While competitors move towards an asset-light model, Cann used its FY20 financial results to extol the virtues of its cultivation facility in Mildura. Steve Jones reports.
Building vast and expensive facilities may be unfashionable for some, but Cann Group was having none of it.
“I want to make it clear,” chief executive Peter Crock emphasised on an investor call. “The Mildura expansion is still core to our future growth.”
The support was unequivocal, the statement designed to put any industry concerns to bed.
Never mind that some competitors are shying away from large-scale projects requiring high capital expenditure, Cann Group is committed to its strategy, convinced it will reap dividends over the coming years.
The company’s renewed commitment to Mildura emerged at its FY2020 presentation during which Crock and chief operating officer Shane Duncan outlined the group’s plans.
The Mildura facility was originally intended as a single-stage $184 million development with capacity for 70,000kg of dry flower.
That changed following an imbalance between supply and demand – in Canada mainly – with Cann Group concerned there was insufficient need for such significant supply in one hit.