Completing its Cannabis production facility in Carleton Place, ON will enable RockGarden to fully take advantage of the confirmation by the Prime Minister's Office that recreational marijuana use may be legal by July 1, 2018.
CARLETON PLACE, ON, March 29, 2017 /CNW/ - RockGarden Medicinals Inc. (RockGarden), a medical grade Cannabis company, today announced that it intends to raise $1.5 million by May 2017 to complete the first of three phases required to bring its production footprint to 20,000 square feet. A total of 450,000 common shares of RockGarden, representing 25% of total shareholdings, will be sold at a price of $3.40 to existing and new shareholders.
RockGarden intends to use the proceeds to complete construction on the first of three phases in its staged build plan, as well as to fund general operations. Phase one is expected to be completed by June 2017 and will consist of one flower room and associated support facilities. Upon completion of phase one, Health Canada will conduct a pre-licence inspection, with the licence to cultivate expected by September 2017. Phase two, which will be funded by a subsequent financing round and triple production capacity, will be completed by May 2018. Phase three, also to be funded by a subsequent financing round, will complete the 20,000 square foot facility by March 2019 and enable annual production of up to 1,125 kg of medical grade Cannabis.
"The recent announcement by the Federal Government that recreational use of marijuana may be legal by July 1, 2018 could not have been better timed for us," said Deborah Hanscom, President at RockGarden. "Given the detailed requirements and application lead time, any prospective producer that is not already at an advanced stage in the licencing process will likely miss the opportunity to fully capitalize on the legalization of recreational use of Cannabis. At RockGarden, we are positioned to be fully licenced well in advance of legalization. Our facility is under construction and our team has the necessary expertise to produce high quality Cannabis at scale – all we need to execute now is capital."
"It is estimated that the combined medical and recreational market for Cannabis in Canada will be $8 billion by 2024, and that demand will be three times production capacity at that time," said Andrew Rock, Chief Operating Officer at RockGarden. "Currently there are only 40 producers licenced by Health Canada and their combined current and planned production capacity is not nearly sufficient to meet demand. So, it is safe to say that the time to invest in the Cannabis production business is now."
RockGarden is a medical grade Cannabis producer located in Carleton Place, Ontario. It has successfully passed the Review stage in the Health Canada licencing process and is currently constructing its production facilities. Upon completion of construction, the pre-licence inspection is anticipated by June 2017, and licence to cultivate is anticipated by September 2017. Completion of phases two and three of construction are anticipated in May 2018 and March 2019 respectively, which will bring total production footprint to 20,000 square feet across nine flower rooms with capacity to produce 1,125kg of medical grade marijuana annually.
For further information: Wynand Stassen, CPA, CA, Chief Financial Officer at RockGarden, 1-613-799-3240, [email protected]