Chemistree Technology (CSE: CHM) (OTCQB: CHMJF) said that its CHM Desert subsidiary has received a conditional use permit for its 9.55-acre property in the cannabis cultivation-friendly zone of the city of Desert Hot Springs, Calif.

The permit covers cultivation in two greenhouse buildings totaling approximately 128,000 square feet, and an additional building of up to an additional 40,000 square feet for processing, manufacturing and distribution of cannabis goods, the company said in a statement.

Chemistree believes that a fully-constructed facility of this size can produce approximately 50,000 pounds of dried-cannabis flower per year. Once fully licensed and constructed, the site will have the capacity to process, manufacture and distribute a range of cannabis-related products, according to the company.

Chemistree Technology is an investment company focused on the U.S. cannabis sector. The company’s strategy is to acquire and develop vertically integrated cannabis assets and own licensed cultivation, processing, distribution and retail facilities.

The company currently owns assets in Washington, prospective cannabis cultivation lands in California, and a 50% stake in a Humboldt County, Calif. cannabis processing company. Also, it made its first investment in the Canadian cannabis sector through its investment in Pasha Brands.