VIVO Cannabis (TSX-V: VIVO) (OTCQB: VVCIF) has announced that it has received approval to expand its facility in Hope, British Columbia.
Following local municipal approval, the company’s subsidiary Canna Farms Ltd. will now move forward for the facility’s Phase 5 expansion which will add an incremental 2,500 kilograms of indoor capacity.
Canna Farms’ Phase 5 expansion, originally slated to begin construction in 2020, is now expected to be completed in late 2019 or early 2020, pending regulatory approval.
Talking about the project, Raymond Laflamme, senior vice president, facilities and engineering at VIVO, said that the project “was not expected to start so quickly as it required development permit approval from the District of Hope.”
“In short order we will have completed the design and engineering work needed for our building permit application. As in our previous facility expansions, we will continue to utilize off-the-shelf components that are efficient, easy to assemble, and locally sourced. Using this approach allows Canna Farms to minimize construction time and achieve a quick return on capital for our shareholders,” Laflamme added.
The expansion consists of 10,000 square feet of cultivation space, with expected capital costs of C$3.5 million, is expected to bring VIVO’s total internal production capacity to 13,500 kilograms by early 2020.
“This expansion will further increase Canna Farms’ production capacity to help meet the significant market demand for premium B.C. dry bud. This project represents a strategic deployment of a minor portion of our strong cash position as the Company continues to invest to drive future growth,” Barry Fishman, the chief executive officer of VIVO, stated.