NZX-listed medicinal cannabis company Cannasouth expects to export pharmaceutical-grade cannabis flower in early 2022 after completing commissioning of its Waikato-based growing facility.
Joint venture partner, Cannasouth Cultivation, expects its first commercial harvest in December 2021.
At the company’s annual general meeting this week, chief executive Mark Lucas told investors the facility will produce up to 1,800kg of pharmaceutical-grade cannabis flower each year with the ability to scale capacity by four times as demand requires.
Lucas said: “Current wholesale pricing estimates for quality medicinal cannabis flower ranges between NZ$3,500 per kg and $10,000 per kg, depending on the cannabinoid content, market and quality standard achieved.
“Using a market price of $4,500 per kg, phase one of our cultivation facility has the potential to produce approximately $8 million in annual revenue.
“Our innovative facility design will give us premium flower produced at a highly competitive cost, while also greatly reducing our carbon footprint over indoor growing operations.”
Lucas said Cannasouth’s focus on developing Good Agricultural Collection Practices (GACP) and Good Manufacturing Practice (GMP) compliant facilities and processes will allow the company to access high-growth, high-value export markets.
“Once our growing facilities have been successfully certified, we will be in a position to produce premium quality GACP/GMP compliant cannabis flower for the highest value export markets.
“We have significant demand for this flower from prospective customers in these markets and we are regularly being approached to enter into supply agreements from offshore parties.
“We are in negotiations now to place our first commercial-scale harvests with export customers,” he added.