal and robust customer followings. Radicle is thriving within this craft segment, and is raising the bar when it comes to its unique strains offered under the Gage brand. We see no slowdown in consumer demand for premium products and brands, and this Health Canada approval will help Radicle better supply high-quality craft cannabis to both the medical and adult-use markets,” Canopy Rivers President and CEO Narbe Alexandrian stated.
First licensed for cultivation in early 2018, Radicle’s indoor facility located in Hamilton, Ontario, is focused on small-batch cultivation of genetic strains for its premium cannabis brand called Gage. The company was one of the original 26 licensed cannabis producers selected in a competitive product call by the Ontario Cannabis Store for adult-use sale online and in retail stores.
Canopy Rivers currently owns approximately 22% of the issued and outstanding common shares of Radicle. Further, Canopy Rivers is entitled to receive a royalty based on Radicle’s cannabis production, with a minimum annual payment of $900,000 per year for a term of 20 years.